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When you’re looking to expand your business overseas, there are many factors to consider. It’s not as simple as just looking at a map and selecting a country. It’s important to weigh the pros and cons of expanding your business to each country before making a final decision. To make things easier, here’s a quick guide on how to choose a country to expand your business.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in South America and Latin America.
Regulations & Taxes
Each country and region will have its own set of tax and business regulations by which all businesses and individuals must abide. It’s important that you pay attention to these rules and regulations so that you can compare rates between countries and ensure compliance in the country you choose to expand to.
It’s always easier to expand your business to a country that doesn’t have complicated regulations or make you jump through tons of paperwork and loopholes just to get set up. You also want to look for a country that has a favorable tax structure. Some countries even provide low corporate taxes and/or tax incentives for setting up shop there for certain industries.
Infrastructure
Having the proper technology infrastructure in place is essential, especially when you need to communicate between office locations in multiple countries. Countries that lack the appropriate infrastructure will be difficult to do business in. It will make your services less reliable and make it more difficult for you to communicate with your employees in these other locations.
When you’re searching for a country to expand your business, look for a country that already has a robust technology infrastructure in place. It would be great if regions beyond just the main cities had this infrastructure as well.
Countries in South America especially have invested millions of dollars over the last few years upgrading their technology infrastructure, and they continue to invest more dollars for the future. This is a great sign for your business.
Local Talent
Having a large talent pool to choose from is imperative if you want to expand your business in another country. You want to have an educated workforce that has been trained in the latest technologies and could rival the employees you could find in the U.S.
In this regard, search for countries that are investing heavily in the education of their youngest residents. Countries that mandate primary and secondary education are a great start. But you should also look for countries that have high—and increasing—rates of secondary graduates, especially in the fields that are most relevant to your business needs.
Many South American countries are investing significantly in secondary education and training in IT and tech fields. You can also find a solid talent pool by searching for regions that have tech and business incubators and other startup communities. Many times, this will indicate that the local talent pool is rich with highly qualified candidates.
Language & Culture
Every country has its own primary language and culture. When you’re looking for a country to expand your business to, consider how language or cultural barriers may impact collaboration between your local and foreign employees or customers.
Most countries will claim that English is spoken widely there as a second language. But, English isn’t spoken prolifically in many countries, especially as you go further outside the main cities. When you’re searching for a country to expand your business, look for a country that has a high level of English proficiency. South American countries are especially good at this, as they often deal with the U.S. and other English-speaking countries on a regular basis.
Beyond the language, though, it’s important that they understand your culture and can relate to it. This may seem like a minor detail, but that familiarity will go a long way in making the relationship more successful. Again, South American countries often have cultures that are much more in line with the U.S. than Eastern countries like India and China.
Opportunities
Entrepreneurs should always be looking for that next great opportunity. When searching for a country to expand your business, you should view it through that lens. Is there an up-and-coming region that for some reason U.S. businesses are ignoring? Is there a country that’s offering fantastic tax incentives for businesses to locate there? Are there local tech incubators that can help you partner with local PEOs and other outsourcing companies?
When you capitalize on opportunities before someone else does, it can reap many benefits for your organization in the long run. By putting in the research and discovering the pros and cons of each country, you can find the next great location for your business to expand to.
Expand Your Business with SERVIAP
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in South America and Latin America.
