Problems companies face entering US market


  1. Video

  2. Business problems companies face

  3. Organizational problems companies face

Business problems you face

1. Lack of patient

On average, for a company to enter a new international market and create a somewhat stable income stream, it takes more than 15 month - 18 months. It is normal that a business is not profitable before this timeline. Many companies however tend to expect revenue before proper investments are made into the business. Companies should be prepared to finance the business and have enough budget to invest for at least 15 - 18 months before generating a steady flow of revenue.

2. Lack of focus in market segmentation

For a company to be successful at market entry, it is efficient to identify a few specific key segments to target. Once the company learns the process of doing so in the first few picked markets, then the same strategy can be replicated and used in another market.

3. Not having a convincing value proposition

Value propositions can change depending on the context of life. Often lifestyles differ between people in one country to another because the physical environment and culture two different locations offer are different and they have influence on the way people live.

For example, some countries are hot in weather while there are cold countries. For hot countries, you can easily sell an outside mini fridge to keep drinks cold for just a regular hot day. Though you’d have to come up with a different value proposition for the same product if you want to sell an outside mini fridge in a cold country since this country doesn’t need a mini fridge to keep the drink cold. The bottom line is, you need to contextualize the value proposition depending on the market.

4. Not finding partners.

Finding and hiring a right pater who has local knowledge and experience saves you time, money and resources. It is a must to find someone who knows the dynamics of the targeted market, understand the local customers and their buying decision making process.

These are the first few problems companies are most likely to face. As you mature the operation and expand it further you could encounter more problems. These problems include but not limited to:

1. Finding the right talent

It can be difficult on its own to recruit talent when starting up a company; throw a new country into the mix and it can put additional stress and pressure on your hiring team. The recruiting process involves job posting, interviewing candidates, to job offering. The process can be complicated if you have to do all this with a cultural barrier.

2. Training and managing employees,

Effective management of workers is vital to improving efficiency, reducing risks and creating a better experience for employees. Companies that handle workers poorly or fail to provide thorough training may find a new location disconnected in the culture of the company or the ideas and priorities from the HQ ( headquarter) .

3 Filing and paying taxes,

Establishing a legal company abroad requires mastering various tax codes and recognizing local business regulations. And these laws can be pretty complicated

4. Following payroll and HR related administrations in the local market

Payroll administration can become complicated easily, whether in Japan or the USA. In addition, different elements such as commissions, pay scales and annual state withholding amounts vary from time to time, making payroll management much more complicated.


As we saw, first companies tend to face business problems and as an organization grows its operation, it faces organization problems such as issues with HR, tax and laws. For business problems, you can hire a local market consultant, local marketing agency and even an export agent who also handles marketing. You can find the video we made about what these professionals do here:

For organizational problems, you can either hire experts who are knowledgeable about the local HR, tax and other business laws as service bases or you can even hire an in house country manager who can handle the country operation full time. We also wrote what the country manager does in our blog post.

If you have any question about how to enter a new international market, please feel free to reach out to me at I will be happy to find out how we can help!