In case you don’t know, the European Union’s total GDP is higher than the United States, making it a quite promising part of the world to explore new and better economic opportunities. That’s why many American companies are either relocating to a European country or seeking to set up a subsidiary there.
Another reason why companies are moving to the UK from USA is mounting and burdening Tax policies. The strict corporate policies, like levying high taxes on foreign earnings, are giving American companies a solid reason to move their businesses to countries with favorable corporate policies. So, if you are also thinking of packing your business and moving to Europe, you are not alone. Many other countries are on the same train as you.
But doing business in Europe is different than running a business in America. The laws, business culture, workforce, and policies are different. This new journey can become troublesome without proper planning. So, you must consider a few things before moving your business to Europe.
- Different European Countries have Different Regulations
27 countries are part of the European Union and being part of it means that these countries have to work harmoniously in terms of economic and legal policies. However, still, these countries are separate entities with their own culture and governing system. You can’t expect to see no difference in their digital laws, employees rights, and data protection laws. So, be careful while selecting your relocation country and take the decision after carefully understanding their laws, policies, and business environment.
- Language Barrier can be a Blackhole
Different European countries speak different local languages, with English being a lesser known language in many countries. So, if you don’t know French, Spanish, German, Italian or Polish, you might not be able to survive and thrive in your business. So, it is better if you hire local talent in the beginning to overcome language barrier issues and establish your business without letting language create blackholes for you.
- Develop a Good Network
Partnerships, ventures, and networking work differently in Europe than in the USA. Working alone is difficult, but finding a like minded partner is even more difficult. They might have their pre-established network and it might be difficult to convince them to change their patterns.
If you choose a joint ventures option, you will end up missing government incentives that are only offered to fresh starters. So, you should be very cautious while building a network and choosing the type of business you want to do to get the best results.
- Research Local Market Thoroughly
Europe will be a new market with new challenges even if you have been running a successful business in America. In fact, it is like starting a new business all over again with new competitors, target audience, and zero product recognition. So, you should start your business with a fresh mindset.
The first step is to understand the local market and its dilemmas deeply. Connect with the target audience, understand their needs and pain points, analyze what competitors are doing, and how you can make a difference. This step will help you penetrate the market much more easily than starting things unprepared.
- Choose Your Workforce Wisely
While you might be thinking of taking your whole team along with you as they know the ins and outs of your products. But remember that Europe is going to be a new world for them and they might not know the ins and outs of this new world. So, they might not be able to perform their best in these new conditions – significantly, if they are also a victim of language barrier.
That’s where you need to choose the best players with abilities to play on different territories like ace-players. Also, you will need to hire local employees with a better understanding of the local market. But hire local talent carefully focusing on their skills and also if they have the abilities to blend in your company culture. Building a team with different mindsets and work attitude will create friction, hindering your growth dreams. So, be careful while selecting your workforce.
Europe is a great land to find new and promising opportunities for your business, but only if you take things strategically. So, take a step back and analyze things from a different mindset. Hope you find the right people and talent to begin a new journey. Wishing you best of luck – may this new beginning tinkle the right chord for your business success and growth.