The 2 mistakes to avoid
When you want to expand and open new subsidiaries, choosing the area and location is paramount.
To identify the right opportunity for roll-out, it is important to be methodical to avoid – as much as possible, at least – the risks associated with making the wrong choice. Here are two mistakes not to make:
- Only considering financial criteria
In doing so, you overlook a site’s qualitative criteria, namely the: infrastructure, recruitment potential, broader context, etc. – all of which are equally important elements to your success.
- A subsidiary’s success isn’t solely based on financial criteria; indeed, when setting up a business, it is misleading to only analyse those elements.
- The human factors and those relating to the local environment (culture, legislation, etc.) in which the subsidiary will operate are just as important. At the risk of being confronted with a very different reality, it is crucial to consider these elements early on.
- Not reaching out to local players
To get the best possible understanding of the local dynamics in the area in which you’re thinking of setting up, it is vital to seek advice from people with local experience.
- These local players have valuable in-depth knowledge of the specific characteristics of the area and can answer any particular questions you may have.
- With every situation being different, it can sometimes be difficult to find information on a specific area; this is where local players serve as a valuable source of information that is sometimes not available elsewhere.
- It’s always useful to forge links with local players: who knows, you may discover some long-term partners.