Internationalisation

Reasons why you should consider delaying expansion to the US

Amy Westwood | September 1, 2025

Expanding to the US isn’t the best choice for every business, without sounding pessimistic there a number of big hurdles that you might have to overcome and without doubt, it’s a bit commitment oftentimes needing key senior team members being based in the US, especially in the early days.

In the words of Bill Spruill, a successful entrepreneur and board adviser:

“The best indicator for coming to the US is to already have some established customers. My rule of thumb is to have five customers in place that you already service.”

Expanding to the US can be costly

Making a serious play in the US requires a substantial budget. Costs to consider include offices , wages that will be considerably more than what most people are paid in the UK, travel expenses (significant until a team is fully embedded), establishing a supply chain, bespoke go-to-market plans and likely substantially more marketing spend, legal and registration fees and necessary equipment. Additionally, founders need to be well versed in customer adoption, exchange rates and have a decent appreciation of future economic stability that can impact profitability.

There may not be a gap in the market

Just because it is big and highly competitive, there still might not be a gap in the market. With over 33 million small businesses you may be faced with fierce competition. Conducting thorough research, including a competitor analysis, is crucial before proceeding with expansion plans.

You have not accessed professional legal, immigration and financial advice

It really isn’t the United States of America. US regulations are diverse, complex and vary at federal, state and local levels. Obtaining the right legal, immigration and financial advice is essential. Familiarise yourself with tax and payroll regulations, immigration laws, trademarks, labour laws, data privacy laws and state-specific legislation such as the California Privacy Rights Act (CPRA).

You don’t have existing interest from US customers

Expanding to the US without existing customer interest can be risky for smaller businesses. Proving market demand through research or building a base of US customers before committing can provide a solid foundation and mitigate risks.

Cultural and business practice differences

There are notable differences in business practices and corporate culture between the UK and the US. Understanding and adapting to these differences is crucial for successful integration into the US market. This includes variations in communication styles, negotiation tactics and customer service expectations.

Want to learn more about US expansion?

Do you want to learn more about expanding your business to the US before taking the leap? Our US expansion eBook covers everything you need to know, from choosing your US headquarters location to adapting a go-to-market strategy.