There are a large number of businesses that move their operations abroad for many number of reasons. As businesses make the decision to move abroad, different aspects of the move have been completely looked into to ensure that the move is beneficial.
Listed are some benefits of moving your business abroad
Tapping into virgin markets
Often, businesses move abroad to countries or regions that are suitable for their business and with lots of opportunities. It is not unusual for businesses moving to other countries to find that they are the only ones offering their kind of service.
This then creates a new market that is completely unreached. By the time you get competition, you already have the first mover advantage and have cornered majority of the market.
This helps the business grow geographically and financially.
One of the major benefits that business enjoy when they move to different countries is a lowering in cost of their operations. Labor, is a large portion of a business’ operating expenses. As such moving to countries with cheaper labor enables the company to make large savings on their operating costs.
However, this is not always the case. For those thinking of business relocation to Switzerland, the standard of living here is quite high. As a result, salaries and wages of employees are quite high also. Consequently, labor costs will be high but can be easily offset from other avenues.
Better business environments
This refers to lower thresholds of government regulation. of particular businesses and industries in different countries.
To encourage foreign direct investment and employment creation in their countries, governments encourage foreign business to set up in their country. In return, they are offered numerous concessions such as lower taxes for a certain period, little government regulation or even free land on which to build their base of operations.
Quick business setup
In many countries that encourage foreign investment, it is very easy to set up your business. You can easily register your business and have the necessary registration documents within hours.
Businesses that move their operations abroad seek for countries like these. Countries that you will get to and have your business ready to start within hours after arrival.
Advanced facilities and technology
When businesses do not have the right facilities, equipment and technology to enable them to effectively carry out their business, they move to countries where what they lack is in plenty.
Many companies that offer technology services around the world are based in Silicon Valley. This is because, while in this location, they can easily network with similar companies and also because they have access to superior technology, financing and talent.
Proximity to other resources and raw materials
For example, crude oil mining and marketing companies have set up operational bases in countries that have numerous oil deposits all around the world.
Businesses move abroad to ensure that they do not lack the raw materials that they need to stay afloat or to grow their business.
Businesses also move abroad to acquire the caliber of staff that they are looking for.
Businesses that make the decision to move abroad are deemed to be brave and adventurous. They build a good business reputation among their peers and other businesses in different industries want to emulate them.
For example, once technology service companies such as Uber opened up offices and launched their services in other countries, other companies such as Netflix and Airbnb followed suit. They are now known as global companies while many other businesses aspire to reach that particular level and gain the same title.
Moving businesses abroad is both a risky and beneficial venture. The risk is that the new location may not easily and quickly receive your service or product. However, like any other new product, persistence and creative problem solving ensures that your products are market leaders within a very short time of arrival.