Relocating your business can be a cause of great apprehension and anxiety, yet despite this more and more companies choose to move internationally each year. Why? Let’s take a look at some of the benefits that have small businesses jumping ship and swimming for pastures new.
Find a New and Larger Customer Base
Many small business owners are happy where they are. They’ve got a steady income, have maximized their local market potential and maintain the good times. Other business owners want more. If you have found your small business is not seeing the growth you want, it might be time to relocate and find a bigger crowd. Relocating your small business between communities, be they domestic or international, opens up a gateway for new possibilities and development. To make things clear, here’s an example:
You are a sandwich shop owner in Smalltown, USA. Your secret recipe grilled cheese sells by the bucket load, but you only ever make money off the locals. So, you move shop and set your business up in New York City. Now that you’re selling to millions of residents and international visitors, who knows what will happen next?
Reduction in Running Costs
Some businesses must remain in a specific place since it is where their customer base is located. However, for businesses without these constraints, such as those based in the online sector, operations can be carried out from any corner of the globe—provided there is an internet connection. This is where relocation can lead to a whole host of cost-saving factors:
- Premises: Whether it’s a domestic or international move, you can undoubtedly find another location where you acquire suitable workspace at a cheaper cost than you currently pay.
- Resources: Costs of goods vary from country to country, and a move to a country where the resources you require to operate your business are cheaper could have a long-term effect on running costs. This can also be useful if you import or at least take delivery of resources for your business regularly, as relocating closer to your supplier can also reduce long-term running costs.
- Tax: We’ve all seen negative media reports of businesses exploiting so called ‘tax-havens,’ yet these types of locations are the perfect place for small business to survive and thrive. Unburdened by high taxes, more money can be invested in growth and development.
Good examples of countries to move your small business to are Poland and Malaysia. Both are experiencing economic growth and both allow for cheap rent, easy access to resources—thanks in part to the large number of business relocating there—and both have lower than average business tax.
Go Where the Market Is
Business is competitive, and unless you offer a unique service or product, you likely have competition. Different locations, however, have different markets and therefore different needs and while you may be one of several businesses offering customers the same thing in one area, there is potential to be the only business offering said opportunity in another.
To be successful, you need to go where customers need and want you. Instead of cutting prices and offering deals to remain competitive, relocate your business to an area with a better market, with minimal competitors or where there is a greater need for you.
One benefit that business owners and entrepreneurs have over others is that they aren’t tied down by commitments to other jobs. Being your own boss means you decide where you work, and although not always possible, you can potentially set up your business anywhere you speak the language—and it’s legal. Given this freedom, the best reason for moving your business could purely be you want a change of pace, to live a new lifestyle.
Author: David Hollins, director of international relocation specialists Gerson Relocation, is an expert his field, with nearly 30 years experience under his belt working in the UK, New Zealand and the Philippines.