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7 Setting up a branch abroad

7.1 Representatives

Before you actively do business abroad, it would be wise to find a representative who is a native of the country. In some countries, it may even be required by law to have a representative. The representative will act as a cultural go-between, not only useful for translation but for helping to smooth the way through the maze of local rules and regulations, formal and non-formal. Representatives help you with introductions, market strategies, advertising and marketing activities, and other issues such as financing, permits, or import regulations.

Since the representative will often be working without supervision, he/she must be trustworthy. This may be a difficult position to fill, as qualified and trustworthy persons in any field are difficult to find. Checking local references is important but references from expats would be the most reliable. When writing the contract, make sure that both sides know where the responsibilities lie. When it comes down to finalizing contracts, it will help you to additionally hire a local accountant or a lawyer.

7.2 Establishing an office

After you have signed contracts and are ready to start working with your customers, it will be necessary to establish an office in that country. This will be work to be done with your representative or another specialized agent, if necessary, for your negotiations concerning space, offices, staffing, training, etc.

No matter where you go, it will not be easy to find good office space and business service. If you set up an office in industrialized countries, the infrastructure will be there to set up technical equipment, but this will be much more difficult in developing or under developed countries. If you do not want to wait years to get a phone installed, a possible shortcut would be to find offices that have just been left by another firm and take over all furniture and equipment.

In addition to equipment, business services like a secretary will be next in line. Initially, it might be sufficient to stay in a hotel offering these services, and temporary services provided by embassies and chambers of commerce will have to suffice before more permanent staff can be hired. In many countries, the labor market will be limited due to different systems of education, a lack of mobility, and a lack of educated and trained personnel. Be aware that it will be difficult and time-consuming to hire staff.