We’re currently seeing an increase in the number of internet and tech companies shifting their operations overseas. Some are exploring new markets in Asia, while others are moving their base of operations to Europe. These shifts are not happening without good reasons. The world is becoming a global economy and having offices in different regions can help businesses connect with new clients more effectively.
Of course, there are still questions about whether setting up shop overseas is worth the investment. To help you answer that question based on your business’s circumstances, we are going to review some of the benefits of having an overseas office or operation.
Despite technologies such as video conferencing and internet marketing making it easy for even small businesses to connect with clients from around the globe, there is still that demand for close proximity. Clients love working with vendors they can reach easily. Most clients in Asia and the Middle East also prefer actual meetings to conferences.
Yes, proximity matters. By setting up operations near the market you want to explore, you are increasing your chance of success by a big margin. Besides, it is much easier to get a good view of the market when you’re operating from within.
Decentralizing operations and branching out into new markets can also help businesses stay lean. Let’s say you’re running an internet marketing firm. You can take advantage of better tax policies, better pricing and other cost-saving opportunities presented by the Asian markets while catering to clients in the area as well as back home.
It is not a secret that a lot of businesses are moving their manufacturing lines to China or Vietnam due to the lower production overheads in these countries. Many of those businesses are starting to explore the local markets too, providing them with unique opportunities to be closer to local customers and opening up untapped markets.
Speaking of untapped markets….
Better Business Environment
Which would you rather be, a big fish in a small pond, or a small fish in a big pond? Instead of trying to fight bigger corporations in a saturated market, it is often better to move to a smaller market and be the dominant force.
This makes setting up operations overseas well worth the investment, since you’ll be able to gain competitive advantages such as better local regulations, a pro-business environment and even bigger market potential.
More Affordable Than You Think
It is also worth noting that setting up operations overseas is not as expensive as you think. Some countries and specific cities are even offering incentives and facilities to invite more international businesses and entrepreneurs.
Dubai, for instance, has a great set of tax regulations, plenty of serviced offices as well as other facilities that make setting up a business there very easy to do. You can find apartments for rent in Dubai even before departing for the UAE city. Setting up a corporation takes no more than several days.
So, is setting up operations overseas still worth it? The answer depends on the specific business you’re running and factors such as the markets you’re trying to reach. In most situations, however, the benefits of having an overseas office are too good to miss.