Tuesday was the first full day of our trade mission to Atlanta, Georgia and it kicked off at Invest Atlanta with an introduction to the region’s business landscape. Here’s a summary of points made by Dr Eloisa Klementich, managing director of business development, Invest Atlanta, and Jeremy Pilmore-Bedford, Her Majesty’s consul general, southeast USA:
- Ways of doing business differ in different parts of US. If you want to launch your firm here, concentrate on a state or region rather than the whole country
- San Francisco (and the Bay area), or Boston may offer more venture capital funding opportunities, but Atlanta has relatively low living costs and it’s easier to recruit staff. It has an educated workforce – 46% of Atlanta residents hold a bachelor’s degree or higher
British businesses leaders who have found success in the US then spoke about the unexpected pitfalls and challenges of launching in the US:
Brett Lauter, president of Decluttr (Music Magpie in the UK)
- Consider the cultural reference points – Lauter rebranded the company in the States when he joined, because “no-one knows what a magpie is in the US”
- Hire a local representative that understands the US business systems
Gordon McRae, vice president of JML Direct
- “One of the the things we quickly learned was that selling into retail here is different to selling into retail in the UK. We tried to do it ourselves but it was slow, so we started using a team of agents”
- Advertising styles are different in the US. “You don’t need subtlety here,” McRae says. You’ll need to change your advertising to suit the American market. Americans expect, and often enjoy, one-to-one selling more than Brits
- “If you’ve got something [a product] that’s completely new, that will help –and you should have the data to back up your UK success”
Matt Sheahan, chief operating officer of Triumph Motorcycles America
- Having a great product isn’t enough, you need to build brand awareness to get US customers on side
- “Customer service is key to success in the US” – engage with your customers and understand what they need from your product
- Embrace Britishness if it fits with your brand – for Triumph this meant focusing on their high-tech credentials
We spoke to McRae briefly after his talk. He explained how sales agents are used in the US market:
We have one agent for Walmart, one for Target, one for CVS, etc. These agents are really specialist. They help to secure distribution for your brand and they work very well.
In the UK, retailers prefer talking to the business owner. But in the US they want to speak to the agent as they know exactly what type of products that store sells. They’re pitching your product to that retailer because they think it’s right for the store, rather than just ringing around everywhere.
A tip repeated by several different experts throughout the day was to target a particular region rather than the US as a whole.
James Anthony, president of Enrich, and a member of the British American Business Group (BABG), says: “It’s not about nationwide domination, businesses need to be regional.”
He had this advice on business etiquette in the US. “Get to the point and always be respectful. Innocuous statements can end up in lawsuits.” And don’t swear – unless the other person swears first. “If you go for a beer with someone you have a business relationship with and they swear, you know they trust you.”
Carl Newton, managing director of Slalom Consulting and also a BABG member, discussed the cultural differences he’d experienced in American business. We caught up with him after his talk for some advice on how to avoid committing a faux pas with American clients. Listen to him in the clip below:
Newton also said that a lack of credit history can be a problem in the US. If you don’t have a credit history then car insurance, for example, can be really expensive. “It’s a serious thing to consider if you want to move across. Understand how you build your credit personally, and for your company.”
The final session of the day explored the theme of adapting brands for the US market. David Butler, vice president of innovation and entrepreneurship at Coca Cola, Stephan Gans, chief strategy officer for North America, Interbrand, and Ashley Grice, managing director, Iris Worldwide, answered the delegates’ questions about branding:
David Butler
- There’s a common mistake startups make – while they focus on their product, they don’t focus enough on their story: “The storytelling around the product is just as important.”
- “Be authentic. If you don’t have a great founder’s story, don’t make one up.”
- When adapting your brand for a different market, decide which elements of your brand are fixed and which are flexible. “What’s fixed about your brand that should never change? And what are the flexible elements? They keep you adaptable.”
Ashley Grice
- Find “influencers” who might help you promote your brand. “Scour the internet to figure out where you’re being talked about. You’ll see that certain people gravitate towards your brand.” This might be a blogger, for example. Then get in contact with them: “Say ‘I’ve got this product and I think you’d like it.’”
Stephan Gans
- Sometimes business owners can be too close to their product to develop the brand’s story.
- Keep thinking about the one thing you want your product to stand for
- Gans also stressed the importance of being authentic and has written this blog on the topic: Your brand can’t be something you’re not.
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