This is the second part of a series on steps to take while planning, beginning and executing your expansion abroad.
As mentioned in my last blog entry I am sharing the experiences we gain at Hull Speed Associates as we assist our clients in expanding abroad. The experiences I share are real situations of how we encourage our clients, and the pragmatic steps we take to help them in this process. I urge you to share your comments by clicking the comments button below. Oh, and please subscribe to the blog if you have not done so already ;-).
The second step is the beginning of the expansion phase, choosing a location(s) to establish the legal entity(s). As all seasoned and successful business people would agree, execution is where the rubber meets the road so getting this right at this phase will save time, money and headaches in the future.
The successful result of the first step is gaining enough traction to where you are comfortable enough to take that next big step and that is……… setting up a legal entity. This is a lot like getting married. You enter into a legal arrangement, you take on tax and legal liability, you are financially accountable to a higher being, you have to do a lot of things you normally don’t like to do and you have accountability. Is this a big step…? Oh yeah! This can be a terrifying experience unless you have the right expertise or engage the right experts and have the right people on board. We cannot cover every example but I would like to cover a few of the more popular “destinations”. So over the next few entries I will highlight a few examples and possibly co-write a few with the input and help of some of the people I have worked with over the years.
I would like to start off with the “American Invasion”. I can hear it now “Oh god no! Another American invasion…?”. As a number of people predicted, Europe has started to see an increase of US companies begin re-entry into Europe after a rather long -for US standards – retreat as a result of the recession. What strikes me is how similar their patterns are compared to 15 years ago. Instead of first focusing on a location that would be a better fit to their market, they first look to countries where native English is spoken, or to countries which are darn close. Is this a mistake…? Yes and no, but we won’t solve this question on this entry. I would like to first focus on the most popular venue I have experienced over the past 15 years, the UK.
In the next entry I will start to lay out a description of each type of entity we found, the pros of each entity and the related cons. So please subscribe to the blog so you don’t miss out.