The country of Thailand has long been considered a nation of untapped financial potential. Following a brief surge in business and the financial markets in the 90's, Thailand has been at the center of a political power struggle that has somewhat hindered its progress. However, with stability assured for the foreseeable future, Thailand is in a good position to push forward again. There are many businesses owned and managed by Thai nationals. Additionally, many foreign companies have opened branches in the country or relocated their business interests there. One of the main reasons for this is in relation to operating costs. Thailand is significantly cheaper than many other countries throughout the world in terms of employee salaries, products, equipment and rental prices. Despite this, it is prudent to take measures to further reduce your business costs and there are certainly a number of ways by which to do this.
Clever marketing reduces spending
Perhaps one of the most costly expenses in Thailand is in relation to marketing and advertising. Of course, effective marketing of your products and services is vital to the success of your business. However, there are ways that money can be saved and re-invested into other parts of your company. Firstly, consider marketing in a much more frugal manner. Why not include marketing in external post? Letters, invoices, deliveries and other correspondence are all potential ways of marketing your company for free. When you need to contact potential clients via other means such as email, consider adding a brief marketing segment at the bottom of the email itself. Satisfied customers are great ambassadors for your business. Ensure that your customer service is exceptional at all times. Word of mouth can be just as successful as marketing campaigns.
Use the internet to target customers and improve sales
The internet is an extremely cost-effective way of keeping in touch with current and potential customers. Mailing lists are vital in order to keep everyone up-to-date with the latest company news and promotions. Remove the need for expensive delivery costs by utilizing the internet. Most successful businesses also require online stores. However, setting up an online store can be expensive and time-consuming. Why not consider utilizing one of the many business to business websites that deal pre-dominantly with online trade? Many of these sites also offer discussion boards which is a fantastic way to do a bit of networking.
Assessing the costs of location and equipment
The location of your business is an extremely important aspect. However, with many business premises in major cities like Bangkok requiring excessive rental premiums, it may be wise to look elsewhere. If your business model allows it, why not consider moving to the outskirts of major cities. This is particularly relevant for manufacturing businesses that do not require high levels of customer interaction. For businesses that incorporate offices, recycled printer cartridges can be a great way to save money. In addition to this there are a number of useful programs that can be downloaded free of charge from the internet. This reduces the necessity to purchase all of your IT software.
Reduce insurance costs
Insurance premiums can be relatively high for businesses in Thailand. In order to reduce these costs it is wise to contact a number of different insurance companies to find the best quote. Many companies will offer substantial reductions if the total payment is made in a lump sum. In order to save on business interruption insurance caused by issues such as flooding, why not form a partnership with a competitor? Simply make an agreement in relation to sharing premises should an incident occur.
Considering employee costs
Whilst the cost of employing people in Thailand is a lot lower than Western countries, it is still advisable to identify ways to reduce it. One solution is to hire temporary staff from an agency. This has two major advantages. Firstly, you will save money on full-time employee benefits. The agency will be responsible for meeting these requirements. Secondly, you only need to employ temporary staff when the need arises. For example, during particularly busy periods. This will significantly reduce your running costs.
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