9 things to consider before relocating your business abroad
Relocating your business to a new city is an exciting adventure. However, unlike relocating homes, relocating a business is slightly more complicated and there are several things you need to consider before taking this bold step.
You can never have too much information. Look for a support system in the country that you are relocating your company to. Preferably a person who runs a business in that country and can help you form new networks in the region.
Cost of Living
Cost of living varies from country to country. This in turn will have an effect on the business in some way. For instance the salary you pay your staff members will vary in order to match the cost of living in that country, consequently this will affect your cost of operations.
Research on the consumer trends of that region; understand their cultural values, socioeconomic structures. This will help you in coming up with effective strategies to reach your target audience.
Don’t move if you don’t have to
Depending on the nature of your business, you may not even need to physically relocate your office to another region. If you can have employees work remotely from their respective regions, then do it. IT also helps you cut costs.
Matt Ames summarizes this very simply “Before venturing into a new market, you should look at your current market and see if you are No. 1 in that market. Make sure you have built a dominating business in your current market before you expand to another. If you can dominate your current market, then why go to another?”
Having several offices in different regions means a lot of traveling. Consider how much it will take to travel between the various offices, cost of accommodation and currency exchange rates.
Consider whether you will find the talent that you are looking for in the new region, and if you do, what are their expectations? This includes, work environment, salaries etc.
Who are your local competitors in that region? How are they fairing on in that line of business? You need to have identified a market gap that you will capitalize on, in order to stand out from competition.
You’ll need to find out the language commonly used in that country. If it’s one you can’t understand, you will be required to hire an interpreter. This may have the effect of slowing down the running of the business or even cause miscommunication.