Whether you are a new entrepreneur or already have experience in the business domain, the pandemic is perhaps the biggest challenge you may ever face. It is an unprecedented event, with uncertainty and apprehensions prevailing in the business landscape. But if you look for a silver lining, you may see opportunities ahead. For those planning to set up a business overseas or even create a global footprint for an existing one, the post-pandemic period may be the best time to do it.
But before you go ahead, you should have valid reasons to take the step. It also makes sense to be aware of the challenges related to post-pandemic recovery so that you can decide whether it is worth taking the task of global operations at this stage. Surprisingly, this can just be the moment you may have been waiting for. Provided that you are willing to give your best, you may unlock an excellent opportunity for setting up and expanding in another country. Let us explain why it may be a great idea in the post-pandemic era.
Some markets are offering lucrative opportunities
Depending on the product or service you offer, there could be some lucrative opportunities in some global markets right now. Despite the economic uncertainty and downturn, it may be a good time to invest in these markets. Demand in certain sectors like retail and pharmaceutics is stable, and it may even witness a significant uptick in 2021 and ahead. Moreover, local competition in these markets may be lesser than it would have been in normal times. As long as you have a product that will sell, you may be able to achieve your revenue and growth targets in a new market sooner than you expect.
Diversification fast tracks growth
If you already have a business in your home country, the best thing you can do in the post-pandemic era is diversify your company. The crisis has given many lessons to the business owners, and they have realized that protecting their bottom line against unforeseen events is the key to survival. Going global is an effective strategy because international operations can offset negative performance in the local market by operating successfully overseas. Diversification by exploring an opportunity in a foreign country is the best bet to fortify your company against future risks and uncertainties. Although it may cost a bit today, you end up with a stronger foundation in the long run.
Compliance requirements may be a tad easier right now
Setting up a company in a foreign country requires you to fulfill certain compliance requirements. There are formalities related to registration, taxes, duties, and other legal requirements. Since countries across the globe are going the extra mile to attract foreign investment, things may be a tad easier on this front in your target market. For example, Italy has made some positive changes in the Italian Golden Visa Program right now, so expanding your business here is a good option right now. It would be a smart move to grab the opportunity at this point because you can do it more easily and with a smaller investment.
Acquiring local talent may cost lesser
Another good reason to explore an overseas market in 2021 is that you will probably be able to acquire local talent without spending a fortune on hiring them. The pandemic has resulted in businesses closing down, and thousands of people across the globe have lost their jobs in the last year. They may be willing to work at lower salaries in the post-COVID recession period, and you can use this to your advantage. It means that you can access qualified and talented resources in another country at a fraction of the cost than in normal circumstances. Moreover, these professionals will make a genuine effort to drive growth for your company because your growth will be the assurance of job stability and economic growth for them.
Operational costs are on the lower side
Right now, operational costs for businesses are running on the lower end of the spectrum, which can be a great advantage for businesses starting up overseas. It would be much easier to get through the break-even stage if you can control the costs during the early stages. You can expect to get an office space at lower rental rates, while the size of office spaces is smaller as well. Since remote working is becoming normal around the world, cutting on infrastructural costs is possible for new setups in foreign countries. If operating in the retail domain, you can also avail the cost-cutting benefits of e-commerce operations. Overall, the setup costs are under control, and it gets much easier to sustain your business in a new location.
Get a competitive advantage when it matters
Choosing international expansion gives your business a competitive edge over the opponents. Your brand gets good exposure and a greater reach in the international market, both making you bigger than the rivals in your domain. It would be a wise idea to capitalize on the current opportunities and surge ahead in the competitive landscape at this stage. The earlier you gain the advantage, the further ahead you will get in the race, and it will be easier to maintain the momentum in the future as well. If you have the vision of having a global outreach in your mind, now is the time to realize it. So you shouldn’t miss the chance when it is here.
While the pandemic may seem like a daunting challenge, it can be a blessing in disguise for entrepreneurs who envision reaching out to foreign markets. But you must do it with good planning and risk coverage. It is vital to choose a favorable destination that has extensive opportunities, a business-friendly environment, and minimal hurdles for foreign-owned companies. Partnering with local legal experts and tax professionals gives you a head start and keeps your business on the right side of the law. If you take the right approach and start right now, there could be great things for your business ahead.
The post Why Should You Consider Setting Up A Business Overseas Post-Pandemic first appeared on Mind My Business.