The first concern: committing before revenue arrives

The biggest concern is often committing a lot of money before the company knows how quickly the opportunity will develop. Recruitment, salaries, travel, accommodation and customer support can all be more expensive than expected. CEOs want to understand what they need to spend now, what can wait and what might happen if revenue takes longer to arrive. Sensible planning helps them make those decisions with more confidence.

Employment costs are more than salary

Pay for comparable roles can be substantially higher in some US markets. Healthcare, retirement benefits, recruitment fees and other employee costs also need to be considered. Use the roles and locations you actually plan to hire for, rather than assuming one national figure will be suitable.

Allow for the practical cost of managing the operation

Travel between US cities, hotels, taxis and time spent visiting customers or managing a dispersed team can add up. Premises, insurance and professional support belong in the plan too. In some locations, incentives may help offset specific setup or hiring costs; availability and suitability need to be checked for the particular business.

Model the opportunity alongside the cost

We start with the actual opportunity: the size and nature of the contracts, the evidence of demand, how confident the company is in its product-market fit and what further business might be available. We then look at the cost of delivering that product or service in the US, which may be very different from the UK, and whether the proposed pricing will support a profitable operation. Most companies already have some form of revenue, marketing or investment plan. We help test the assumptions, model different scenarios and decide where the available budget is best spent before the business makes a substantial commitment.

A useful budget discussion covers

  • The team required to deliver and support existing contracts.
  • Location-specific pay, benefits and recruitment assumptions.
  • Travel, premises, insurance and professional support.
  • Setup costs and recurring operating commitments.
  • The effect of revenue taking longer than planned.
  • Which commitments are essential now and which can be staged.

Avoid a universal price tag

The cost of establishing an entity with no employees is different from recruiting across several states. Forthway agrees the scope of setup and ongoing support around the needs and complexity of the business.

This is general business guidance. Legal, tax, employment and immigration requirements depend on the circumstances and should be reviewed with the appropriate specialist advisers.