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Startup Relocation: Why All Startups Can Benefit from Establishing Themselves Overseas

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Startup Relocation: Why All Startups Can Benefit from Establishing Themselves Overseas

Startups are all about moving forward and trying something different. The nature of the industry is a search for explosive growth that propels you from the humblest of beginnings to the dizzying heights of the corporate elite.

But in the modern day, getting ahead in the startup world is tough. 100 million businesses are launched around the globe each and every year. To put that in perspective, there are only 13 countries on the planet that have over 100 million occupants. Effectively, the population of Egypt makes a business every year.

It might sound, then, like everyone and their grandmother is currently running a startup, but no. 90% of all startups are doomed to fail. With so many vying for supremacy, the vast majority collapse without making a meaningful impact on the world.

So how do you ensure your startup survives while others drop like flies? Well, you have to be a true startup, you have to think differently. One such way to do so is to consider startup relocation, moving some or all of your operations to a foreign country. But how does this help your business stay afloat?

Cut Operational Costs

Startups live and die on capital. Cash is king in the business world and, without it, you’ll sink. But stretching your coin in a country like the UK, where everything comes with a high price tag, can result in cash burning out quicker than if you actually lit it on fire. Things are different overseas, however.

To begin with, business relocation can immediately cut operation costs. There are many cities around the world with strong infrastructure and powerful economic districts that are vastly cheaper in terms of property, bills and utilities, daily living costs and taxation.

The cost of talent may also be cheaper, too. Skilled workers in the UK command high wages which, while often deserved and necessary, isn’t always conducive to the success of a startup. You’ll find that, depending on the talent and industry you work in, there are plenty of countries that have similarly talented workers who demand much lower pay. This may be due to higher competition for jobs in the region or lower costs of living in general.

Use Startup Relocation to Expand Your Networks

It’s not what you know, but who you know. Sure, it’s a tired old cliché, but it’s so tired and so old because it is still so relevant. Your contacts and networks are what set you apart in the business world. People do business with people they trust, like and know. People offer opportunities to those they trust, like and know. The more people you know, the better your chances are of succeeding.

Moving operations overseas allows you to create networks in a foreign country; networks competitors back home don’t have. However, you can also maintain the contacts you have back in Britain, amalgamating the two and creating an incredibly valuable global network.

Reach New, Larger, More Relevant Markets

Your startup’s growth is very much dependant on reaching your target market. Whether it’s locals, investors or big corporations, you need to find your buyers.

Most British startups head to major cities such as London, Birmingham or Bristol to find their audience, but why not think bigger? Are these really the best cities you can think of that have the markets you want to tap into? Across the globe, there are thousands of cities with markets that are could make all the difference for your startup.

The limitations of remaining in domestic markets are limitations that you don’t need to saddle your startup with. For example, if you were to establish a supply chain solutions startup, working from the UK would greatly reduce your ability to reach consumers. Considering startup relocation to somewhere like Vancouver, though, which has great links to not only Western Canada, but also the United States and Eastern Asia, puts you in a stronger position and provides access to a better trading market.

Inherit Cultural Diversity

Every country has its own business culture. Some are very similar, like Britain and the USA, while others vary considerably.

Parisians, for example, work around 30 hours a week — far below the EU average. However, far from being a city of slackers, Paris is one of the most affluent cities in the world and its unique culture has a lot to do with its success. Over in China, business centres around relationships and partnerships built through slow networking practices. The result is a great deal of stability and prosperity for all parties involved. Things take time in China, but they are done right.

By taking advantage of startup relocation and integrating your business into a foreign country, you can absorb their cultural practices into your own processes. The result is a fusion of workplace cultures, taking the very best aspects of both countries and creating something unique. Not only will this help you do business better; it’ll also help your startup stand out and potentially even give you a new USP.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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