Business ideas abroad: from small to great
"Working for an uncle" few people enjoy. Few manage to break this vicious circle. But Russian economic conditions are a big problem for a budding entrepreneur. Huge loan rates, low profitability, pressure from inspectors. What's the way out? Business abroad - let's start with theoretical foundations.
Overseas Business Culture
What is the main scourge of the business environment in Russia? This is a focus on big business. Anyone who has studied the basics of economic science knows that the basis of the market economy in developed countries is, on the contrary, small and medium-sized businesses (SMEs). It is he who determines the rate of economic growth, the structure and quality of the gross national product.
It is not surprising that the share of small and medium-sized businesses in the EU GDP is 67%, and in some countries it reaches 80%. For comparison: in Russia, the share of SMEs in 2021 was about 20%.
How do other countries achieve these results? Here are some of the main factors:
- Implementation in the EU of the practice of applying preferential taxation and the abolition of duties.
- Government support, including broad loan guarantees, subsidies and interest rate compensation.
- Other non-financial assistance, including consulting services, trainings, courses for young entrepreneurs.
- Doing business in a "favorable environment" with a stable economy and currency.
Despite the different foundations of legislation in different countries, economic theory is the same for all states. Therefore, both in Europe and the United States, and in Russia, an important basis for strategic planning of business activities is an understanding and vision of the form and type of business that is planned to be established.
Based on the foregoing, the first criterion by which it is worth classifying types of business is its size. As we know, there are small, medium and large businesses.
The two main criteria by which they are usually divided are headcount and turnover / income. At the same time, the specific values of indicators that determine the boundaries of types of business may differ in different countries. Most often, it is the number of employees that plays a decisive role in classifying a business as one type or another:
- 1-15 employees - a micro-enterprise, also related to a small business;
- 15-100 employees - small business;
- 100-250 employees - medium business;
- 250 or more employees - large business.
As we have already found out, the key to success is small and medium business. It is he who annually generates up to 85% of new jobs in the EU, and in general it accounts for about 66% of jobs in Europe.
At the same time, 70% of all representatives of European business are micro-enterprises with up to 9 employees. What are these enterprises? Typically, these are shops and small manufacturing shops, travel agencies and consulting offices, service providers and outsourcing companies, rental business, food production and even catering establishments.
There are a great many options for the direction of such a business - microenterprises and small businesses can be represented in any of the business segments.
The economies of the countries of the former Soviet Union are not always reliable, and the methods of competitive struggle are not always civilized, so many people prefer to organize a business abroad, where you can be calm about finances and real estate. In our article, we suggest that you familiarize yourself with the recommendations and instructions for organizing your own business.
How to organize business development abroad
Being in two places at the same time is impossible, but for a modern person there is nothing impossible, and situations when you live in one country and business in another is a fairly frequent occurrence in the post-Soviet space. What should be done in order to successfully establish business activities abroad?
There are few unoccupied niches on the European market for goods and services, but there are many types of activities that have a low level of competition or a large clientele, especially when it comes to tourism, medicine or restaurant business
Select country and region
Having decided on the type of activity, you need to choose a place where the development of your business will have the most beneficial prospects. Pay attention to the conditions, infrastructure, potential clientele, as well as the transfer possibilities for control (you don't fly too much to Australia)
Find an investor and business partners
It makes no sense to organize your own business in a foreign country alone - you can easily go broke without knowing the local specifics. The best option is to find a business partner on the spot, who can also act as an investor in parallel.
Before getting involved in a risky venture, you need to get legal advice in your country to find out how legitimate your actions will be on the territory of a foreign state
Study tax legislation
You can't joke with the tax office anywhere, and even more so in a foreign country. Understand the intricacies of tax laws, or even better - choose a country with a simplified tax system.
Get a lawyer
After you have precisely decided on the development strategy for your future enterprise, use the services of an expert lawyer on international issues who will help you resolve issues of legalization, business registration and, if necessary, obtaining a residence permit.
Many major foreign corporations started with one small idea - a project that was successfully implemented. Decades ago, to implement it, it took years to find interested investors. But today crowdfunding has come to the aid of young and talented guys.
You will find out the best platforms, what crowdfunding is, how it works on examples of successful cases, and whether it is possible to make money on it in 2021. So let's get started.
What is crowdfunding, the whole point
If you start to explain what crowdfunding is in simple words, you get something like the following. Сrowdfunding is a way to attract investments to implement your idea. Moreover, the required amount is donated by people interested in the project. As a result, as they say, "with the whole world" you can promote some kind of invention, idea, game and more.
The term crowdfunding is about 15 years old. It was first used by a well-known foreign journalist writing an article about collective investments on the Internet, and quickly entered use, becoming an independent phenomenon with its own rules and characteristics.
Crowdfunding in Russian means “crowd funding”.
“If you are the author of any unique idea, but cannot bring it to life due to lack of funds, then crowdfunding will come to your aid. What is the main essence of this phenomenon? It's simple. We can say that it brings together interested people who are ready to donate their money for a common goal. ”
Knowing what crowdfunding is and how it works, you can become a successful businessman, try yourself as an investor, or feel like a benefactor. After all, most of the donors or, as they are also called, backers give money free of charge, without claiming a return.
What is crowdfunding is clear in general terms. Now is the time to move on to how it works? Nothing complicated here either:
- an author or a group of authors develop a project;
- calculate the budget required for implementation;
- announce a fundraising on a personal website, but more a crowdfunding platform will be effective;
- interested donors transfer money;
- when the required amount is reached, a transfer is made to the author's account;
- the project begins.
It is important to keep in mind that a standard crowdfunding campaign is not an uncontrolled fundraising campaign. On special platforms, curators track all projects, and the author reports to investors.
The unstable economic situation in Russia makes many entrepreneurs think about starting their own business in other countries. Moreover, there are all the possibilities for this, and business development abroad is only welcomed.
If in the Russian Federation its share in GDP is no more than 25%, in countries such as Germany, France and some others it reaches 70-80%. Such figures indicate that it is profitable to develop your own business abroad. Moreover, it is beneficial not only to the entrepreneur, but also to the country in whose economy he invests. New business is not only jobs for the population, but also tax payments that go to the country's budget.
But it should be borne in mind that entrepreneurs who decide to do business abroad will face a difficult path. Differences in mentality and legislation leave their mark on doing business abroad. What problems will entrepreneurs face when starting a business in other countries? In which states is it more profitable for a Russian to engage in entrepreneurship? What business is trending abroad? You will receive answers to these and some other questions from our article.
- 1 Business abroad: how to choose a country?
- 2 How to open your business abroad: forms of ownership and company registration abroad
- 2. North America
- 2. Canada
- 2. South American countries
- 2. EU countries
- 2. Asian countries
- 2. Australia
- 3 Which business is better to open overseas: business ideas from abroad
- 3. Paper sculptures
- 3. Service for ordering space for celebrations
- 3. Natural cosmetics
- 3. Original bars and cafes
- 3. Packaging for rent
- 3. Cycling tours
- 3. Bike Tours
- 4 Conclusion
Business abroad: how to choose a country?
There are five main factors to consider when deciding to start a business in another country.
Possibility to take out a loan. For example, in the EU countries it is not too difficult to get a loan for a good project.
Conditions for legal registration of business. The easiest way to register it is in the United States. You can register your business there online, even while on the territory of another state.
Convenience of doing business. That is, a low level of economic crime (Japan leads) and respect for other people's property. stability in politics and economics. Many developed countries can be listed here, including Australia and Canada.
Community of views and traditions. No matter how favorable the conditions in the country may seem, one must take into account the commonality of traditions, the opportunity to find a common language with the local population.
Hello friends! The topic of today's article is business ideas abroad. Today we will not talk about a long-term lease of a SHELL petrol station in Bavaria for € 2,200,000, but we will try to find ideas with a much lower starting threshold. But first, let's figure out why it is worth examining such options, when we have a lot to do.
Business ideas abroad: the advantages of their implementation!
I think there is no need to paint this chapter in detail, everything is already clear - most developed countries have had a market economy since time immemorial. The legislative and legal framework in such countries is polished much better than in the republics of the former Soviet Union. In post-Soviet countries, throwing from side to side, imperfection of tax legislation or bureaucratic delays are still possible. I am categorically sure that there will be a holiday on our side of the street, but so far, in order to minimize risks and ensure the stability of the development of my business, I consider it quite appropriate to use the possibilities of implementing a business idea abroad, especially since the conditions for this are now quite suitable.
Possible disadvantages of doing business abroad!
We will not print loud laudatory odes to any acceptable idea of developing our business, but remain unbiased and immediately list the possible difficulties of developing such a business:
- Language barrier. No matter how perfectly you speak the language of the country where you plan to develop your business, difficulties in the field of communications are possible. If at the everyday level small misfires of conversational speech will not be an obstacle, then in negotiations with potential partners and clients this can have a negative effect. Even the banal "Hard Russian accent" can play a cruel joke on you.
- Difference in mentality. Follow the ancient adage, "When you're in Rome, do as the Romans do," and everything will be fine. Our primordial Slavic reflexes - such as various schemes of tax evasion and expensive presents for business partners and regulatory authorities will have to be forgotten. However, it should be admitted that their popularity is falling in the CIS countries as well.
- Opportunities for discrimination based on ethnicity. I do not want to say something bad, but for all nationalities healthy patriotism, fortunately, has a place to be. Be mentally prepared for the fact that not all doors may open for you. My neighbor, a Frenchman, who has lived in Russia for more than a decade and has a successful publishing business here, faces the same problem. Fortunately, he is very philosophical about this, as, indeed, about my jokes about Napoleon at the beginning of each winter.
As you can see, the possible difficulties on your way are not so great and are easily mitigated by the absence of legal obstacles, low level of economic crime and excellent banking conditions.
[warning] We also recommend that you read the materials:
Options for doing business abroad!
Sale of domestic goods via the Internet to foreign markets
The conditions for development in this industry are better than anywhere else. A weak ruble and cheap labor can now make any product from our country a kind of "killer of foreign analogues." I'm not talking about high-tech products (like the RD-180 rocket engines, which, with all the desire, cannot be abandoned in the United States), but about the simplest, practically assembled things. Roughly speaking, you can supply bath brooms to Finland, where a sauna is an attribute of every home. The purchase price for a bath broom with us now is 35 rubles, and the price of this broom in Finland will be measured already in euros, which at current quotes will give you a good percentage of profit. For comparison: the price in Finland for any souvenir product starts from 3 euros. This example, of course, is a little joking, but the general direction of search and movement, I think, is understandable.
The citizens of China worked in the same way with their Aliexpress, Alibaba and Taobao, where the goods were ridiculous in terms of price. You can learn more about the work of one of these trading platforms from our article "How to make money on Aliexpress - get your own business!" Now the economic situation and the possibilities of Internet technologies make it possible to do something similar in our country, you just need to choose a product and find a market for it abroad.
Vending - selling goods through vending machines