Companies are strategically moving business operations abroad for myriad reasons. Relocating internationally grants businesses access to a new untapped market, offers different financial incentives and breathes new life into a business model.
Are you considering joining the wave and moving business operations overseas? There are many reasons to relocate a business internationally. Perhaps your company has recently undergone a domestic business expansion, so the next logical step is to move abroad or even immigrating.
5 steps for moving business operations overseas
Follow these five tactical steps to prepare for moving business operations abroad — and get ready to broaden your horizons.
Reflect on Your ‘Moving Business Plan’
When planning for moving business operations, you’ll first want to reflect on the goals for your move. What do you hope to achieve? Accomplish this task by putting together a comprehensive business plan outlining aims, costs and logistics. Consider relocating your company for goals like:
- Cheaper operating costs
- Better government infrastructure
- Improved availability of resources
- Access to new markets
- Quality supply chains
If you can ensure your company will improve its chances of success in any of these areas with an international relocation, give yourself permission to proceed with moving business operations.
Consider the Hurdles to Moving Business Operations
Another wise idea is to consider any potential problems with your relocation efforts. Many businesses encounter the following issues when moving business operations to an international market:
- High start-up costs when it comes to business incorporation, stock and labor prices, and licensing fees
- Poor budgeting and a lack of funds in reserve
- Not enough planning and too much spending
- Having poor capital structure and accumulating vast amounts of debt
Knowing the potential pitfalls of starting a business overseas helps prevent these things from becoming a reality.
Research Viable Locations
Now you can get to the exciting task of researching and planning the best location for your move. Start with market research — if the country does not need your product, there is no reason to relocate there. If there is limited demand, keep in mind that it will likely sell for less than at home.
Once you’ve identified your new location, it might be wise to hire a company to help with translation services. It’s crucial to understand the foreign market you’re trying to break into when moving business operations overseas. To do so, you’ll have to fully comprehend the culture so you can quickly act on trends.
Additionally, you’ll need to hire a team of specialists, including lawyers and accountants, to assist you with legal matters unique to the country. Each nation has its own laws about international trade, so you’ll need specialists to help you navigate these challenges and ensure you’re not breaking any government regulations.
Establish Your Right to Move
Work with your team of specialists to get the necessary permissions for moving business operations into your selected country. Many nations offer tax incentives to companies, so establishing your right to move could prove simple. However, you want to ensure you show proof of profitability, which often necessitates a great deal of paperwork. The amount needed to acquire permission to move to your destination differs from country to country.
This is where having a legal team of specialists comes in handy. It is also wise to consult with local experts, especially those in immigration services or at embassies. You could also speak to other international businesses that have recently undergone moves similar to the one you’re trying to make.
Plan the Relocation
The next stage of moving business operations overseas is arguably the most exciting — the part where you get to plan your relocation. First, assign a project manager to handle the ins and outs of the move. It’s ideal to have one person control all details, ensuring communication remains clear. This also helps your employees know who to turn to when they have questions. Consider a member of HR because they already have direct contact with employees. You could also hire a third party to handle the relocation organization efforts.
This person will be responsible for planning all necessary details and communicating them with employees. This includes the entire relocation timeline and all administrative tasks that accompany the process of traveling. Your project manager will need to assist employees and their families as they look to move overseas. This process can be time-consuming and often depends on how long it takes to acquire visas and arrange work permits. Lawyers can help speed this process up, however.
Hire Movers to Go Overseas
The last stage of preparing your business to relocate internationally is to hire qualified movers. Relocating overseas is a significant task, so you’ll want to ensure you employ corporate movers that specialize in international moving and shipping. Because the nature of an international move is complex and requires additional attention to detail, go with a company with an industry reputation.
Corporate movers offer consultation services to discuss your company’s needs and learn more about what items will be shipped and to which location. Additionally, the mover will manage the logistics of the move itself. You will not have to worry about your items clearing customs or the required paperwork that accompanies them. Not having to worry about logistics provides significant peace of mind for many companies. International providers also offer packing, loading and delivery services.
Conclusion: preparation = success
While an overseas business relocation can prove challenging, the benefits certainly outweigh the risks. However, it does take quite a bit of planning and lots of time to ensure the transition goes smoothly. Implement these five steps to prepare for your company’s international move with ease.
