Thailand has bounced back from the economic crisis, it experienced in the late 1990's. The economic crisis led to mass unemployment and the collapse of the buying power of Baht which are enough reasons for the Thais to avoid the financial blunders they committed in the past.
Thailand (Bangkok) is now considered as one of the shopping capitals in the world. Tourism (medical included) continues to bloom and prosper that numerous international and local enterprises are expanding their businesses in Thailand. Business owners are attracted by the incentives and possible tariff-free development offered by the government. Thailand is truly an emerging economic prospect.
Is Your Business Ready for Expansion?
Whether you are a “farang” or a local set on expanding your business in Thailand, the very first question you should consider is the readiness of your business for expansion. It is a fact that you went through several preparation stages, including feasibility studies, before opening your business and this is also true when expanding your business.
Has your business achieved a steady and stable growth? If your sale is not steady, then it is more practical to concentrate on the business first and not in its expansion. Financing is also an issue. It is essential that you have a separate fund for the expansion and not use your operations or working capital.
Do you have a business plan? Knowing your competitors is not enough. You should be able to present the essentials of your business to prospective investors. It entails answering to the goals and objectives of your company, ways and means of achieving those goals, and a time frame on when you expect to meet your goals and objectives.
Know your competitors, including the strength and weakness of what they are selling. Will you be able to offer a competitive price for a more superior product or service?
Do a market research. Assess the market. Who are your targeted customers and your potential reach? Are you offering a new product or service? Will your marketing strategy offers guaranteed return-customers?
If after careful consideration you deduce that it is feasible to expand your business, and then go ahead. There are numerous ways of expanding your business in Thailand. Not one method works for all as this depends on the type of business you have. What are some practical means to expand your company?
Opening a Company Store: Most local entrepreneurs consider opening and running a company store, which is tantamount to the actual establishment of another outlet in terms of capital and time. This option is akin to opening a new business ventures as it entails a new market research, feasibility study and business plan. You should also carefully look into the financial capability of your business in handling an additional outlet. Another consideration is the distance of the new company store or outlet from the main office or home base.
Consider a Related Product or Service: Observe the current market. What products and services are in demand? Is that market untapped and has very few retailers or wholesalers? Is there any product or service related to your current offering that is not in the market? If you have a scuba diving school, you could probably sell scuba diving gears. If your main business is a boutique hotel, offering tours to the hotel guests will bring in added income.
Online Store: Both brick and mortar international and local stores have gone online in selling their products. So far, these establishments are faring well with their online stores as they can offer their services and products all over the world on a 24/7 basis. Another means of establishing your business's online profile around the world is through social networking sites, as most of these sites allow the exchange of goods.
Franchising: The term applies to opening more outlets or branches by selling the franchise rights to independent individuals willing to invest in your type of business. The investor basically “buys” the name of your business and its operating system. You, as the franchisor, require a franchise fee for the rights to start and operate a business under your brand, inclusive of staff training in operating the business. Generally, an ongoing royalty fee (from 4-10% of total sales) is included to cover for long-term training and support in marketing, advertising, human resources and financial consulting and more.
If your business entails the retail/wholesale of items that are in demand in other parts of the world, then venturing into the export industry is highly advisable. Exporting is a great way to grow and expand your business by getting into new overseas markets. You will grow your network and doubtless expose you to novel methods and ideas that will benefit your business.
If you think that you are ready to expand your business in Thailand, act now and build your business plan and marketing strategy. Having troubles? Servcorp can help you iron out any crease in your business expansion plan in Thailand.