Would you like to compete on equal terms with your competitors? Or perhaps you want to reap the benefits that your competitors have not even discovered yet? Let’s take a closer look at the basic facts, and as an entrepreneur, here are some important questions you should always ask yourself.
1. Do you compete on equal terms?
There will always be competitors who want to take your share of the market and, for some, also their international competitors. But do you, when all is said and done, compete on equal terms with competitors abroad when it comes to costs such as salaries, outgoings, taxes, etc.?
It’s a really good idea to look at your business and industry and compare the costs with other countries. In some industries, for example, there may be particularly high fees on certain things that you have to impose on your customers which would have a huge impact on your business. It could be misrepresentation when your competitors abroad are not required to do the same.
2. Are you missing out on vital benefits?
A UK company gives you best platform in Europe for business development, and there are at least 4 good reasons for this:
- There are great opportunities for tax deductions and subsidies for product development
- There is a greater opportunity for funding and investors
- You automatically have access to a significantly larger market if the company has been established in the UK
- If you have a unique product and are thinking about selling the company in the future, it will help achieve a higher price in the international market
3. So, what are your ambitions?
If you want to create growth outside your own country, it is vital that you think big from Day One. You must think about an international presence early on in the process, not later. Instead, re-think and turn it around – start abroad and only focus on your home country afterwards – even if it appears to make perfect sense to start up at home.
You have perhaps a unique IT solution or a brilliant new app (intellectual property) that you have developed where you live, and later plan to market the shares abroad. If so, then you must be prepared to be taxed extra in your home country.
If you are developing an IT solution, or you have a physical product, it is a good idea to register your product development in the UK right from the start before you begin anything else, as it is probably significantly more expensive to develop in your home country. In the UK, wages and taxes are lower and, as a business owner, you will have extra deductions and lower development costs to take into consideration. Be ambitious!