Undertaking a business expansion in the Philippines can prove profitable for you, but it’s not an overnight process. Understand the Business Culture.
That first year or two as a small business owner is always a struggle. You spend all of your time worrying about keeping the doors open and finding qualified help. Once the business finds its footing, though, your concerns shift to things like business growth.
For some, that means opening new locations in the local region. For others, though, it often means looking farther afield and expanding overseas. Maybe you want an office closer to an overseas supplier, or maybe you want to take your business open locations in a new country.
If you’re considering the Philippines, keep reading for our guide that helps make the process simple.
Get the Right Help for Business Expansion
While your business lawyer understands the rules and regulations for your state and potentially even federal regulations, they can only help you so much with operating in a foreign nation. That means you’ll need help on the ground in the Philippines from a business lawyer who operates there.
They’ll know what red tape you must deal with to get up and running. Just as importantly, they’ll likely have a network of useful contacts who can help you find office space, well-situated real estate, and even employees for your new venture.
Get Familiar with the Negative List
If you’re new to business in the Philippines and want Business Expansion, you may find the Negative List a bit of a surprise. Despite the name, it’s not really all that negative. It’s the official guidance from the Philippine government about the limits of foreign ownership of specific types of businesses or companies.
For example, foreign companies cannot own any stake in businesses that make anti-personnel mines or deal with nuclear weapons. They also can’t get into mass media, private security, or small-scale mining.
On the flip side, you can hold 100 percent ownership of things like wellness centers, a variety of internet businesses, and a wide range of non-professional teaching/training options.
First Understand the Business Culture for Business Expansion
For Americans dealing with other American businesspeople, getting straight to the point is normal and often expected. It’s also common to deal with lower-level decision-makers for lower-level deals.
In the Philippines, you will rarely come to a full-blown agreement with a lower-level member of a business. Almost all decisions happen at the senior level of a firm.
Business meetings will often not come straight to the point. You may find yourself making a lot of small talk as means of building up relationships that will eventually blossom into agreements.
Business Expansion in the Philippines and You
Undertaking a business expansion in the Philippines can prove profitable for you, but it’s not an overnight process. There are a number of legal and bureaucratic hoops you must jump through to establish a business presence. Get a local business lawyer there very early in the process.
Get up to speed on their Negative List so you understand how many of what kinds of businesses you can own. Also, Get some tutoring on the local business customs so you aren’t surprised.
Looking for more business growth tips? Check out the posts in our Business section.