What kind of entrepreneurial steps do you need to take to ensure that your business will flourish even though you’re going offshore?
Here at Nomad Capitalist, we always talk about the benefits of growing your business even from scratch. Either you’re legally reducing your taxes to grow your business, or whether you simply want to keep more of your own money. That’s completely fine.
These are entrepreneurial steps that you can take that will lead you to go where you’re treated best. Then again, that’s not the only part of our offshore business plan.
In this article, we will share three entrepreneurial steps that every entrepreneur needs to consider when moving your business overseas, even if you are not moving overseas.
Why It’s Important to Consider These Three Entrepreneurial Steps
It’s already a given that it’s incredibly important to consider or even take entrepreneurial steps whenever necessary.
In this article, we want to talk about three different areas that you should be looking at when diversifying your business overseas.
Sure, taxes aren’t the only things that we ever talk about.
At our recent event, Nomad Capitalist Live, we shared some ideas of what we can see coming and why we think it’s more important than ever to move your business offshore.
Taking One of the Entrepreneurial Steps Towards Tax Savings
Naturally, the first of the entrepreneurial steps that most aspiring Nomad Capitalists should take is towards tax savings.
Quite frankly, a growing business can always use more capital. How many times do you find yourself at the end of the tax year trying to jam expenses in or trying to pay for things upfront?
Then again, you’re trying to jam different stuff in to get maximum deductions.
Can you imagine if you didn’t have to do that and if you could just run your business organically?
We know many entrepreneurs who are being bullied in the western media by the “western politicians.” These people are paying 40% to 50% and in some cases even close to 60% in taxes.
You see, that’s an amount that can’t go back into the business. So if you move your business to Dubai, then that’s a great first step.
A Nomad Capitalist Tax-Friendly Quadrant
We can talk about our tax-friendly quadrant where, for most businesses, you also need to move, or someone from the business needs to move. Then we can start to talk, right?
So you’re sitting in Canada running a business in Hong Kong. Well, that’s not going to help because Canada will apply all kinds of tax rules to that, and it’s going to be controlled for incorporation and all sorts of other things.
This means that you can grow your business with tax savings.
Hiring Overseas is One of the Most Essential Entrepreneurial Steps
The second of the entrepreneurial steps that you might want to consider is hiring overseas.
There are several reasons you might want to do this, and we did talk about Robert Kiyosaki’s keynote at Nomad Capitalist Live.
In one of our interviews, he said that you have three days to be somewhere else if everything hits the fan.
One thing that came to my mind as an entrepreneur is that if all your employees are all in one place, what will happen if they’re all in there when it hits the fan? So we think that diversification is important.
As I think of our company, we’ve set up people in different places for different reasons. Whether it’s to get various residents, or citizenship benefits, or other tax benefits as well. In some cases, maybe it’s because the people there are just that good.
It doesn’t matter what your reason might be, because the thing that matters is diversifying your employees around the world. This is one of the most essential entrepreneurial steps that each business owner should do.
Try hiring overseas for the first time, and you’ll surely know what we mean.
Hiring Overseas Can Bring Some Great Advantages
What most people don’t realize when it comes to hiring overseas, is that even if you’re going to stay in your home country, hiring people may require some infrastructure.
Then again, there are countries like the Philippines, Georgia, and Armenia, where you can have very lightweight freelancer relationships that are tax advantageous for both parties.
In our opinion, it’s essential to start building your team overseas to lower the cost, improve diversification, and improve your asset protection. There are many things that will follow as an advantage if you take the leap.
Not only that, but there will always be unique talents out there. This is something that you should look at, especially if you’re running a big business.
Currently, we’re building out a team in Dubai.
In this country, you have great talent from all over the world, and it’s simply a great place in general. As our company continues to grow, we need more leaders, so that’s where we would go.
We can also go to Singapore since the country also has great laissez-faire rules if people make more than a certain relatively low wage. So you have more flexibility when negotiating with them, as there’s a free market. Plus, you can negotiate with people rather than the government telling you what to do.
So these are some of the cheapest jurisdictions if you’re starting to hire overseas.
Looking at Various Places to Hire Overseas
Another great way to save money is hiring in places like Serbia, Armenia, Colombia, Venezuela, and even Egypt.
We’ve done some freelance work back then, and we did get some good people who work well in teams. Typically, we would avoid hiring from legacy brand countries like the United States, and we would like to prevent many countries in the European Union.
Then again, you can always get proper tax planning.
Although, the thing that you want to do is to start building your team overseas.
If you’re living in the United States and would like to move your business overseas, it would be a lot better if you already have a team living offshore. This will help your future tax prospects when you make your move.
You see, when you leave a big group behind, you need to have more complex tax planning around that. So it would be a lot better if you get these people to move. You can simply tell your team that you’ll pay their bill if they want to move too, which might reduce your cost of living.
In some of these countries, you can also get tax incentives depending on your immigration status. Some of these taxes are even lower or non-existent, and it’s a win-win!
Then, you can get your current team.
Most of us don’t like getting rid of people, so moving your team can be a great alternative. It’s a great way when you may be thinking of going offshore in three years.
So you better start by showing your team that that may not mean you’ll be hiring overseas.
One of the Entrepreneurial Steps is Doing Business Overseas
The third of the entrepreneurial steps that every single entrepreneur should consider is how to do more business overseas.
Sure, you’ve got a lot of companies that will probably help offshore themselves. They’ll hire the workers offshore, but then they’re still selling back into the same market.
What we want you to consider is opening up your own market.
We talked about this at Nomad Capitalist Live in more depth, and we said we should be talking about the global minimum tax.
For example, governments are coming out, and they’re largely targeting the bigger companies. However, there could be a time in the future where anyone’s company can be targeted by the government. It doesn’t matter who you are nor how “clean” you are.
It works in the same way we’re seeing creators on YouTube being taxed on the views in the United States.
You see, the United States is using their heft, so here’s the thing, it’s a great market to sell into. Although, you know that there are still many other markets out there that are coming up.
We would encourage you to learn more about those upcoming markets.
Not only that, but we would also encourage you to learn why this is a part of why hiring people in other countries and in “hub locations” like Dubai, London, or Singapore, might not be the worst thing to do.
Going Where the Service is Undoubtedly Better
We’ve seen more and more people than ever in the last year who come to us from Mexico, Ukraine, Russia, and so many places worldwide.
These people are looking for services. So if you offer these services, we suggest that you talk to many people about what percentage of your customers are in the United States.
So how do you get that number down by half so that you have diversification in case the market sinks?
He said that he believes there will be a greater depression coming. So whether you believe that or not, it would be valuable to say that you don’t have 80% of your eggs in one country’s basket.
This means that if that particular country falls apart, a lot of your customers are going to be reticent to spend or unable to spend.
So how do you diversify to where there could be better prospects in certain parts of the world because their markets are going up? That’s another one of the entrepreneurial steps that business owners should take.
Following These Entrepreneurial Steps to Succeed
The question is this, how will you diversify your business into other markets to avoid future tax changes?
We think that’s going to be tough, but you should still be prepared for the shock of the global system. At least, we would be prepared because if the United States is always the number one market, then there are some markets that we think are challenging them.
We believe that the Chinese market is very challenging for many people. Although, you can also find that the markets there are open.
Not only can you expand your business, but you can also focus on how to expand your business from a tax or a risk perspective.
So these are three of the entrepreneurial steps that we think everyone should consider in business.
That’s the name of the game, and that means that now, you’re unable to be touched substantially by any one country’s crazy policies.