Submitted by: Submitted by hamidjahangir
Views: 10
Words: 794
Pages: 4
Category: Business and Industry
Date Submitted: 01/18/2016 01:43 PM
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...