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SMB benefits of expanding into the European market

23rd Nov 2017
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Success in business is a great accomplishment for many small and medium businesses (SMB). However, if you feel you have saturated the market, and have limited options, maybe it's time you expand your operations overseas. One of the most opportunistic places for a business to bring their products or services is the European Union (EU).

Today, we will be going over the multiple benefits of why you should expand your territory into EU.

Large economy scalability

One of the greatest benefits of the EU is it accounted for 23.8% of the world's GDP in 2014 with a free market between member states. Thanks to cloud computing the guesswork is taken out a lot of processes, and scalability makes operations for businesses much smoother.

Simplified VAT system

You need to take into consideration of the value-added tax (VAT) when you do business in the EU. There are many different considerations from business expenses to goods and services. There are even VAT exemptions you could take into consideration; however, it might be easier to get an automated VAT Recovery system.

Strictly speaking, it's a lot better to adhere to local rules in accordance to VAT law. Automated systems also take into account a variety of expenses, tools, and equipment to take a headache out of setting up in the EU, so you are in compliance with the correct regulations.

Repackaged effective marketing

As stated before the EU has a large GDP at 23.8% of the world, and if you implement a strategic marketing plan, the EU could be a great place to expand. You do have to take into consideration the following before you set up in the EU:

Understand your company and industry

If you have sold over a million devices in the US, then it should be a big hit in the EU. However, you will have to take into consideration the fact that you will be in a new environment, and the material resources might be tricky to come by. You will also have to look at the industry to see if there are any ideas close to your own. Just as you marketed to specific demographics in the US, the same will be true in the EU.

Identify a new business plan

You may have a winning business plan in the US, but the EU has a number of countries that have various cultures that have a new persona on how operations are handled. You should also consider import and export strategies, anticipated income streams, sales models, and regulations and licensing requirements as we saw with the VAT, making the VAT Recovery system essential.

Added assistance from the government

This is one of the hidden benefits that most businesses don't know about when it comes to expanding your business overseas. There happen to be a variety of resources from both the state government and federal government when it comes to SMBs trying to get into the foreign markets. These resources include:

There are a number of benefits for SMBs to expand their horizons into the EU. Expanding your businesses reach involves strategic planning and marketing. When expanding your business to a new country, there will be a number of different factors that will determine your success from sourcing materials to knowing customs and regulations. We encourage you to use the resources you learned today to help branch out into the EU.

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