Are you dissatisfied with the performance of your business?
If not, it is time to cast nets further and go global. Well, even if your business has been performing excellently over the last couple of financial years, this might also be an excellent opportunity to go global. So, what are the benefits of international expansion?
Keep reading as we dig deeper into growing business offshore. We will explore the main indicators that show it is time to go offshore, the benefits, and the characteristics of a good offshore jurisdiction.
Signs that Show It is Time to Grow Abroad
How do you know that this is the right time to go offshore? Here are five signs that your business should consider going offshore:
- Decreasing the local market share of your business.
- Shrinking profitability.
- Unfavorable government policies such as high tax rates.
- Excellent performance over the last couple of years.
- The long-term business plan indicates that it is time to go offshore.
- Opening of new market opportunities for your company.
Benefits of International Business Expansion
The main benefit of international business expansion is new sales, which comes with more revenue and profits. With this in mind, what are the other benefits to expect from expanding your business internationally?
1. You Get Entry Into New Markets
Going offshore means that your business will now get access to additional markets, which it can use to grow a new customer base.
Take the example of opening a company in Hong Kong. In such a case, you will be able to reach Hong Kong’s 7.5 million people, and the rest of Asia Pacific will also be a stone’s throw away.
2. Faster Growth into a Global Brand
If your home administration does not offer adequate incentives for businesses to go global, there is a risk of stagnating at the same point.
However, expanding offshore allows you to pinpoint jurisdictions that catalyze rapid business growth.
For example, companies that open operations in Hong Kong are able to access the massive 1.4 billion people Chinese market courtesy of the Closer Economic Partnership Arrangement (CEPA). So, make sure to check a jurisdiction that can offer the boost needed to grow your company abroad faster.
3. Enjoy Better Business Policies
For companies that are faced with a harsh operating environment, growth can be an uphill task. However, you can break the shackles of this limiting environment by moving offshore.
Good offshore jurisdictions come with supportive policies that businesses use for rapid growth. For example, Singapore and Hong Kong, which are leading investment destinations, have low tax regimes and pro-business policies that help nurture businesses for success.
What You Need to Consider for International Business Expansion
Now that you know the benefits that come from expanding a business offshore, it is time to draw closer and get answers to the following questions:
- How much do you intend to invest?
- What is the cost and time required for registering a foreign company?
- How will you manage the compliance needs, such as immigration, taxation, and accounting in the target jurisdiction?
- What is the process of hiring staff in the foreign country of choice?
- Which firm of experts do you contract for help with company incorporation offshore and drawing a local strategy?
This post has demonstrated the main benefits of international expansion, but you can expect a lot more, especially if the new enterprise is managed prudently.
To enjoy all the benefits we have listed above, you need to get the help of an agency of experts. One of the top-rated firms for company expansion abroad is Hawksford.
When you bring on board experts from Hawksford, expanding offshore becomes very smooth, and the chances of business success increase by a huge margin.
The experts will help you register your company, carry out due diligence, and craft the right market entry strategy. Even after commencing operations, the experts will be there to help with accounting, payroll management, and filing tax returns.