Why Founders Must Personally Lead US Expansion

When entering the US market, you are essentially launching an entirely new company. This approach requires an active commitment from the Founder. The Founder should personally lead initial US sales engagements, build relationships with key partners, select the right state and city for the US headquarters, and oversee the recruitment and hiring of the US team. While UK and EU Founders don’t necessarily need to move to the US, they must personally lead the process in a very hands-on way and be actively involved on the ground during the launch. Assuming someone other than the Founder can effectively lead the US launch is a critical error. Such an assumption will hinder the identification of product-market fit signals, delay closing sales with crucial initial US customers, and result in hiring decisions that do not align with the company’s culture.

1. Identifying Product-Market Fit in the US

When a company is in its infancy, the Founder is the Chief Sales Officer (and most likely Chief Everything Else Officer). As painful and slow-going as those initial sales calls were with potential customers, they were extremely valuable in understanding the customers' pain points and ultimately determining the early product-market fit path for the company’s product. The best path to success in the US market is to travel the exact same path that the company traveled in its earliest days. This means the Founder should be personally leading the first sales engagements in the US market.

Product-market fit in the US will almost certainly be different than PMF in the home country, even if only slightly. Only the company Founder has the unique market insights and detailed product understanding needed to uncover initial product-market fit. No salesperson, no matter how accomplished, will be able to determine the appropriate product-market fit path for the US market. Of course, this means that if the company is truly committed to success in the US market, their planning should be inclusive of time and budget for the Founder to be in the US market for a considerable amount of time during the first year or more.

2. US Site Selection Process

Selecting the right location for your US headquarters is a critical decision that demands the Founder’s direct involvement. There are 50 plus states and hundreds of cities to consider as potential sites for an initial US office location. US site selection is a strategic decision that can either catapult a company into quickly accelerating its revenue or lead to unexpected costs and challenges. There are 9 site selection criteria a Founder should consider when determining the ideal location for their company’s US headquarters location including: Time zone and operating hours overlap with the parent company, local tech sector ecosystem, access to talent, overall operating costs, local startup community, ease of travel, state business climate, state social disposition, and quality of life. Here is a link to an interactive site selection tool we created. Given the variables and complexities involved in the US site selection process and the strategic nature of the decision making, it’s critical this process is lead directly by the company’s Founder.

3. Leading Initial Sales Engagements

By the time a startup from the UK or EU is ready to expand to the US market, they have often grown accustomed to having their salespeople (no longer the Founder) leading sales engagements. However, the Founder should revert to leading the initial sales engagements in the US market.

A Founder will have a much easier time securing meetings with prospective buyers than any salesperson would. It can be surprising how Enterprise buyers in the US are often interested in hearing a Founder’s vision for a particular market and how willing they are to share their current challenges and needs with an industry thought leader. These buyers are almost always looking for a competitive edge and often look to startups for ideas on innovations and potential improvements for their company.

Building personal relationships between the Founder and your initial US customers will not only facilitate a deeper understanding of the market needs and challenges but will also help secure critical US client references for investors, analysts, press, and other potential customers.

4. Building Strategic Partnerships

A company’s Founder is critical in developing strategic partnerships and relationships in the US market. Only the company Founder has the unique market insights, deep industry knowledge, and product roadmap vision needed to quickly build credibility and trust with potential partners. Founders need to spend a considerable amount of time on the ground in the US market to build these important personal and business relationships directly with partners. Founders also have a much easier time gaining access to the CEO or other senior executive team members of the resellers. A critical component of a successful strategic partnership is the direct personal relationships between the CEOs and other key executives. These relationships will prove much more important in building a strategic partnership than simply having a “great” product. Founders have a much easier time building these key strategic relationships than anyone else in the organization.

5. Recruiting the US Team

Recruiting the right team in the US is a critical component of a successful expansion strategy, and it’s a highly competitive market for talent. The Founder’s involvement is indispensable in this process. The Founder is uniquely qualified to sell the company’s vision and specific career opportunities to potential employees, making a compelling case that other company executives just can’t convey as effectively. The Founder plays a critical role in ensuring the company is “Talent Ready” to hire in the US market by being able to act quickly on the multitude of vendor and HR policy decisions required in advance of hiring the US market. Additionally, ensuring that US hires are a cultural fit is crucial. The Founder’s deep understanding of the company’s values and culture enables them to identify candidates who align with these principles, fostering a cohesive and productive team across borders.

6. Developing Long-Term Investor Relationships

Raising venture capital in the US cannot be outsourced to any other executive team member or third party. Venture fundraising in the US must be done by the company’s Founder & CEO. Talk to any US venture capital investor and they will tell you the most important criteria they consider when looking at a potential investment is 1. The Team and 2. The TAM (Total Addressable Market). Specifically, the direct relationship, trust, and rapport with the company’s Founder outweigh all other investment decision criteria. Successful personal relationships between Partners at the investing VC firm and the Founder are paramount. Like all successful personal relationships, meeting people in person (not virtual) is always best. Even if your company isn’t currently raising venture capital (that’s the best time to schedule VC meetings) your Founder should be actively and regularly meeting with and building relationships with US venture investors in anticipation of a future round of funding.

Conclusion

The Founder's active involvement is crucial for US expansion. From identifying product-market fit to building partnerships, leading sales, selecting the HQ site, recruiting the team, and fostering investor relations, the Founder ensures alignment with the company's vision and goals. Treating US expansion as a new company launch with the Founder at the helm greatly enhances the chances of success.