In which country you should open your first foreign office?

In which country you should open your first foreign office?

In a world where cut-throat competition and incessant rat-race these days continue to intensify, the idea of hoisting sails to new a horizon sounds more and more worthwhile. Many companies have already set their eyes on the foreign markets, so as not to be limited with the sole potential of the market they currently operate in, to be able to earn their revenues in foreign exchange and to move forward to become a global company.

This is of course a challenging step, as you are obliged to deal with a different culture, different market conditions, different rules, and what’s more, getting to know the customer, getting new business partners and investing soundly. Therefore, instead of committing to this great task randomly with the unreliable hearsay information you have, you need to study everything in depth and reserve your energy to focus on the central issues.

One of the most important steps after you set foot to abroad is to open your first foreign office. No matter what your market or product is, your prospect business partners or potential investors will want to feel your presence in that new market. Being up and about for a few months but going back to your country after a while, may mean leveling everything you have already built to the ground and going back to square one. Consequently, having a permanent office and a representative is one of the must-have steps to gain confidence.

 

Well then… If that’s the case, which markets should you target in order to spend your energy in the right direction? Here, of course, different targets can be determined according to the industry you operate, the target audience of the product and the opportunities you have identified. But if your goal is to develop an innovative product/service and put forth a digital innovation or technology, it is possible to narrow these down. The following table below may provide information to help you at this point.

 

 

In the table below, you can see the ratios of various markets’ GDP figures in the rest of the world. Therefore, the countries with the largest percentage are the largest markets in the world in terms of the goods or services they produce. Apart from being a potential in within themselves, these markets happen to be the ones that offer the best route for becoming a global brand.

 

China’s size in the Asian continent is remarkable in the table. However here, the population factor should not be ignored. Although Japan is less than one-tenth of China in population, it is one third of it in terms of GDP. This in return, asserts Japan’s production and global orientation aspects. While markets such as India, the United Arab Emirates, Singapore and Hong Kong offer opportunities to sell, they are not good ports of entry to venture out to the world. Moreover, what stands out the most is the fact that the companies that are more suitable for doing business in these markets are usually America or Europe-based companies.

European markets on the other hand, do not have very many lucrative examples of hosting foreign companies and providing them with help they would require to open out to the world, even if they have high GDP rates compared to their population numbers.

 

 

At this point, we come to the success of the United States enjoying the largest slice of the cake in terms of being a host for foreign ventures. The US, which has a significant domestic market with a population of 325 million people, is still one of the most open markets for foreign companies – entrepreneurs despite some political fluctuations. In the country that has managed to produce a sleuth of global companies too numerous to be counted, it is also quite easy to find experienced investors, consultants and legal representatives in this field. As a result, keeping hold of a quarter of the world in terms of GDP is the triumph of an undeniably significant experience. In addition to these opportunities, the United States is one of the rare markets where the business know-how you acquire there is applicable to almost any other market. Therefore, with what you have experienced in the USA, you can become an effective player in other markets as well.

 

So, how do you get about opening your first office in the US?

Of course, you can get your visa, buy your plane ticket and go to the US, where you can rent a room for yourself. But this will be a costly method in terms of both time and money. Since no one will knock on to your office door on their own accord, you need to chase new contacts, get advice, investigate the legal aspects and, above all, do serious market research in order to achieve product-market match that you hope for. All these mean a seriously heavy load that you wouldn’t want to be burdened under it all alone by yourself.

 

The Innogate program has some unique advantages at this junction. In addition to giving you the opportunity to put your preliminary preparations together by bringing American mentors at your doorstep even before you go to the US market, Innogate also offers you a significant advantage to open your first office. Innogate’s offices in Chicago and San Francisco are in fact the first-ever office for companies participating in this remarkable program. Companies can use these offices to make company installations or use these offices for customer, investor, consultant and mentor meetings throughout the year.

 

 

 

Of course, four-walls is not the only advantage these offices offer. Both Chicago and San Francisco offices are located in the city’s foremost centers for entrepreneurship. These centers (1871 Chicago and Galvanize San Francisco) while being home to many enterprises and innovative companies in joint working areas, they are also a stage that holds significant entrepreneurship events. Therefore, when you enter through the doors of your new office, you also gain access to a very rich land of networking. This is very important in order to understand not only friendships and connections in a new market, but also to develop a rewarding business strategy by getting a grasp of cultural differences.

In order to take your first step in globalization that your product desevers  and to have an office space in the US, you can fill in the form and allow us to give you detailed information.