Last updated: 10 June 2012
Doing business
Business culture
Business tips
Business practices:
- When dealing with US business people the use of Australian slang should be avoided as it may lead to confusion and misunderstanding. Ensure you use American spelling on materials targeted at the American market, eg. color not colour.
- In the USA, business attire is very important and projects the image of your company. US business people are generally quite sensitive to dress standards, so it’s wise to dress on the conservative side. A business suit is appropriate for meetings and most trade shows.
- Academic credentials are not necessary on business cards. Americans will be more impressed with your understanding of the market, your product, and their company. It is recommended that phone and fax numbers on your business cards should have the International Country Code dialling details.
- Face-to-face business meetings are an important element of doing business in the USA.
Other suggestions which will help achieve successful results are:
- Plan appointments at least a month to six weeks in advance, or as soon as you know your travel details.
- Voice mail is used by companies across the USA as a filtering device. Messages are often never returned. Have a rehearsed message ready so that if you are required to leave a message it is a quality and succinct selling message.
- Confirm appointments the day before and never arrive at an office unannounced.
- US business people will rarely leave their office to meet you, so meet them at their office or at a venue of their choice.
- Ensure that all necessary information is readily available, including your pricing CIF, delivered, production capabilities and trading terms.
- Remember that your first price is just the starting point for negotiating - the US entity will expect several offers and counter-offers before a mutually acceptable price is reached.
- Involve a lawyer to check any contract reached.
- Make sure you clarify what you understand to have taken place at a meeting because Americans are generally courteous and positive in listening to your presentation, which can give a false impression of interest (or commitment) on their part.
- Conclude the meeting with the understanding that you will follow-up - don’t rely on the US businessperson to make the next move.
- Fast and comprehensive follow-up is essential - in any follow up go over who you are and when you met as the buyer may meet several hundred sellers a month.
- Promised delivery dates and production quantities must be honoured.
- Smoking in most offices is prohibited.
E-commerce in the US
The face of your company in the US will be, first and foremost, your website. That is the first place a buyer will go to do their due diligence, not just on the product, but you as a potential supplier. If it is not updated, it will raise a lot of red flags that may hinder your sales. A company website in the US is extremely important and is not considered a secondary reference tool. It must clearly showcase your product or services specifying what differentiates them and should be maintained on a regular basis.
The US e-commerce market is one of the largest and most sophisticated in the world. While it has matured rapidly over the past few years, there is still a wealth of opportunities for Australian e-commerce.
An e-commerce presence in the US can be set up through a number of online channels that can stand alone or complement each other. Each element you use should tie in to your broader business plan and marketing tactics.
- A single virtual shopfront or company website
- A blog (Web log)
- Complementary websites/virtual malls established through partnership agreements
- Affiliate websites created through basic cross-promotion links
- Consumer portals such as iTunes or Amazon
Please refer to Exporting Online for additional details.
Read 'Business in the new digital economy: trends and strategies in eMarketing' (PDF, 873KB)
Banking and finance
Acquiring a US Bank account is not an easy task. Most major US banks have strict requirements that often include having a tax ID, Social Security number, and US address. There are some banks that have worked with Austrade clients in the past on a case by case basis and are available to quickly determine your eligibility. Please contact a US Austrade representative for further information or referrals.
Links and resources
Government, business and trade
American Chamber of Commerce in Australia – www.amcham.com.au
American National Standards Institute – www.ansi.org
US Census Bureau – www.census.gov/foreign-trade/statistics/index.html
US Consumer Products Safety Commission – www.cpsc.gov
US Federal Government Information Centre – www.usa.gov/directory/federal/index.shtml
US Harmonised Tariff Schedule (US International Trade Commission) – http://dataweb.usitc.gov/
US Small Business Administration – www.sbaonline.sba.gov
News and media
CNN – http://edition.cnn.com/US
Los Angeles Times – www.latimes.com
NBC News – www.nbcnews.com
New York Times – www.nytimes.com
San Francisco Chronicle – www.sfgate.com
Washington Post – www.washingtonpost.com
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
Bilateral agreements
Australia has social security agreements with several countries that address the issue of 'double super coverage' for employees sent to work overseas. To take advantage of these agreements, Australian employers sending employees overseas to work must apply to the Tax Office for a Certificate of coverage.
For more details, please visit the Australian Taxation Office website.
IP Passport fact sheets
These fact sheets outline foreign Intellectual Property (IP) regimes and some of the issues and challenges which may be faced by Australian exporters.
The current fact sheets are available on the IP Australia website.