Key Things to Consider Before Migrating your Business Abroad

Apr 22

You are in business for some time now, everything is going well, you have covered the initial investment capital, and you gained a big profit. Both your business and marketing strategy seem to be quite good, since the improvement is evident, but it is no longer enough to keep contact with your foreign partners only over e-mail and video conferences. Now that you have sufficient funds, it might be a good idea to branch out, setting up another one abroad, but there are a couple of basics that you need to be familiar with.

Play by the Rules

What many entrepreneurs tend to forget, and what you absolutely need to have in mind is that regulations in another country are not the same as the ones in yours. That is why you should look for an expert, and have someone go through the whole process with you. The most important things to find out all about the tax laws, because if you do not follow the rules, you might be charged with some serious offences. There even might be certain restrictions that prevent you from moving the company to a specific country in general, so do your homework, research, so that the complete process would not be a waste of money and time.


Plan Carefully

It is always a good idea to branch out, but it is important to set the proper goal and aims, that is, to carefully plan out every detail of your foreign business plan. You need to think of everything, from the beginning to the very end, and have in mind all the operations you want to carry out, at least the ones that are planned for your first year abroad.

Apart from making an elaborate plan, you will also need to figure out how to manage the branch abroad. Of course, this task is simplified when you have managers and designated teams in the picture. However, it may become cumbersome to monitor performance, regulate data, and keep up with conversion rates through simple e-mails, calls, and messages. So, you’d want to optimise your business by using OKRs software, or one similar to it. Through software integration in your business, you can effectively manage employees, tasks and performance, and secure data too.

Different Language, Different World

The smartest thing to do would be to move to a country which language you already know, and are fluent in. However, it does not have to be a condition that might prevent you from moving, as there are ways to overcome the barrier. You can always hire an interpreter, who will be there with you on every meeting, so that there would not be any bigger business mistakes caused by miscommunication.

You also need to learn everything about the culture you are going to, because some of the basic things such as posture or gestures might be offensive to a foreigner. This is especially important when it comes to Eastern – Western differences, so if you want to move your offices to Asia, you need to learn about their administrative and cultural norms. Moreover, these things also differ from country to country, so if you want to incorporate a company in Singapore, for example, be sure to visit it a couple of times or find out relevant materials online.


The Cost of Everything

Even though you are probably successful, and financial stable, you still have to calculate how much it is going to cost you, set a certain budget and stick to it, to avoid going crazy, and bankrupt in the short term. You also need to be careful when converting money in foreign currency, a lot of money can be lost if you exchange it at the wrong time.

So if you have decided that it is time to set up another branch abroad, do not forget to do your research before starting the whole process. Set up a budget, business plan, and find out everything you can about the country you are incorporating it in, so that you would avoid any misunderstandings, or bigger financial problems.