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TIPSTIPS

Did you know that government offer free consultation for international expansion?

The following questionnaire survey will give you an idea of where small and medium-sized enterprises (SMEs) are turning to for advice on their first international expansion. (A little out of date)

Small Business White Paper 2014, Part 3, Chapter 4, p. 61 

Broadly speaking, there are four kinds

  1. Government and municipalities
  2. Financial institutions
  3. Business partners and other peers (domestic and international transactions)
  4. Experts such as international expansion consultants and tax accountants

Most of the government agencies and municipalities (1) and some financial institutions (2) offer free consultation services. There is also a free initial consultation for some of the international expansion consultants in section 4.

The government and local governments have a registry of experts and advisors who can provide advice on international expansion. Experts and advisors are assigned for each type of consultation from Japanese companies, and their backgrounds vary. There may be people with expatriate experience who can provide a wealth of case studies, people from manufacturers or trading companies who are familiar with the products of international companies, people from the web and distribution industries, and so-called professional advisors such as small and medium-sized enterprise diagnosticians, lawyers, and tax accountants.

Points to keep in mind when consulting with government agencies regarding international expansion

The specific consultation services of the government and municipalities are described below, but we recommend that you consult with multiple organizations and various advisors, if possible, for three reasons.

1 (even though it is a free consultation) there are many small if not large differences

For those things that can be answered by researching on the Internet (information provision), there has been no significant difference in recent years, no matter where you consult.

However, the outputs (consulting capabilities) vary greatly depending on the business experience, corporate support experience, subjectivity, ideas, know-how, and unique scalability of the corresponding advisors.

For the same product and the same country, opinions on sales channel development and investment potential will differ in many ways.

2 Where (and who) you consult first (even if it’s a free consultation) will change what happens afterwards.

We are sometimes involved in assisting governments with international expansion, and we are often told, “We should have come to you from the beginning.

When we asked them about it, they said, “In another free consultation, I received advice that was different from the advice I just heard, and I followed it for many years, and it didn’t work out,” and “I now understand why I failed.

However, even if it did not work out, the company was able to find a new way because it took action to find another source of consultation. Even paid consultations can be hit or miss, and even more so if they are free.

In order to find the right advice for your company, it is important (even as an insurance policy) to actively select and select two or three different firms from the initial stages.

And this will be a good opportunity, a good exercise, to develop the toughness to deal with the sea of thousands and thousands of international expansion (in foreign countries, it is normal for many people to say many different things).

3 (Because it is a free consultation) the scope and depth of support available varies from agency to agency.

Free support from the government, although subject to preliminary screening, varies widely, from accompanying a client on an international business trip, to coming to the company every month to provide guidance, to partially covering the cost of research, or simply providing a desk consultation.

Also, even if it was on the home page, I overlooked it and wondered if it was that kind of service? I didn’t know it was that kind of service at all! If you are interested in any of the services listed on the government’s website, it is a good idea to call the government directly to confirm the service.

If you ask, “What kind of service is this? the administration will explain in detail.

It is also beneficial to actively participate in seminars on international expansion organized by the government to gather information on countries around the world.

6 government agencies, municipalities, and financial institutions that can provide support for international expansion

International expansion assistance available to supported companies covers all countries in Europe, the U.S., and Asia.

In addition to Thailand, Vietnam, China, Korea, Malaysia, Singapore, and the Philippines, there are also India, Indonesia, Cambodia, Myanmar, Mongolia, and Laos. Let’s take a look at what kind of consultation services are available at government, municipalities, and financial institutions.

Japan External Trade Organization (JETRO)

Jetro is an independent administrative agency under the jurisdiction of the Ministry of Economy, Trade and Industry, which promotes trade and investment in Japan. It has 47 offices in Japan and 74 offices in 54 international countries. The previous graph shows that Jetro receives more consultations on international expansion than any other government agency.

If your company has clearly analyzed its “international” strengths, has the internal capacity for international expansion, and is just ready to export and invest, you may be a good match.

jetro's information

Organization for Small & Medium Enterprises and Regional Innovation, JAPAN(SME SUPPORT JAPAN)

SME SUPPORT JAPAN is an independent administrative agency under the jurisdiction of the Ministry of Economy, Trade and Industry, which provides support to small and medium enterprises (SMEs) at their stage of growth. It has 11 offices and 7 colleges in Japan and nearly 400 advisors in Japan and abroad.

Small and medium-sized enterprises (SMEs) that want to consult with us about the future of their company, including international expansion, or that are struggling to understand how to make the most of their strengths, from the conceptual stage of International expansion, or from the stage of turning around their entire business, whether in Japan or abroad, should consult with us as a one-stop shop without boundaries between the real world and the Web. This is the best choice for small and medium-sized enterprises that want one-stop consulting without boundaries between real and web. Incidentally, Pacoloa has been an international expansion adviser with this Organisation for Small & Medium Enterprises and Regional Innovation, JAPAN (SME SUPPORT JAPAN) for over 12 years.

SMRJ topic page of overseas expansion

Local government

You can find the local government contact organization by searching for the name of each prefecture or city, public interest incorporated foundation, and international expansion. In the case of Osaka Prefecture, the Osaka Bureau of Industry is applicable.

This is an organization that provides support to small and medium-sized enterprises in Osaka Prefecture, such as strengthening their management capabilities and supporting their start-up. If you search by city as well as prefecture, you will find many more municipalities.

Osaka SangyoKyoku topic page of overseas expansion

Chamber of Commerce and Industry

As a comprehensive regional economic organization, the Chamber of Commerce and Industry (CCI) is engaged not only in supporting small and medium-sized businesses, but also in a wide range of other activities, including international activities, and has 515 offices in Japan and 37 offices overseas. This is the Osaka Chamber of Commerce and Industry.

Overseas expansion support

Central Federation of Societies of Commerce and Industry(Shokokai)

Shokokai are public organizations, established mainly in town and village areas under the law (Shokokai Law), which are mainly organizations that support small businesses. There are 1,679 Shokokai throughout Japan, and each prefecture has its own federation of Shokokai.

For example, below is the Sakurai City Chamber of Commerce and Industry in Nara Prefecture.

Sakurai city shoukoukai web top page

Financial institutions

City banks, regional banks, shinkin banks, and government-affiliated banks also provide consultation services for international expansion.

For example, Osaka Shinkin Bank supports matching services with international buyers and web-based business meetings in the Corona Disaster.

Overseas expansion support Osaka shinkin bank

As a government-affiliated financial institution, JFC also provides loans to small and medium-sized enterprises for international expansion.

Overseas expansion support

Additional 3 websites summarizing government measures to support international expansion

Each METI bureau has a booklet or web-based publication of its local support measures for international expansion.

Below is the policy guide of the Kinki Bureau of Economy, Trade and Industry. It is published in early spring every year. (Guide 2023 for SMEs in the Kinki Region: Policies and Measures to Support International Expansion (Search Navigator))

METI KANSAI matrix for overseas expansion advisor

Below is the JCCI. (List of small and medium business support organizations)

Overseas expansion support by JCCI

Below is the MiraSapo Plus operated by the Small and Medium Enterprise Agency.

Small and medium-sized businesses can find out in one place what kind of free assistance and grants are available to them, as well as International expansion.

Mirasapo Overseas expansion support

What should I ask for in a free consultation for international expansion assistance?

Various governments, municipalities, and financial institutions offer free international expansion support consultations. In some cases, free consultations are free, and in other cases, they exceed expectations by providing so much support for free.

However, by becoming a “consultant who can easily provide support for international expansion” to the government, you may be able to get tips on how to make your company’s international expansion easier and get useful information that you may not be able to get from other sources. However, by becoming a “consultant who can easily provide support for overseas business expansion” for the government, you may be able to obtain tips that will make it easier for you to proceed with your own business, or useful information that cannot be obtained elsewhere.

Consultants who are comfortable providing support for international expansion are those who

  1. There is little difference between the content of the application for consultation on international expansion and what was said on the day of the consultation.
  2. Understands the internal structure and budget for international expansion
  3. Willingness to solve essential management issues, including international expansion

1 Write as much detail as possible about what you have done so far in the consultation application.

In the case of a free consultation for international expansion, it is more important than you might imagine to provide detailed information about your consultation on the application form.

Experts and advisors conduct preliminary research and assemble advice in accordance with the consultation details written in the application form for International expansion consultation before the day of the consultation.

If the details of your application and the details of your consultation on the day of the meeting are surprisingly different, all the materials and research you have prepared will have been largely wasted.

To avoid such gaps, 

  1. When and why did the current problems in international expansion occur?
  2. What did you do or not do to solve the problem, and how did your international expansion turn out as a result?
  3. What else have you done so far regarding international expansion and how have those efforts turned out?

You may want to add the three items to your consultation and include them in your application.
(If you are a complete beginner and have never done anything like this before, just write it down.)

It is better to put as much detail as possible on the application form, including your past history, so that you can get lean, accurate advice that takes all of this into account. You will get much better information than an application form with a lot of blank space.

2 Ask questions about your company’s internal structure and budget for international expansion.

International expansion cannot be done by a single business owner, but requires a team of people in charge.

And if, for example, it takes three years for an international expansion to get off the ground, it is not very realistic to assume that the subsidy alone will cover all the costs, that there will be no additional labor costs, and that the company will have zero out-of-pocket expenses.

Specifically, since we are developing new business overseas, we need to create an international website, participate in exhibitions that are not subsidized (in the case of niche products), go on individual overseas sales trips when there are no exhibitions, and incur development costs for product design and specification changes for overseas markets, There are also costs involved in various situations, such as the urgent need for budget for international trademark registration and other rights, and the need to consult with a lawyer regarding English-language contracts.

However, even if the investment is essential for a successful international expansion, if the attitude is to avoid spending as much as possible in the absence of international sales, there will be limits to the amount of advice that can be given to facilitate a smooth international expansion.

After considering these factors, it is important to ask yourself, “If my company were to expand internationally, what kind of internal structure and budget would be necessary? It is important to ask questions such as, “What kind of internal structure and budget would be required if my company were to expand internationally?

3 Ask whether International expansion will solve your current business issues.

International expansion is intended to solve existing business problems.

For example, you may want to increase sales, hire good people, start a sustainable new business, or have multiple locations as part of a BCP plan.

It is unlikely that international expansion alone will be successful without addressing the business issues that are currently before you. It is important to proceed with consultation on international expansion based on the premise that international expansion will solve one or two management issues, so it is important to have an accurate understanding of the management issues.

Since there are aspects of your company that are difficult to determine on your own, it is important to ask the question, “Is international expansion likely to help solve your problems? It is also important to confirm an objective evaluation of your company’s situation by asking the question, “Will expanding overseas lead to solutions to your problems?

If the products and services of a domestic business are no longer meeting the needs of the market before international expansion, the essential solution is to rebuild the domestic business first, rather than to turn the tables and hope for an international expansion.

International expansion after the business has been rebuilt is more likely to be successful, as the company can launch overseas with a strong product or service that meets the needs of the current market. Some government support agencies provide guidance for both international and domestic businesses at the same time.

One way to do this would be to discuss with them that you would like to optimize the whole, rather than just parts of it, so that you can use the limited resources in your company more efficiently.

For assistance with international expansion, leave it to Pacoloa Co., Ltd!

The act of appropriately selecting and effectively utilizing international expansion support services suited to your company can actually be said to be the beginning of the process of international expansion itself.

How to proceed with international expansion? Depending on how you begin the process, the quality (both in terms of cost and time) of subsequent trials and errors of international expansion will vary greatly.

If you are still in a vague stage of consideration, for example, “I would like to sell my products if I can sell them internationally,” “I don’t necessarily want to sell internationally,” or “I want to avoid risk and cost as much as possible,” we recommend that you first visit the aforementioned free consultation with the government.

Although it is a free consultation, you will receive neutral advice suited to your company’s stage of development, and you will also acquire a certain amount of knowledge about international expansion. And, although it may take some time, the process of hesitation, trial and error, and conviction will allow the company to develop the “resolve” necessary for international expansion and the “decision not to expand internationally” at its own pace without strain.

If you have decided to expand internationally this year or next, but have not yet decided what is best for your company, or if you have considered various options but have not made the progress you had hoped for, or if you have experienced various free consultations but need more than that, please contact Paccloa Co., Ltd. will be happy to assist you.

With so little certainty about international expansion, it is difficult for a business manager to continue to worry alone, with no answers in sight. If you are seriously considering international expansion, please do not hesitate to contact us at any time, even if you are not sure whether or not you should consult with us.

Paccloa Co., Ltd. is a company that provides on-the-job training to small and medium-sized enterprises (SMEs) to support their international expansion so that they will be able to run their own international expansion in the future.

If you would like to consult with us about international expansion, find out if your products can be sold overseas, or visit an overseas location, please feel free to contact Paccloa Co., Ltd. at any time.

For consulting and practical (on-the-job) support for SMEs, leave it to Paccloa.
Support for a total of over 1,900 companies entering overseas markets.