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Five Questions to Ask Before Expanding Your Business in Thailand

May 11, 2015 | Sharon Cheong

Thailand has shown a comprehensive economic recovery over the last 15 years and today is considered a major financial center. Businesses such as tourism are strong and that equates to good overall sales in the markets, shopping centers and restaurants. The buying power of the Baht is stronger than ever and this has caused many investors and entrepreneurs to take a hard look at setting up an offshore office here. 

Several large pharmaceutical companies have moved into the area and are now doing medical research and development and this has provided good jobs to the locals. Oil and gas developers are also working in the area, as well as big names in real estate developing. When big brand names go to the expense of setting up an offshore office or factory in a region, it usually signals that the country has a stable economy. This can be good news for business owners in other countries who are ready to expand. Before laying out thousands of dollars though, it's important to do your own research to ensure that you're ready for expansion and all it entails. 

  1. Is your company well-established in your home country? You'll need a good steady income and sufficient business so that you don't have money problems at home. Setting up an offshore office in Thailand may be stressful, so make sure there are no problems back home before moving forward.
     
  2. Do you have reliable people who can run the business in Thailand? You can hire locals for labor, but it's often best to assign the job of manager to someone you know and trust. Make sure this person is trustworthy and a good communicator.
     
  3. Do you have the cash on hand for a big move? Though it may be possible to get a loan for your expansion, it's best if you have the money without borrowing. This should be money that you can afford to lose. 
  4. Will you be available to travel back and forth overseas at least a few times per year? This can be hard on your family so have a talk with them to make sure that this won't cause any problems with a spouse and children. For instance, if you have small children, special needs children or aging parents with health problems, then this might be the wrong time for your expansion. 
  5. Do you have any connections in Thailand or knowledge of how business is done there? You can benefit from knowing a lot about running a business in Thailand. Of course, you can hire local accountants and financial advisors to help out with this, but try to learn as much as possible. The Thai economy and business climate is much different than that of America, the UK and other nations. 

Tips for Success 

If you're still not sure, then hire consultants to help you do some research into your business sector. Try to make sure that there are sufficient profits to sustain a business like yours. Try to formulate a good exit strategy as well, so that if things don't go as planned, you'll be able to sell your assets and recoup some of your losses. 

Business Address 

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