The United States can offer numerous opportunities for companies expanding their business from different parts of the world, as the US market is vast and can offer massive rewards and success for companies who manage an effective business strategy and break into the market successfully.
Businesses primarily based in other countries should be careful when expanding, however, as all the benefits that the US offers could just as easily become ways in which companies turn and decline. As such, it is important for companies looking to expand into the US to hire a third-party company because such a company can ensure a smoother and more efficient transition that will allow a company to take off from the ground running once based in the US.
Understanding the Business Culture and Forming Connections
In many countries, employers, customers, and employee relations form different business cultures and traditions. Those who can successfully navigate such a world find themselves with more success than ones who cannot, especially since a healthy culture and reputation are what attract more customers. For this to happen during a transition to the US, hiring a third-party company is the best approach.
Understanding the Culture
The United States can sometimes be a tough nut for foreign companies to crack due to a vastly different business network and culture. The company culture in the US is much more focused on productivity and efficiency compared to building personal relationships, which can be difficult for many companies, especially European ones. As shown in the chart below, the United States finds itself high in both labor productivity and the number of hours worked, signifying the greater focus on work-life compared to personal life.
There are several ways in which companies attempting to enter the United States can better prepare themselves culturally. Doing research on basic business culture, important facts, and vernacular in the area of expansion can make the difference when attempting to build relationships in the area, as companies choose to work with and hire employees based on their potential fit. Understanding body language and respecting dress codes is also important because there are different signals that can be sent based on how a person stands, sits, and dresses.
This basic research can help, but certain tasks are better performed by independent contractors hired to assist in the transition. A third-party company would preferably already have connections in the area of expansion, allowing them to mesh well with future clients, do the talking for a foreign company, and hire workers in-house so that new employees in a full-time position would already have an understanding of both business culture in the area along with company culture.
Forming Connections
According to data collected from LinkedIn, Marketing Expertus, and the BBC, 61% of professionals said networking leads to job opportunities. In a similar vein, networking also leads to more clients and better business relationships with potential and actual clients.
A third-party company hired to ensure the transition from a foreign country to the United States would provide this benefit to a great degree. For example, it is difficult for new companies in an area to break onto the scene, develop relationships with other companies in the area, and see immediate success in their returns. On the other hand, an independent contractor would already have relationships established within the US, allowing the company that hired them to leverage those relationships, gain immediate clients due to being backed by a reputable source, and see greater profit now, which could then be used as a stepping stone in the future to gain further profit. As such, a third-party company would be a great find when expanding due to its understanding of business culture and existing connections.
Tangible Benefits of Hiring Third Parties
Hiring a third party to plan and execute your expansion helps your company with saving costs and narrowing focus. Consultants bring various benefits that save time and money in the long-run, increasing overall productivity. Leveraging third party relationships with experience in specific projects can also increase the likelihood of successful projects.
Retaining Employees for Critical Tasks
Third party’s activities can save costs by eliminating the need to hire an in house expansion team or a full time employee with expertise. This can prevent the need to sink resources into a process to hire employees, as well as protect the allocation of current full time employees, reserving them for the most critical tasks.
Narrow Business Focus
Additionally, potential third parties can narrow the focus of a business’s operations. Consultants have the ability to deliver clear ideas on proposing solutions to increase the efficiency of a company. Consultants are trained to encourage the most efficient and effective business practices. This will reduce redundancy and can generate massive savings in certain circumstances.
Improve Performance
Another factor to consider is that work done by consultants often outperforms work done by the firms themselves. A company that conducts all business processes in house is spread extremely thin in terms of expertise. This can cause a dilution of performance and reduce effectiveness. On the other hand, consultancies are extremely practiced in many of these tasks and are able to streamline tasks with a high degree of efficiency.
Example of Benefits
For example, consultants working in a human resources department of a given company would prevent the need to hire a team to analyze and revise current HR tasks, an expensive task. It would also allow for all full time employees to focus on processes more aligned with the business itself. Consultancies are extremely practiced in the area of developing improved employee relations, conducting thorough background checks, and navigating any external factors such as anti discrimination laws or other regulations.
Overall, hiring a third party provides various benefits as they focus on the details and nuances surrounding business expansion while you focus on the readiness of your company’s products and services for the new market. With their knowledge and experience, a third party’s compliance reduces costs in the long term and save time through a narrowed focus on business processes. And with the increase in the number of remote workers, the expertise of consultancies can be sourced from anywhere.
Establishing a Legal Foundation
Outsourcing a third party to establish a legal foundation is an important step in any business endeavor. Doing so ensures that all of the agreements, contracts, and other legal documents associated with the project are properly drafted and executed. Properly structured legal documents can help protect the interests of all involved parties, reduce conflicts, and provide a legal framework for enforcing contracts.
Furthermore, companies must abide by local laws and state laws, which third parties may have the most experience with. Having an experienced team to create the legal framework is essential. An experienced third party can provide valuable insight into the best approach for creating a robust and legally sound foundation. They will be intimately familiar with contract law and how to structure agreements between parties so that all interests are appropriately represented. Additionally, they have access to industry experts who can provide valuable information on any particular issue that may arise. The third party team will be able to identify potential pitfalls and areas of conflict before they become an issue.
Entity Formation
Entity formation is an important part of the legal foundation process. An entity such as an LLC, Corporation, or Partnership must be securely established in order to ensure that any agreements and contracts are binding. A third party team can help ensure that all of the necessary paperwork is properly filed and that the entity created will provide maximum protection for those involved in the business venture.
As seen in the graphic below, there are a variety of different ways to establish a business legally. A third party is often best at deciding which one can best fit the legal needs of a specific business.
Taxation
Taxation is another area where an experienced team can make sure that all of the necessary steps are taken to ensure compliance with applicable laws. They can help identify any potential tax issues that may arise and recommend ways to minimize them. They also make sure that proper tax reporting and filing are completed in a timely manner to avoid any penalties or interest charges.
Hiring Process
Hiring a third party team to help with the hiring and human resources (HR) process can also be beneficial. Having an experienced team that understands the legal aspects of the recruitment process and HR tasks can help ensure that all parties involved in the process are treated fairly and equally while avoiding any potential issues, conflicts, or the mishandling of confidential information. Furthermore, in an era of remote work, hiring a third party that understands how to work with and hire remote workers is an essential tool.
Overall, hiring a third party to establish a legal foundation is an important step in any business endeavor. An experienced team can help ensure that all of the necessary steps are taken and that the interests of involved parties are adequately represented. Doing so can help create a secure and legally sound environment for businesses to operate in.
As seen in the graph below, the hiring process is a complex process. Therefore, hiring a third party to help out with staffing needs, background checks, and other factors can save companies from wasting time in monotonous processes.
Conclusion
Independent contractors or third-party companies can greatly benefit a company when expanding in the US, as such companies can take advantage of the local talent pool and knowledge of national employment laws and state employment laws to efficiently facilitate a business transition to the US. When companies choose from independent contractors, they must ensure that their hiring process keeps track of companies that can utilize employees and other resources based within the US that can take advantage of prior knowledge and adapt it to a transition.
A successful new hire on this front will ensure that a company has control, extra money, and full-time employees in a new country available to the business as soon as possible, allowing them the best possible resources to transfer successfully into the United States.
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