Even for the smallest companies, global competition has become a reality and the ability to pursue opportunities in overseas markets is essential to long-term viability.
Creating your own European company can open for you completely new opportunities that will allow your business to take advantage of all the economic and legal privileges of the European Union.
Advantages of doing business in Europe:
- To generate additional revenue,
- Increase turnover,
- Earn revenue in euro’s,
- The possibility to receive a long-term visa or residence permit.
The advantages that European companies have:
- A high level of suppliers’ and customers’ trust,
- Opportunity to operate in the entire territory of the EU,
- High level of the banking system development,
- Favourable economic and political situation,
- Minimization of legal risks,
- Favourable tax system,
- Treaties for the Avoidance of Double Taxation,
- Opportunity to obtain a residence permit and citizenship of the EU.
First steps if you are considering expanding to Europe
- Attendance at trade shows where companies can become familiar with the market,
- Market research to determine if there is a viable market with a place for the company,
- Find an overseas agent or representative to act on their behalf,
- The company must consider the of establishing an EU company or will they focus on exports,
- If the business expands and customer service demands require, market entrants often seek distributor relationships, a more formal structure that may involve multiple relationships with distributors and warehouses in multiple countries.
Companies often find that while their sales are growing, they are beginning to lose control. As new markets are added, new regulatory environments are encountered as well as new languages, new cultures, and new challenges.
Ten important aspects to consider before you start a business in Europe
- The idea. For every good idea you have, there are hundreds of people in Europe who have the exact same idea. Is your idea already a reality in Europe?
- A prudent approach is to research your idea from top to bottom looking to see if your idea already exists. If it does, it’s certainly not the end of the world. Simply ask yourself if you can find a unique angle or a different, better approach to the idea.
- Investigate the economics of the idea. Is there a good business case or model? Are other people that are pursuing the same concept making money?
- Finally, you will want to know if the idea is legally protected. Is there a patent issued or pending?
- The plan. Create a business plan. Many people skip pass this step. Creating your business plan at the beginning will help guide your vision and direction as you continue along your entrepreneurial journey. Think of your business plan as your blueprint.
- The business entity. Deciding how to legally structure your business can become very tricky. They each have their pros and cons and it’s best to talk to an expert to decide which is right for you.
- Management and personnel. Who is going to manage the company and how are the personnel going to be recruited. There must be decided between the option of transferring management from the parent company or recruit management locally. We provide comprehensive personnel planning and recruitment services.
- Market strategy. Who is your target market? Your target market is the specific group of people that your company has created products and services for.
- You’re online Identity. Creating your website is one of the most important things you can do for your business. Whether you are creating a brick and mortar store or an online business, the website is your virtual storefront, your online salesperson and the first interaction a potential customer might have with your company. You want it to be an accurate representation of you and your products or services. Using Google Apps, you can also create email addresses for you and your team that ends in your domain name.
- Start-off. What is your implementation strategy? How will you get the word out and create a buzz?
- Financing. How will you fund the business? How are you going to manage the profit of the business, and do you know how to maximize your tax benefits? Finances and accounting can be one of the most tedious and intimidating aspects of running your business, but consultants such as myself have specialized tools that are available to help you!
- Not necessary to be a know it all! Business is a fluid activity. Unexpected things are bound to come up, be prepared to deviate as needed and go with the flow. We provide a one-stop advice agency that provides the right support at the right time.
- Exit Strategy. Consider how easy it would be to again leave the market. Build value in the business that will be attractive to investors if you in the future would want to sell the business.