In the modern globalized world of 2017 starting a business in another country isn’t nearly as impractical as it was several decades ago. The benefits of such a decision are numerous. For instance, aside from discovering untapped markets, there is a chance that the country you are targeting offers some government incentives. Furthermore, it might at least provide you with some fresh business environment or help bring your business back to life. Still, why is usually not the most important question. The question that is even more important is how? Well, here are some pointers.
1. Start by studying cultural differences
Studying cultural differences is the obvious first step for several reasons. When hearing this, most people first think of knowing how to behave during a business meeting or dinner, but this is just the tip of the iceberg and not even the most important reason. The main cause of this research lies in seeing how well suited is your product or service to the local culture. For example, everyone knows the case of Kinder Surprise being illegal in the US, but there are numerous opposite examples as well. Some American foods are banned in other countries, which would potentially make an idea of opening a theme restaurant in these regions completely out of question.
2. First-hand experience about target destination
Another thing you may want to do is gather some first-hand experience about your target destination. This way, not only will you learn a thing or two about the other country’s culture, but you’ll be able to experience it yourself. In other words, you want to see it from your own perspective, which is why it might be smart to get in touch with a local destination management company (DMC). For instance, entrepreneurs from Australia who hope to establish their business in the US have an option of contacting Insider Experience, while those from other cultures need to search for matching local DMC.
3. Look for incentives or grants
Once you have these first two things figured out, you’ll need to take a look at the country you intend to invest in. Some countries are so desperate to attract foreign investors that they’ll offer a wide array of financial benefits and incentives. Who knows, your industry may be one of those that are preferred by the local government, which could help ease off your burden by quite a bit. If you are still not sure about the exact region you are going to invest in, you could go by the chart of investment-friendly countries and explore options at the top of the list.
4. Monitor geopolitical occurrences
One last thing, keep in mind that the turmoil, warzone or political instability in the region may reflect poorly on the local market. The same goes with the risk of any of the aforementioned issues. Still, keep in mind that this is something that will potentially scare off all of your closest competitors and make the market ripe for the taking. Sometimes, seeing further than others and recognizing a false alarm can be particularly lucrative. Nonetheless, the risk is great as well and not always worth taking. At the end of the day, the choice is yours.
As you can see, establishing an overseas office has been made much easier than it was in the past few decades, but this doesn’t mean it’s a walk in the park. You still have to find a good local manager, a local recruitment agency and set everything up from far away. Can all of this pay off? Well, of course it can! Sure, it may require a lot of research, entrepreneurship finesse and traveling back and forth across the globe, but the success never comes without a cost.
Dan Radak is Hosting security specialist. Currently employed as a consultant in couple of Web Hosting companies. Lately, he has been interested in web design. You can reach him on Twitter.