5 Developed Markets Perfect For Increasing Your Sales Growth
One of the major factors that all companies should have in mind, even if they are doing well, is ways to increase their sales. From expensive training to tech integration, many companies have dozens of different practices they use to try and raise their sales, however, many are missing out on international expansion as an opportunity. Not only is it more feasible than ever, but the benefits are quite clear. Examples include:
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- Exposing your product to a new audience.
- Handling the ebb and flow of business success.
- Being able to implement something that is no longer exclusive to big businesses.
However, what are some of the best potential options to choose from? Here’s what’s worth considering.
The Most Attractive International Markets For Expansion
Depending on your industry of choice, there may be dozens of different countries out there that can pose a potential opportunity. In addition, there are some countries that were formerly havens for international expansion, that may no longer be as appealing. The U.K in the wake of Brexit is a perfect example.
With that in mind, here are 5 countries that are currently looking like the strongest options when it comes to international expansion, specifically with sales growth in mind.
The uncertainty that Brexit is causing in the U.K’s business world has set Germany as the EU’s new economic stronghold. The German government also understands the amount of international interest that will soon be coming to their borders, and has begun making sizable changes to their immigration laws. The goal here is to make it easier for foreign companies to establish themselves and onboard teams of their choosing. Over 2.7 million foreign employees are doing business in Germany, and that number is only set to grow as the country becomes more and more prominent. Cities like Berlin and Frankfurt are set to become hubs of international commerce for the region.
However, there are some pain points we should talk about when trying to establish a German branch of operations. For one thing, those same laws that we were mentioning mainly target German-speaking vocational workers, as opposed to white-collar international workers. The primary alternative, setting up a German entity, is also time-consuming. In addition, if you’re an English-speaking country looking to relocate past the U.K., you have to deal with a language barrier to start.
#2. The Netherlands
The Netherlands is also a country that is set to expand in growth in the wake of Brexit, and one of the main reasons why is that while Dutch is the native language, over 90% of Dutch people in the Netherlands speak English. In addition to easy integration and a strong economy, the Netherlands also has some unique tax benefits when it comes to people who are interested in expanding. Some key examples include housing benefits and tax deductions for spouses.
When it comes to the process of establishing a business, the Netherlands is relatively efficient compared to some other countries on that list, but relatively efficient isn’t the same thing as easy. For example, while foreign enterprises only require a residence permit, you still do need to go through other steps, like getting a Citizen Service Number from your local city hall. The main issue with starting a business in the Netherlands is that you have to take a few of these smaller steps, which can be easy to miss and potentially put your business at legal risk.
Changing economic situations and regulations in the U.S. may make it not an appealing place to expand into at the moment, but Canada poses a great alternative for businesses wanting to reach that lucrative North American market. In fact, in many international rankings, Canada actually beats out its neighbor to the south in terms of places to do business. Factors like trade freedom, investor protection, and lower corporate tax rates are often cited.
However, the major barrier to doing business in Canada is the fact that rules for hiring and firing expat employees often change by individual province, though there are a set of national labor laws as well. This can pose a major headache if you plan on expanding to multiple areas across the country at the same time. Examples like Target’s failed Canadian expansion show while the area is rife with opportunity, it doesn’t mean that this is automatically guaranteed to succeed. In addition, if you plan on doing business in the French-speaking area of Quebec, you may encounter a language barrier both while establishing an entity or just doing day-to-day business.
Ireland has a lot going for in terms of international expansion to increase sales. For one thing, major corporations have been flocking to its shores for years to take advantage of the generous corporate tax rate, 12.5 percent to be exact. Compared to other major countries in the E.U., this is quite low. In addition, Ireland boasts one of the youngest average populations in the E.U., meaning it may be a great place to expand if that is your target audience. Notably, with labor costs in Ireland expected to grow, it makes it that much more appealing to look for expat hires.
However, while many people instantly see the tax rate and think that Ireland is a perfect place to do business, there are fundamental differences. For example, in the U.S., indefinite employment contracts are a common thing, but they are against the laws in Ireland. Companies looking to do business here need to fundamentally understand the different regulations or use a solution that lets them outsource that work.
For many businesspeople, Japan is seen as the “gateway” into the greater Asian market, and a naturally strong place to do business. From a sales perspective, Japan has one of the largest consumer markets in the world, serving as a potentially lucrative hub, while having more of an established business infrastructure than a lot of the other major countries that may still be developing. In addition, when it comes to forging local partnerships, the reputation of the Japanese workforce as being highly-educated and dedicated is near-legendary.
However, despite the appeal, Japan has perhaps the least amount of foreign investment considering its industrial development. Why is this the case? It all boils down to the fact that Japan is also a notoriously bureaucratic country. On top of typical processes for things like establishing residency or creating a new entity, there are also a wide network of offices and procedures for things that many U.K. or U.S.-based companies may not even think about needing to have approved. In addition, despite being well-educated, most Japanese professionals do not speak English.
Handling the Pros and Cons of Expanding
Every country has a different approach when it comes to doing business, but there are a few things that universally apply.
- All countries have laws when it comes to international expansion and hiring that you absolutely must follow.
- Setting up a new entity in the country of choice is a way to circumvent this issue, but is also prohibitively expensive and sometimes complex.
As a result, it’s important for businesses to have a way to emphasize the benefits while mitigating the cons of international expansion. One key way to do this is by using a Global Employer of Record (GEOR) service. When you work with a GEOR service, they become the registered legal employer for the worker, essential outsourcing the logistical work of local hiring and payroll compliance. However, you still control all the day-to-day aspects of the employee’s job.
In terms of a Global Employer of Record solution, Acumen International is the ideal option, whether you are looking for a bridge option while establishing an entity in a new country or a permanent option to support your international expansion. With the ability to onboard expat employees within 72 hours, we can help you quickly and efficiently set up your team in these exciting new business markets.
Reach out to us today for more information.