By Jane Brown, a freelance who has been blogging on business, finance and investment for three years.
The entrepreneurial ecosystem within the UK is largely dependent on growth stimulus. Since the recession, it has been in short supply. With 2014 approaching, entrepreneurs within the nation can start looking at broader prospects since the global economy is on the move.
As per a report, UK based entrepreneurs are scaling the international market in high percentage. Their targets mostly revolved around Western Europe in 2012-2013, but 2013-2014 would mark a shift towards greener pastures, such as the U.S.
In order to understand the notion of “opportunity”, entrepreneurs should look at expanding to the other side. With the IMF already raising the US economic outlook for the coming year higher than other countries, it marks a significant opening for UK based entrepreneurs to expand offshore.
Trends and Manoeuvres
However, business relocation or expansion is not an easy task and all cash flows have to be taken into account. Using a methodological approach, the net ROI of the process can be made positive.
1. Identify Business Collaborations
The first trend is that of business collaboration and how it can positively impact a business looking to expand its operations. Numerous tech startups within the UK would find that the Big Data industry’s roots are in the US.
An example of this can be seen with the expansion of the UK brokering platform Funding Circle within US. It is going to impact the peer to peer lending system between the two countries.
2. Devise a relocation strategy
The strategy should start off with a good visa. A study reveals the 0-1 Visa is the best one to have in terms of business development within the US, but the entrepreneur needs to have an extraordinary portfolio. As an alternate, startups and small business owners can engage sponsors for the purposes of acquiring that visa.
As for the mobility needs of the business looking to relocate, international moving companies utilise networks that can help with several aspects of the move. These not only deals with logistics, they assist in understanding the cultures of targeted countries (language, custom duties etc.). In this case, UK business owners would find it helpful to learn about how a business works in the U.S. (and this knowledge is going to serve as an asset for any company that plans to expand).
3. Registration and Licensure within the US
The entrepreneur has to be prepared for registration within the US and the licensure that is mandatory. Licensing is one of the most effective proactive approaches that would help the business progress well.
Licensure also allows control over the intellectual property rights associated with the company. For a nascent tech based startup, that is more of a necessity than an option.
4. Using the US start-up culture
Lastly, it is important to explore the pros and cons of business options with respect to the US start-up culture. For instance, franchising may not be a popular business trend within the UK, as it is within the US.
It is therefore possible to use the start-up culture within the US to economise the relocation. For instance, Y Combinator is a pretty well-known incubator within the Silicon Valley in US. If an entrepreneur applies through them, it may be possible to secure a cost effective business visa and profitable connections if the eligibility criteria is met.
With a systematic approach as highlighted above, business relocation not only becomes easy, but also translates into a profitable venture for the financial activities of the entrepreneur.