During this brief series of articles I have looked at the possibilities of expanding your business into the Far East and some of the basic aspects of transition you will need to deal with.
There are exciting opportunities ahead if you start looking at the possibilities. However, you can be quickly daunted by these and the unexplained complications which you will face. Your target market countries will vary with the type of business you are concerned with. Some jurisdictions are more difficult to penetrate as the regulations are more stringent for foreign enterprises.
Marketing studies and subsequent marketing activities are important. But before you dive in checking the regulations for excluded foreign businesses needs to be undertaken. Many countries are very protective of their own legacies and specialisations.
You will always need to plan the corporate strategy and structure your business correctly. A representative office, a branch or a local subsidiary are the obvious choices. Usually the use of a local partner will be required and finding the right one is key to your success.
Geographical and taxation planning are also essential to optimise your organisation and lighten all the business burdens which will lie ahead. Maybe you plan to operate in more than one country. If this is the case you may need a local partner and different type of corporate structure in each jurisdiction.
Some organizations sell products which may be created here in the UK and will be exported to Asia. In many instances like this the best model is to structure a subsidiary in one chosen headquarter country and make that company a master distributor. It can then distribute product to other countries in the region which may all be third party distributors or other subsidiaries of your own regional headquarters.
Other businesses may intend to create products in the Far East for export to the UK and maybe even Europe or the USA. In these circumstances there are countries which clearly stand out as advantageous over others depending on the type of products which will be created.
Culture and language are other considerations to make but these will not usually be key to making a decision on where to base operations. However, they are very important aspects of doing business. Getting things right will create significant advantages whilst misunderstanding, bad planning and ignoring these important things could be catastrophic. A humble attitude and approach will always be substantially advantageous over an arrogant or aloof attitude.
Juggling all these aspects of business expansion can be overwhelming and sometimes creates the hurdle which deters business owners from taking the plunge. This is where I can step in and assist you to overcome all the difficult aspects of your business expansion. Contact me for a chat. It all starts with a conversation.
If you would like an exploratory chat about this, please contact me. Andrew Wood at Kaywood Ltd.
Email: firstname.lastname@example.org Tel: 0779 569 2645. Website: www.kaywood.co.uk