Building a US Sales Team

The right moment to develop internationally is not the same for all businesses, but in general your business should have a product or service which has some track record and is ready to be commercialised, and your business should have the financial resources to go global. Preparation and forward planning are key, including identifying your target customer base, finding the right person(s) to lead the US operation and budgeting for the associated financial, time and travel costs.

Finding a good fit is essential. There are different approaches to building a U.S sales team:

Directly recruiting a local US team. A US team will have little or no knowledge of your business culture, working methods, or your product or service. They will have to quickly learn and assimilate that knowledge, while being managed from a distance with a time difference of 5+ hours.

Sending your UK Commercial Director to be the lead salesman. This may prove challenging as a UK expatriate may not be familiar with the US market, the cultural difference or have the network to successfully target clients in the US.

An alternative scenario is for your UK CEO or senior executive to relocate to the US for a couple of years to build a team in the US This allows you to have someone with the business’s strategic vision on the ground as well as to surround your executive with specialised US salesmen to penetrate the market. The CEO’s mission is then to recruit the right individuals to build an effective team.

Another approach is to join forces with a strategic partner in the US market who could take the lead on product launch and commercialisation in the US However, this approach may dilute your control of the US strategy and operations.

When recruiting, bear in mind that the US job market is typically more fluid than in the UK People tend to change jobs more frequently, employment is at-will and, particularly in the sales world, candidates are usually well prepared for interviews and very persuasive. Employee loyalty can be expensive. If you are unable to offer competitive salaries on the US labour market, consider offering benefits such as UK holiday entitlement (which is typically more generous than the US) and a US stock option plan (which may be designed to mirror the UK plan).

An alternative, less direct, approach to building your own sales team is to appoint US based sales agents, distributors or resellers. This may also be an initial step before employing a team of your own.

• Sales representatives or agents are independent contractors that market, advertise, promote and solicit sales on your business’s behalf.
• Distributors are middlemen that purchase your goods for their own account with the intention of reselling them to others in the supply chain, such as other distributors, resellers such as retailers and end users such as consumers or companies.
• A reseller typically refers to a business that purchases goods from manufacturers or distributors with the intention of reselling them to end users for consumption or incorporation into another product.

When it is time to hire US-based employees and/or contractors, you will need to comply with employment laws that differ markedly from those in the UK. Most US employment is “at will”, without contracts or notice periods, and laws can vary significantly from state to state. Our US employment attorney advises UK clients on maintaining compliance with these laws and preparing US-specific documents to govern the employment relationship, customisable to our clients’ needs and employees’ state of location. We also advise on managing employment risks, including resolution of threatened claims and US-specific separation agreements. We have assisted clients in creating template offer letters to support their multi-state expansion, preparing independent contractor agreements for US-based consultants, and disputing and resolving claims of discrimination and harassment.

Marketing materials

Prepare “Americanized” collateral materials such as catalogues and flyers, using local business appropriate vocabulary. Similarly, your website should be up to date and reflect US standards.

Network

An extensive network is essential to succeed in the US Attend tradeshows and events organized in your industry to improve your business’s reach, update professional social networks and maintain a good brand image.

Titles

Titles matter in the US Being introduced as a Sales VP will open more doors than being introduced as salesman.

Compliance

US employment laws differ from those in the UK, as do other areas such as IP, contract matters and taxes. Taking early advice can streamline operations and help avoid expensive mistakes.

Risk Management

As your business expands in the US, particularly at the stage of taking on employees, you should consider establishing a separate US subsidiary for several reasons – to improve your profile with US customers, for liability protection and to minimise the UK company’s tax “foot print” in the US. We regularly advise clients on setting up operations in the US and would be happy to discuss how this may work for your business.

There are strict immigration and visa rules for working in the US - and you do not want to fall foul of the rules, as it could jeopardise your ability to conduct business. We regularly advise and assist UK companies with securing US visas for founders to develop and direct the US business.

The US offers great opportunities for businesses; it is a large, diverse market. The success of your business in the US may be optimized by careful forward planning and taking advice from those experienced in the market, identifying your US sales strategy and customers, engaging the right team and adapting your business’s marketing materials, products or services for the US market.