America Made Easy Podcast

Outside of the brokerage community, insurance isn’t a particularly thrilling topic. The exercise of imagining everything that could go wrong is a grim one—particularly in 2020. Still, when entering a new market, particularly one as large and complex as the US, planning for the unexpected is essential. SMEs that invest time and money in sound planning for their US launch will avoid costly mistakes. Otherwise, fail to prepare and you are preparing to fail.

The US is a competitive market and investors may only have one chance to get it right. Securing business activity with the appropriate insurances can give international investors the confidence that should the worst happen their business can survive it whether that be unexpected losses or lawsuits.

In this way, insurance is yet another tool that can help drive business growth—providing the assurance and financial stability needed whether as a prerequisite for securing capital or as a catalyst for innovation. Investors should therefore think about the most appropriate coverage for their business well before selling products and services into the US market. A starting place is likely with your current domestic carrier. Does their coverage extend to the US market? Have you sought in market expertise on what you will need to protect your growth? Did you read the fine print?

In our 9th and final full-length episode of season 1 of the America Made Easy Podcast, we sit down with Avitus Director of Insurance and Chief Underwriting Officer Kevin Mayo to work through the risk scenarios you need to consider as a part of your US market entry plan. A well-planned market entry strategy can easily be upended without properly insuring products, officers and activities.

Tune in to our 9th full length episode as we take a look at the US insurance landscape and the essential insurances our international planning team recommends for SMEs building a strong foundation for growth and seeking peace of mind.

Doing business in the US means you will at some point be paying US taxes. The old adage certainly runs true that it is always cheaper and easier to do things correct from the beginning. International investors certainly do not want to run awry of the Internal Revenue Service (IRS). Unfortunately, this is not the only layer of tax compliance to be concerned about in the US.

US states have their own regulatory and legislative authority. That authority extends to the ability to create their own unique tax regimes. Thus, doing business in the US means navigating compliance with both federal and state level laws, regulations and yes taxes. This can mean multiple filings across multiple states creating a significant compliance requirement for investors as they scale and sell across more and more states.

Any company selling to end consumers will have sales and use tax liability once they surpass certain state thresholds. And you guessed it—those thresholds look different from state to state ranging from annual sales levels to the number of annual transactions. Likewise, once companies have physical or economic nexus based on the level of activity in a particular state they will also have to file a corporate income tax return in that state. That is on top of their annual federal tax return they must file annually regardless of income levels.

Feeling overwhelmed yet? In episode 8 of the America Made Easy Podcast, we try to make sense of US tax with Avitus Director of Tax Services Scott Stevenson.  The conversation provides international investors with a lay of the land of how the tax code in the US is managed and segmented while also exploring trends that will impact their business decisions.

Tune in to our 8th full length episode as we discuss this complicated tax environment and the importance of taking these requirements on early with proactive planning so that tax consequences can be managed and minimized allowing you to function, perform and make profits.

If International investors setting up in the US can expect one thing, it is complexity. Not only will they have to develop dynamic marketing and sales strategies to effectively traverse a market 40 times larger than the UK, but they also face the necessity of setting up operational processes capable of navigating the myriad of compliance standards, which exist in a market of that size. This is particularly relevant for financial reporting and accounting.

Companies eyeing a US expansion will ultimately make a significant financial investment in the capital expenditures necessary to establish themselves and their brand in the market. Their growth will likely result in business activity in several US states with vendors, customers and staff. A company’s capacity to accurately track that activity and comply with reporting requirements that will almost certainly differ from state to state, in addition to the layer of federal reporting, will determine their ability to mitigate costs, to ensure a positive ROI and to scale.

The different accounting standards investors face in the US market mean processes must be refined. While companies in Europe are accustomed to the streamlined principles of IFRS accounting, the rules of US GAAP are complex and numerous. With 50 different states that all differ on deadlines and views for income, sales and property tax, it is important that international investors think about how they will set up their US accounting to manage that complexity.

In episode 7 of the America Made Easy Podcast, we explore US accounting principles with Avitus Director of Accounting Services Andrew Miller from primary differences in US GAAP rules to how to go about setting up your US chart of accounts. That includes the importance of aligning your tax and accounting processes and key questions for the relationship with the US subsidiary’s parent company.

Tune in to our 7th full length episode as we discuss the role of accounting in ensuring a successful US expansion and why your company should leverage on the ground expertise to bolster the capacity of your existing accounting team.

Value Bombs from the Podcast

The core difference in US accounting practice are the complex system of rules according to US GAAP standards vs. the streamlined IFRS principles overseas.

All 50 states have different reporting deadlines and requirements when it comes to income, sales and property taxes.

Starting a business in the US can be challenging from a compliance perspective—according to the World Bank the US ranks 55 of 190 nations in ease of starting a business.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social i

There is no average American consumer. This realization creates unique challenges for domestic and international firms alike as demands for hyper-personalization of products and services continue to increase. But how do you scale personalized marketing investment for over 265 million consumers across 6 time zones and 50 states? What does this mean for international firms grappling with a US launch?

The cornerstone of launching your brand in the US has to be knowing who you are. Understanding the elements that make your brand special and unique are what give you authenticity. If you fail to understand or are incapable of clearly communicating that core value of your business, how can you expect consumers to understand that value? Once you have that understanding you can then begin to translate it to the American market.

Even so the US market is very competitive and its consumers are impatient. You simply cannot copy paste your domestic market strategies while also wisely using your marketing spend. International investors that want a good ROI on their digital strategy should consider starting with a blank slate and bringing in market expertise to challenge assumptions.

In episode 6 of the America Made Easy Podcast, we paint a picture of the marketing landscape in the US with Avitus Marketing Manager Kevin Okragly from consumer preferences to strategy and tactics to succeed. That includes cost effective tools for translating brand value with a focused audience.

Tune in to our 6th full length episode as we discuss the importance of building a tribe of your core audience in the US market who you can learn from and leverage to prove strategies that can be scaled in larger US markets and regions.

Value Bombs from the Podcast

You have to start with your brand—what makes you special and unique? Take that DNA and identify and translate it into something the US audience will buy into.

Authenticity is important. Even if your product has broad appeal geography will drive how you present your value to the consumer so start small and focus on your first 100 consumers and learn from them.

American consumers expect hyper-personalization. You need to deliver a customer experience from customer service to packaging and know what your audience wants before they do.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.

Avitus – On your side in the US

Foreign investors eyeing a US expansion need market traction to justify investment. Reaching a critical mass of in market sales is a clear indicator of opportunity for further growth once on equal footing with existing market segment leaders and can be the justification companies need to take the plunge. Still, it can be difficult to convert online inquiries or trade show leads without on the ground support and intelligence whether that be business development or research capabilities.

This conundrum leads many international companies to consider avenues for employing their own representative in the market providing eyes and ears to inform their US strategy and win business. Sourcing independent contractors can be a short term solution but having a trained employee representing your interests 100% of the time can make the difference between success and failure. Still, employers in the U.S. face a host of regulatory requirements which can unnecessarily entangle a foreign firm still trying to validate the market opportunity. Employer of Record (EOR) services present one way for international investors to have their cake and eat it too in this regard presenting a flexible employment solution for investors.

In episode 5 of the America Made Easy Podcast, we take a look at outsourced recruitment and employment solutions such as EOR via Newable Avitus’ Validation Pilot and how they allow international firms to have boots on the ground in the US market without the administrative and regulatory burdens of being a US employer. For this episode, we are welcoming back Alex Mozota, Vice President for Recruiting at Avitus Group to help us break down these options for investors.

Tune in to our 5th full length episode as we explore how these solutions give international firms the flexibility to hire before setting up an entity in the US.  This episode will leave listeners with a clearer understanding of why outsourced employment solutions can be a good option for companies wanting to dip a toe in the US market as they determine the ROI on a full US expansion.  

 

Value Bombs from the Podcast

US Employers are required to set up State and Federal Payroll Tax accounts and collect and remit taxes for all W-2 employees.

The IRS places the burden of proof for worker classification, whether an employee or independent contractor, on the taxpayer (business).

Employer of Record (EOR) is an organization that serves as the employer for tax purposes while the employee performs work at and for a different company. The EOR takes on the responsibility and traditional employment tasks and liabilities such as workers compensation insurance and payroll taxes.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

Newable helps companies thrive by providing the essential resources they need to take the next step with their busine

As international firms scale in the US market, they increasingly face the burden of navigating a complex regulatory environment that differs from state to state. This is particularly true when it comes to employing people. All US employers must comply with both federal and state labour regulations governing everything from workers compensation insurance, employee benefits and payroll taxes.

Key differences exist with how US workers access healthcare and how companies approach safety and risk management in the market. Furthermore, international investors must ensure they classify employees in accordance with Internal Revenue Service (IRS) frameworks and that state and federal payroll taxes are remitted as appropriate.

International investors employing people on the ground in the US face a steep learning curve from a compliance perspective—even US domestic firms find their compliance responsibilities as an employer burdensome. For this reason, many US companies outsource the management of payroll and human resources to experts such as Professional Employer Organizations (PEOs).

In episode 4 of the America Made Easy Podcast, we explore the compliance requirements that international companies employing talent in the US face and consider options for managing those responsibilities with Josh Balster, President and CEO of Avitus Group. Josh leads the Avitus International Team and in Episode 4 shares his years of experience helping international investors work through their employment challenges in the US market. We talk through the PEO model in the U.S. and how international investors can leverage it to streamline payroll and human resources so that they can focus on revenue growth.

Tune in to our 4th full length episode to gain a deeper understanding of the unique aspects of people management in the US market and tools available to companies, such as Co-Employment, to ensure they do not run afoul of federal or state regulations. This episode will leave listeners with a clearer understanding of how they can move forward with their U.S. hiring and human resource management in a way that minimizes overhead and provides their employees with the benefits essential to maintaining great talent.

 

Value Bombs from the Podcast

Companies with 50 or fewer employees in the US are not required to provide access to healthcare coverage for their workers.

Workers Compensation Insurance is mandated at the state level in the US for companies to have in place for all employees regardless of their work duties.

PEO partnerships can allow small businesses in the US, whether international or domestic, to extend high quality corporate style benefits such as a 401k, dental and vision coverage etc. to their employees.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

https://newable.co.uk/

Newable helps companies thrive by p

International firms must adapt their recruiting strategies if they want to be successful in finding and maintaining top talent in the US. Investors need to consider cultural differences and nuances that could have a significant impact on screening and communicating with prospects. Likewise, recruiting practices and employment regulations can differ from state to state in addition to on average presenting clear differences with the how recruitment is approached in a firm’s domestic market. 

Thus, many UK firms seek out local professional recruitment providers and/or partners in the US that can help guide across effective tactics and essential compliance saving them time and heartburn from what can be costly mistakes.

In episode 3 of the America Made Easy Podcast, we consider the recent employment landscape in the US with Alex Mozota, Vice President for Recruiting at Avitus Group who brings a wealth of knowledge from years spent implementing effective recruiting strategies for clients across the US. We cover the unique challenges faced by international investors and ways they can approach recruiting to meet the needs of their company.  

Tune in to our 3rd full length episode in order to learn key differences in the US job market and the tools available to you to ensure you have the team needed to drive your product or service forward in the US. Investors will walk away with key insights on topics ranging from salary negotiation to labour regulations so that they can streamline their approach to recruiting top talent in the US.

Value Bombs from the Podcast

Over 49% of Americans receive healthcare benefits from their employers given a lack of a healthcare offering at the federal level—this means investors need to consider what benefits are competitive to offer in their industry and tailor that employee package of benefits accordingly.

At will hiring and firing provides both employers and employees tremendous flexibility but also creates challenges for maintaining talent which foreign investors must prepare for.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

https://newable.co.uk/

Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.

Avitus – On your side in the US

https://avitusgroup.com/

For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen

Every investor will need to consider entity formation in the U.S. at some point as their U.S. business activity grows but with 50 states to choose from where does one set up and what are the pros and cons of one location over another? While some states are more attractive than others for setting up your entity, there is no one panacea. Thus investors would be wise to take a strategic approach to the decision.

Establishing an entity through which to transact business in the U.S. can serve to de-risk growth and signal to the market a firm’s commitment, but still the decision brings along with it reporting requirements and responsibilities as a corporate citizen that should not be overlooked. The best timing for taking this step can vary from company to company depending on the nature of their business.

In episode 2 of the America Made Easy Podcast, we consider the ins and outs of entity formation with Steve Bentley, Senior Vice President of Finance and Director of International Services for Avitus Group who has provided strategic advice and consulting for hundreds of international firms setting up in the U.S.

Tune in to our 2nd full length episode in order to broaden your understanding of the corporate structures available to investors and the practical implications of each form. Investors will walk away with key insights on which elements to include in their decision making as they weigh the decision of when and where to set up their U.S. entity.

Value Bombs from the Podcast

Foreign firms that do business in the U.S. via a Branch Office rather than through a separate entity face additional liability and taxation.

New U.S. companies must obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service to be used to file taxes and open a bank account.

Banking in the U.S. can be a hassle for foreign firms and take 2-3 months to set up even after establishing a U.S. entity

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.

Avitus – On your side in the US

For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen and grow their business. From planning your entry

The America Made Easy Podcast is relaunching September 1st after a pause amidst the COVID-19 Pandemic. Host Morgan Pierstorff, Business Development Director for Newable Avitus’ America Made Easy programme, will be exploring the operational elements of scaling your business in the American market speaking with experts from across the Newable Avitus network and beyond about best practices for international firms.

Tune in to our 2nd full length episode in order to broaden your understanding of the corporate structures available to investors and the practical implications of each form. Investors will walk away with key insights on which elements to include in their decision making as they weigh the decision of when and where to set up their U.S. entity.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.

Newable – On your side in the UK

https://newable.co.uk/

Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.

Avitus – On your side in the US

https://avitusgroup.com/

For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen and grow their business. From planning your entry into the US market to helping you sustain your business, Avitus offers the combination of customised and comprehensive support you need.

Additional Resources!

1) https://newable.co.uk/advice/america-made-easy/

2) Linkedin

https://www.linkedin.com/in/morganpierstorff/

https://www.linkedin.com/company/avitus-group/

https://www.linkedin.com/company/newable/

3) Twitter

@Newable

@AvitusGroup

The pervasiveness of American culture globally leads many enterprising businesses to think they have a good grasp of what makes the US tick.  However, American business culture isn’t quite as seen on TV nor is it easy to grasp from a holiday across the states.

International firms would be wise to approach the US as they would entering into any other new market considering what cultural differences might dictate changes in strategy or even their business model. Americans consume, travel and engage differently. Product and service localization is just as important for UK firms in the US as it is in China.

In episode 1 of the America Made Easy Podcast, we break down the complexity of how Americans conduct business and what that means for foreign investors with cross cultural communications expert Allyson Stewart-Allen, Founder & CEO of International Marketing Partners who has advised hundreds of international firms on the cultural considerations that must drive new market expansion.

Firms that fail to tailor their approach to these cultural nuances will fail in the market and there is certainly no shortage of firms, both large and small, that have. To avoid common pitfalls and ultimately save valuable time and money, this week’s episode will highlight what aspects of US business culture are often at odds with the UK and how SMEs can overcome these challenges to ensure a successful expansion in the short and long term.

Resources Mentioned in the Podcast

Working with Americans: How to Build Profitable Business Relationships

By: Allyson Stewart-Allen and Lanie Denslow

-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html

-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.

Value Bombs from the Podcast

Culture east strategy for breakfast. Culture is all about values. Americans are explicit communicators and value the individual over the group. Do you know what American consumers care about and have you aligned your value proposition to that?

It is quicker and cheaper to adapt to the market. You can’t teach Americans to like your product as is unless you have a blank check and time is not important to you. Hit the ground running by doing your homework and localizing your product or service.

If there is a national religion in the US, it’s Darwinism—if you are a strong, evolving, innovating company you will survive, but otherwise you won’t.

It’s better to be first than best—get on with it. Build revenue and your brand name by testing, learning and establishing yourself in the market.

Sponsors

Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.