Brazil and the United States have enjoyed a close, long-standing relationship. The US was the first country to recognise Brazil’s independence, while Brazil was the only South American country to fight alongside the allies in WWII. Today the two largest democracies in the western hemisphere reap the benefits of a trade agreement, with Brazilian companies exporting $37.5B worth of goods and services to the US in 2018.
The US market represents an important opportunity for Brazilian businesses. With over 327-million people, it’s more than fifty-percent larger than the Brazilian market, while the country’s stable currency and unparalleled consumption habits make the US market a Brazilian business owner’s dream come true. Harry Broadman, CEO of Proa Global Partners LLC, says that the US is “one of the world’s most open and accessible markets for foreign companies.”
However, there are some important considerations you must be aware of before entering the market, from new rules and regulations to learning how to move money into and out of the United States.
Being a Brazilian Company in the USA
There are numerous adjustments your company will need to make to find success. For starters, you need to understand regulatory issues and legal requirements. Every industry has its own rules, and when working in the United States, foreign businesses need to be aware of federal, state and local regulations specific to their industry.
Depending on the industry, licenses may be required for each state you operate in. Rather than viewing the US as a single entity, Brazilian companies are best off viewing the country as 50 similar entities with common culture and language, but different legal requirements.
Many companies transitioning into the US also struggle to understand the type of democracy that it is. They believe that if they know the right people, or get their messages in front of the gatekeepers, they can move their business forward. In truth, the most successful foreign businesses are those that focus on getting things done as opposed to building connections.
Marketing in the USA
Before opening your first office or selling online services, you’ll need to develop an English-language American narrative. American’s love a great brand story. Research your market and create the right story for your company.
It’s also important to understand the nature of the free press. Newspaper and magazine publishers have the right to tell any story, but they only publish articles that will interest their readers. As you create your brand narrative, consider the types of stories that news agencies are already telling. For example, does your healthcare product save lives, or does your technology disrupt an existing industry? If you can tap into the right story, the press will take your story and tell it to their readers.
Managing Your Financial Activities
Developing trust with your customers is frequently overlooked by foreign businesses trying to break into a new market. It’s important to do so because consumers don’t like spending their money with businesses that they don’t know. One way to build trust is by encouraging your existing customers to leave positive reviews on Google, TrustPilot, Yelp and other review sites.
Using American payment mechanisms on your site is another way to develop that trust. If the payment mechanism feels foreign, American consumers will find another provider who will deliver a more comfortable and safe purchase experience.
Furthermore, you’ll also want your bank accounts to act as a local account. While you can try to open a US-based bank account, it typically requires traveling to the United States, offering proof that you’re a real and legitimate business, and hoping that the bank you selected has an appetite for opening foreign-based company accounts.
Using an alternative solution like a corporate oriented e-wallet or another type of payment service provider will provide you with all the benefits of a local bank, without the complexities of opening a US-based account. Find a corporate specialized e-wallet service that allows you to transfer funds in and out of the account as if you were physically located in the US.
The right e-wallet solution will make it easy to transfer funds across borders without exorbitant transfer fees and will allow you to exchange currencies with the click of a mouse. As your business continues to grow, your e-wallet can grow with you, enabling fund management from anywhere in the world in any number of currencies.
Expanding Across Borders
When you’re expanding beyond borders, you should focus on your business strategy and not cross border payments, multi-currency accounts, and global payment merchant services. Let the professionals at MoneyNetint provide you with their corporate tailored e-wallet solution, allowing you to focus on penetrating new markets and growing your business.