4 Tips For Starting A Business As An Expatriate

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4 Tips For Starting A Business As An Expatriate

Many people have found success moving to other countries and becoming enthusiastic expatriates, but there are a lot of challenges that can come with such a big change. If you’re trying to start a business, being an expatriate can be a big obstacle. Here are a few tips for overcoming those obstacles and clearing the path to starting your new business in your new home country.

1. Know the regulations

Wherever you’re living now, you should be able to find the official regulations for starting a business as a new citizen or on an extended visa. In fact, these regulations should be your basis for deciding on the type of visa you want to apply for. All this research and deciding, for maximum security, should be done before you even move to the new country. You should look for the visa with the most flexibility and give you the most options in case you have to change your plans. If you’ve already moved and selected a less than ideal visa, you may not be able to apply for a different visa and you will need to understand what your restrictions are and be respectful of them going forward.

A good idea for understanding the tax and reporting requirements for your area is to contact a local accountant, preferably one specializing in small businesses. They can help you understand where your business fits into the regulations, as well as translating regulations if your new country’s language isn’t one you’re fluent in.

2. Understand the basics

It’s understandable to want to jump into the deep end when undertaking something as big as starting a business in a new country. But it’s going to land you in hot water if you neglect to learn the basics of business before you begin. You’ll end up making tons of avoidable errors, like taking bad credit business loans and flying by the seat of your pants instead of following a business plan.

Your business plan should be the first step of this process, no matter how excited you are to start taking action. A plan will help legitimize your business to onlookers and will give you a road map for times when you aren’t sure what to do next. The plan should include marketing strategies, projections, funding, and should be made with local tax regulations in mind. If you’re a true beginner in business, consider taking some classes to learn the necessary skills and knowledge for your business.

3. Research additional costs

Running a business is frequently an expensive undertaking, especially in new countries where the import/export costs could be a lot higher than in the U.S. Even if your new home has a low cost of living, it’s still possible that you’re unprepared for the high cost of running a business there. The cost of manufacturing a product isn’t just the cost of materials, but also the cost of labor, equipment, shipping, and any duties inherent in your country of choice. These costs could make your venture impossible without additional capital, so it’s essential to do your research on every single aspect of your product before getting started.

4. Invest in an existing business

If you’ve considered the complications of starting your own business and you decide it’s not worth the struggle, it might be worthwhile to consider investing in an existing business or buying one entirely. This will eliminate a lot of the difficulties inherent in starting a business, while still giving you the satisfaction of being a business owner in your new country. However, do your research when deciding what to buy and who to hire to run your new business. A common mistake made by overseas business owners is neglecting to ensure responsible business practices and good standards are being upheld at all times.

Starting a business is always a risky but exciting undertaking, and doing so in a new country only amplifies those attributes. Doing your research before you move will ensure your new business has every opportunity to be successful.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.