6 experiences to limit risks when starting a business abroad

To successfully start a business abroad, a company needs to understand the business environment and develop products that solve market problems.

Learn about the environment in which the business is established

Learn about the business environment that helps startups generate ideas and products that solve market problems. The business environment of offshore companies includes all relationships and economic, political, and social influences on business activities.

Understanding the legal procedures at the time of incorporation will help companies reduce the risks of the incorporation process, taxes, and legal documents.

At the same time, understanding the economic potential of doing business abroad helps businesses maximize their development advantages. Today, many businesses choose Hong Kong as the ideal destination for establishing foreign businesses.
Making a plan to learn about the business environment is considered the “key” to a successful start-up business. Source: Internet.

In 2021, Hong Kong was voted the freest economy in the world, according to the Fraser Institute Canada ranking in the “Annual Report on World Economic Freedom”.

The advantages of the free trade system, investment, and tax system… make Hong Kong an attractive destination for many businesses.

Furthermore, cultural understanding also helps companies develop tailored marketing strategies for local customers. Many companies have “difficulty” entering the Asian market due to cultural differences.

Specifically, Yellow Pages once ran a campaign on the subway in Toronto. The word “Bi Bim Bap” in Korean means “mixed rice” but with an illustration of noodles. This makes many Koreans mistaken and thinks that the brand is deceiving consumers.

Localization of business ideas and vision

To succeed in the international market, companies must understand the market and consumer behavior, offer products and develop appropriate marketing strategies.

One of the ways many companies enter foreign markets is to localize their commercial ideas and visions.

By doing business across borders, companies overcome cultural differences by recruiting employees from the host country.

In addition, when doing business in foreign countries, some fast food brands choose to “localize” their products by adding to the menu items that are suitable for the tastes of that country’s customers.

Determine the budget

Budgeting is an important activity for any business, especially those looking to expand beyond their borders. Setting a budget allows companies to make the most of resources efficiently.

Especially by determining the available budget, companies have the most overview of the company situation and performance, which helps the company to develop in the right direction.

Besides managing sources of revenue and expenses, budgeting is also used as a measure of business performance. Therefore, managers measure actual results against expectations by setting budgets.

To determine operating budgets, companies must estimate revenues, calculate expected sources of capital and costs, and forecast possible events.

Identifying logistics-related issues helps the company to boost production. Source: Internet

Logistic issues

Logistics is the backbone of the economy and is the driving force behind many industries, including agriculture, manufacturing, and services. Understanding logistics issues such as transport regulations, taxes, and customs duties… in the start-up country helps the company optimize costs and limit disruptions in the supply chain.

When deciding to start a business abroad, finding out information about logistics is also an activity that many companies focus on. Countries with favorable sea and air routes are often attractive destinations for companies to take advantage of the global supply chain to increase production.

Have an international bank account

When doing business abroad, opening an international bank account is the best way for businesses to avoid excessive foreign transaction fees and facilitate business transactions.

According to ICOS, which specializes in providing support services for opening bank accounts for businesses in many countries, businesses can choose to open an account with a bank they trust, and love, or choose a bank that has an international branch network and e-banking services according to their needs.

Regarding the procedure for opening an account, banks often have different requirements depending on the regulations of each bank in each country. Normally, banks require the company to provide the following documents: A copy of the certificate of shareholders and directors (beneficial owner), passport, along with proof of residence not older than 3 months; Company documents for opening a bank account (business registration certificate, business registration certificate, terms of association).

Find business service consulting units

The process of registering a company, opening a bank, or performing transactions is quite complicated for some new companies because there are many procedures and documents.

Therefore, companies can search for organizations, and companies providing business services abroad, or contact a lawyer to save time and effort.

Accordingly, some corporate service support units can advise on methods of company selection, establishment and maintenance, expansion issues, market penetration, corporate structure, sanctions on taxes, policies, ownership of foreign assets, and support for the implementation of e-commerce…

These units will provide the necessary experience to solve a wide range of business problems and advise solutions to improve productivity, management efficiency, and cost optimization.

In particular, the consulting service company will provide a third-party perspective on outstanding issues during the establishment and operation of the business, so it is often more honest and objective.

This can also be a reference channel for heads of businesses to improve the company’s business operations.

To choose a reputable consulting unit or lawyer in a foreign country, businesses need to pay attention to verifying their identity and capacity profile. When dealing with individuals, it is necessary to perform KYC (Know your customer) procedures.

When deciding to choose a consulting partner as a business, it is necessary to confirm the types of licenses and pay attention to the history of deals that the consulting company has undertaken.

Visit the website HERE for more news!

Follow ICOS to see more service packages!

Leave a Reply

Your email address will not be published. Required fields are marked *