Deciding when to set up a company abroad is never an easy call. There are a lot of risks involved and sometimes things do not work out the way you planned. That said, many successful businesses started out small and leaped abroad. If you are tempted to grow your business and expand overseas, ask yourself these questions before you get the ball rolling.
Do I Need External Assistance?
By external help, we mean business services that have links to that country. If you are looking at company formations in Vanuatu, you will benefit greatly from a business service provider who is based in that region. They will be able to help you with all kinds of things, from business registration to visa applications.
When you are unfamiliar with the landscape, it makes more sense to partner with a corporate service provider who knows the lie of the land and can help you establish your business with minimal fuss.
Are Domestic Operations Solid?
Before you even think about expanding, you must make sure that your business at home is in a stable condition. Things will take time when you set up abroad and you will need your domestic company to keep you afloat while you expand and increase your revenue.
Do You Have the Right Team in Place?
When you expand overseas, you will need to send one or two senior employees to oversee the operation. You must determine whether you can afford to move them out of your domestic operations and into an international environment. If you do not have them, where will you find the necessary personnel?
Does the Country Have Enough Local Talent?
For your expansion to work, you will need to localise your operations and have employees who understand the landscape. When you move overseas, you must find out whether the local labour force can offer talented employees.
Is There Strong Local Competition?
Before expanding to a specific country overseas, make sure you size up the competition. Analysing your competitors abroad will give you an insight into the market and whether expansion is a good idea.
There are lots of factors to consider when setting up a business overseas. If you feel like it is time to expand your operations, make sure you do an analysis of the market and get in touch with business services that can help with company formation and other important tasks.
Before making any major decision for your business, make sure you have all of the data on your customers you need. Please see the infographic below for help making informed decisions about your consumers.
Infographic provided by Riveron – accounting advisory professionals