The hallmark of an efficient business, especially one that is doing so well, is that there will, inevitably, be discussions as to how you can improve your business to yield a better return on investment. It might have got to the point where breaking even was a distant memory, so now, expanding your base of operations is a major priority. Although sometimes, many entrepreneurs choose to expand their business in their own country, lots decide to go to other countries and take advantage of other markets. And sometimes, people take advantage of their home market, but also make the journey abroad as a way of expanding their business. If you are lucky enough to have got to this point, considering the overall positives and negatives of, either relocating or adding another base of operations to another country, needs to be set out…
The Various Barriers
Ultimately, moving to another country, in any capacity, comes with its own unique barriers. The first thing to consider, as far as moving a business is concerned, the rules and regulations for each country are going to be unique. While most entrepreneurs look at the costs of moving to be the most attractive prospect, this can blindside you somewhat, meaning that you don’t do enough research into the overall regulations operating a business in another country entails. Tax laws, for example, are considerably different in every country. If you aren’t aware of a specific tax law, and you don’t comply with it, you could either face serious fines, or you could face prosecution. Your first port of call is to undertake research into this before you decide to move. Because you may find something during your research that doesn’t lend itself well to your business. If you’ve gone through various processes, and invested money in certain aspects of moving before undertaking the transition, and something is thrown up to throw this process into disarray, it’s a big waste of time and finances. Other barriers includes the culture and the language; yes, while you may find staff members to work for you, will this language barrier slow productivity? In addition to this, the cultural traditions of a specific country can mean that the whole country stops, so productivity is, again slow down. If you move your business to a country where Ramadan is celebrated, for example, not only will the fact that your employees not eating mean they are naturally going to face their own personal challenges during the process, but countries like this essentially go into lockdown. So it’s vital that you consider every aspect, not just the finances. Yes, another country many look cheaper on the face of it, but is there going to be losses in terms of productivity as a result?
The Cost Of Moving
The financial aspect is something you have, no doubt, extreme control over. While you might consider moving a business to be a great reason to reduce costs, in fact a move can cause more issues than it solves. The first thing to consider is the cost of living. While the move from a big city to a small industrial town couldn’t generate more savings, a move in the other direction could cause more expenses. Even though you might be moving to a bigger city to take advantage of the market, you might still find yourself in a similar financial position overall. Depending on your specific industry, you could find yourself landing a tax concession. This tends to be more for businesses on the largest scale, but if you have a small business that you are looking to expand, you could sell up a building or land that has appreciated in value. You can then purchase cheaper space elsewhere. On top of this, if you’re looking for a piece of land that serves a specific purpose, the cost of getting this land up to code is another additional expense. Ultimately, it depends on what you need from your land. But, there are concessions you might have to make in order to build in a certain area. For example, if you moved to a specific area of the United States, one that has the potential for earthquakes every so often, you need to prepare your infrastructure for this. A firm like Helitech Civil Construction has specialty equipment to maintain the structure of buildings in earthquake-prone environments, and it’s essential for you to undertake your research into the land prior to moving, in case you need to make the most of these types of firms. As the moving costs increase, the more specialized the duties you need to undertake to maintain your business. Because the cost of moving throws up so many different considerations, it’s important to get separate quotations for the prospect of relocating the business, as well as the removal of equipment. If you have a specialized factory business with specific equipment, this can be costly in a new location. So, by making sure you have at least three different quotations for removal and relocation, you can see which is the most cost-effective. It’s also worth noting that if you have a specialist company take charge of your relocation, this could save you a lot of money. While generally, outsourcing is seen as a essential process, this is where it can really come into its own.
Harnessing Appropriate Workers
As already mentioned, the language and cultural barriers are two things that need to be overcome. In addition to this, finding the best workers for the job can be quite a task. And as the language and culture are two things that have to be thoroughly dissected before the big move, it makes sense to hire staff members who have an appreciation of both sides. This is something that can be few and far between, but, you can certainly find the right people for the job if you look in the right areas. Sometimes, it’s best to hire someone who is willing to relocate, but from a personal perspective, this can be quite a difficult process. If you find people who are young enough that they have no ties in life, this will certainly be a big help in the relocation aspect, especially if you have those people working in your company already. On the other hand, if you are looking for people native to the country you are going to, the act of training them up to fit the overall company ethos can prove troublesome. The best solution is to have one of your existing staff members go over for a specific period of time, such as a couple of months, and do the hiring while out there. This works for a few main reasons. Firstly, by having one of your closest allies head out there, they know exactly how best to communicate the company culture, meaning you can create a worthwhile copy of your current business model. But also, you can trust them to deliver the goods. This is where the whole process can be tricky. It can be very time-consuming to find people who are suitable for the role, but this is where building relationships before the big move comes in handy. You need to make the most of your current relationships with other companies, especially those that have already made the move. It gives you a better idea of how the land lies, but also how the country impacted this other business. Of course, their experience isn’t going to be the same as yours, but you can certainly learn from their mistakes. The whole process of training up a group of staff members to be self-sufficient, is a very difficult process. This is why you need to be in constant communication at this point. And if the country is 12 hours ahead, this means a lot of late nights and early mornings for you. But, the whole process is worthwhile.
So, is moving to another country a viable option for any expanding business? Factory businesses are predominantly the ones that move away so operations to another country, these companies reap the benefits of tax concessions. Smaller businesses don’t tend to get this as much. This is why, if you run a small business, and you are making more than your fair share of profits, it’s not simple enough to use your existing business model in another country. The whole operation process could be shaken up so much that you lose money, and so, it’s far better for you to trial this extra base of operations to see if it does yield you a profit. Many small businesses now utilize workers in other countries, but this is predominantly due to the internet, and a 24/7 mindset. This is essential when it comes to things like sales, but it’s still a lot of leg work with regards to learning how other countries work. Even the United States and the United Kingdom are famously known as two countries separated by a common language. If you set up an additional location in the United Kingdom, not only is the cultural aspect different with regards to things like bank holidays, but also, the time-zone difference can cause many problems at the very outset. You would expect to have delays in replies to something as simple as emails, and it’s these little things that you have to consider, and prepare for, in order to make sure your business is comprehensive across every location. Moving your business to another country, either in relocating, or adding another base, isn’t as simple as expansion and expecting profit.