Living There
You have dreams of opening a business in a city, state or even country where you don’t (currently) live. That’s incredibly exciting, but it’s also an idea fraught with bumps and hurdles if you don’t do your research. Even moving to a city a few miles away can lead to serious changes, such as higher taxes if you’ll be purchasing a commercial space. Your first step should be retaining a business attorney who’s familiar with entrepreneurs with wanderlust.
Next up? Being realistic about what to expect and digging into the logistics of the region. Even if you’ve visited the site repeatedly, you’ve never done so as a business owner living in that area. Here are a few things you need to figure out before you commit any more time, effort or money into the venture. As an added bonus, this information will make a great addition to your business plan.
1. Taxes, taxes, taxes
Here’s some great news: If you have a business overseas (even if you’re a freelancer without a brick and mortar establishment), you will likely qualify for foreign income exemption. This means you won’t have to pay the majority of federal income taxes for your business, and of course no state tax, although it’s up to you to keep it legal with the IRS equivalent in your adopted country. “Running lean”, as described by Entrepreneur, is critical for small businesses.
2. The local talent (if applicable)
If you’re going to need local workers, such as for a retail shop, do you know what the unemployment levels are like? Are you sure of the average pay for the job descriptions you have in mind? While it’s possible to import talent from just about anywhere, it’s also costly and time consuming. Make sure you have plenty of resources in the new place, including workers.
3. The language
You can set up a bed and breakfast in Costa Rica and target your demographics as English speaking tourists. However, outside of really big tourist areas, the vast majority of those around you don’t speak English. You either need to brush up on your Spanish or be okay with having a major handicap. According to Headlines & Global News, learning a new language leads to better connections, health and happiness, too.
The best way to see if it’s a good fit is to spend as much time in the new place as possible before committing. This is a big step, and any connections you currently have will be far away. However, planning can lead to a smooth road.
