How does location impact your business?
As a Swedish entrepreneur living in Cyprus, I know how much impact your location can have on your business. I relocated for the first time at 18-years-old to Malta, and the difference that decision has made to my life since has been phenomenal. You can read how I did this here.
I also wanted to see the world and experiment with being a digital nomad – somebody who lives and works from anywhere in the world – so that’s exactly what I did. As a digital nomad, I got to travel and make incredible memories while earning money instead of burning through it, like a typical tourist. Check out the 20 best digital nomad cities to live in and my top tips here.
I then moved to Cyprus where I currently live and run my business, and haven’t looked back. In Cyprus, I benefit from; low cost of living, beautiful weather and nature, friendly people, and advantageous tax rates – read more about this here.
The pros and cons of relocating for your business
Many people dream of relocating their business to a sunny island or entrepreneurial hotspot, but it’s a huge life decision that needs to be taken seriously. Consider every aspect of your move and think about the pros and cons before you make your decision to avoid any regrets later on.
The pros of relocating your business
- Financial benefits. It’s no secret that some countries offer much more lucrative tax benefits than others. Other costs like office space, salaries, and employee benefits vary widely from place to place too.
- Networking. Moving to a business hotspot can present you with a lot more networking opportunities and the chance to make new business connections and friends.
- Inspiring surroundings. Moving somewhere you’ve always dreamt of can be a great inspiration to carry on the difficult entrepreneurial journey. Whether it’s beautiful beaches, a nicer climate, or ambitious entrepreneurs, surrounding yourself with inspiration can transform your productivity.
The cons of relocating your business
- Leaving behind your friends and family. You may miss your existing network, and let’s face it, there’s no place like home. However, that doesn’t mean you can’t visit frequently or make a new home somewhere else.
- Disruption. Moving can be a great disruption to your personal life and business, and add a lot of extra stress. Businesses that require physical spaces will find this disruption greater, whereas digital businesses tend to be more portable.
- Moving costs. Moving can come with a hefty price tag. This will vary depending on your lifestyle and business but be prepared for costs such as moving vans, flights, and short-term stays.
What to consider when choosing where to run your business
There are many things to consider when deciding where in the world to run your business from, and ultimately this will depend on your unique lifestyle and personality. However, there are some things which you should definitely be considering when choosing somewhere to run your business.
Cost of living and business
Depending on your financial position, and that of your business, you should carefully consider the costs of wherever you plan to move to. Maybe you’re bringing a family with you and have education costs to think about, or maybe you need to hire staff or a warehouse and that is top of your list. Consider the following:
- Cost of accommodation (rent/buying)
- Cost of work premises (warehouse/retail or hospitality building/office space)
- Cost to hire local staff (including employee benefits)
- Living costs (for you and any of your dependents)
- Cost of business (including tax, VAT, accountant, and lawyer fees)
Weather and surroundings
You need to live somewhere you actually love. Everyone works better in different temperatures, so consider this when making your decision.
Outside of work, you also want to live in a place that makes you happy and relaxed and caters to your interests. Are you somebody who loves nature and outdoor activities, or do you prefer city life? Beaches or mountains? Take your pick – the world is your oyster.
Safety and ease of doing business
Some countries are much more suited to running a business than others. Every culture is different, and while some celebrate entrepreneurial activity and welcome ex-pats, others make things a little harder.
Make sure you carefully research the safety and practicalities of running your business in different locations and if possible, speak to others who have already made the move.