The world is getting more and more interconnected. Of course, trade and commerce have played a huge role in that right from the beginning. Nowadays, how, it’s nowhere near as big a risk to take your company overseas. People do it all the time and for plenty of good reasons. Here are a few perks of looking abroad to expand your business or even start a new one.
Tapping entirely new markets
This is perhaps the most obvious reason to take business overseas. If you’ve grown to capture as much of your market domestically as possible, selling to an international market might be one of the only ways to keep growing your customer base. Some industries are still in their infancy overseas whereas they might be well established back home, meaning you could potentially outclass the competition with existing expertise. Spreading your business overseas also has a great effect in diversifying the risks of the business. If sales go down in one country, then your success in others could help you keep the business afloat and thriving.
The perks of the place
There are plenty of financial and practical reasons to want to start a business overseas, too. For instance, some countries charge no business tax at all and let you set up a free zone company that you can own entirely without the need of local sponsors. Others have fewer regulations that might strangle your potential to profit, too. Depending on the industry you want to build in, some will even offer government financial incentives if the state is looking to grow those sectors.
The prestige of a global brand
If you want to build a brand that stands the test of time, then going overseas does more than just help you achieve longevity by diversifying risk. The fact that a business is represented in more than one country is going to make the brand look much more prestigious and successful back home. If your business has what it takes to operate internationally, then it will lead the consumer to believe that it’s a brand worth trusting.
Talent from all over
You can also get access to a much broader selection of employees. In some industries, it makes sense to move the business to where the talent is. For instance, Silicon Valley attracts tech startups from all over because business owners know that’s where the most tech-savvy employees are going to be. Others might set up overseas because they could potentially benefit from much cheaper labor thanks to a lower cost-of-living. Just make sure you’re fully prepared for the responsibility of having employees overseas. Employee law changes from country to country and failing to read up on it beforehand could cost your business more than you would save in the first place.
There are certainly challenges to taking business overseas. Getting used to new laws, new cultural norms that your brand has to adapt to, and new networks of suppliers and services will take some time. However, if you do it right, you could be looking at world-class talent, lower costs, and a much broader, safer market share.