Starting a business in any niche always presents new opportunities and prospects for an entrepreneur but also comes with pitfalls and ongoing challenges. It is precisely due to minor setbacks in business, lack of experience, legal knowledge, and proper strategy that many entrepreneurs fail to achieve their desired results. At the same time, others build successful businesses from scratch. So, what sets them apart?
Regardless of the goal driving you – whether it’s starting a business abroad, acquiring a ready-made offshore company, establishing a branch of your enterprise overseas, finding a low-tax haven, or relocating to a European or Asian country – errors and stressful situations are unavoidable.
Experts from the leading offshore industry website, International Wealth, have shared with us the challenges that novice entrepreneurs may encounter when starting their business in another country. They have also provided valuable information on the best countries to open a business and other insightful tips on the subject.
Entrepreneurs often wonder how to achieve success in their startups, which country is best for foreigners to open a company, where favorable tax rates can be found, and how to relocate to Europe on a business visa. Detailed answers to these and many other questions can be obtained through consultations with specialists at International Wealth. In the meantime, we will provide you with an overview of key aspects.
Here are the main points that newcomers in the business world should be aware of:
- You are an outsider everywhere, and even friendly smiles from partners are nothing more than business etiquette.
- Learn to achieve your set goals and do not back down, even in the most challenging situations, as your competitors are always active.
- Choose a country for business immigration with the support of experienced lawyers, marketers, and analysts. This will ensure that you make the right choice and open your company in a jurisdiction that offers the most favorable conditions for your business. For example, IT startups thrive in certain offshore jurisdictions.
An additional crucial point for startups is banking and non-resident services. Even if you have done everything correctly (established your business, acquired a ready-made company, invested in a successful startup, or obtained an offshore entity), it does not guarantee that everything will go according to your plan. A major challenge can arise when it comes to asset transfers between different countries, income legalization, and monitoring of activities by regulatory bodies.
As years of practice have shown, the first step in establishing a business in a foreign country is creating a business plan. Not everyone fully understands the significance of this tool, which can be expressed through several points:
1. A business plan helps define the goals of your startup, which positively impacts the outcome of the work process.
2. You will be aware of all possible scenarios, including those considering unfavorable situations in the country or the world.
3. A well-crafted project includes not only product research but also the identification of potential customer groups and the strengths/weaknesses of competitors. Having this information allows for continuous improvement, adaptation, and modernization.
4. Financial analysis is a crucial component of business planning, ensuring that the company maintains its balance and avoids going into the red, even in challenging situations like the recent pandemic that has affected even the strongest players in the global market.
Economies are not stable even in leading jurisdictions. It is also impossible to predict the desires and preferences of potential customers, which, together, can lead to business bankruptcy. The way out of such a situation is to conduct an analysis of today and tomorrow, taking into account possible scenarios and explicitly outlining all these aspects in your business plan.
Startups often struggle to gain a leading position, especially when it comes to registering a business abroad. Competition has been, is, and remains the most challenging aspect for newcomers. It is through effective marketing campaigns that you can propel your business forward and conquer horizons on both the local and global stages.
1. Creating a corporate website. The internet industry provides tremendous opportunities to quickly and lucratively reach a multimillion audience.
2. On-site advertising can take various forms, including brochures, conferences, partner meetings, promotional events, participation in exhibitions, and more. As with any endeavor, cutting corners on advertising is not advisable, as it may adversely affect the outcome of your project.
3. Seeking business partners can be done independently or through consulting agents. In the latter case, it is recommended to rely on reputable companies with extensive experience and a solid reputation.
It is also crucial to consider the economic indicators in the country where you conduct your entrepreneurial activities, as they may significantly differ from the established norms in your own country.
Having the desire is not enough to launch a business in a foreign country. Professional skills and the assistance of qualified specialists are the key to success!
Here are the rules that are recommended to be followed to ensure that your startup thrives and remains profitable for years, rather than fizzling out immediately after launch:
- Entrepreneur, technician, and manager are the three skills of an experienced businessperson. You need to forecast and analyze, choose the best paths for resolving work-related issues, possess communication and business skills, have determination, and effectively implement everything into practice.
- Only experienced specialists should work in the company, whether as permanent employees or hired workers for specific tasks, such as accountants, analysts, marketers, lawyers, customs consultants, and so on.
- Two steps forward and one step back. This is a slogan that helps to look at the situation from different angles, peer into the near and distant future of the company, and prevent its collapse even during periods of crisis in the country.
- The servicing bank must be reliable. This rule should occupy the top position due to its importance, especially considering the requirements of the EU, OECD, and global regulators. The security of capital depends on the reliability of banking services. We recommend not relying on just one corporate account and always having a backup option, including a bank account in an offshore jurisdiction.