Korea is open for business, being the 6th largest export economy in the world. Basing your company here gives you access to markets all over the world, and can help you to expand your operations and ultimately increase your profit margins. However, overseas expansion can also be a risky strategy.
Choosing to go global at the wrong time can cause financial difficulties, due to the expensive and complicated task of setting up locations in different companies. Before you join the long list of dynamic and global Korea based businesses, consider whether you are financially ready to do so.
How Stable Is The Company?
When you opt to set up business overseas, you will be redirecting your attention away from home markets. As the CEO, you will be in charge of making sure that the expansion abroad happens smoothly. From choosing a building to make your headquarters to hiring the best-qualified employees, your time is going to be taken up. Therefore, your home business needs to be stable.
Are you confident that operations at home will continue to run smoothly in your absence? You will need to bring one or two other senior staff members with you in order to successfully expand elsewhere in the world, so having a stable running company is essential. Unless you are certain that your staff can weather any problems without your direct input, then consider putting off overseas expansion.
What State Are Your Finances In?
Startup costs are enormous, and getting the legal and financial advice for unfamiliar markets can set you back. You may, therefore, be taking out new loans, and you should only do this if your business has a good credit rating and no previously acquired debts. Your personal financial situation is an indicator of your ability to take out new loans as a CEO, but remember that personal credit and business finances are distinct, and it is the latter that you should be concerned about.
If your company is free from debts and making good profits, then you can be confident that you can make a success out of global expansion. When relocating to Korea, it is important to understand the local regulations. Once you see the potential to export goods and services, however, you will be able to determine whether your income is enough to quickly cover any startup costs.
How Big Is The Risk Of Going Abroad?
The final thing to consider is the level of risk. Expanding abroad is always risky, but you should have measures in place to increase your chances of success. Research your chosen market in detail in order to gauge the potential for profit. If the risk is manageable, then go for it. If not, then more research is needed, and you may need to consider choosing a different, more appropriate country.
Going global is the dream for many small business owners. Setting up in Korea is a good first step to achieving this. Generous trade deals mean you have access to a global market, and can confidently begin making strides towards setting up business overseas.