As a business owner, it’s important that you’re always looking for ways to improve your brand’s image and maximize profitability. You also have to think about sustainability and how you can best encourage growth for decades to come. In many cases, moving all or part of your business overseas is a smart move. In fact, more and more companies are doing it. Maybe you should, too.
The Overseas Moving Trend
While companies are always expanding and moving businesses into different regions of the world, some pretty big names have recently announced their intentions to move all or part of their business operations to other countries. In fact, on August 6 of last year, both CF Industries, a fertilizer manufacturer, and Coca-Cola Enterprises announced they would move portions of their businesses to Britain after finalizing mergers with non-American companies.
Five days later, Terex, a crane manufacturer, announced that it would be moving its headquarters from Connecticut to Finland. So is everyone just packing up and leaving? Well, not quite. However, many businesses are finding that a move makes sense for a number of different reasons.
Top 6 Reasons Businesses Move Overseas
Let’s check out some of the top reasons why American businesses are deciding now is a good time to move overseas.
- Tax advantages. Perhaps the number one reason businesses move overseas is to escape the high taxes placed on companies that are incorporated in the U.S. This isn’t anything new, though. Companies have been moving their physical addresses overseas for years now, in an attempt to save what often adds up to millions of dollars over a number of years.
- Domestic threats. Sometimes marketplaces become too saturated on the domestic front. This forces businesses to move overseas where there may be opportunities to capitalize on less competition. This is happening less and less as much of the world’s economy now takes place through ecommerce channels that are accessible from anywhere, but it’s still a reason in some extreme instances.
- More opportunities. A move overseas is often fueled by an opportunity. Savvy entrepreneurs and business owners are always looking for chances to succeed, and sometimes a move to another country is predicated on the idea that another country offers something that the U.S. can’t provide.
- Cheaper labor costs. It’s no surprise that labor is cheaper in other countries. Even as American workers ask for minimum wage increases, the reality is that other countries such as India and China pay their workers a mere fraction of what comparable employees get in the U.S. When companies have thousands of employees, moving overseas can result in hundreds of millions of dollars in savings over the course of a few years.
- Fewer regulations. American industries are notorious for lots of regulations and laws, while some countries are much more lax on these issues. When American companies are stifled by these regulations, they move abroad where there’s minimal interference and more freedom to compete.
- International expansion. When a U.S. based company moves part of its operations overseas, the goal is often to expand its reach into a new marketplace. While any business can sell products in another country, it’s much easier if you have a physical location in that country. It helps establish trust with both consumers and regulators.
Moving is an Option
Many businesses don’t ever consider moving down the street, let alone moving to a foreign country. However, you shouldn’t discount moving. While it’s certainly a long, complicated process – especially when you throw a new country and regulations into the mix – it can yield many positive benefits. Keep the aforementioned reasons in mind and carefully weigh your options.
from Darlene Milligan http://ift.tt/1nix9XE via transformational marketing
from Tumblr http://ift.tt/1UPnlPk
No comments:
Post a Comment