How to Start a Business in Developing Countries

by Laura Acevedo

1. Review your business idea to ensure you have a product that is suited to a developing nation's needs and consumer purchasing behavior. The review should cover product packaging, size and materials.

2. Ensure that you have sufficient capital to finance a possibly unstable start-up timeline. Be prepared to spend time and money on paperwork to pass government regulations. It may take longer to penetrate a developing country's market, so you must have the financial resources to maintain the business until it becomes profitable.

3. Select a developing country to start your new business. Make your decision based on the political requirements for establishing a business, start-up costs and potential profit. Take note of any country that offers "free zones" that can lower your tax obligations.

4. Hire representation to establish the legal structure of your business and to complete documentation requirements. These requirements may include establishing a joint venture with a local company to sell or distribute your products or services.

5. Find local business partners to supply raw materials, distribution support and employee screening if necessary. Locally sourced items can lower your costs and minimize business disruptions due to importing requirements and delays.

6. Build, buy or rent facilities for your business. This may include manufacturing facilities, warehouse space or business offices. Ensure you have enough space to ramp up your business as demand increases.

7. Hire employees and managers for your business. Look for employees that are a good fit for your organization and have the skills needed to ensure your new business's success. You may need individuals with international experience, language skills and expertise in your industry.

8. Oversee business start-up with on-site visits, training and reporting. This oversight should include making adjustments as needed to business processes or products and establishing strong financial reporting for a clear business overview.

Category: Business ideas

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