The COVID-19 pandemic was a tough time for all, but thankfully, people always find a way to rise above the challenges and continue moving forward. To comply with lockdown measures, companies took full advantage of modern technology to switch to remote work.
Now, as we enjoy the calm after the storm, several business owners continue to implement work-from-home policies – and it is easy to understand why. Working remotely enables companies to save on overheads, such as rent and utilities, insurance, in-office supplies, and more. The flexibility that comes with working from home also helps employees maintain a healthier work-life balance, which increases performance and engagement. Home-based workers are also 35-40% more productive than their office-based counterparts, make fewer errors, and are less likely to be absent. Moreover, unlike in traditional office environments, operating remotely means tapping into global talent. You can easily source talent for your business from anywhere in the world, resulting in you hiring the best of the best in no time at all.
How To Start a Successful Remote Business
More and more businesses are jumping on the remote-first bandwagon to benefit from the perks. If you are also tempted, the first step is to determine how to comply with local rules and regulations. There are online legal services that can help stay on top of tax laws and legislative and regulatory developments in the country where your business is incorporated, as well as in the countries of the other employees. But if you don’t have the budget for this, acquiring a finance software is a handy alternative. It can help manage your business’ funds, avoid hefty fines from erroneous bookkeeping, and digitize documents so you can easily find important files.
As a remote-first company, you’ll save on brick-and-mortar expenses. However, a physical location with a real address is sometimes necessary for meetings, receiving business mail, and more. This is where virtual offices come in, offering the benefits of a tangible office but without an actual space or desk. Of course, a virtual office is only one side of the coin. You also need to use the right tools to protect your company’s digital privacy and help staff members work productively from home.
It's clear that remote work can be lonely at times. The usual office corridor chitchats and coffee breaks with colleagues are cropped from the picture, generating feelings of isolation and stress. Fortunately, there are many best practices and tools to effectively manage a remote team, such as creating a deeper connection with your team members by engaging in small talk or holding regular virtual team meetings. By doing so, both productivity and talent retention may improve as staff will feel supported and have a sense of belonging.
Where To Incorporate Your Company
The world is your oyster when it comes to choosing where to register your remote business. In the U.S. alone, there are 50 states to choose from. Delaware ranks as the best state to incorporate a large online company, while Nevada and Wyoming are proving to be more beneficial for smaller businesses. California is also a strong contender, especially for tech startups looking for funding from Silicon Valley investors.
However, many business owners opt for tax havens like the British Virgin Islands or Cayman Islands. Their little-to-no taxes for non-residents sounds tempting, but in reality, taxes will sometimes need to be paid in the customer’s country. This means offshore structures may not be as advantageous as they first seem. So, another feasible option is registering your remote business in countries like Hungary, Chile, or Ireland, which offer low corporate tax rates that range from 9% to 12.5%.
Whatever choice you make, it’s important to consider how your remote small business will make a profit. Indeed, it takes time to make a name for your business, but there are also online marketing tools that can help to get it noticed. Get the ball rolling by using SEO software, email marketing services, and content creation tools. As the business owner, you will also need to think about how to pay your team because delayed payments may cause frustration and lead to low morale.
Launching a remote-first company is definitely the easier option for any first-time small business owner. There are significantly fewer costs to consider compared with a traditional company. Thanks to advancements in technology, joining the remote work revolution is just a few mouse clicks away, and since it’s possible to incorporate a remote business anywhere in the world, business owners can benefit from low taxes. Although managing a global remote team may be tricky due to different labor laws and work cultures in different countries, there are plenty of tools to facilitate collaboration. A remote business can reach corners of the world that a physical business may not be able to, helping businesses to expand and develop an international footprint without opening offices in numerous locations.