Setting up a business overseas will always present the proprietor with a range of challenges challenges which will vary from becoming versed in local employment law and getting to grips with corporate taxation, all the way through to navigating the disparities of the real estate market from country to country. Speed of setting up a business In todays business climate - more than ever before - time is the key issue. Maintaining first mover advantage is critical in todays rapidly changing business world; and for many businesses, the speed with which they can establish a new operation may mean the difference between failure and success. This is an important issue when expanding in your domestic market. But when the corporate strategy dictates overseas expansion, the issues become altogether more complex. Location To confuse matters further, in countries such as the UK, choosing the location of your office can be critical to its success. To many, the UKs small size relative to the US, for example may appear to make a real estate location decision easier. After all, five miles in one direction or the other how much difference can that really make? The answer in London at any rate is that it can make a huge difference: the character of the city, the polarisation of business sectors and skills and the transport links will all have a major impact on the success of a new business. Evaluating headline rents vs total occupation costs Then there is the issue of the premises themselves. Again, taking London as our example, there is a bewildering array of office accommodation available from the small office suite in a period building, to the brand new, eco-friendly office in a state-of-the-art modern business centre all being offered on different terms. Some leases will be on a short-term basis, while others will be offered for a 5-year term only; some office leases may include additional extras, such as fit-out costs or service charges, and occupiers may incur huge penalties for breaking the lease early. Additional costs may include agents fees, other professional fees, local business rates, support staff, office equipment rentals and rising energy costs, all of which will result in the bottom-line occupational cost bearing little resemblance to the initial, headline rental figure. Serviced office solutions If you are considering setting up a new, overseas operation in the UK, it is worth considering the role that the serviced office can provide. First and foremost, given the time-critical path that most businesses now run to, serviced offices can provide an immediate home one that can be literally up and running, fully-staffed, cabled up and connected within days. Unlike the time involved in short listing your potential office, then negotiating and signing a conventional lease, fitting out and furnishing the space and staffing up, which can take months. Second, with serviced offices costs quoted on an all-inclusive basis (with no hidden extras such as service charges and local rates) it can give you a quick snapshot of your total occupation costs, and how these vary from location to location, enabling you to make an informed decision, using like-for-like information. Thirdly, with full support services as part of the package, you can focus on your business, and rely on the fact that the serviced office provider will staff and manage the day-to-day support your business requires. Case study: ReachLocal UK Inc. ReachLocal is a leading global provider of local online marketing solutions that makes available to advertisers over 98 percent of the major search engine landscape through alliances with Google, Yahoo! and MSN. Founded in 2004, ReachLocal is a privately held U.S. corporation backed by VantagePoint Venture Partners, Rho Ventures and Galleon Crossover Fund. The company is headquartered in Woodland Hills, California with offices located throughout the United States; Sydney and Melbourne, Australia; Toronto, Canada; and most recently - London, UK. (ReachLocal came to the UK in April 2008 to prepare for the launch of its European head office and begin offering its patent-pending services to SMBs throughout the UK. (ReachLocal Launches In Western Europe).
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About the Author:
The Executive Offices Group provides fully serviced offices and meeting space, video conferencing and virtual office facilities in prime locations across London and the UK. For more Details visit: http://www.executiveoffices.co.uk/
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