What are some benefits of tech startups going international quickly? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Josh Kleyman, Trade Commissioner & Coordinator at Canadian Technology Accelerator, on Quora:
There are two goals for every business: increase revenue and decrease costs. You can leverage the international market to do both.
The most obvious advantage of expanding internationally is to create a new revenue stream. Because of lower travel costs and easier communications, there’s a much lower barrier to entry for startups who want to expand internationally. Based in Toronto and want to sell to someone in New York? No problem, hop on a call or Google Hangout. Need to sign the contract in person? Get on a plane and be in their office by 9:30am.
A lot of the value in operating internationally actually comes from improved technology and cost savings. Not as sexy, but a dollar saved is a dollar earned! Any technology company knows how difficult it is to find good developers, especially in high-demand niches like artificial intelligence and machine learning. On Indeed alone there are over 12,000 job postings in New York City looking for software engineers! Not to mention that the average salary is for a mid-level developer is over $100,000 annually.
Expanding internationally gives you an opportunity to solve this problem. Canada is pumping out highly-trained engineers at a cost that is 15% cheaper than the US. So not only can you actually find workers, but you don’t have to pay them as much! These workers come from diverse backgrounds and bring unique knowledge to companies.
This is also made more attractive by all the tax credits, funding initiatives, and incentives that are being provided internationally. We’re seeing a growing number of companies set up their entire back office in a different country, leaving only their headquarters and sales team in the US.
Going international might not be just an option anymore, it’s a necessity.
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