The UK economy is fast recovering, with some commentators even speculating that it s over the halfway point to a full recovery. What this means is that most people will probably feel as though they have a little bit of extra money in their pockets. This isn’t just the case for individuals; businesses up and down the country are starting to feel as though they have more working capital on the books than thy did compared to even 6 months ago. Ultimately, the more money businesses have, the faster they can expand, and one of the ways they can do this is by taking their business abroad.
Although expanding your company into a new territory can be an exciting and profitable venture, it is also perilous and fraught with dangers. Some are more obvious than others, and so we thought we’d put together a short list of some of sneakiest perils you can face when establishing your business abroad.
Currencies are Dynamic, Chaotic Things
If you’re moving abroad you’re likely going to have to operate using a new currency. Although you might not think this is a problem, it can be if the exchange rates aren’t working in your favour. Thankfully, you can check your destination currency by using a currency converter. By using this, you can see whether it’s going to be viable expanding your operation to the territories you’ve planned.
Storage Between Premises
Once you’ve figured out whether the currencies are on your side, you’re ready to go. Of course, the building you’re going to be leasing out might not be ready for you when your existing lease runs out. If this happens to you, you’ll need to invest in temporary storage. The price you’ll pay shouldn’t be too hefty and you’ll be able to sleep soundly knowing everything is ready to be moved into your new building as soon as it’s available.
One thing that you might have forgotten about is how challenging it could be to get some of your employees to make the move out to your new territory with you. Although it might be your dream to move to Alaska, your colleague in HR’s husband might not be so keen, so you’ll have to be prepared to either leave some people behind, or offer them great rewards to move out with you.
As you can see, there are a number of things you can easily forget when you’re thinking about moving your business abroad. Hopefully now that you’ve read this comprehensive guide, you’ll be wiser to some of the potential pitfalls.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.