In today’s economy, an increasing number of businesses are establishing international operations. According to a survey conducted by USForex, up to 58% of startups already have international customers, while as much as 96% feel strongly about conducting business abroad. The historical notion of starting a tech business locally and waiting up to 10 years before considering global expansion is fast coming to an end.
Thanks to technological innovations like the internet, it is now easier than ever before to expand your tech business globally. Following a set of basic guidelines is also making marketing and selling to an international client base almost as easy as conducting business at home.
Make the most of available technology
There are various technologies available that will make it substantially easier for even a small tech start-up to generate an impressive global presence for itself. Over the past 10 years, the cloud has grown into a disruptive force that influences various functions within a business enterprise.
When expanding a business abroad, a cloud storage solution such as Google Drive, Microsoft OneDrive, or pCloud can make it significantly easier to organize and share your files and data. Also, modern-day collaboration tools like Slack, Skype for Business, and Flowdock continue to simplify communication across country borders.
Choose the right financing option
Although increased financial turnover is one of the main reasons why businesses will expand abroad, expanding internationally may require an initial cash injection. While it may be harder to secure finance for international expansion than it is for traditional business processes, it is not an impossible feat.
The U.S. Small Business Administration (SBA) can help a business owner find a third-party lender while the government’s Overseas Private Investment Corporation (OPIC) offers a sleuth of loans that encourages development in high-risk foreign markets.
In some instances, taking out a personal loan to cover costs such as international travel and accommodation may be a viable idea. Prior to taking out a loan, it is important to conduct some research, ask yourself some pertinent questions, and weigh up all your options to ensure that you make a sound financing decision.
Seek out government incentives that can benefit your business
By seeking out foreign government incentives as well as tax breaks, any financial burden can be decreased significantly. In the UK, corporations pay a corporate tax rate of around 10% whereas the U.S rate is calculated at 29% – the third highest in the world. Some countries attract small businesses with other lucrative incentives.
While Malaysia’s federal portal aims to provide assistance to business owners in terms of finding ways to save money, the government of Norway is actively making registering a business and complying with tax laws easier. It is imperative to explore all your options prior to moving your business abroad to ensure that you are making well-educated choices that will benefit your business most.
Taking your tech business abroad is a big step but undoubtedly one that can be immensely beneficial. By taking the plunge to establish a global presence for yourself you may soon find your business attracting as many foreign customers as it does local ones.