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What does it cost to run your US operation? A real-life expense template based on having helped over 50 international companies in the USA

Because we get the question: “What does it cost to do business in the USA?” we’ve decided to publish a template budget for year 1 of your US operation. This template budget can be found under resources here.

Since we’ve worked with a large variety of firms, we believe the budget represents a good baseline for any type firm, i.e. you should be able to use it as a baseline for budgeting and forecasting. Please note that the biggest variables in the budget are represented by your staffing needs and your emphasis on growing inbound demand through digital marketing and events.

The team behind @katapultgroup has helped over 50 small and midsize technology enabled companies with establishing and growing their operations in the USA. From this experience, we’ve learned a few tricks as to the best and most economical way of setting up your US subsidiary and running it in a capital efficient manner. Please feel free to reach out to us to discuss.

Below is a copy paste version of the budget if you’d like to simply review it:

FINAL Expense estimate for small and midsize companies wanting to establish themselves in the USA - Success In The USA .xlsx

Expense typeMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Annualized
Variable expenses
Business development and marketing investments1001001001002002002002002002002002002000
Travel and entertainment with clients/partners in N.A.100100100150010010010010020001000100010007200
Travel to home office4000 4000400012000
Visit by CEO of home office40004000
Leads data8008008008008008008008008008008008800
LinkedIn professional account808080808080808080808080960
LinkedIn ads2502502502505005002000
Cost of international phone calls to South-America, Skype subscriptions, similar252525505050505050505050525
Events cost (not trade shows)5005005005002000
Fixed expenses0
Salaries:0
VP North America100001000010000100001000010000100001000010000100001000010000120000
Inside sales associate 3000300030003000300030003000300030003000300033000
bonus for inside sales 1000100010001500150015002000200011500
Marketing and support / Client success manager 3500350035003500350017500
Office rent for 3 people with internet included12001200120012001200120012001200120012001200120014400
1 cell phone line with necessary add-ons1001001001001001001001001001001001001200
Virtual phone system for other team members and including your company's main-number505070707070707070707070800
Other office expenses such as paper, clips, coffee, snacks, other2002002002002002002002002002002002002400
Team events and culture building100 100150250 2504001250
Insurance coverages1500 5002000
0
Expenses that are in-frequent/optional0
Support for PR0
DIY PR support software and related 2002002002002001000
Trade show attendance 30003000
Website localization 2500025000
Localization including translation of marketing and sales materials 0
Various Legal services 10001000
Ongoing Book keeping 3003003003003003003003003003003003300
Blogging 4004004004001600
Social media 0
Google adwords10001000100010001000100010001000100010001000100012000
LinkedIn page creation and management 0
Facebook page creation and management 0
Twitter page creation and engagement 0
Graphic design support 800100010002800
Registration with the city 125125
Incorporation of the company1100 1100
Visa for VP North America and his family5000 5000
Trade mark registration 0
Filing of patents 0
Legal review of company's standard sales contracts2000 2000
Legal review of customer's contract (based on Fortune 100 customer) 800800
Setup of books by book keeper500 500
Quarterly reviews by accountant 0
Sales tax study and recommendations 0
Transfer pricing study 0
Accounting: Annual filing 50005000
Employee handbook 1000 1000
US contracts creation 0
Outsourced sales and growth support 0
Total279551705520975193002260019050208502830053350281002510030125312760
FINAL Expense estimate for small and midsize companies wanting to establish themselves in the USA - Success In The USA .xlsx