Navigating regional economic blocs is easier now than it has ever been. Continents are increasingly interconnected, and cultural exchange across the planet is in top gear. Modern communication and transport solutions aren’t limited by traditional barriers such as language and geographical borders. An American businessman can chat with potential clients in Asia via social media at no additional costs and, thanks to translation apps, without needing to learn Asian languages.
The point is: Tech advancement has made it easy for businesses to expand beyond national and regional borders. All you need is a good expansion plan, the right funding, and proper timing and you are up for international takeoff.
There are many benefits that any ambitious entrepreneur stands to gain by starting operations overseas. You gain access to the best talents in the world, it becomes easier to build strong supply chains, you are able to create strong professional networks and business ties away from home, and when all these benefits combine, they help you stand out from local and regional competition.
Are you convinced to consider international expansion? If you aren’t here are 8 compelling reasons to start a business overseas.
Jump to:
- #1 It is your best chance to generate new leads
- #2 … And turn your fortunes
- #3 It challenges you to move out of your comfort zone
- #4 Gives you access to a wider pool of talent
- #5 And better infrastructure
- #6 You can benefit from government incentives
- #7 It raises your brand credibility
- #8 Starting a business overseas is easier than you think
#1 It is your best chance to generate new leads
Competing for the same customers, with the same competitors, and in the same home market might give you some sense of experience but it can be monotonous and shallow too. And to be honest, for what use is experience if you serve the same people over and over again?
Expanding overseas gives you a perfect chance to test your experience. It allows you to generate new leads, meet new customers, and get into new competitions. You can even get to a country where your concepts are either unmatched by local competition or are totally non-existent. You will have an easier time standing out from the crowd compared to when you compete with people who share the same business concepts as you.
#2 … And turn your fortunes
Maybe your business is struggling in the home market. Moving your business abroad can give your business a new lifeline. The new base of customers you find there can help bring your business back to life. You know, that newly-found breathing space can completely turn your fortunes around.
#3 It challenges you to move out of your comfort zone
Going back to the shallowness and monotony of a home market, you don’t want to dwell too much in the comfort of your “experience”. Being in the comfort zone can be extremely dangerous for business. Why? Because the business world evolves gradually as new entrepreneurs, marketers, employees, and customers join the market. If you aren’t careful, before you know it, the industry you dominate today might look very foreign to you tomorrow.
You need to constantly challenge yourself, test your business knowledge in new waters, and be a step ahead of any possible market revolution. And which is a better place to test your knowledge than in a foreign market? Go out there and learn new languages, meet customers whose shopping behavior contrasts your home crowd, struggle with new business laws, and deal with cultural sensitivities you never knew existed. That will even help you improve your social interaction and become a stronger brand for home customers.
#4 Gives you access to a wider pool of talent
That is true. If planning to move to China, for example, through a China employer of record services, you get to optimize your human resource in ways you’ve never imagined. You can tap local talents for your local operations abroad and even bring some talents back home to replace the non-performers in your head office. Having a culturally diverse workforce is actually recommended in today’s very interconnected world.
#5 And better infrastructure
You gain access to better business infrastructure too particularly if you are expanding to a bigger economy. The economic potential of China and the ASEAN region, for example, presents any business with better growth opportunities compared to most European economies.
On the other hand, the weather, transport networks, political climate, internet connectivity, and utility costs in Western Europe can breathe new life to any business from any region, American-based companies included.
#6 You can benefit from government incentives
Most governments offer incentives to entrepreneurs who are daring enough to bring in foreign source income and investments. China, for example, offers investment opportunities and incentives to American and European companies as a way of attracting foreign investment. You could benefit from tax exemptions, subsidies on raw materials, and reduction in import and excise duty.
#7 It raises your brand credibility
This goes without saying: People have a higher affinity for foreign businesses than their local businesses. Opening a shop in another part of the world is interpreted by many as a mark for quality and authenticity. It gives you extra brand recognition which, on top of earning you a new customer base abroad, makes customers at home see your brand in a different (better) light.
#8 Starting a business overseas is easier than you think
Foreign company registration procedures in most developing economies are seamless and effortless. Such economies provide for simple incorporation procedures as a way of encouraging foreign investments.
Conclusion
Starting a business overseas can be life changing for entrepreneurs, both seasoned and new entrants. If you ever had a dream of starting a company or expanding your existing business in another country, by all means, see the dream through. The huge amount of potential overseas surpasses any risks you might have to take along the way.
