Why Your Small Business Should Consider Moving Overseas
Opening a business in an overseas location can be an exciting proposition for a business owner. Many business owners have considered a move overseas to further their business goals, but have for one reason or another decided against the move. The following benefits are good reasons why business leaders should consider moving their base of operations to an overseas location.
Business owners that move their businesses overseas can significantly decrease the costs associated with operating their business. As any business owner can tell you, the cost of labor is one of the biggest expenses for a business. In many countries, the operating costs are low because the cost of labor is low. However, this is not all. The cost of land, commercial rentals, natural resources, and more are also available at a cheaper cost in other countries.
Recent reports identify New Zealand as one of the most business-friendly countries on the planet, closely followed by Singapore. The factors that contribute to this conclusion are the ease of obtaining permits to do business, availability of credit, favorable tax rates, and the contract laws of the country.
Companies doing business in America face regulations from a variety of organizations like OSHA and the EPA. When a business is moved to a country that possesses less stringent regulatory practices, companies are allowed to be more innovative and take risks that may not be possible in their home country. Countries that allow businesses to operate without excessive government control can be inviting to business owners that wish to avoid rules for price-fixing and practices that are anti-competition.
In the past, many countries have found it difficult to attract investors and business owners. To compensate for this, these countries will often offer incentives to sweeten the pot for entrepreneurs. These incentives can include tax breaks and grants from the government. Individuals with a proven business model can give their businesses a big boost by moving their business to a country that offers incentives to relocate.
New Talent Pool
A major benefit to a business owner that moves overseas is access to an entirely new pool of talent. This talent pool often includes potential employees that possess a new set of talents and skills. Business owners often find that hires in their new country possess skill sets that are hard to find in candidates for hire in their home countries. Get some of the best customer service reps as they can impact your business in many different ways. These employees can give a business a leg up on the competition that does not have access to employees outside of their domestic location.
Business owners can save greatly on taxes when choosing to move their base of operations to countries with more favorable tax rates. Bermuda is an excellent example of the tax savings available as the country imposed a zero percent tax on corporate entities in 2012. Likewise, the tax rate of 12.5 percent that is imposed in Ireland can offer significant savings over the 35 percent corporate tax rate that was applicable for the year 2012 in the United States.
Business owners that move to other countries establish a ‘global footprint’ for their businesses. This will result in the company receiving the type of recognition worldwide that can later lead to further expansion across the globe.
Ironically, the business will also receive more respect in its home country as a move overseas will cause domestic customers to view the business as a global brand.
A market that is saturated in the United States might be virtually untapped in another country. It is not necessary for a business owner to accept being a small player in a large industry when a move to another country can instantly elevate them to the status of chief industry player.
The knowledge gained regarding a new location will result in the business owner becoming more well-rounded as a person. Understanding the nature of people from a global perspective will help business owners better relate to all their employees and customers.
Moving an existing business is a complicated process that involves a lot of planning. However, many possible benefits await the business owner with the courage to take the plunge. A little research on the part of a business owner will likely uncover many excellent locations for their business. The nine benefits above are just the tip of the iceberg when it comes to good reasons for entrepreneurs to move overseas.
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