How do top multinationals, from Apple to Samsung, keep growing year after year with irresistible products and a lot of profits? These brands invest heavily in product research & development, and marketing. More importantly, they ventured offshore, making it easy for them to take advantage of working in different jurisdictions. You, too, can take advantage of going offshore, but it is also important to note the challenges we have highlighted below and craft strategies to address them:
One fact about offshore investing is that it does not come cheap, and you need to be prepared well. If you start without ample finances, there is a big risk of the company falling along the way. For example, what do you do if there are many orders for your products but the cash at hand is not enough because some previous clients are yet to pay? How do you get cash for business expansion? These are crucial questions that you need to ask.
To address the problem of finances, it is important to start thinking about it way before starting the process of offshore company registration. For example, you should set aside enough resources to meet the cost of registration and getting started. Further, you should create channels that can help you raise additional cash when needed. This includes working closely with banks to ensure they can lend you money to meet financial shortfalls.
Because of the benefits that come with offshore investing, the competition can be very stiff. Indeed, you are likely to compete with already established and local companies, which have already adapted to the market. This is never easy for most investors and managers, but you can overcome it.
The first step in overcoming competition is to understand what competitors are doing. Then, craft better strategies to outdo them. If you find that most investors in the targeted offshore jurisdiction prefer to use print media and radio for their ads, craft a better way to get your message through. You might want to use a more aggressive digital marketing strategy. Remember that no matter the method you adopt, it should be reviewed regularly and adjusted to make it relevant to the market.
Complex Company Registration Process
Registering a company offshore is a process that requires a lot of documentation. In some countries, such as China, this entails dealing with multiple departments during the registration process. Even in jurisdictions where the process is so much simplified, such as Hong Kong and Singapore, you might still need to make multiple trips during registration. The simpler method is working with an agency of experts to help with company registration.
Instead of using a lot of time trying to prepare the registration documents, the agency will be there to help. They also follow the entre process of company registration, allowing you to focus on sourcing funds for other operations. If you bring the experts early enough, they might also help with the following services:
- Company registration.
- Opening offshore bank account.
- Filing tax returns for your company.
- Drawing strategies for entry and growth in the new market.
Expanding your business offshore is a great idea if you want it to grow into a multinational. By understanding the challenges we have listed above and how to overcome them, it becomes easy to conquer the new market and turn the company into the brand of your dreams. Remember to also invest in research and development, and take advantage of resources available in the offshore jurisdiction, such as good internet penetration, world-class road network, and inland container depots (ICDs).