Our discussion on multiple business plans in Thailand for foreign investors are given below: To start a business is not that onerous, though you have to make some crucial decisions and invest some capital and effort. There is a thin line between success and failure of business and a well-structured business plan can draw the difference. Many businesses fail in the early years due to a lack of proper planning, in that case, an exit plan is also required. In a nutshell, planning is the heart of business!
By doing market research diligently and preparing a proper plan you can be ready for your Thailand. Emphasize the temperament of a market. You need to have foresightedness and understanding of future customers: their characteristics, impulses, and patterns. After that, a market entry strategy should be planned. Plan your financing and profits, this is where your intentions turn into figures. Offices, factories, production facilities, locations, management systems, and IT- all operational costs should also be considered while making plans.
The core of your business plan should be able to solve these three questions: What am I trying to achieve? When am I going to achieve it? How am I going to achieve it?
Market Entry Strategy
The fundamental of market entry strategy is to know your market throughout. What’s the current demand? Can you offer something different from others, which will be well accepted? Who can be your possible competitors? Will your marketing techniques, product image be applicable for different markets?
Some other basic points of business plan in Thailand market entry:
- Find out your potential customers, locations, sales leads, and distribution channels
- To expand your business, calculate rough sales volumes and potential growth of your business.
- Also, do meticulous research on your competitors’ products, services, and distribution channels.
- Be aware of current and future political and economic turbulence.
- Initial cost and risk factors should be kept in mind.
- Analyze your business’s operational and logistical needs
- Identify the regulations, responsibilities, and other obstacles if any to your operations
- You may carry on with a market test to understand the prospects and profitability of your product(s) or service(s)
- If any help and funding are available to expand your business in Thailand, grab it.
- Product pricing and market opportunities should be discussed with distributors and producers.
As a business plan in Thailand, to survive in the market you’ll always have to be up-to-date about your rival companies. You must know about their products or services, pricing, advantages/disadvantages of their product over yours and how can you overcome through this.
Several ways to find out about your competitor:
- Know what they say about themselves, through advertisements, press releases, websites, exhibitions, roadshows, etc.
- You also need to know what others say about them. A keen eye for detail through the media, customers, clients, suppliers, reports, market researchers, etc. can guide you in this purpose.
- You can conduct commissioned market research too.
Conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis will help you compare your business with your competitors.
Market research is another business plan in Thailand that deals exclusively with the investigation of a consumer market, analysis of the patterns and habits of consumers which gives you an insight into the type of people interested to buy your product/service and the market reaction to your goods. The key to having a successful business in Thailand is to target the Thai people’s demands first. If you decide to concentrate solely on foreign customers you are missing out on the much larger portion of the population. Thai people like to set up business in renowned places. So do not make the mistake of confining your business to the foreign market only.
Key points to keep in mind:
- Who are my customers?
- What age group and social leanings do they fall into?
- How often they buy my product?
- Have your customers already been familiar with or used competitors’ products or services?
- How can you guarantee that the customer will return to your market?
- What are the times, places, seasons, moods, etc, they prefer to buy?
Setting a start-up business in Thailand is not troublesome and lengthy process. You can get furniture, restaurant equipment and office equipment from everywhere at cheap price. Construction is speedy since Thai workers work diligently. Different options can be explored in such business. For instance, import/export, designer, owner of travel agency etc.
Food Business is now resurgent in the market as Thai eating habit is oriented towards Western foods. This now prefers small sandwiches, bread, bagels and pastries with a cup of coffee for a breakfast bowl of rice porridge with minced pork. Dining in Western-style fast-food restaurants in groups for taking lunch or dinner is not an unusual scenario in Thailand. The main reason behind this is not having a full kitchen (no stoves and ovens) in majority of city apartments and condominiums. Large friendly gatherings with eating arrangements at home is
Mobile food trucks (with food items like tacos, fries, waffles, crepes) is a really good idea. There are a lot of clubs in the city that opens late at the night. If you park your truck outside a very popular club around closing time, your business would have a huge demand in no time.
There are a plethora of Franchise opportunities in Thailand. Thai franchises are very affordable and international franchisees are widespread. Many franchises are more successful in Thailand than in the country that originated them. For instance, “Subway” is more popular in Thailand than in the US.
You can also give a thought about buying a business but that may require you to look for a broker, which can be a bit pricey especially when it involves hiring a lawyer and accountant. One of the main drawbacks to buying a business is the reason behind the seller’s intention to sell. The positive is it saves you the hassle to start everything from scratch; all you have to do is nurture and grow it.
You can buy a Thai business directory, which is available in any book. These books are replete with information which are useful for finding the right contacts and wholesalers to start and get the necessary items to land your business in the right direction. There is also a special magazine to guide you about the franchise business, which also you can buy from the bookstore.
You can get in touch with one of the many international business-planning services out there if you don’t have the confidence to launch your business all by yourself. There are many advisers who can help you with making a proper step-by-step business plan and register a company in Thailand.