Subcontractors and external human resources needed for International expansion (what can be produced in-house to make it self-sustaining)
Today I would like to know a lot about the human resources needed for international expansion.
Eh.
・・・・・.
No, no,
I’m not talking about replacing Japanese personnel with foreign personnel.
(Ho-ho-ho relief)
In the last issue, we were able to get a rough idea of the “actual costs” incurred in promoting international expansion.
I would like to talk about securing the human resources to actually promote international expansion,
I believe that it will be necessary not only to train internal personnel to become global human resources, but also to hire human resources, including outside experts such as you, as well as to hire them in the short term.
I believe that SMEs will need resources to do business with the rest of the world,
What kind of resources will be needed in what situations?
Even if they do in-house operations, to what extent should it be handled in-house?
If outsourcing is used, to what extent and in what areas should it be allocated?
We would like to know the types of operations, the suitability of outsourcing, and the costs involved.
Qualities required of an international business manager
First, when a company begins to expand internationally, it places a person in charge within the company.
What qualities are required of this person?
①Don’t hesitate to try something you’ve never done before.
②I can enjoy learning to understand what I don’t understand.
I am a person who can create something from zero.
On the flip side,
①a I don’t want to take the risk of failure.
②a Being told to “do what you think is right” is more “pressure” than “fun.
We hope that you will be able to work in a different department, as it may be hard for those who are not.
（・・・・・。）
(Let’s see, if all of (1), (2), (1a, 2a), and (2) are all true, which is it?
As for English, it is “normal” in our country that one cannot learn to speak English just by having received a school education, so this is not a problem. (Actually, it is a problem…)
The current situation is that, based on basic learning at school, there is no other way but to become able to speak business English through self-help efforts after entering the workforce.
As a starting level at that time, we would like to see a TOEIC score of 700 or an Eiken level 2 ability.
In this sense, do returnees have an advantage?
If the person is a zero-figure person, then yes.
(Oh, no…)
When you are dealing with an international company, the person in charge of the other party is lucky enough to speak fluent Japanese, but when you talk about work, he or she is unable to discuss new technical matters, is reluctant to discuss specifications for Japan, or when the subject is a bit complicated, someone else is on the line, or the project is aborted without any continuity,
On the other hand, although his Japanese is not so fluent, he has never failed to communicate with me about his work, and no matter what I ask him about, he responds first and offers various suggestions on new topics, making the exchange feel smooth and promising in unknown areas,
Now, which one would you like to work with?
The latter!
There are people, even returnees, who are not zero-figure people.
Being a zero-figure person is more important than being able to speak English “well”,
It is a good idea to start with a zero-figure person in charge, as they often achieve results that break down the numerous barriers in the process of international expansion.
I think I can understand that, somehow.
(Zero one is the key word…)
Based on those qualities,
Trade practices, international sales, cross-cultural adaptation, international marketing, and international branding,
international marketing, international branding, and international web marketing.
(Go for it, global human resources education…)
Decision-making is not the difficult part of international business.
Is it enough to train our international business staff to become global human resources and then our international business will take off?
Good question.
As you say, if you provide global human resource training, your international business will eventually take off.
However, it is rare that a person with no experience in international business is able to gather correct information, make correct evaluations, and set the right direction in the international market from the beginning,
Therefore, it would be a good idea to bring in outside personnel with practical knowledge of international business, even for a limited period of time, in the “early stages” of the project.
(Yes!)
In international expansion, the process of (1) organizing the situation, (2) evaluating, and (3) making decisions is repeated over and over again.
Specifically, this includes the following
(1) Collect information, (2) Examine it, and (3) Formulate a hypothesis.
(1) Discriminate, (2) Compare A/B, (3) Correct
(1) Extract successful elements, (2) Scrutinize them, and (3) Implement them.
As in (1), collect, discard, and select,
As in (2), stop by, pull back, and worry,
As in (3), tentatively decide, revise, and move forward,
Repeat the above steps. (3) is all “decision making” and is an important action,
How to organize the situation (1)
How to evaluate (2)
The quality of the “what” can make a big difference in the decision-making process in international expansion.
I see.
(How to organize and evaluate…)
What does that mean?
Yes.
If there is enough material to consider before making a decision, and if it can be evaluated at the necessary and sufficient level,
No matter how the rest of the decisions are made, even if they are wrong, the margin of return will not be too large.
Yes, it is.
But if there are shortcomings in the materials themselves to be considered, or if there are biases in the evaluation process,
Based on them, no matter how good a manager is, no matter how right a decision is made,
It will not be a successful business development.
(・・・・ that’s not good)
That would be a bad idea.
New business development is the same for both domestic and international business,
The difference is that it is difficult to gather materials for decision-making, evaluate them, and decide on the direction of the international business unless you have experience in international business.
Normally, the decision-making process involves a lot of work in the early stages of the business,
However, in many cases, international operations are carried out without such personnel, and by the time the company realizes that it has made a mistake, time and money have been invested and it may be difficult to correct the course.
The considerations differ depending on the circumstances surrounding each company and the country of International expansion, but there are many people who can help you, including experts, consultants, former expatriates, advisors for international operations, and people on loan from the parent company,
In the initial phase of the project, you will need to secure personnel who can stand on your company’s side and gather and evaluate the right information to make the right management decisions,
In the future, it is a good and efficient way to achieve international expansion by accumulating the knowledge, know-how, and networks of these external personnel within the company and aiming to bring them in-house.
Yes.
Cooperating companies and external personnel required for International expansion
Once the person in charge of international operations is secured, gaining experience, and in the process of developing into a global human resource, there are a variety of partner companies and outside personnel that will be needed as the company actually moves forward with international operations.
As shown above (list of external cooperating companies)
In the course of promoting international business, there are cooperating companies with which transactions are initiated in order to conduct trade or to supplement overseas knowledge that the company lacks on its own.
This section mainly discusses export transactions, but the number of necessary partner companies will increase if you include overseas investment transactions such as the establishment of local offices.
Overseas markets have stricter regulations and rules than the Japanese market, so if you try to expand internationally without following the Japanese rules, your business will fail sooner or later.
It would be a good idea to be aware of the actions required for international expansion through the details of your request to the partner companies in advance.
Lawyers
Ask them to identify the risks of your products, services, and business in international markets, and prepare English-language contracts, English-language privacy policies, and English-language instruction manuals.
Patent Attorney
After evaluating the intellectual property (trademarks, patents, and designs) of your domestic business, we will request a search of each country to ensure that you can maintain a competitive advantage in overseas markets, and we will proceed with the acquisition of rights (trademarks, patents, and design applications) to your intellectual property overseas.
In addition to intellectual property, we will also translate trade secrets and know-how into languages, and establish a confidential information management system to prevent leaks.
IT security company
As a new business partner of an international company, we will make sure that the company has a complete IT security system and a management system for personal information protection, as we may be asked to prove that the company has a complete IT security system and a personal information protection management system when registering the system.
International Transportation Companies
Have accounts with at least one international courier company and one international shipping company, and establish a system that can flexibly respond to the trading conditions of international companies.
For the time being, customs clearance, export packaging, and marine insurance will be handled by these two companies on a one-stop basis.
Insurance Companies
Check with the Chamber of Commerce and Industry or the Federation of Chamber of Commerce and Industry to obtain international product liability insurance, as it is less expensive.
Trade insurance covers the uncollectible amount of goods and services, and you can choose to apply to Nippon Export and Investment Insurance (NEXI), but please check with NEXI because some international partner companies may not be covered.
Interpretation and Translation Web Production Company
The evolution of free translation applications has been remarkable in recent years, and free translation is now generally sufficient.
However, the accuracy of business negotiations and website SEO depends on the presence or absence of manual corrections to machine translations, so rewrites and proofreading by human translators with a deep understanding of the business content are essential.
For more information on requesting an international website from a web production company, please refer to this page. How to Create a Multilingual Website! 13 Points to Avoid Failure
Third-Party Certification Organizations
Request assistance in preparing technical documentation and testing according to overseas standards when complying with import regulations in overseas markets.
Request inspection of export cargo if instructed to do so by an international company.
Banks
Requests for opening new dollar or euro accounts, international remittance procedures, L/C settlements, etc.
In recent years, the use of international money transfer services other than banks such as WISE has been increasing.
It is not shown in the diagram above,
International market research company
International expansion support company
International strategic planning support company
International sales agent, international appointment agency
Support company for international visits and exhibits
You might also consider companies that support international expansion, such as
There are also bulk quotation sites.
If utilized,
We recommend that you first inquire about international expansion only after you have gone through a certain amount of trial-and-error, struggling and suffering on your own.
Click here to find out why → Before consulting with us about international expansion
Some of my fellow business owners are receiving proposals from such companies as they begin to expand internationally.
He said that there are many things he does not understand about international affairs, and that he has limitations in doing things on his own.
（I’m not sure if it’s a good idea to hire a company I don’t know, but I’m not sure if it’s a good idea to hire a company I don’t know.)
I think that asking for a request because you don’t know much about international matters is a long way from the goal, on the contrary.
What do you mean when you say?
If a company inquires, requests a quote, or requests work without having sufficient knowledge of International expansion and an understanding of its own position in the international market,
It is difficult for companies to properly evaluate the results provided by international market research firms, international expansion support firms, international strategy planning firms, and international sales and appointment making agents.
Is it a result of a very good job…A…or a not so good job…?
Not so good…B,
Whether it is an A or a B, what is the right course of action?
If you evaluate proposals and data without understanding the situation surrounding your company, and then move on to the next step, you may find yourself in an even more confusing situation.
I think I would ask for some support because I don’t know anything international and I want to understand..,
Eggs first or chickens first, right?
It is precisely at such times that you should remember the Zero Ichi spirit once in your company.
Don’t leave it at “I don’t know much about the international market.”
“Our international expansion might be better if we proceed in this way, and the reason might be this, that, or the other,
Discussion about creating a hypothesis from scratch is encouraged.
(We’re getting further and further away from EASY…)
From there, it’s zero-to-one.
Yes, we do.
However, if it is difficult for your company to do so on its own, you can gather information by utilizing free consultation services provided by the government, which can sometimes serve as a walloping wall,
This is worth considering and is highly recommended, as you may gradually begin to see hypotheses about what your company lacks and the direction in which you should proceed.
If you are interested, please click here for more information →
【Free Consultation】Select 6 organizations that support international expansion + 3 websites that summarize support measures for international expansion
The government?
It seems a bit high, but I will think about it.
By the way.
I am involved in both sales and manufacturing, but I feel that we need outside professional help in changing specifications and packaging for international markets, for example.
As for product design,
If there are no in-house designers, we have no choice but to outsource. If there are designers, it would be a good idea to bring in outside designers for a limited period of time from the aspect of human resource training.
What about branding?
For branding, only about 30% of the areas actually require the help of outside personnel.
President: Employee: Expert = 5:2:3
It is like that.
What can we work on at the company? The first step is to think from the
In other words, the president should first decide what he/she would like to do. Even if it is tentative, that is the starting point. That is the starting point.
See also → Are you achieving overseas branding?
First, we will try it in-house. If you want to do it, you can do a lot of things.
Yes.
To summarize the above,
The following are required for international expansion,
In-house personnel in charge of international business (global human resources training is necessary)
The above diagram shows the partner companies that are necessary to promote the international business.
The initial stage of introducing external human resources on your company’s side for the start-up of international business.
Other external services can be considered on a case-by-case basis as needed.
However, in such cases, it is always advisable to complete a zero-first discussion (The ability to create something from nothing)at least once in your company.
Without the muscle for international expansion, even if you have the tools (information) in hand, you will not be able to operate (evaluate and make decisions) them correctly.
In other words, if your company’s internal masticatory skills remain weak, it will be difficult to move forward with international expansion, no matter how much money you spend
(I see what you mean…)
As for costs, in the above chart, the international shipping costs, marine insurance, and packaging are ultimately paid by the international customer, but the rest of the costs are to be paid by the company.
The amount to be paid to a third-party certification organization and the amount to be paid to a lawyer can exceed 1 million yen each, depending on the product, so it is necessary to budget accordingly. Fees for international expansion support companies, design companies, branding companies, etc. vary widely. The lowest monthly fee I know of from other companies is 10,000 yen, and the highest is 1,100,000 yen per month.
The lowest cost was 300,000 yen for a spot contract (3-month commitment per project), and the highest cost was 5 million yen per project. All of these prices were for small and medium-sized companies.
Exactly.
Training of personnel essential for self-support of international expansion
I understand a lot better now.
We will work with experts who will stand by our side at first, and may consider additional services along the way, but the goal will likely be to bring the international business in-house so that it can run on its own.
Nice.
I would like to do my best in various ways, but where should I start?
What can be produced in-house to make it self-sustaining?
・Ability to develop new business
・Cross-cultural adaptability
・Some level of English proficiency
With above, you can expand internationally on your own.
(A big theme, what to do…)
We created this Paccloa Q site for such occasions.
Please start from the “Introduction” on the top left of the TOP page.
Yes.
But I still feel that something is missing to make it run on its own….
That’s right,
One more thing,
All of the know-how that enabled us to develop new businesses while adapting to different cultures,
The in-house production of international business will be complete when it is shared within the company, a global perspective is fostered, and the next generation is able to properly reproduce the process.
In other words, the ultimate goal is to establish an internal system that does not depend solely on the English language skills or cross-cultural adaptability of a single employee, but allows for international expansion even if the person in charge is on vacation or has been replaced.
I see!!
(I can only feel the hurdles getting higher and higher…)
That’s it,
Reproducible international expansion and human resource development are important.
If we can establish a self-starting mechanism for international expansion, that is the most significant investment of all.
I feel like I’m starting to see a little bit of the future.
Yes.
(I have to do a lot of hard work…) (Are you okay, I…)
I’ve got a lot of spunk!
