Most businesses are looking to grow. This growth means different things to different organisations. Some, however, include taking the next step towards global expansion. There are a few options for companies looking to start operations abroad or expand into a new foreign market.
The advantages of starting a business abroad
Costs are an important factor in running a business. While relocating may seem like a daunting prospect, it can bring benefits to a company's bottom line. Depending on the country in which you choose to operate or manufacture, you may have access to lower labour costs and general operating costs, such as managing premises. In some cases, it may be a controversial move. However, there are benefits for local residents in terms of jobs and money going back into the economy.
There are many places around the world where it is possible to access a largely untapped pool of skilled workers. In places like Asia, there are highly skilled workers who welcome new and innovative ideas to take their skills to the next level. There are also companies at home that can help source resources. For example, if you are considering recruiting to start your own business in China, you might want to consider outsourcing recruitment to INS Global as they have local knowledge and experience.
There are countries around the world that strive to be the best places to do business. According to Business Insider, New Zealand and Singapore are among the best places to do business, highlighted in the Ease of Doing Business list. If you want to start your business abroad, there are a few considerations to make, including the following:
- ways to get credit
- ease of obtaining permits
- tax rates
- laws and regulations
Countries that are favourable in these areas make the process easier for anyone wanting to start a business in the country. They have low levels of red tape and encourage innovation to help their economies succeed in foreign markets.
Another advantage of starting a business abroad is the opportunity to enter less saturated markets. Your current industry may be highly competitive at home. However, if you look at the same markets in different countries,
you can find virtually untapped opportunities. These opportunities mean that you can open yourself up to a 'big fish in a small pond' scenario until other companies catch up. They may also have lower operating costs, so profit margins can increase.
Many countries often have a variety of government incentives to encourage start-ups. This can take the form of investment opportunities to make it more attractive to start a business. There are also a variety of tax incentives to attract business owners. An example is the US company Burger King, which moved its headquarters to Canada to save millions. By making it more attractive, both large and small companies can enjoy government offers.
It may also be useful to look at the level of corporate tax in different countries. In the UK, the tax rate is 20% compared to the US, where the highest rate is 35%. Tax savings are one of the most attractive aspects of setting up a business abroad. They can help a company save thousands, if not millions, depending on size.
In some countries, there are simple registration processes to get you started. In places like Malaysia, you only need a few documents and a few days to get started, which can be helpful if you want to get up and running quickly.
If you want access to a bigger market, developed countries are a source of opportunities. Many EU countries are ideal places to start a business because of the long-standing relationships established by the EU treaties. If you are established in one of these countries, you can access the free movement of goods and services to other EU countries. This makes it cheaper to transport and sell products. There is also fantastic infrastructure and the EU has excellent links with the rest of the world, making it easier to sell outside the EU.
Every country has its own niche, and in many countries this includes a wealth of reputable business services and financing opportunities. Places such as the US, Europe and the UK are renowned for having some of the world's most advanced financial services and investment opportunities. Conversely, countries such as China and India have some of the world's largest manufacturing companies to tap into. Each place has its own strengths, and companies entering a new market can decide which core business services they want to use.