Are you in the right mindset for going overseas? Some thins to think about today.
Thank you everybody for tuning from Global from Asia TV, my name is Michael Michelini and I have been doing audio podcast for many years now almost over hundred episodes and I just decided take a leap videos, I hope you enjoy and I always listen to feedback, positive, constructive and sometimes negative feedback so thank you again for leaving me feedback in advance. So today’s show we’re going to be talking about what you should be thinking about when you open a company, which country, which location you should be thinking about, so I have a list of 5 points but basically I just want to say before I get started, don’t let that freeze you, you can do a lot in your own business before you actually have a formal company set up so I don’t have excuse to talk a lot of people out there, not yet started doing their business because they have not yet incorporated, there’s tons of research and talking to potential customers or even try some small business before you get started, so don’t let that freeze you from moving forward. So let’s get started with these points.
Topics Covered in this Episode
- Where is your target customer?
Where is your customers base, where are you are trying to sell to, what’s your target market? This is pretty a critical one depending on which market that is, if you are selling in America, so you might want to set-up in US, there’s tons of merchant account options, they can pay by check, money order, there’s also the easiest direct deposit to your US bank account. So I know a lot of people want to try think about how to setup a company in America but maybe it could be a good reason and of course there are a lot merchant accounts around the world that help you accept visa master card, American express, discover, so maybe do that as well in any country, but depending on who are your target market is and how they are going to pay you, is it by bank transfer, credit card, money order check, direct deposit, so keep these things on mind before setting up your company, how your customers going to pay you, make it as easy as possible to received money.
- Where to hire your team
Where are you going to be hiring your team? I know there are a lot of online businesses nowadays, myself included that hire a lot of people online, remotely contractors, freelancers, Odesk which is now Upwork or other freelancer websites, that you might actually have to hire somebody full time, or maybe they request you to hire a good people or good team in a specific country, so maybe think about where are you planning to have your operations. Are you going to have a fix office and hiring full time staff and that sounds scary? Or old-fashioned but you might want to think about that where you started, where are you setting up your company or where are you hiring your people. So if you set-up a company in US and you have want to have a staff in Philippines full-time legally, you might actually need a company there and hire them directly. Of course all these points you can work with partners companies or outsourcing companies to do it but this is one point you keep in mind, Are you going hire full-time staff?
- Where to Set-Up Your Business
Do you need a visa? Are you in your home country or are you going to be travelling and permanently relocating. For me I lived in China, I have a Chinese visa through my company in China I set up years ago. And one of the biggest perks is I get to hire myself and I have an investment status employment visa. So I get to stay in China for one full year without any requirements to live if I want to stay here full time. So that’s another reason why set-up a company in a certain country is if you are planning to be there for a long time and you are a foreigners to that country or you are visitor, you could keep jumping back and forth on business visas, or tourist visas, maybe you get married and have a spouse visa which some people I know they do. So that’s another point you want to think about?
- Where is The Favorable Place to Set Up Business for Your Investors
May not be not be as important as those few course but I think it’s worth mentioning. I know a lot companies want raise money from investors and I’ve been through this process, myself as well. Investors actually do care where your company is based, they want to be near where they are, they want to be able to know the jurisdiction, the law, the legal things, the banking, so I don’t want this to be your first reason to set up a company but I want this in your thought process, Where to set up the company for fund raising, so investors will be able to know its near them and to be able to deposit money there directly. I’ve been through some investor in Europe to set up a company and then we sent money to China to fund raise to actually use the operations but we fund raise in Europe.
- Where are your Suppliers Base?
This is the fifth and final point is where are your suppliers’ base? Are you going to have a lot of small suppliers in just in time payments and we do international business let’s assume China? So maybe you want to have a company where you can quickly pay them same day through local Chinese bank transfer or from Hongkong, so they can quickly pay Chinese factories with small amount and not worry these large bank transfer fees like US and Europe and the time delay. You might also want to have a small warehouse and make some small payments to people, so having Chinese companies with Chinese bank might be the best way for doing all of those.
People / Companies / Resources Mentioned in this Episode
- None this week
Episode Length 6:35
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