Photo from Mercia.co.uk
Introduction
I thought of writing this article as we approach SelectUSA, May 3-6, 2026 at the National Harbor, Maryland. Thousands of attendees come to explore the U.S. market from over 100 countries. Many of the attendees are exploring the U.S. for the first time. Below are some of my thoughts.
Expanding into the U.S. is often seen as the “big leap” for foreign companies. But here’s the hard truth: most companies try to shortcut the process—and end up paying for it later. Some start by asking a cousin, or a friend who runs a restaurant in New Jersey, how to “get into the U.S. market.” Sounds familiar? While that advice may come from a good place, it’s rarely based on data—and nearly always based on personal preferences, bias, or outdated assumptions.
To succeed in the United States, you need more than a few conversations and assumptions. You need hard data, a real plan, a deep understanding of the regulatory environment, and—this is often overlooked—a strategy for how people will even find out about you. Because in the U.S., if they don’t know you, they don’t deal with you.
These are my personal opinions of why the U.S. is still the market to beat, why poor advice from well-meaning friends won’t cut it, and how to enter strategically. I will touch on why data matters, why regulatory knowledge is gold, and why awareness is the first—and often most ignored—step. The journey is below.
The Allure of the U.S. Market
Let’s be honest—the United States isn’t just another checkbox on your international expansion list. It’s the checkbox. With over 330 million consumers and one of the highest GDPs in the world, the U.S. offers more than just a customer base. It’s a validation point. A successful U.S. entry signals to the world—and to investors—that your business has staying power and scalability.
But beyond consumer power, there’s something even more strategic: credibility. Whether you’re looking to raise capital, get acquired, or become a household name, having a U.S. footprint makes conversations easier. It becomes a powerful reference point. Many international companies use their American success as a launchpad to Canada, Latin America, and even Southeast Asia. This domino effect often starts in cities like New York, Miami, Chicago or Los Angeles—and from there, it grows.
Investors pay attention when you say, “We’re already doing business in the U.S.” Something to consider… U.S. investors will likely not invest if you are planning on only opening a sales office and there is no commitment of capital, labor and intellectual property into the U.S. market.
The Myth of Asking a Friend with a Store
You’ve probably heard about it—or maybe even thought about it: “I’ll just ask my friend who runs a store in Texas how they did it.” It sounds logical at first. After all, they’re already in the U.S. They must know, right?
Well, not exactly.
The problem isn’t that your friend doesn’t have experience. It’s that their experience is limited and specific to their business. A restaurant owner in Chicago might have insights on food safety inspections or POS systems—but they’re not going to help you understand B2B logistics in California or healthcare data compliance in Boston. Sometimes, site locations are often overweighted with non-revenue generating data such as schools, cultural affinity, etc. which, while important, should not be the deciding factors in a pro forma analysis.
Also, most of the time, this kind of advice is rooted in preference, not data. Your friend might prefer a particular distributor or marketing approach because it “feels right,” not because it’s proven. These opinions can create false confidence—and lead you to skip proper research, ignore red flags, or miss opportunities that don’t show up in someone’s anecdote.
Worse, some founders fall into the “confirmation trap.” They go asking friends questions, not to learn—but to confirm what they already believe. That’s not strategy, that’s wishful thinking.
To truly understand the U.S. market, you need more than casual advice. You need industry reports, trend forecasts, local market insights, consumer behavior data, and legal evaluations. And those only come from dedicated professionals, consultants, or data-backed partnerships.
So yes, talk to your friend. Listen to their story. But don’t build your U.S. expansion strategy on one person’s journey. Use it as a perspective—not a plan.
Why Local Expansion Requires Strategy, Not Guesswork
Trying to expand into the U.S. without a clear strategy is like driving across the country without GPS. Sure, you might eventually get somewhere—but probably not where you intended, and not efficiently.
Unlike many markets, the U.S. isn’t centralized. Each state can feel like its own country—different tax codes, different consumer behaviors, different business laws. Selling skincare in Los Angeles isn’t the same as selling it in Texas. Distribution patterns and logistics are markedly different between Orlando, Cleveland and San Francisco.
What works in one state can flop in another. Moreover, regulations vary by state. Just because you create, say, a Delaware corporation, this has very little to do with how to operate a business in Colorado. That’s why strategy isn’t optional—it’s your only real chance at success.
Another huge misconception is that simply having a good product or being successful overseas guarantees U.S. success. It doesn’t. Americans have different purchasing behaviors, different loyalty patterns, and different expectations. You must adapt—not just your marketing, but sometimes your entire offering, pricing, and business model.
I wrote a separate article a couple of years ago that talks about awareness. It’s worth repeating some of the “things to think about”.
You won’t get far in your U.S. entry if you don’t have an awareness campaign. People don’t invest or buy your product if they don’t know who you are. Awareness is much more than a pretty pitch deck. It’s about showcasing your company to a targeted audience. It’s about not spamming. It’s about third-party verification of your product. It’s about search engine optimization. It’s about driving an audience to your website. It’s about customer relationship management. It’s about having a very articulate local representative that is passionate and smart. It’s about….well, you get the point.
Time and money are essential parts of your entry strategy. You’ll need to budget for legal fees, registration costs, market research, team hires, and often, compliance audits. You can’t just “test the waters” with no plan. Even a small entry effort—like a pop-up store or pilot program—requires real investment. If you find a consultant that says they will work for free or take only a backend of the deal, be skeptical. It could mean that the consultant has no real proven market entry plan so doesn’t want to charge or, worse yet, lacks common sense…
Without a clear, well-informed strategy that considers regulation, market need, customer awareness, and your company’s readiness—you’re not expanding. You’re gambling.
Summary
Geographically, the U.S. is massive. To put it in context, South Korea is about the size of just one U.S. state, Indiana. Population wise, the U.S. is massive. Using South Korea again (sorry South Korea), the U.S. population is 325 million- South Korea is 52 million. This means a U.S. entry must budget more for distribution, marketing, travel, etc. However, for those that are not willing to sit on the sidelines, and are willing to put the time and effort in for success, the opportunities to enter a $28 trillion dollar market are significant. I remain bullish on the U.S.
This year I will be speaking and judging at SelectUSA so feel free to reach out and say hello.
About the Author
Gary Sumihiro is a global investment advisor and strategist. He is a board member of EDGE Partners and the founder of Sumihiro Investments. Mr. Sumihiro was previously appointed by the U.S. Secretary of Commerce to serve on the U.S. Investment Advisory Council and has spoken and judged at international investment forums. Mr. Sumihiro is also slated to judge and speak at the U.S. Department of Commerce’s SelectUSA Summit in Washington, D.C., in May 2026—an event bringing together global business leaders and government officials to shape the future of U.S. foreign investment strategy.
For EDGE inquires, please emails us at gsumihiro@edgepartners.us
