Many European tech companies expand to the US each year. Most of them spend 12–18 months and much of their runway before they see it isn’t working. They usually make the same few mistakes.
1. Assuming your European positioning works in America.
American buyers are more direct and more competitive. They’re also wary of brands they don’t know. Rewrite your website, pitch deck and pricing page for a US audience. “We’re the leading solution in the Nordics” means nothing to a VP of Engineering in Austin.
2. Hiring a US sales rep before having a US strategy.
This is the most expensive mistake on the list. Companies hire a salesperson in the US, hand them a European pitch deck, and expect results. Six months later the rep quits or gets fired. You’ve spent $150K and have nothing to show for it. Write the US strategy first, then hire someone to carry it out.
3. Treating the US as one market.
The US is many different markets. Selling to enterprises in New York is nothing like selling to startups in San Francisco. Start with one city or segment and win it before you expand.
“We’re the leading solution in the Nordics” means nothing to a VP of Engineering in Austin.
4. Underpricing to “be competitive.”
European companies consistently underprice for the US market. They think lower prices will help them win deals against established players. In practice, low prices signal low value. American buyers expect to pay more.
5. Going alone.
Many companies enter the US with no warm intros and no local advisors. Cold outreach from overseas rarely works. The companies that succeed usually have an advisor or partner who can introduce them.
All five mistakes have the same cause. Companies assume American buyers think like European ones.
Written by Kaspars Koo in Boston. More about Kaspars