It’s sometimes the case that taking your business endeavors overseas is in your best interests.
After all, the move can bring better trading conditions and economic circumstances for you, increase access to better hires, and just energize your company with a shot of adrenaline. If you’re relocating from the place your business limps along to a location where it can truly flourish, for example, then prospects and excitement can be sent souring. You should be proud you’re willing to take that step!
Of course, if you’re just starting out, then focusing your sights on lands far away can be inspiring and invigorating on its own too. It’s an incredible experience to throw yourself into the deep end and operate in markets and industries that seemed more akin to folktales back home! That is, quite literally, living the dream!
But how do you know it’s the right time to make that all-important change? What red flags should you look out for? Well, here are a few pointers to light your way.
Taxes and Tariffs
Many businesses move only part of their operations overseas to ease the brakes on taxes and tariffs.
This is precisely what Harley-Davidson did in 2018, shifting production of its famous motorcycles to factories in Europe instead of continuing to manufacture them in the US. The transition allowed them to alleviate the burden of tariffs imposed by the EU, which in itself was done in retaliation against Trump for the duties he put on steel. It’s all rather messy and complicated, but the point is that it’s understandable why businesses would want to skirt around all this drama if possible.
It’s worth mentioning that companies aren’t responsible for all the tough economic conditions that are out there. If unjust taxes and tariffs are being imposed upon your business, it’s only right that you seek a bigger slice of the pie elsewhere. Otherwise, what is it all for? It’s admirable to remain loyal to your roots, but if it’s costing you your livelihood, or even just sacrificing your basic level of happiness, then it could be time to set your sights elsewhere?
It’s probably fair to say that the public in most countries aren’t happy with their politicians, even if they elected them in the first place.
Taxes and tariffs are indeed polarizing, but one thing coronavirus has done for many Americans is make them question whether they want to continue living in the big city, despite all the fortune and excitement they were previously promised on arrival. Can the local officials safeguard their citizens? Is the country at large doing a good enough job at keeping everybody safe? If these fundamental questions can’t be answered positively, what future is left? Is a city’s ineptitude a reflection on America at large?
While it would be a disaster if every corporation set sail into the sunset, the fact is every firm today deserves better than what is currently happening. If heading or expanding overseas increases the prospects of yourself and your employees under these circumstances, then go for it. It’s a big and bold move to take, but if you’re experiencing fight or flight syndrome, then now maybe the time to take that big leap.
Of course, it’s not just about moving a business you already own either — those looking to make waves for the first time might, understandably, cast a weather eye to elsewhere also.
For example, you may want to take advantage of the Netherland’s brilliant business scene and start a Dutch BV. To hit the ground running here, consult incobusinessgroup.com. INCO Business Group explain that the Dutch BV is a legal entity, used often by foreign entrepreneurs to build a holding company. They enable you to go and buy shares in other firms, and better yet, the Netherlands are incredibly flexible with all the rules and regulations around this arena. You have robust protection against hostile takeovers too, so in time you’ll have a lucrative operation with a series of slick safeguards in check alongside.
Taking your business interests overseas can offer you opportunities, and assurances, that are not possible elsewhere. Trying something new when it comes to business involves many bold and daring risks, but in the right country, you can excel and learn your craft under more human rules and regulations. You have room for failure, but most importantly, you have space to succeed.
Sometimes, market trends fizzle out and die a slow, excruciating, painful death, and your business needs to be well clear of them when they do.
If you’re too slow to recognize the changing of the tide, your operation can be left floundering in the water without a life jacket. Therefore, your firm should always be poised to operate from a position of strength, where a strong market guarantees a steady revenue. Only then can things move on comfortably, sparking business growth.
Remember, even some of the biggest companies have been responsible for the biggest product flops in living memory. Do you recall the times when VHS tapes were a thing? What about SEGA consoles, or iPods? What was popular then are collectible relics of a bygone era now, and the companies responsible for these marvels have had to adapt over time to stay relevant and successful.
Part of that mission sometimes involves heading overseas to keep the pulse on market changes. What goods are set to be imported or exported? Have foreign countries discovered something that the US simply refuses to catch up on?
Continue Reading: https://www.insightssuccess.com/should-you-take-your-business-overseas/.