Greg and John dive into the best practices for entrepreneurs and how to focus on growing a business with the help of prudent planning and engaging services like a PEO.
Entrepreneurs can turn a vision into a reality, much like an artist creates a piece of art. However, unlike a piece of art that is simply put-on display after creation, running a business is constant. As a business grows, so do the demands and if one doesn’t have the right skill set and talent in place, those demands can lead to stagnation. Compliance, taxation, legal considerations, insurance, talent management, sales, finance, company culture, etc., causes many business owners to work IN the business rather than ON the business. In time a business owner may get themselves off the proverbial hamster wheel to focus ON the business again, but what were the costs of getting to this point? If an opportunity to expand into another state or perhaps another country was to present itself would that owner jump at the chance, or would their past experiences cause them to shy away from it? What are the opportunity costs of such a choice? What if there was an easier way?
According to International Monetary Fund (IMF) the highest real GDP growth for 2021 – 2025 will be in Asia, specifically; Cambodia, India, Kyrgyz Republic, Malaysia, People’s Republic of China, Philippines and Vietnam. This is not to say there aren’t other opportunities high on the list, as a region Asia just holds a higher concentration over the next 5-years. Each of these countries is rich in their respective cultures and diversity making expansion even more challenging, especially if a business owner is not from that country nor familiar with the language and local customs. Working for a Professional Employer Organization (PEO) opened my eyes to the nuances of managing a workforce or business operation in different states. Each time one crosses stateliness they must operate under a completely different set of rules and regulations, and that’s all in the same country. In a previous life I worked in the mortgage industry and was flabbergasted when some of my co-workers from Bangladesh explained how common bribery was in their country to expedite business transactions, yet in stark contrast, on January 6, 2021 a former Chinese chairman of an asset management company was sentenced to death for bribery. Navigating paperwork and foreign laws whilst setting up a new business entity is one thing but navigating local business norms and customs is another. Even if you are fortunate to have experience in said country the time it takes to set up a new entity and hire local talent could take months or even years. Maybe you’re not even interested in expanding your business operations but do want to hire the best talent. For the most part you are pigeon held to the talent in your local market or geographical region unless you enjoy dealing with immigration. A chain is only as strong as its weakest link, the same holds true for one’s business. Thanks to the internet and airline travel international business is very accessible, but it is certainly not without red tape.
Expediting the set up of a business entity or onboarding top talent quickly is essential in business to take advantage of market opportunities. Imagine if you could cut through the red tape, bypass the lengthy process and transfer the liability all at the same time? Partnering with an Employer of Record (EOR) can provide all that. EORs establish business entities in multiple countries based on demand. If demand for a country is low, they operate through a local partnership to provide the same level of access and protection. These entities or partners can onboard a local workforce, process payroll, collect and pay payroll taxes and handle all the legal compliance affording the business owner time to simply conduct business. For example, let’s say you need a programmer and find one that is perfect, only she lives in Israel. With an EOR she could onboard through their locally established entity and could be working for you in a matter of hours. Conversely, you could hire an immigration attorney, prove that there is no local talent that could fill the position, sponsor her visa, have her relocate to your locale and revisit that process to renew her visa each time it expires. Simplifying business processes are essential to achieving operational efficiencies. Technology has placed the world at our fingertips, now is the time to break down the barriers, hire the best talent in the world and introduce your product or service in any market you choose. The world is your oyster, go ahead and grab it!