Every entrepreneur whose business is doing well has aspirations of making it big, not only in profit but in establishing a "global footprint" as well. They know that they cannot be content with where they are or else face the consequence of eventual liquidation or be swallowed by competition in their market.
Indeed, the country known as the "Pearl of the Orient" is an enticing site to expand one's business, but as with any new venture, the overseas expansion process does take time and requires careful planning.
Here are 8 important things to do before expanding your US startup business to the Philippines:
- Know the Legal Requirements
Keep in mind that tax codes and business regulations vary from country to country. That's why the company or its counsel must research tax laws, customs laws, import restrictions, corporate organization, and liability laws. Domestic legislation needs to be examined as well for issues arising under labor law, immigration law, customs law, tax law, agency law, and other producer/distributor liability provisions.
- Check the Language Barrier
Aside from the ability to understand and speak in English, check the country's standards for humor, accepted puns or jargon, or even subtle gestures as they may not be the same as your domestic country's norms or idioms. Adjustments may need to be done accordingly.
The Philippines is the third largest English-speaking country, behind the US and UK, which means a next to none language barrier frustration. Plus, Filipinos are in tune with American culture. These are the reasons why the Philippines is the number one country to outsource customer support.
- Develop a Business Structure
- Perform Due Diligence
Before you expand your business to another country, it is critical to understand what the full impact on your business will be. Will your product sell in the local market? Is there a demand that is not satisfied by a local company? More importantly, perform a SWOT analysis against the competition. It will immensely help your business assess on what it can and can't do, as well as its potential opportunities and threats.
- Consult a Professional
Living in the digital age, it's easy to find everything you need to learn about running a successful business online. Though this may be true, management strategies are not one-size fits all. What worked for someone else’s business may not work for you, so it's highly recommended that you tailor-fit your tactics. With an experienced professional onboard, you can avoid unnecessary mistakes. He/she can give simple and straightforward advice before you can ever take a step in the wrong direction.
- Have a Physical Office
- Hire the Right People
Hiring your new team is one of the most important things you will do in setting up your business. Be sure to hire only individuals who actually fit the job description you've created. But how do you find and match the right people to the right jobs? By including, in your comprehensive people strategy, a well-structured recruiting and selection program. Or better yet, by seeking the service of placement companies. They will not only save you time and money but ensure you are getting qualified and talented people to assist you in running your new locations.
- Prepare Your Final Budget
Results from the above steps should provide sufficient data for stakeholders of the foreign company to develop a final budget that is aggressive yet attainable, and one that will be owned by your local team.
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