Did you know that according to the most recent Pew Research Center survey measuring the smartphone penetration, the U.S. is not on the top of the list? With 72% of people owning smartphones, it only takes the fourth place being inferior to South Korea, Australia, and Israel. Some markets unreasonably get more attention than others, and some don’t get any at all. This lack of information is equally disappointing and inspiring because to conquer the markets with your apps overseas can be easier and of more fun.
To start a business in the markets with stable and developed economies is always a safe choice. But the global use shows an upward trend bringing new opportunities to entrepreneurs.
Sometimes doing a startup abroad can be more beneficial and make your ROI ratio look much more attractive. These are the top reasons why you might consider bringing this idea to life.
Larger target audience
A foreign market can offer you a larger number of prospective customers than your local one. The country you choose can simply have a bigger population or a larger number of people interested in your app. Conducting a market research and testing your ideas will make it clear whether you are making the right choice or not. If you come up with an app that addresses specific needs of a particular country, you can count on getting popular within a short amount of time.
Looking for the right people to work in your team is always a challenge. In some countries, there is a surplus of particular specialists and the competition is more severe. You’ll be able to hire highly motivated personnel choosing from experienced professionals. The salary rates differ from country to country, so there is a high chance you’ll find a more affordable labor pool entering the international market.
You may find that your app is more appealing to the people of particular cultural background and use this information to enter a foreign market. It would be great to have a local partner to handle all the legal and business formalities for you. Getting your head around some of the cultural peculiarities can be quite tricky so it’s good to have someone to take care of that.
Attractive business environment
Nobody likes filling in those endless documents and signing tons of papers to get your business going. If you want to create a company developing mobile apps overseas, you need to find a way to avoid those boring and time-consuming procedures. One of the possible options is to choose a country with less government regulation and more business opportunities.
New Zealand, for example, is the easiest place to start a business according to the World Bank Survey. But even the countries with much lower rating can be the right choice. Chilean government launched a program called Start-Up Chile aimed at attracting entrepreneurs from around the globe. You might have heard about the case of Nathan Lustig’s digital estate-planning service – Entrustet. This program helped him to receive $40,000 in an equity-free capital and develop his business.
Less or no competition
Having no competition sounds like a joke but it can actually be possible. You may find out from a market research that there is a perfect niche for your business with no competitors in it. It might be that your competitors focus mainly on the English-speaking countries ignoring others with huge business potential. You can use that knowledge to your advantage and localize your app. There are a lot of online translation services that can help you solve the localization issues.
Acquiring a good reputation
If doing a startup overseas gives you a better chance to succeed than your local market, it would be a crime not to use it. Besides the obvious benefits, it can be the right starting point to make your business popular and well-respected. With one successful project in your pocket, it will be much easier to conquer other markets and attract investors’ attention.
You’ve tried to find investors for your business idea but failed. Maybe it’s the high time to change the market and look for them there? It might be that the arguments you present are not convincing enough for your local market. But you can change the situation by changing the market that has more promising perspectives and finding someone to support your apps overseas.
There is a high probability that starting a business overseas will be more cost efficient. You may spend much less on the salaries for your employees, renting an office, registering your company, etc. than you would be staying at home. All you need is to find the best balance between the attractiveness of a market and the cost of doing business there.
There are a lot of reasons for you to promote your apps overseas but there is one thing to remember. Always do your research and don’t hope for the situation to improve with some time without doing anything. You should have a specific plan and set a specific date – the point of no return. If you see that nothing’s working out and there is no sign of the return on investment, it’s time to stop. Not all of the ideas turn out to be successful. The important part is to never give up and keep trying.