UK SMEs' Top Misconceptions About Trading in the US The key things British businesses often misunderstand when entering the US market.

For any ambitious entrepreneur, the prospect of expanding internationally – reaching new customers and having a global presence – is both exciting and intimidating. For first-time exporters, navigating the complexities of trade – whether it's unfamiliar tax systems, regulatory hurdles and cultural differences – can feel overwhelming and can stand in the way of leaders putting plans into action. Recent research from the British Chambers of Commerce reflects this hesitancy, reporting weak exporting sentiment from UK SMEs - a challenge the head of trade policy at the BCC noted can be improved with "greater help to fully reap the benefits".

As the founder of a small business that launched its first New York base this year, I know first hand the many hurdles and questions that come with entering the US market. That's why it was such a privilege to join a delegation of nine UK small business leaders that were invited to Goldman Sachs 10,000 Small Business (10KSB) Summit in Washington DC at the end of October. As a graduate of the Goldman Sachs 10KSB programme, I was invited to this event which brought together thousands of fellow 10KSB alumni from the UK, France and US to discuss what works and doesn't when it comes to trading in the States, and what we should really expect when doing business in America. Reflecting on some of those conversations, here are the three biggest learnings that every small business should know before trading in the US.

Shared language doesn't mean shared communication style
One thing that becomes quickly apparent when you spend time with US business leaders is that sharing a language doesn't mean sharing a communication style. This was something we experienced first hand earlier this year when we launched our agency, Ink, in New York.

In the UK we tend to underplay success and use understatements in our communication, but in the US this is often misinterpreted as indifference or weakness. US clients demand directness and enthusiasm, and expect you to own your expertise with confidence. It's less about bravado and more about demonstrating your capability.

Once we made this shift in how we talked about ourselves and our business, we were not only able to better communicate with our US clients, but it strengthened how we present ourselves globally. We found that having a more direct and confident approach works in other markets too, and is effective when building new relationships.

The US isn't a single market, it's fifty different economies
Ask any SME leader operating across the US and they'll tell you otherwise. Speaking to two small retailers from California and Texas revealed just how different consumer cultures are, with environmental and health benefits driving purchase decisions in LA, and tradition and durability being the top priorities for customers down south. Then there's the technicalities. Many SMEs looking to expand into the US might treat it as a unified market – like the UK - when in reality, it is fifty separate state economies each with different rules and regulations.

Our US peers advised that for any UK business setting out a US strategy, the key thing is not to overcommit to a national strategy from day one, instead focus on one region, be it state or city. For us, we started with New York because it's the creative capital and a natural fit for our fashion, luxury and lifestyle clients. New York is also closer than the west coast, which makes navigating time zones and travelling more manageable.

By concentrating on one hub, businesses can focus on building relationships, getting the lay of the land, and refining expansion models before moving into other regions. For any small business looking to trade in the US, depth beats breadth - the key is to master one region at a time, then replicate success elsewhere.

You can't hire US employees directly through your UK company
Expanding operations and hiring in the States can be a grey area for SMEs new to international trade. One of the things we quickly discovered was that attempting to employ staff directly through a UK payroll system is not only administratively complex, but can be a red flag for compliance. Since US employment law and payroll taxes vary state by state - and even by city - it is far easier and safer to hire talent through a recognised US entity. This is what we did when we launched Ink in New York, before we started taking on any staff. While setting this up took time, it really paid off for the long term helping simplify everything from contracts to insurance, enabling us to build a real local culture, and signaling our commitment to our US clients which built trust and created a structure to scale sustainability.

Building confidence to trade in the US
The initial excitement of international expansion is often quickly drowned out by the complexity of trade. Finding the answers to key questions – or even working out what questions you should be asking – can paralyse expansion plans, however, the fastest way to grow confidence and navigate the space is asking those who have done it before.

It's not just the technical side – nuances around communication styles for example, is a hard-won lesson first-time exporters wouldn't know about until they're on the ground. Greater access to resources can help SMEs better navigate the complexities of trading internationally, but leaning into the wider SME community is a great place to build knowledge and confidence and make that successful jump to global scale.