How do you manage to find the right location for your business in Europe? Before this article actually tries to find an answer to this question we would like you to take a step back and ask yourself: How would you identify the many diversified success factors that are relevant to your business? How many of these relevant success factors can you actually think of when you give yourself a minute? How would you prioritise the key drivers that are affecting your business in a positive way, allowing you to prepare and continuously develop your operations within and across the European borders?
Up to now, most of the CEOs we have talked to would have identified important success factors as being related to labour costs, grants & incentives, tax issues and environmental regulation. We have seen in the past and still see today that the complete eco-system, including governance and regulation of an individual European economy, or of the EU itself, can certainly influence whether your business model will be successful or not. In addition we have seen ventures and further growth at risk from European downturn when risk is not managed in the right way.
When local markets are struggling, causing high unemployment, rising commodity prices as well as political turmoil, how can you manage to find the right location for your business? And what does this task mean for CEOs? It means they have to consider financial and operational risks as they attempt to expand their business into a new market. When it comes to balancing this risk, we believe that being prepared for uncertainty is all about focusing on the consequences of having your business affected by the multiple characteristics of a turbulent economy. Such an approach can bring risk discussions to a much more strategic level.
Today, globalization is an ever-present influence that forces companies to change their business model and adjust their value chain to regional markets in order to stay competitive alongside existing European companies. In the light of this, sourcing and retaining talent has never been more important, because attracting and employing a talented workforce may be the only real success factor which differentiates a business from the many other businesses in the same industry approaching the same markets and customers.
So, now you have identified your success factors and sourcing talent might be one of them? And you are convinced that the recruitment and management of human capital will positively affect your business operations within and across global borders? Now think about your long-term business objectives. Where do you see your business in 5 years? What needs to be done and what are you actually able to do today that would bring your business a bit closer to your leading business idea? You would have to carefully plan most of the steps in advance. Settling a company in an unknown country cannot be done without evaluating the local conditions: Hiring local staff cannot be done unless your company is settled in. Finally, generating revenue cannot be done without having the right people supporting your business model.
The bottom line now tells us that a well-defined business strategy will be your vehicle to leverage the potential that you have identified and to orchestrate all of the possibilities that you have assessed. It will also represent a tool that will provide you with your personal roadmap about how to take the right steps and in the right way. Having the right strategy implemented and consciously assessing your risk at the same time will support you in identifying the right business location to move your business forward as you go, wherever you go.