6 Elements to Starting a Business Overseas

Six Elements to Starting a Business Overseas

Starting a business in a foreign country might be easier than you think, provided you keep in mind six things

when planning your start-up.

Long ago, taking advantage of market anomalies in distant parts of the globe usually involved sailing across

oceans, battling storms and deadly illnesses, but these days, starting a business overseas might actually be much

easier, less risky, and more economically sound than setting up a business in your home country.

There are ample opportunities in emerging markets for entrepreneurs and small (or large) business owners with

a skill set that is distinct from that of the local population. Following are six key elements to take into

consideration when starting a business.

#1 - Political Climate and Property Rights

Some countries around the world have a record of confiscating property and/or businesses owned by foreigners.

You'll probably want to steer clear of those countries. Others have impeccable histories with solid property

rights and full access for foreigners. Finding a jurisdiction with minimal political risk is crucial. Taking a look

at an index of international property rights can be very helpful with this.

#2 - Economic Situation

Countries with low debt-to-GDP ratios, low or declining unemployment, and strong consumer spending

normally make for good prospects. A growing middle class, low inflation, and rising incomes are all positive

signs. It's definitely possible to form a profitable business in a country with a stagnating economy, but it very

well may be an uphill battle.

#3 - Your Personal Knowledge of the Industry

It's not always necessary to be an expert in the specific industry you're looking to enter, but you should

remember that bringing in managerial help will add to start-up costs. Partnering with a trustworthy local, who

already has experience and contacts within a given industry, can definitely increase your likelihood of success.

Finding...