Last Updated on April 20, 2021
How Will You Establish Yourself Abroad?
Without beating around the bush – starting a business is hard. That means starting a business abroad is even more of a challenge. However, with the right steps and research it’s completely doable. Whether you’re planning on taking your remote job to another country or plan on establishing yourself to an entirely different culture here are 7 Important things to know before making the move and committing.
Payment Method & Money Holding
If you’ve been blessed with the freedom to work remotely and set up your company anywhere you please, there are still many things to consider. Including how you will be paid and where you will choose to hold your money.
There are a few popular options like Paypal, however if you’re planning on converting that money into a different currency Paypal and other platforms will charge a service fee. Instead, you must look for services like Sikhona that offer worldwide money transfers. This way you can ensure you won’t be sacrificing any amount of money to work from your dream location.
Next is where you plan to hold that money. Setting up an international bank account in the country you’re in is an ideal option however, speaking to your current Bank may offer other possibilities. Certain establishments offer packages and international accounts that you can still use and operate overseas.
Cost of Living
One of the most important things to consider before setting up your business abroad, is making sure that the revenue it brings in is enough to sustain the new country or cities cost of living. For example, the money you make in a state like Virginia won’t take you as far as in New York. The same applies to the rest of America and Europe.
You should take some time before making the jump to budget out how much it will cost to live in your new location in comparison to your income. Is it enough to sustain or increase the level of financial comfort you have now?
As much as we wish we could just pick up and move countries whenever we want – it’s just not possible. The truth is if you’re planning on relocating or setting up your business in another country you’re going to need a VISA.
There are multiple different VISAS depending on your circumstance but you should ensure you do your research and apply for one that will allow you to work in another country. If you don’t plan on taking clients from this new country then you may not require a working VISA but instead a travel VISA. Every country is different, which again means researching is the way to go.
Working in another country also means more complicated taxes. Before tax season roles around make sure you have an accountant lined up that can help you sort out all of the new additions to your tax claim.
If you’re starting your own business, the reality is you probably don’t have healthcare coverage. Even if you come from a country like Canada that has free healthcare, that healthcare is ineligible in another country. When hunting for the right VISA make sure to check if any of them offer health care coverage. If not, look for options in the country you’re moving to. You may be able to buy into a plan of insurance. This cost should also be included in your budget planning when calculating your new cost of living.
There is always the option of investing in travel insurance that will be valid for a certain amount of time. This is perfect for someone who isn’t looking to commit to anyone’s location just yet.
Find Long Term Clients
Hopefully, when moving to another location you have already assured a starting income to sustain yourself for a period of time. This is something you should work towards before committing to opening your business abroad. Finding clients you can 100% guarantee will be needing your services for an extended period of time will give assurance that you will be successful in your endeavor. It will also get you feeling more confident and comfortable in your new journey and allow more freedom when it comes to the timeline of the big move.
Every effort should be made to sustain these clients until your are able to establish yourself in your new location.
Know Your Time Zones
When you’re working as your own boss, you are in charge of setting and remembering deadlines. If you’re working from a different country then some of your client’s time zones can often get in the way. To avoid any confusion on your or your client’s part, make sure to be well versed in the time difference between you and said countries. Always offer a deadline date in your customer’s time, and make it your responsibility to get it to them by that time, no matter the hour it is for you.
Of course, you can try to schedule it at a time that is convenient for both of you, however sometimes the greater the time difference the more difficult it is to do this.
Consider Culture Shock
Moving to a new country is a huge culture shock. Their currency, language, and even morals often differ from your homeland which can prove difficult to a lot of people at first. Make sure you have a plan when it comes to attracting new clients where you are despite the culture barrier. Even learning some of the languages before making the move will prove to be all the difference in the long run. Knowing how to price your services while taking into consideration the norms in your new country can take some adjusting as well.
Remember don’t be discouraged. Moving to a new country or even a city is difficult for everyone – let alone moving to a different country to set up a business. Take it one step at a time and don’t hesitate to do what is best for you. Good luck!