When the economy is strong and a business is doing all the right things, expansion seems like a natural progression and thanks to the Internet, doing business is no longer confined to geographic locations. When looking at business expansion, it is either domestic or international development a company wishes to pursue and either way, there needs to be an infrastructure in place.
Here are a few business development tips from the experts.
- Funding – Any expansion will involve capital investment; setting up a new office is not going to be cheap and if major equipment is needed or additional warehouse space, it is time to invest substantially to provide a solid infrastructure for the business to enjoy sustained growth. If your business has been developing well over the past couple of years, you can approach a commercial lender and let them examine your accounts, which should lead to a loan proposal. Crunch the numbers to see how much a project is going to cost and calculate a repayment schedule that doesn’t impact the business; any expansion should never come at the cost of impacting the business in any way.
- Foreign markets – If you are planning company formation in Hong Kong, for example, you would be wise to make an association with a local law firm, as they can advise you on the best route and process the application on your behalf. The first step would be to carry out some market research; set up a non-trading entity with an office and a few local employees and you can carry out your research. As soon as you are ready, switch to a trading entity and you can implement your business plan. Here are a few tips on setting up a successful business.
- Cloud data storage – Whatever your line of business, storing your data on the cloud has many advantages; giving you access from any location using any digital device and with real-time updating and password protection, your organization can run efficiently. All branch offices can access the central database and 24/7 cyber-security is provided by the network administrator.
- Outsourcing – Making good use of third-party providers frees up your resources and is cheaper than in-house, not to mention that investment is minimal with outsourcing, keeping staff numbers down to a bare minimum. This is even more important when expanding into foreign markets, where you have zero knowledge of local laws and customs; a local law firm would be able to provide you with accounting & bookkeeping services using remotely located office staff.
- Business development plan – Much like setting up a company, developing it requires a degree of planning, hence the need for a business development plan, which would cover every aspect; funding, asset acquisition, HR requirements and an organization flowchart that shows who is doing what.
If you happen to have your sights on Hong Kong for your business expansion, there are online law firms that can assist you with business registration, while providing essential services and advice.