It’s safe to say that growing your business takes more than time and passion; it also requires a sizeable amount of capital to get it going. This can get pretty expensive, especially if you’re planning to move into a new country. Thankfully, advances in technology and the Internet have made it easier than ever to save a few bucks here or there.
Right now a strategic approach is needed rather than a blanket cutting of costs across your overseas business. Although challenges like the global pandemic can have immediate and worrying impacts on your company finances a methodical approach to reviewing costs is crucial to all business survival.
We all know that hiring and training employees can rack up the bill significantly. With a big number of them, these costs can skyrocket in no time, especially considering that in some countries providing benefits such as health insurance is required by law; which will certainly add up in your bottom line.
In the global market, the benefits of outsourcing these employer responsibilities such as global payroll and legislative benefits are over-arching. Hiring freelancers or even companies for a specific project you need to get done is fast and easy. Whether you need help developing your website or maybe your company is in need of tech support, outsourcing is the best way to get staff without having to train them or even pay for office space so that you can save a ton of money.
Maintaining a local entity brings with it expenses and fixed business costs, depending on the entity type and country. If the revenue brought in is not covering entity costs, or the pressure on your other entities to fund this overseas company is becoming too great, you may be considering closure.
Surprisingly, this does not have to mean terminating local staff. Where possible and compliant, local staff could be moved to an Employer of Record solution. The costs associated with EOR services are often lower than those of maintaining a local entity and associated registrations. You can still manage the day-to-day operations of the worker while TopSource handles their local employment, payroll and compliance.
Nowadays, more and more businesses are enabling remote work for their employees, not having to rent an office space is a huge money saver and it usually account for happier employees too.
Temporary personnel resources can reinvigorate your local business at lower cost and commitment than taking on permanent staff members, provided it is compliant to do so in that location. These solutions can optimise your local expenditure by fulfilling your immediate needs, covering resource gaps and boosting local revenue potential. However, compliance in this area should not be ignored – misclassifying workers is heavily penalised by the authorities. TopSource can offer advice on your temporary staffing options – for example, whether there is risk of disguised employment if engaging a contract or casual worker in a temporary or freelance role that is locally defined as employment.
For fixed term contract staff, Mauve Group can provide employment solutions to solve your interim business needs in some circumstances. Independent contractors or freelancers can also be hired to carry out short- and medium- term projects for you locally, such as software developers to build a new online customer platform. To avoid compliance risks such as disguised employment and associated penalties, Independent Contractor Compliance reviews can be useful. Services under this umbrella check registrations and benchmark your freelancers against local governmental definitions.
Going paperless will help your company reduce costs at the same time as it makes it more environmentally-friendly. An average office worker uses up to 10,000 sheets of paper a year and that can certainly add up to some serious spending.
A great way to combat that and help save the trees is to start going digital. Share documents through cloud storage platforms such as Dropbox, send invoices and payments through sites like Paypal, etc. This also can help with communication when managing employees overseas and helps keep more substantial and easily accessible records.
Some companies, when they’re strapped for cash, will offer their goods and services in exchange for a good/service they’re in need of. Bartering and trading are well-known ways of conducting business that have been around for years and will help your business reduce costs. It also comes in handy as a way to get in touch with local companies.
If you’re looking to go global, you should always check into all the ways that you can cut costs to make Remember, whenever you’re moving your business to a new country, you’ll need to research and become aware of regulations, global payroll legislation, and legal requirements involved. Often, the most practical advice comes from others who’ve been down that path before you, and are most familiar with the country’s business customs and practices.
How TopSource can support you
TopSource has set up a fast-track payroll service to make transitioning to using us as your providers easy, guaranteeing a simple on boarding experience to support compliance in as little as four weeks.
Simply contact us to find out more.
If you’re a TopSource customer, we can provide you with a separate payroll for your global payroll needs.
You can email firstname.lastname@example.org or call 0203 6915303.