Recent data indicates that expanding to France can be a good idea for businesses that are looking to conquer the EU. France has the fifth biggest economy in the world and overall good conditions for growing a successful business. With its huge market and convenient location, this is the perfect point of entering Europe for a foreign company.
Benefits of Doing Business in France in 2019 and Beyond
The number one reason that makes France a good choice for expanding a business to is its steadily growing GDP. Despite the instability that the economies of some EU states exhibit in the last years, France remains steady. The country’s GDP has grown by 1.7% in 2017-2018 and it’s predicted to continue steady growth for the foreseeable 5 years.
The HSBC Commercial Banking Report names France as the leading country in international trade. The ease for foreign businesses to enter and establish themselves in the country is a definite factor in this. That’s also the main reason why choosing this country as one’s next expansion point might be the best for success.
France is in the top 30 countries for the ease of doing business overall. One of the most essential elements in this is the simplicity and versatility of banking options. It’s very easy to send money to France because there are a variety of money transfer services. One can look into reviews and comparisons to find the deals that will work out best for the business. It’s also easy to find good Euro exchange rates through online services. This can help lower the business costs to an extent.
Transferring goods and materials to the country is also easy as it has a highly-developed infrastructure. Apart from the popular tourist areas, industrial property prices are reasonable. Considering the cuts in transportation costs some manufacturers might get due to a prime location in the heart of Europe, starting a minor production here might be a wise choice. However, this move will require extensive calculations.
The French are highly loyal to their national products. Therefore, expanding there and establishing a production line within the country might be the key to succeeding in the chosen market.
Things to Be Careful About When Expanding a Business to France
Despite offering multiple opportunities for ambitious businesses, France can also poser a few challenges. One of the major concerns is the property. Many properties in France are historic monuments and therefore cannot be modified to fit some business needs.
There is also a lot of bureaucratic paperwork to go through for essential adjustments, like connecting to electricity or upgrading the plumbing system. One might be stranded for weeks and months when getting French permits and even connecting to the Internet can take a while.
One should also be aware that despite the simplicity of money transfers, getting credit approval in France is very difficult. In case this is necessary, one should seek to partner with well-established local businesses.
Overall, France can be a good destination for business expansion. The economy is big and growing, which gives one stability that’s hard to find in other parts of the world.