What Do I Need to Consider When Moving My Company Abroad?
The world is quickly becoming a smaller place and it’s making more sense for companies to uproot and locate elsewhere, reducing staffing and production costs. Relocating your business isn’t a light decision though, no matter how much more cost-effective it may be. If you are considering moving your company to another country, we’ve outlined a list of things for you to consider, ensuring you make the most of the opportunity.
#1 Rules and Regulations
The rules and regulations differ for businesses from country to country. Before you embark on your relocation, you must seek expert advice on any regulations that might affect you. Tax laws vary in different countries and failure to comply with such laws can result in serious fines or even prosecution. It is wise to research the rules and regulations before you move to your desired destination, as you may not be able to set up your company where you wish.
Tip: Prior to relocating your business take language lessons; the locals will appreciate your effort, you’ll be able to understand better what’s going on with your business, and learning another language looks impressive on anyone’s CV.
#3 Culture
The language barrier is one hurdle, but culture is a whole new ball game — and it takes time and understanding to grasp another country’s culture. What might seem like a completely natural gesture within the Western World can cause all sorts of offense in the Eastern Hemisphere. It would be wise to study your desired destination’s culture before you set up camp. Be sure to source an expert, as getting this wrong could have dire consequences.
Tip: Visit your desired destination as many times as possible before you set up your company there. You can do all the research in the world, but nothing will give you a better understanding of the place, people and problems of a country than visiting the place in person. This gives you a chance to chat with the locals and business experts to ensure you’re making the right decision.
#4 Marketing
Just because your marketing strategy is successful within your own country, this doesn’t necessarily mean it will do well in another country. International market research must be carried out within your planned destination to ensure you gain a solid knowledge of your target audience. You must consider slogans and their meanings, especially if translating into another language, not everything has a literal translation and you wouldn’t want to do irreversible damage to your brand.
Tip: Employ an expert! Don’t try and do this alone. It may raise the initial set up costs when vacating, but it could save you millions in damages and humiliation. You don’t want to have to head back with your tail between your legs because you didn’t bother to translate your marketing message properly.
#5 Cost of Moving
In the long run, it might make perfect business sense to up and move your company; however, in the short term, it could be extremely expensive. You have to factor this cost into your budget, there’s no point in relocating your company to save money if the cost to do so is going to bankrupt you. There’s also the currency conversion rate, you will need to pay close attention (or seek financial advice) to the state of the exchange rate, exchanging your money at the wrong time could lose your business thousands.
Tip: Stay abreast of foreign financial affairs. You will have to employ a financial expert to guide you, but it’s no use if you don’t know what they’re talking about. Read the Financial Times, watch world news channels and read up online to ensure you gain a proper understanding of the market.
#6 Factory Removal
Depending on what type of business you run you will need to take into consideration the cost of sourcing a new factory or whether a factory relocation will be more cost-effective. A lot of plant equipment is very specialized and can therefore be costly to replace. Having a specialist company manage your factory relocation can save you thousands.
Tip: Gain three separate quotations for both options, relocation or removal, and see which is the most cost-effective for your company.