Choosing the right destination
The first step towards your goal should be, without a doubt, choosing the country or city which best suits the demands for the type of products or services provided by your company. Today, many North American, European, and Asia cities seem quite attractive to young entrepreneurs looking for new business prospects. While London, the Silicon Valley, and New York remain the top cities for startups from all around the world, other cities such as Beijing and Shanghai are turning out to be more profitable in terms of certain aspects, such as labour costs, for example.
In recent years, Singapore has also turned into a competitive startup hub, providing a range of incentives including financial support. However, your choice will depend on a number of factors such as types of companies that can be launched by foreign entrepreneurs, red tape, taxation, the cost of living, and running your business, as well as the ability to adapt and to find the required skills in the region.
Also, make sure to inquire about the laws and economic and social regulations in force to assess the country's openness to foreign startups. Some countries, such as Germany and Sweden, are more open than others towards innovative startups. With a full stack project, you may be entitled to financial aid to get started and grow your startup faster than you would have expected.
Proper market research
After choosing your destination, the next step will be to define your target audience. A market research will help you determine whether or not you're heading the right way, in terms of both the chosen country and the targeted customers. Is your target a local audience, expatriates in the region, or a more global customer base? Is there a significant demand for your products or services in the chosen country? Obviously the marketing and financial strategies will greatly depend on your target. Also, are you trying to get involved in a saturated field or rather providing a new and innovative product or service that is likely to interest your potential clients? If market research is not your strongest field, don't hesitate to seek the help of professionnals to help you.
Create a network
There are various ways to find the required support and thrive even if you're not yet on the chosen destination. Start by developing your professional network. The Internet is full of websites and expat forums such as Expat.com where you can find all the information relating to setting up a business overseas. If you have any doubt regarding the launching of your startup in any particular country, feel free to ask your questions on these forums. Members will not only share their experience but also give out some tips that can be helpful in the future. Social networks such as LinkedIn and Facebook are other precious tools. Word of mouth can also do wonders if you have friends or contacts in the city or country. Last but not the least, consider contacting local and international entrepreneur organisations as well as other more significant organisations such as the Chamber of Commerce, and taking part in events and conferences to expand your professional network.
Social networks
Getting back to social networks, Facebook can be an interesting tool not only to stay connected but also to help you identity and target your potential clients and audience. Today, the trend is simply to have a look at a company's Facebook page and check their products and services before actually visiting their website. Make sure to update your posts regularly, depending on your audience's needs or expectations, with a pinch of humour or something engaging so as to attract more users. This step requires a bigger personal investment in terms of time, but you can also invest in an online marketing campaign. While you can also take advantage of a free marketing campaign, expect limited and slower results.
Your responsibilities
As a responsible entrepreneur, it is up to you to inquire about all the steps relating to setting up a business in the country of your choice, not to mention the minimum investment required. You also have to think about the length of your stay and all relevant formalities. Find out about the institutions and departments you should turn to for business and tax registration for example, and seek all relevant information on any regulations in force with regards to foreign companies and your particular sector of activity. If you're planning to hire staff members, you will also need information regarding working conditions, wages and other benefits, as well as social security and healthcare, etc.
As some countries are more welcoming than others when it comes to startups and foreign investments, providing incentives such as tax benefits, support programs and financial aid, make sure you have all the lucky cards on your side to set up your business in the best conditions, especially for the first five years.
If you have any tips regarding the setting up of a business abroad, feel free to drop us a comment below.
