Are you starting to get itchy feet? You might be the only one! These days, lots of business owners and entrepreneurs have their sights set on foreign shores. There are various reasons why you might be thinking about starting a startup in a foreign country. Maybe it’s because you just want to experience life in another country. But one of the most common business reasons is down to money. There are loads of countries that offer office space at much cheaper rates than in the UK and US. Just look at Berlin for example. The German capital has a booming startup scene, and many people put it down to extremely cheap rents.
So how do you go about opening a new company abroad? It isn’t an easy thing to do, especially if you have no experience of your chosen destination. However, it isn’t completely impossible. There are just a few extra things you need to bear in mind. To help you get things started, here are our dos and don’ts of opening a startup overseas.
Do Find A Local Mentor And Investor
First of all, you need to find a business professional who is a native in your chosen country, and who is willing to help you set up shop. They will have an insider’s knowledge of what it takes to set up your startup. If you ever have any questions or queries, your mentor will always be there with answers. Don’t already know someone in your target country? Take a look on LinkedIn and see if any of your connections know people who they can connect you to. It is also important to try and find an investor based in the foreign country who can provide you with an injection of cash once you relocate. Your mentor should be able to help you find someone. His or her large book of contacts should come in very useful! It is also important that you find a foreign accountant who will deal with all your new startup’s books. You should also retain your accountant at home such as Brown Smith Wallace who will take care of all your personal and business books back home.
Do Localize Your Vision
You can’t expect to provide the exact same services and products that you currently do in your home country. Foreign markets are different, and there could be no demand for what you offer. Not only that, though, but the new country’s culture and traditions could mean that you need to change your business slightly. To know exactly what you need to do to help your new startup survive, spend a few weeks in your target country. You should go with your mentor to visit as many startups and business in your industry as possible. See how they trade and try to find out how the market is doing at the minute. This will give you an idea of what products do well in the target market.
Do Learn The Language
One of the main problems of setting up a startup in another country is the language barrier. Try to overcome this by learning the language before you arrive. You don’t need to become fully fluent at first. But if you know the basics, that should be enough to impress the first few employees who you hire. As English is the main language of business, you should try and hire locals who are fluent in English and the native language. Even though they can speak to you in English, you should still try and communicate with them in their own language sometimes. Even if it is just a simple hello and goodbye! As your business becomes well established, carry on learning the language with the aim to get fluent. If you can hold meetings and presentations in the native language, you are increasing your chances of making deals. Especially with smaller businesses in the target country. After all, not every single company in the new country will have staff who are proficient in English. Especially if they only trade within their own country.
Don’t Forget About Networking
Even if you worked hard at networking back in your home country, you need to get back out there in your new home. No matter how many telephone numbers you have in your phone book, not many of these contacts might be able to help you in your new country. Even if this feels like starting from scratch again, it will certainly be worth it. The best way to network in your new country is to see if there are any events aimed at professional expats. Once you start to get to know a few people from your own country, they may introduce you to their wider network. And once you build your confidence in your new country, you might even want to go to networking events in the native language!
Don’t Be A Tourist
Once you have moved to your target country, you need to start living like a local. That is the only way that you can fully experience and appreciate all the cultures and traditions of your new home. This will help you in your business life as well. There is often some big differences between countries when it comes to their working customs. If you aim to live like a local, you will start to understand why your employees do what they do in the office. Not only that, though, but living this way will help you settle in much better, and you’ll enjoy your new life. Sure, it is perfectly okay to play the tourist card and go sightseeing for the first few weeks. Then, once you have seen all the landmarks and attractions, it’s time to knuckle down to business and readjusting to your new way of life.
Starting a startup overseas could be one of the biggest challenges you ever face in your life. But it will also be one of the most rewarding. It could also turn out to be the most profitable too!
This article was provided by ellie jo