Also in the news...
Support package worth over £500 million from the UK government unlocks new markets for exporters in the high-growth region
How you import from and export to Japan.
Looking for a new start this year? At Charterhouse Lombard we put together the best offers from free zones around the country to find the right match for you.
The groups were established in July 2020 to meet the requirements of the Department for International Tradeís (DIT) trade negotiations.
Check the availability and any issues affecting the Customs Declaration Services.
Launching a Construction Project Overseas: The Top Factors You Need to Consider
If your construction projects have been successful in the UK, then now might be the time to expand overseas. Expanding overseas could enable you to gain more customers and get additional market exposure around the world.
But, before you take this huge leap into the unknown, there are a few things you need to consider first. Here are some of the main things you should consider before launching a new construction project overseas:
1. The Legal Stuff
Businesses who want to expand overseas need to do some research into their chosen overseas location. You will need to find out all about the different laws and regulations of the area you choose to work in.
Itís a good idea to speak to an experienced legal counsel before starting your project. They will be able to advise you on any potential problems or barriers that may stand in your way. Spending money on outsourcing the legal paperwork will save you money in the long run as problems are less likely to occur.
2. The Culture
Cultural differences can play a huge role in determining whether your business is successful or not. If your construction project doesnít meet the needs and wants of people in the local area, then itís unlikely to succeed. Therefore, itís important to do some research on the people who live in the local community.
Of course, not all construction projects are aimed at the local community. You may want to sell your project to investors in the UK or to an investor from another location around the world. In order to achieve this, itís a good idea to keep any investors or potential purchasers excited and enthused about the project by taking pictures throughout the construction process. Outsourcing this role to an experienced commercial photographer like Greg Harding Photography and Video is a great way of doing this. They have over 15 years of experience in this field. They will be able to help you to create a library of images that will help you to secure contract bids or secure a sale - you can find more details here.
3. The Foreign Government
Any business that wants to launch a construction project overseas should look into the stability of the local government. The stability of the local government is important for employee security and rights, contract integrity, trademark, and many other facets in the business. Businesses are advised to talk to a local expert about their business plans and any political factors that may affect the build before they get started. These are some of the things you need to consider:
- How easy it is to access the materials and resources you need
- The currency exchange rates
- The language
- The transportation
- The ability to apply for reasonably priced capital
- The type of protection policies available for businesses
- Employment and immigration laws
4. Strategies to Consider
Business who want to expand overseas should:
- Complete a financial feasibility study Ė this will tell you whether the move is financially worthwhile
- Complete a market study Ė this will allow you to find out information about the area, the people, the market trends, the market forecast, and the financial cost patterns
- Look into trademark and intellectual property protection
- Consider a business partnership
Launching a construction project overseas can be extremely lucrative, but if not managed properly, it can become a nightmare. Make sure you follow our advice above when launching a construction project overseas.