ASEAN BUSINESS - PLAN PREPARATION FOR STARTUP OR EXPANSION
Deciding to set up an ASEAN business or to decide on a growth strategy is the most easiest part. But how to find the right business opportunities?
That is easier said than done. Do you need a local management consulting firm, is there a need for additional capital, knowledge and capabilities?
First of all, if you are not sufficiently familiar with the local market, legal regulations, tax and financial conditions and the ASEAN business ethics, it is advisable to hire expert support. An experienced management consulting firm, as Consultdustry is, will help you achieve your goals, will avoid common pitfalls and thus will undoubtedly increase the success of your venture.
Nevertheless, you will as well have to seek yourself for potential leads, and a good first start is the internet as there are several business transaction boards that can match business contacts. Caution is recommended because a release of plans and personal details could be a bombardment of spam emails and scams.
We at Consultdustry offer on our site an approachable a free advert option in our ASEAN Business Transaction Board as our goal is to connect, develop and improve ASEAN business
LinkedIn members and groups, chambers of commerce and government institutions for trade and ASEAN business are other relevant information sources. It all seems to be very obvious, but in our experience – even experienced entrepreneurs – do underestimate significantly starting and running a business in an another (foreign) country. Clear insights into ASEAN business best practice and exchange in this, key government and legal policies, regulations and customs rules and procedures are essential.
Another element is that plans are often not definite. We often see significant gaps, like;
• does it concern a startup company or in what company/industry life cycle, and what capacity and business form?
• is the plan to buy (entirely or partly) a company, an ASEAN business acquisition?
• are (other) investors or co-investors required, venture capitalists?
• is sufficient working capital available or are bank loans and other loans necessary?
• are all capabilities available or should ASEAN business alliances or partnerships be made?
• what about the needed assets; land and buildings, machinery and so on?
We can make this list of aspects much longer, but it should be clear; the preparation and setting goals for the actual implementation and development of an ASEAN business is critical to avoid loss of time and waste expensive management consulting hours.
Business Brokerage for Business Acquisitions (M&A) – service selection
If you are trying to buy or sell an ASEAN business, you may ask yourself – do I need a business broker and if so, are they;
• offering a first no-cost appointment,
• professionals and aware of the needs and options,
• able to support the full process from the signing of the representation agreement through the deal closing,
• specialised in a region and/or sector or just general brokers,
• offering other management consulting services that benefit my needs or could maximise the success,
• advertising by newsletters and their website and what is the range,
• in a network that can attract qualified buyers, sellers and investors,
• (former) business owners / entrepreneurs,
• just greedy or on a mission to develop ASEAN businesses.
Consultdustry serve selected clients and operate transparently and in consultation. So we believe, in any brokerage deal making – so also in ASEAN Business – a business intermediary has to be clear on the following points;
• the full process and expected success rate,
• business valuation and setting the price,
• the other services are needed in the process and contracts,
• how confidentiality is ensured,
• the most effective way to find qualified opportunities,
• what financing can be offered, to make business deals more competent,
• how to legalise and deal with “offer the books” transactions,
• how are potentials screened,
• suggest the unique market points,
• what the negotiation strategy and targets will be.
Basic Business Plan and Information – write it down
If for ASEAN business investments, venture capital is needed, just like other to loan providers, the entrepreneur has to provide a credible business plan including a 5 years’ financial forecast of the cash flow. Such a business plan should minimal clarify;
• capital needs and financial projections,
• history and achievements,
• legal Identity,
• corporate governance,
• the management team and the advisory board of directors,
• product or service with a competitive edge,
• market; target or launching customers, size, competition, competences,
• sales strategy,
• profit potential; gross margins, growth,
• intellectual property (protection) and technology
• mitigation of risks,
• critical path and milestones,
• needed assets,
• investment stage; seed, early (start-up, first) formative, later (third, expansion, mezzanine),
• suggested structure of the VC funds; role compensation, exit strategy.
Business Partnership – motive and conditions
A business plan could make as well a statement about partnerships or business alliances. Forming a collaboration seems a logical option for entering or expanding ASEAN business. In general partnerships do have a considerable advantage; nevertheless, there are conditions where this is not the situation. So some rethink has to be done on (formal) partnerships and alliances.
The benefits of a collaboration could be;
• access to more or less capital required,
• costs reduction,
• focus on capabilities,
• additional knowledge,
• shared responsibility,
• added value in strategic planning and decision making.
As said, there could be a situation when a partnership is less beneficial. The disadvantage of an ASEAN business partnership could be;
• incompatible cultures,
• changing insights or developments can cause an imbalance,
• inflexible contractual agreement,
• (financial) liability,
• legal and tax matters,
• profit sharing.
To achieve optimum efficiency and also to avoid future problems in the collaboration, best is concentrate on your (desired) partner strength to compensate own weaknesses. Also, the framework of the cooperation should have clear goals including responsibilities and obligations. Examples in this respect are whole or partial co-operation – but duplications should be prevented – in the role of;
• business partner (shareholders with or without management involvement)
• business services (for example shared service centre)
• distribution & logistics
• innovation & development
• knowledge, information (informal)
• market & sales (agents, reps)
• product & services (share product lines)
• production capacity (outsource)
Consultdustry: ASEAN Business Transaction Developers, Brokers & Connectors
consultdustry management consulting do serve clients’ interest in developing and improving their ASEAN business through practical and proven solutions – “hands-on to achieve results”.
Consultdustry does assist Tech Industry in Thailand and ASEAN region by providing interim management, executive search, counseling & development, intermediary business transactions.
Our - management consulting - business transactions services consist of;
• feasibility studies
• complete company ASEAN startup for “doing business in South East Asia / ASEAN.”
• local sales representative/agency
• (out)-Sourcing & Import / Export
• partnerships search & cooperation
• mergers & Acquisitions (M&A)
• capital investments (raising capital) & financial restructuring
• free advert posting of ASEAN Business Transactions (listings on our site)