As your business starts growing in size and stature, you will start looking at the many growth opportunities present around you. Obviously, growth is something that all entrepreneurs have in mind. It is the end goal that leads entrepreneurs to success and is the pinnacle they want to climb.
In a bid to grow their business and achieve the new revenue generation capabilities they would want, businesses and managers at the helm start contemplating the option to move abroad. Expanding a startup to other countries is the most common and most successful growth strategy around. Many businesses have benefitted from global expansion, and there is no reason to suggest your business wouldn’t benefit from it.
There are many benefits of expanding your business, specifically in countries such as China, Brazil, and Mexico. Once you have established your business in your home country, the next elaborate step on the ladder is to contemplate a move abroad and jump on the shores of change.
From new revenue generation opportunities to tax breaks, moving abroad comes with many benefits and opportunities. Let us explore some of these advantages and opportunities for you in this article so you can make the shift abroad with a level mind.
Discover New Customer Growth Opportunities
Moving your business to new countries opens up a number of new business opportunities for your brand. You can gain access to untapped markets that a quality goods provider like yourself can make significant inroads in. Additionally, if you have extensive competition in your hometown or domestic market, expanding into a new country will give you the relative ease in selling and production as there may not be as much competition. It will also help you overpower your local competition and give you an edge above them due to the global nature of your current operations.
By the time your competitors catch up with you in the global arena, you will already have a strong growth position. However, do not head into countries in your exuberance without doing some background research. To find out if there is an existing market for your products and services in the country that you’re moving to.
Leniency in Tax
There are some big corporate tax savings on offer when you earn profits through overseas countries. The countries you move into might come with more lenient and relaxed policies than what you may become accustomed to in the United States. Corporate taxes in the state of Bermuda are currently at zero percent, which can be a very attractive option for corporate structures moving in from the United States. It just makes good business sense for organizations to move abroad now, knowing that they will be saving on one very important business expenditure.
Flexibility in Risks
Organizations that expand their operations to countries with more relaxed regulations and policies usually find themselves in a better position to take risks, innovate and grow over time. This feel of flexibility in risk is even more than what is usually experienced at home. Economies that usually allow companies to work their way to the top without interference from the government attract a number of businesses that want to innovate and develop a flexible approach to risk.
A move abroad will help you avoid things such as labor laws, price-fixing rules, or anti-competition rules that put an end to your ability to develop and grow.
Become Trusted Among Customers
Going global and expanding your operations also allows you to be trusted by your clientele. Your customers will come to trust you as a brand of prestige. This isn’t something you can enjoy by staying put within your local market and not moving abroad for extended opportunities. Going the extra mile for your customers’ needs and extending your reach is almost always taken positively by stakeholders.
Think about all the globally popular brands around you today and the exposure they get due to their brilliance on a global stage. The more you progress toward international fame and prestige, the more trust you garner from your customers. While there will be a few challenges on the way, the sight of the lustrous end goal will keep you motivated.
Economies of Scale
By expanding your operations, you will be able to produce and sell more units. Generally, the more units you sell, the more units you produce and procure. A step up in production will allow you to benefit from decent economies of scale.
Economies of scale refer to the benefit you get from dealing in bulk. The benefits include the decreased cost of procuring raw materials and better relationships with suppliers who provide you with goods in bulk. This will enhance your profit margin and allow you to earn more without potentially sizing down on costs.
Enhanced Profit Potential
The move abroad might come with its own set of costs at the beginning but will eventually offer enhanced profit potential in the long run. The increase in profit will be achieved through the economies of scale discussed above and the reduced labor costs of operations. Yes, it may take you some time and effort to establish your business globally, but the effort and investment you put in here will be worth it.
You can also benefit from reduced staff salaries and denominations online to reach better results. You can even produce more products and sell them in multiple markets globally. The bottom line is that moving your startup abroad helps you benefit from a number of cost savings, which potentially increase your profits.
You’ll never know about the opportunities for your business abroad until you give it a chance. So, increase your risk appetite, go over these reasons again and take the leap of faith abroad.