Expanding their business to the United States is the dream of many Brazilian companies. However, along this journey, several misconceptions emerge that may distract entrepreneurs from a solid expansion strategy. In this article, we will debunk the main myths of internationalization and show why they shouldn't stop your company from conquering the North American market.
Myth: Only large corporations with multi-million dollar budgets are able to establish themselves in the USA.
Reality: Currently, several digital tools allow you to start operations with reduced investment. E-commerce platforms, such as Amazon and Shopify, combined with Fulfillment by Amazon (FBA), make it possible to start sales without the need to bear high warehouse costs, local staff or physical infrastructure. With well-structured financial planning and outsourced logistics solutions, small and medium-sized Brazilian companies can test the American market with low risk.
Myth: Without full fluency in English, it's impossible to negotiate and conclude contracts in the US.
Reality: While it is recommended to have some command of the language, several translation services, consultancies, and local partnerships make it possible to overcome the language barrier. Legal documents, contracts, and marketing materials can be adapted by specialists, while bilingual teams or interpreters ensure effective communication at meetings and events.
Myth: The U.S. market prefers domestic brands and rejects imported products.
Reality: American consumers value quality, innovation, and differentiation. Brazilian products with authentic appeal — such as organic food, cosmetics with natural ingredients, or exclusive fashion designs — often arouse curiosity and gain space in specific niches. Brands that are able to combine quality, strong branding and cultural storytelling quickly gain the interest of the American public.
Myth: The legal, tax, and regulatory complexity of the United States makes any expansion by foreign companies unfeasible.
Reality: While the American system requires compliance with federal, state, and municipal regulations, this process is fully manageable with expert support. Bookkeeping in accordance with US GAAP, trademark registration, FDA certifications (for food and cosmetics), and obtaining local licenses are steps that can be planned in advance, reducing delays and risks.
Myth: It's perfectly feasible to run an operation in the U.S. without someone on the ground.
Reality: Having a local partner — be it a distributor, legal consultant or logistics operator — significantly reduces response time and the cost of adaptation. Brazilian companies that use partners to handle compliance, fulfillment, and local marketing are able to react more quickly to market opportunities and requirements.
Myth: The collection of Sales Tax in several states makes price competitiveness impossible.
Reality: The strategic management of the tax nexus and the optimization of the supply chain can minimize the impact of the Sales Tax. Tax automation software (such as Avalara and TaxJar) helps to correctly calculate taxes, while the proper structure of parent vs. subsidiary allows you to choose the best model for each operation.
Overturning these myths is the first step in building an efficient internationalization strategy. With the right planning, expert support, and technological solutions, your company can compete on an equal footing in the U.S. market.
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