Expanding internationally isn’t just for multinational corporations anymore. Small and medium-sized businesses across America are discovering the competitive advantages of establishing offices beyond US borders. This strategic move offers more than just cost savings, it provides access to specialized talent pools, round-the-clock productivity, and unexpected growth opportunities. Farooq Cheema, president of Alliance Investment Management, has spent 15 years perfecting this approach while building businesses across multiple industries.
The Strategic Value of Going Global
Most business owners make a fundamental mistake when thinking about international expansion. They focus solely on reducing costs rather than building strategic assets. “One of the secrets of growth has been leveraging international offices,” Farooq explains. “Most international investments are not to be considered as cost centers, although they are cost centers, but more as strategic assets.” The benefits extend far beyond simple labor arbitrage. Companies gain access to specialized talent pools, fresh perspectives, and potential new markets. “The value provided to your company can be tremendous, from having really cost-effective talent and creative talent overseas to even finding talent that can join your US team or identify opportunities outside the United States that you may not have thought of otherwise,” says Farooq. Many business owners discover these unexpected advantages only after making the initial investment.
Different regions offer distinct talent advantages, something Farooq learned through years of building international teams. Eastern Europe shines in one particular area: “If you’re a software company, you can leverage talent from Eastern Europe, which provides a lot more top-tier software development,” he notes. This region has become known for its technical education and programming expertise. For customer-facing roles, Latin America offers compelling advantages. “A lot of recent moves have been going on in Latin America for strong sales and customer service,” Farooq points out. “Colombia and other countries have come up to meet the mark because they’re in the same time zone and have great internet and work cultures.” Meanwhile, South Asian countries excel in financial roles, with Farooq noting they’ve leveraged “quite a bit of South Asian talent, not just India, but from Pakistan as well, in the accounting space and the finance space.”
Financial Incentives You Might Be Missing
Beyond talent advantages, many countries actively court foreign businesses with financial incentives. “In some countries in Europe, for example, in Spain, not only will you get talent at about 40% the cost of the United States, but the government will provide subsidies up to a third of your payroll in that country,” Farooq reveals. These subsidies aim to encourage foreign investment and job creation, creating win-win scenarios for expanding companies. Smart business owners research these incentives when selecting expansion locations. The cost differences combined with government support can dramatically improve the return on investment for international operations.
Maintaining company culture across international boundaries requires deliberate effort. “One important part is to have a unified culture across borders,” Farooq emphasizes. “It’s vital that culture permeates across borders. And it does require a little bit more attention to building that border outside the United States.” Unlike domestic teams that absorb culture through daily interactions, international staff need more explicit guidance. “In your office, people will pick it up just by hanging out, talking to each other. But international offices require that to be explicitly stated,” Farooq explains. This might mean bringing key team members from overseas to visit headquarters or sending US-based leaders to international locations.
The Competitive Edge of Time Zones
Perhaps the most overlooked advantage of international offices is the ability to extend productive hours. “International offices can actually set you apart from your competition, not only for cost savings, but also in your business resilience,” Farooq notes. With teams in different time zones, companies effectively operate around the clock. This time advantage creates measurable benefits: “Because of the time zone differences, being able to leverage that time zone allows your company to move faster than it would have if everybody was working a single eight-hour day,” says Farooq. “Your company is working 16-hour days while one country is sleeping, the other country is working on things to get ready for the country that comes back online in a few hours.”
The US government offers surprising support for companies expanding internationally. “The federal government actually can provide a lot of support, including the Export-Import Bank. They’ll guarantee the money that you’re owed from overseas accounts,” Farooq explains. This significantly reduces the risk of international business transactions. Beyond financial guarantees, diplomatic resources stand ready to help. “The Department of Commerce will have offices in the US embassy to make meetings for you with owners and founders of other large companies in the overseas country,” he adds. These connections can accelerate market entry and create valuable partnerships that would be difficult to establish independently. For business owners looking to accelerate growth, international expansion deserves serious consideration. As Farooq puts it, “As an entrepreneur and business owner or business leader, you owe it to yourself to find the best avenues for your business’s growth. Consider this one.”
Connect with Farooq Cheema on LinkedIn to learn more about scaling your business globally.
