PHASE 2 - ESTABLISH
Having Evaluated the region, the next phase of engagement is to Establish a way of doing business, be that to enter a distribution agreement, a supply arrangement or to operate a business. The first priority is to create a Structure to undertake activities in the region. The second priority, if creating or taking over a business, is to Set Up a presence to facilitate trading. Thereafter, Staff and Suppliers become considerations.
Please Contact Us to discuss how we can assist you on the ground through this phase.
STRUCTURE
Prior to initiating revenue-generating transactions in new markets, creating a structure to ensure dealings are commercially sound and legal is highly advisable. Establishing a supply line for purchasing from, or a distribution arrangement for selling into, a new market typically requires some level of understanding of government rules and legislation and possibly of grants, permits and licences. Engagement with a local lawyer to create or review agreements and/or an accountant to understand local tax structures, is generally advisable.
If establishing a physical business structure in the local market, additional considerations include the formation of a company, which will also require engaging a resident non-executive director, creating a registered office and deciding on where to establish physical premises from which to trade.
This is a period when a business significantly benefits from having local advisory / professional services to prepare, review or support the head office team charged with opening new markets. Mistakes at this time, such as establishing the wrong corporate structure, creating agreements that are unenforceable or choosing premises in sub-optimal locations, especially in cities, can be expensive and hard to unwind at a later time or may result in a business failing to reach its potential in the new market.
Our experience in these markets can help and guide you to find the right advisers to steer you through this critical phase. Please Contact Us to talk about your situation and to find out whether we would be a good fit to help you in your journey.
SET-UP
Where a business is being created for the first time, because a physical presence is required, there are many considerations to take into account. Not least is the location of premises, particularly in cities. We can help advise on where to locate a business, taking into account all the factors most relevant to our client. Travel times for key staff and for delivery of products are usually influential.
Thereafter leases, services, telecoms, signage, security and other services need to be selected, contracted and in place before trading can commence. We can help our clients choose the most appropriate, best-value services, and help them make the arrangements necessary to have these ready for launch.
When a new business starts with only a few staff we advocate using serviced offices, like we do, to get established quickly and easily. This provides flexibility to grow, re-locate and work from multiple locations. In some cities we can operate like an incubator model, but at lower cost.
STAFF
One of the trickiest issues when setting up overseas is to get staffing right. Invariably laws, regulations, employment practices and union practices are different from home markets. Remuneration structures, including packaging, typically vary by market, industry and the size of the enterprise. Getting local guidance is critical. That’s where we can really help a client.
A key decision is often whether to hire, retain or transfer in key personnel. If acquiring an existing business, an executive appraisal helps a client get to know their staff and decide whether there is a good fit, or whether to recruit. We have experts on executive appraisal and recruitment. Transferring staff from head office requires the right visas, which can take time and I can be tricky. We can help there too. Interim staff can fill gaps to facilitate quick start-ups or to plug gaps that arise.
Recruiting and managing staff can be time consuming and requires a knowledge of local employment laws and practices. We have HR specialists who can undertake these roles on a contract basis, keeping costs down.
Finally, clients need to be aware of the business and emotional difficulties that can arise for expatriates living and working in a foreign land. Mentoring & counselling services can be useful sounding boards to help staff adjust to their new environment.
SUPPLIERS
Having set up an office and recruited staff, the local business is ready to go but it will also need to engage a range of suppliers covering all aspects of its business. If taking over an existing business, local management will have existing contacts. If a client has concerns about any suppliers, we can investigate, evaluate or audit their services as required. And if a new business is being created we can assist a client find suppliers meeting their criteria.