Webinar recap: 8 tips to successfully expand into the US

In today's globalized economy, US expansion is no longer a lofty ambition—it's a strategic imperative for many growing businesses. But as any seasoned CFO knows, successfully navigating the complex terrain of international growth requires a data-driven approach, meticulous planning, and a deep understanding of the unique challenges and opportunities that the US market presents.

While many finance leaders recognize the importance of data-driven decision-making, few have a clear roadmap for implementing this approach in the context of US expansion. How can CFOs leverage data to guide their companies through the intricacies of entering the world's largest economy? What metrics should they be tracking, and how can they build a culture that truly embraces data-driven strategies?

In our most recent webinar, hosted in partnership with Deel, we gathered insights from Yujin Chung, Corinne Thompson, and Olivier Elbaz—seasoned experts who have successfully navigated US expansion multiple times. The discussion revealed eight key insights that every CFO should consider when charting their course for US expansion. Let's dive in!

1. Timing is everything

To determine readiness, companies should analyze both external and internal factors. External considerations include assessing the total addressable market (TAM), identifying product and service differentiators, and evaluating the competitive landscape. Internally, companies need to evaluate their readiness in terms of personnel, processes, and resources.

The most successful expansions often stem from existing organic growth in the US market. This early traction can provide invaluable data to guide your expansion strategy. Partnering with the right investors can significantly accelerate growth by providing introductions to key contacts and potential customers.

Tip from the panelists: Create a data-driven readiness scorecard that includes metrics like market size, competitive landscape, internal capabilities, and financial projections. Use this scorecard to objectively assess your company's readiness for US expansion.

2. Location, location, location

The United States isn't a monolithic market; it's composed of 50 diverse states with different regulations, each offering unique opportunities and challenges. For tech companies seeking top engineering talent, the Bay Area remains a hub despite recent challenges. However, for companies looking to optimize costs, cities like Nashville, Austin, and Salt Lake City offer good talent pools with more reasonable cost structures.

Tip from the panelists: Conduct a data-driven analysis of potential US locations. Consider factors like talent availability, cost of living, tax incentives, and proximity to your target market. Create a weighted scorecard to objectively compare different locations.

Managing a distributed team across international borders presents unique challenges. While remote work offers flexibility, face-to-face meetings remain crucial for certain activities such as sales meetings or corporate development discussions.

Tip from the panelists: Implement tools to track remote team productivity and engagement. Monitor metrics like communication frequency, project completion rates, and employee satisfaction scores. Use this data to optimize your remote work policies and identify when in-person meetings are necessary.

4. The first hire

When building a US team, it's crucial to start with a key hire: a head of expansion. This individual should have a comprehensive skill set including go-to-market strategy, sales, partnership building, pipeline generation, and marketing capabilities.

Tip from the panelists:  Develop a data-driven hiring rubric for your US expansion team. Include metrics like years of experience in the US market, network size, and past performance in similar roles. Use this rubric to objectively evaluate candidates and ensure you're making the best possible hire.

5. Navigating the compliance maze

US expansion comes with significant compliance challenges. The cost of non-compliance and potential legal actions can be substantial, making it crucial to approach this aspect with caution and expert guidance.

Tip from the panelists: Implement a compliance tracking system that monitors key regulatory requirements across different US states. Use this data to create a risk heat map, identifying areas where your company may be most vulnerable to compliance issues.

6. Leveraging data to attract US investors

Expanding into the US can provide access to larger capital pools. Many US investors are restricted to investing in US-based companies due to tax considerations, making a US presence advantageous for fundraising.

Tip from the panelists: Create a US-focused investor pitch deck that emphasizes data-driven metrics relevant to the US market. This might include US market size projections, early traction data, and competitive analyses specific to the US landscape.

7. Accelerating growth

The US offers unique resources for growing companies, particularly through its robust startup ecosystem. Accelerator programs like Y Combinator can provide significant benefits, including access to networks, customers, and investors.

Tip from the panelists: Research and quantify the potential benefits of joining US accelerators or incubators. Track metrics like average funding raised by program graduates, network size, and specific resources offered. Use this data to make an informed decision about whether to participate in these programs.

8. The talent equation

Yujin stressed that gaining a deep understanding of the U.S. talent market is essential for a successful expansion. Utilizing salary data tools can provide valuable insights into compensation across different roles and regions in the US.

Tip from the panelists: Utilize salary data tools to create a competitive compensation strategy for your US team. Track metrics like salary ranges, benefits expectations, and regional cost of living adjustments to ensure you're positioned to attract top talent.

Conclusion: Embracing a data-driven approach to US expansion

Successful US expansion requires a multifaceted, data-driven approach. From timing your market entry to navigating compliance challenges, every step of the journey can be optimized through careful analysis of relevant data.

The role of the CFO is to be the data-driven compass guiding your company through the complexities of US expansion. By leveraging the insights and action items outlined above, you can create a robust, data-informed strategy that positions your company for success in the world's largest economy.

Yujin encourages CFOs to remember that the journey doesn't end once you've established a US presence. Continue to track key metrics, adjust your strategy based on real-time data, and foster a culture of data-driven decision-making throughout your organization.

With the right data at your fingertips and a commitment to evidence-based strategies, your US expansion can be more than just a growth initiative—it can be a transformative leap forward for your entire organization.

About the panelists:

Olivier Elbaz: With over 20 years in leadership roles at companies like Salesforce, SAP, and IBM, Olivier knows what it takes to build and scale high-performing teams on a global scale. Currently leading global sales at Deel, he's a mentor to B2B SaaS startups.

Corrine Thompson: A chartered accountant and finance director with extensive experience in fundraising and M&A, Corinne is the founder of Ecap Financial. She's a trusted partner to investors and startups alike, helping them craft compelling fundraising narratives and execute successful deals.

Yujin Chung: As an operating partner at BAM Elevate, Yujin brings a wealth of experience from his time at Andreessen Horowitz and SignalFire. With a strong engineering and business background, he's passionate about connecting startups with the right resources to fuel their growth.