There comes a time when a small independent US business hits a ceiling. They have built a great reputation and strong brand in America from the ground up. Everything is secure and profitable, but there isn’t much room for growth or development. This is when it might be time to break out of domestic territories and try overseas business expansion. This is an exciting idea that could expand a company and its profits significantly.
Yet, the notion also raises quite a few questions:
- Is this really going to be an advantageous step?
- Where should companies create this new office?
- Is this really the right time?
International expansion provides back door offices and new headquarters to help companies build upon a business
There are two key reasons to look into setting up a new office or company building in another country. Some US businesses will like the idea of outsourcing work to an overseas workforce to free up time and costs. These offices can handle some of the less glamorous back-office work while the US headquarters furthers the brand and focuses on more important tasks. Others will feel it is time to take their product to a new market. Perhaps words has spread overseas about their brand and there is enough of a buzz to capture the market.
Business expansion into Europe
There are plenty of countries and regions that fit the bill when it comes to meeting these needs. Many have cheap real estate, an eager audience, a proficient workforce or all three. The right choice often depends on the industry in question. For example, same tech companies around Silicon Valley now look to Egypt for their back offices. However, there is plenty of potential for trade within EU nations in Europe. US companies can find cheap labour and resources in countries where English is a common second language. This European nations are also a great starting point for brand expansion into a secondary Western market.
Business expansion into Ireland
Brexit has created quite the economic and political storm across Europe right now. The ongoing talks and confusion over the situation doesn’t help. It leaves many US businesses uncertain over whether or not to pull the trigger on overseas ventures. However, idea of investing and expanding to Ireland is an interesting idea for some business across the US. The country has proven to be a strong, reliable market over the years. A recent technological and industrial revolution, coupled with a strong workforce, meant profitable ventures. US business thrive here thanks to the attitudes of workers, the prime real estate and the competitive tax laws. When the UK finally leaves the EU, Ireland will also be the only native English speaking country within the EU.
Is this really the right time to make that move into overseas territories?
If the workforce and real estate is in place, the funding is secure and the market has potential, this is probably the right time. It is understandable if business owners are a little wary about making this move and expanding their territory. A solid plan carried out in the ideal market can produce great brand awareness and profits. Yet, companies must have a strong foundation first. Growth within a new market – Irish, European or otherwise – will take some time. Therefore, companies need a financial safety net and clear strategy to get through this period and create profit.
This clear strategy is essential for any business to capture a new market with their brand. This means creating a strong, cohesive team of developers, marketing experts, customer service reps, tech staff and more. They need to share the visions and aim of their head office, yet still have a clear identity. As for that financial safety net, it is essential that business owners understand all the costs involved. While the European labour force may be relatively inexpensive, there are also plenty of additional expenses when expanding into a foreign market.
Every business venture has some degree of risk involved. The decision to try an international expansion is no different. The pros and cons of an overseas venture into Europe could alter at any time. Changing EU regulations and US laws may have an impact on the options available and on tax statuses. Yet, there are countries within the EU that continue to prove their worth as a strong base for international investment. If you believe that the time is right to head into international markets, Europe is a great starting point.
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