Anyone can start a business in another country even if they have no money. Business success abroad is based on several factors. If you want to start a business abroad, you will need to identify opportunities, providing value, and leverage local conditions. Certainly, you will need to do a lot of research to compare opportunities, value propositions, and local conditions that are ideal for you. Based on my 8+ years of expat experience, I offer the following considerations if you want to start a business abroad with no money.
1. Look for countries that welcome new businesses
The difficulty of starting a business varies widely between countries. In some countries, it can take months and significant costs, while the process may only take a few weeks and require very little capital in other countries. So, it is important to research countries with simple regulations and lower barriers to entry.
First, you should compare countries before selecting the one for starting a business. Instead of starting with a business idea, you should identify countries that has cheap business costs, low cost of living, minimal regulations, and underserved markets.
Additionally, many countries have a formal and informal economy. Some businesses work in one of the economies, while other businesses work in both. A formal economy expects businesses to register and pay taxes to the government. An informal economy does not have all the same expectations of a formal economy. If you want to work in the informal economy, you need to do your due diligence regarding the tolerance of law enforcement officials in that local area. I am not suggesting that you do something illegal.
There are expat entrepreneurs who sell food, beverage, and art products in local plazas in other countries. Often, those foreigners do not have their businesses registered with the government. Yet, they have operated their business in the informal economy for years without any government problems. For some businesses, it is wise to have business insurance because the risk of litigation is higher. Obviously, you will need to have a registered business to buy insurance. So, every type of business will not work in the informal economy.
2. Focus on opportunity rather than money
Instead of worrying about funding, you should focus on finding real problems that need solutions. Many opportunities exist because certain products or services are missing, local businesses operate inefficiently, and/or foreign knowledge or skills can create value.
By noticing these problems, an entrepreneur can build something valuable without needing their own startup funds. Online research is helpful to an extent, but I believe a better way is to be there to observe the business market. If you spend a few days to walk around the malls or shopping plazas, you will start to notice things. Your observations can answer some or all of the following questions.
What are rare products or services that people want?
What services exist that are poorly delivered to the public?
What business processes are inefficient or outdated?
What current opportunities can be improved with a foreign skillset?
3. Use skills, partnerships, and networking
Some people have very little money or no money. That is not a problem if you leverage your personal skills and relationships. Networking and building trust in the community are very important when you do not have money.
For example, you can partner with local people who understand the market. Local partners have cultural knowledge, existing networks, language fluency, and access to customers. You can use your marketing and/or technical expertise to improve an existing business. You can also improve it by using your international connections to develop a strategy that will broaden the customer base.
Alternatively, you can be a service provider by offering a service that requires no startup costs. Some new service providers initially use Facebook or LinkedIn as their online site until they can buy a domain name and web hosting.
Perhaps, you may think that you do not have skills that local businesses need. If so, you need to obtain more skills. Nowadays, you can do that for free via Coursera because they always offer free courses on various subjects.
4. Start small and scale gradually
The best way to start a business abroad is to offer a service because it requires no startup costs and little or no hardware or software. You can begin with a Facebook or LinkedIn page as your online site to generate revenue and reinvest the profits to buy a domain name and web hosting. This approach reduces your risk and allows the business to grow organically.
For example, you can be an email marketing manager for restaurants and cafes. You would build and grow relationships with new and existing customers through email subscriptions. Other examples could be consulting services and social media management. These types of businesses rely more on knowledge and relationships than funding.
In this video, I speak to you from Mexico about how to start a business abroad with no money by sharing a basic example.