Choosing a Regional Location for International Expansion
When expanding internationally, a company normally weighs the pros and cons of each country to decide which best suits their needs. However, gaining a foothold in the new market involves more than a single overarching decision.
Foreign businesses also face an abundance of location choices within the country and it can sometimes seem overwhelming. Luckily, it is possible to narrow your choices to identify which regional location ideally suits your business.
By pinpointing the very best regional opportunities for overseas expansion, your business will significantly increase its chance of success. Not every area within the country will provide the infrastructure, transportation and access to markets, or the willingness to work with a new foreign company that your business needs.
An experienced international expansion partner can provide invaluable insider information. Often times, several regions may look promising on the surface, but not upon further investigation.
Since an international expansion partner already has their have feet on the ground, they can distinguish a great opportunity from one that just looks good on paper. You reduce risk and increase your chances of phenomenal growth and profit.
Beyond the Basics
Hopefully, your company has already done its due diligence to determine the best country for your business. You’ve screened potential countries at the macro-level and gathered industry-specific information such as market size, growth, and economic and political stability.
However, this information only provides basic information. You’ll need to consider many other factors to make an informed decision.
Just choosing a country for expansion is a huge accomplishment. However, each region, city, or zone within the country can challenge or welcome your international expansion.
Obviously, a solid understanding of the political environment, governmental policies and labor laws in a specific area is of great advantage. It mitigates risks and ensures a smooth transition into the new market.
Additionally, particular industries may face varying dynamics in various regions. Some may offer great opportunities, but take longer to penetrate which will lead to additional costs.
Consequently, it is vital your company works with a partner that knows the regions within the country very well. Some areas make it easier to conduct business than others.
Language, Culture & Talent Pool
A country may sound particularly attractive if they claim to speak English or they have many bilingual residents. However, all too often talented personnel are only found in major centers and they’re in demand.
Establishing a regional business in a smaller center can make simple things such as acquiring office or warehouse space or the internet a lengthy undertaking. Conversely, some regions cater to a foreign regional business and offer talented workers that are a great asset to your company.
An experienced international expansion partner can connect your regional business with international contractors. They have the language and cultural insights your company needs to seamlessly tap into the local, regional and global marketplace, quickly and affordably.
Finance, Technology, & Infrastructure
When you operate a business in another country a key consideration is how easily and quickly you can move money, information, and products in and out of the country. However, regional finance, technology and infrastructure aren’t always as rosy as what the country offers as a whole.
Not all regions offer everything a business needs. Others offer world-class technology, financial hubs and excellent infrastructure to ensure consistent distribution channels. The secret is to find a location that offers precisely what your business needs at the most reasonable cost.
It can be difficult to connect with key contacts to analyze what’s available in specific regions without assistance. Consequently, it makes sense to reach out to an international expansion partner that works within specific regions. They know the regions, have worked with other businesses there and can align your business with suitable choices to reduce risk.
Tax, Investment, & Trade Incentives
Many companies choose a specific country for international expansion due to its low corporate tax rate. However, a foreign business often pays regional and municipal taxes too. These rates are often industry-dependent and can vary drastically between regions.
Some countries also offer special economic and free trade zones with specific benefits. For instance, foreign business may enjoy corporate and income tax breaks or holidays, social contribution reductions, discounted land, grants and other financial benefits if investment leads to job creation or training, improves the environment or infrastructure or stimulates economic growth.
However, not every hub suits every business, even if it may appear attractive initially. Since choosing the ideal location can directly impact your company’s bottom line, working with a knowledgeable partner makes sound economic and strategic sense. They’ll ensure synergies exist across the markets your business wants to reach, rather than guessing which will best serve your business.
If you produce or sell goods, the success of your international expansion links inextricably to the performance of your supply chain. High-performing supply chains achieve superior revenue growth and poor performance can cripple or end an international expansion.
Without expertise, it can be difficult to ensure a smooth, uninterrupted supply chain. Luckily, a seasoned international expansion expert can connect you with key players in the right region for your business.
Don’t Go It Alone
Expanding your company overseas is a significant undertaking, but when it’s handled properly it offers countless rewards. If you’ve chosen a country, but you’re unsure of a regional location, contact Blueback Global.
With a network of global professionals each with regional knowledge and local business savvy, we simplify global expansion. We’re well-positioned, highly-experienced and can help you overcome your multinational business challenges.
We offer a free consultation and a comprehensive set of services. These include in-depth regional research, establishing an entity in your chosen area, global payroll, accounting and reporting, statutory compliance, immigration support, recruitment and hiring and more. Let us fast track your regional location decision through a careful examination of your company’s needs and what the country offers, while mitigating risk. We can help you find the ideal location within your chosen country, quickly and painlessly.
Contact Blueback Global Today!