The Benefits of Doing Business in Both the US and the UK

Regardless of the idea, building a business from scratch can be a difficult challenge.

18:34 06 June 2016

Regardless of the idea, building a business from scratch can be a difficult challenge. You have so many different things to consider, and the amount of risk in starting a new business for most people is usually quite high. Even those who manage established businesses know that there are always new and unique challenges to consider. If you already have a business but are planning on expanding, then it's worth noting that said expansion in many ways should be considered as a completely new endeavour. Nevertheless, there are plenty of benefits in doing business in multiple markets: today, we'll discuss the benefits of doing business in both the United Kingdom and the United States.

Consumer Base

With so many brands going global these days, it is important to consider doing business in markets where there is an ample number of consumers. In the United States and United Kingdom combined, there are roughly 380 million people. In terms of targeting the fewest number of industrialised and developed nations possible, you would be hard-pressed to find any two other nations of comparable stature where there is such a large number of potential consumers.

Economic Size

The United States and the United Kingdom both have robust and large economies, ranking #2 and #5 respectively, according to the International Monetary Fund. The amount of potential profit to be made in both of these large industrialised economies is larger than just about anywhere else in the world, which makes it a prime target for multinational business endeavours. Roughly 30% of the world's wealth can be found in either the United Kingdom or the United States.

Easy Access to Foreign Markets

In both cases, it is remarkably easy to export or access consumer bases in neighbouring countries, which sets these two nations apart from many others. In the case of the United States, open trade agreements and relative freedom of movement provide easy access to markets in Canada and Mexico, which comprise another 130 million people. In the case of the United Kingdom, easy access to the entirety of the European Union and its 420 million people (that number excludes the 60 million UK residents) means that a business invested in both countries can market its products and services quite easily to nearly one billion people in the industrialised world.

Relatively Common Business/Legal Climate

Considering that the United States' legal framework and common law is built upon that of the United Kingdom's, there won't be a huge cultural, business or legal shock to businesses that decide to expand from one to the other. Unlike in many other countries, the US and UK share many of the same business regulations and laws governing financial and employee conduct (with the general exception being that the US leans more in favour of employers than employees).

Take Advantage of These Benefits

Whether you are in search of cultural commonality, access to large numbers of consumers, wealthy markets or freedom of movement of your products into neighbouring countries, both the United States and the United Kingdom offer plenty of benefits in these areas. Establishing a multi-national business operation by expanding to both of these countries can help brands establish one form of dominance or another through the global economy.