Starting a business abroad is a serious endeavor. There are a variety of regulations and laws you must follow across international borders. It’s tricky to say the least, but there’s a lot you can do to prepare yourself and make sure you have your ducks in a row.
Before you get started, make sure that you’re financially in a position where you can afford to start a business. Make sure that you have some money put aside specifically for this, that you can live off of for 6 months to 1 year to give yourself runway.
We also strongly suggest to speak to a consultant or financial advisor of some kind, such as HJS Recovery for money advice. They can help you to navigate the treacherous waters of international business and provide the guidance you need.
Moving on from money troubles, there are a lot of things you need to consider when starting a business abroad. Some countries have laws and legalizations that are worlds apart from your home country, so it’s imperative to learn them.
We’ll get more into that further on along with property ownership, economic situations and languages.
You should make sure you fully understand the countries property rights. As a foreigner, you may not have the same rights when it comes to property ownership as locals.
It’s a good idea to read up on and learn all the points that differ from your own country. That way you will know your rights, should anything negative happen – fingers crossed you’ll never have to be put in a situation where you need to recite the law.
Understanding the economics of the country you’re starting your business in, is very important. It’s something you should look at before deciding on the country you want to start a business in.
You need to know where the country is at when it comes to financial struggles. If the country is in a difficult financial situation, it’s probably best not to start a business there just yet.
However, this isn’t to deter you away from less wealthy countries. You can still make a good business, it just may take more time and hard work.
So, this is a huge point you need to properly check out – the market. Are their buying habits similar to that of which you’re used to marketing to?
Do consumers convert the same as consumers in your country? These are all questions you need to answer and many more. Understanding their market will increase your businesses chance of succeeding.
This one is a given, but many entrepreneurs actually fail to realise the importance of this. Quite often business owners think it’s enough to know a few key phrases in the language.
But the matter of the fact is, it’s just not enough. You’re going to be selling to the people that use this language – they will respect you as a business owner much more if you spend the time and effort to learn their language.
Lastly, we return back to our beginning point – learn the countries laws! This is a major task that you need to do before you start your business.
It will give you an upper hand should you come across any unfair legal issues. Not only that, but it will also ensure you will do what you can to avoid breaking their laws.
We’d be interested to hear about how you started your business in another country, why not let us know about it? We wish you and your business great success.