Dutch Ventures in the U.S. (DVITUS)
Get the latest insights from the TABS 2020 ‘Dutch Ventures in the United States’ research project on how to successfully expand to and build your business in the U.S. market.
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TABS Inc. conducted its first Dutch Ventures in the United States (DVITUS) survey in 2013 and published The Do’s and Don’ts of Doing Business in the United States as a Dutch Venture from the information obtained. There were three main take-aways from the 2013 DVITUS research. First, positive results may take time – most companies only saw substantial revenues after 3 years. Second, better results were reported by those that made a significant investment in their U.S. venture. And third, those who established a U.S. entity and received professional advice and support were better positioned for substantial growth. In summary, the main take-away from the 2013 research was “go big or stay home”.
A lot has changed since 2013 and in many ways doing business internationally has become more difficult. For example, foreign-owned subsidiaries in the U.S. are faced with new immigration rules making staffing more difficult and The Trump Administration’s trade conflicts with China and Europe resulted in new and higher import duties imposed on products that used to be duty-free or had limited duties.
TABS recently completed its 2020 DVITUS research and analysis and despite the new challenges that face foreign owned entities doing business in the United States, companies generally realized success on a much shorter time table when compared with the 2013 data. Although the lead time may be shorter, the data also suggests that a significant investment and preparation for and targeted focus on the U.S. market is still needed.
Almost half of the companies state that doing business in the U.S. became more difficult over the past three years. Most of these difficulties were attributed to importing obstacles, political uncertainties, increasing regulatory challenges, and other administrative obstacles that needed to be overcome before the entity was up and running. One of the most important take-aways is therefore to really prepare yourself for the U.S. market. Prepare yourself for the cultural differences that may be encountered (especially when building your U.S. team), for the different rules & regulations on local, state and federal levels and make adjustments that need to be made to your sales & marketing strategies. In this report, we will walk you through all these topics to help guide Dutch ventures to a successful U.S. market entry.
Although there are some challenges, Dutch ventures are overall extremely positive about their U.S. expansion and the potential that the U.S. market has to offer. The U.S. offers many opportunities for Dutch ‘start-ups’. When compared to the Netherlands, and to Europe as a whole, the participants in this research overwhelmingly agreed that the U.S. is a huge market with a lot of potential customers. The potential exists in the U.S. to scale your business in ways that are simply not possible in the Netherlands.
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