Starting a business is always a big challenge. There are a lot of moving parts to deal with from government regulations to ever changing market conditions. And those are challenges even in a perfect world.
Some people decide to open businesses overseas and this increases the difficulty considerably. But, there must be a good reason for it otherwise nobody would do it. The truth is that for all of its difficulties, opening a business abroad can be quite rewarding. Both in financial terms and in terms of personal satisfaction.
What are these benefits? Let’s take a look at what you may be in store for when it comes to opening a business abroad.
Access a new market
In your home country, you have no doubt done the market research and found that there is a lot of competition for ever decreasing pieces of the pie. Which means that to stand out in your market will be very difficult. Chances are that your idea is nothing new and there is already an established company doing what your company promises.
Looking outside your country may show that the market is far more open to somebody else coming in 8and establishing themself. If your idea is good or you are looking to fill a gap in the market, then you can search around and find the right situation in other countries. Instead of trying to fit your business to the market, you just have to search for the market and go to it.
If you are unsure, then it may pay to be working abroad already in the country of choice so you can gain some insight into the area that you plan to operate in.
Many developing countries are eager for investors to open companies there. So to entice them there are a lot of incentives given. It may be a tax free status for a period, or there may even be cash giveaways to get you to decide to open there.
Looking around, you may find that a certain country ticks a lot of boxes for your business and it’s simply a matter of the incentives as to which country you should choose.
If you have a short list of suitable countries, then the decision can come down to who is offering the most for you to set up there.
Lower operational costs
If you live in a high cost of living country then chances are these costs are affecting your bottom line. High salaries, taxes and rents can take a major chunk out of your profit margins.
There are other countries that have a much lower cost of living which can also influence how much it costs to do business there. You may find yourself saving a lot of money in your rent or property costs. Plus, the salaries will likely be lower so you can save a lot in payroll.
This may sound exploitive if you are looking to take advantage of these factors to your own benefit, but the reality is that everybody wins in this scenario. Jobs are brought to an area that will revive the economy and improve the lives of the locals.
Large talent pool
In your home country, you likely have very low unemployment which means that it can be hard to recruit the right people. All the best workers seem to already be taken.
In other countries, there may be high unemployment with a highly educated young population. This translates into an embarrassment of riches when it comes to finding the right talent for your business.
You can take your pick of very motivated individuals who have the skills that you are looking for. They could be the very thing that helps bring your business to the next level all while keeping your operating costs low.
Of course, the picture of opening a company in another country couldn’t be all rosy. There are going to be a lot of frustrations. Chief among them will likely be a maddening amount of bureaucracy. Many countries with a small economy and population often have a lot of government bureaucracy that involves a lot of paperwork and even more patience.
There will be language and even cultural differences that can make it very complicated to do even the most basic of operations. This is understood when you are looking to open a business abroad but can often be underestimated as to exactly how much of an obstacle they can be.
Every business is different and your goals may not line up with what your country of choice will be able to offer. It takes a lot of research to find the right country where you can base your operations and it may prove to be futile.
But, even if things seem too difficult, follow through and see if it is a possibility. It may be the very thing you needed to be able to find the success you crave.