How to open a branch in Lithuania?
There is certain time in business, when current market where’s working on became too small, especially if this market is not so big (for example until 10 million people). In this way eventually, business have to choose one of the options:
- Stay in current position and do not expand, just work with current customers. In this way, eventually business start to shrink and in long term view it could even close.
- Expand into other markets and keep growing.
Simple truth, that if business doesn’t grow it start to shrink, because stay in the same level all the time is almost impossible.
Therefore, if you have chosen second option, which is to keep growing and expanding and choose Lithuania market as an expansion opportunity, this is several advices from what you should start and how it could look.
First of all, you have to make a market research. In our experience we have saw plenty of examples when expansion into other market does not succeed, because of market underestimating (competitors, potential client’s needs, law, taxes or other regulations underestimated). In pursuance to optimize investments and time resource, we truly recommend in first place, before every other steps to do a market research.
In the same time as market research is doing, we recommend to hire consultant (even for few hours) from this market, where you looking to expand. He would give you information about experience about business culture, which methods is working and which is worthless, recommend and show sources and websites for future needs (recruitment, office rent, outsource companies research, potential customers and suppliers search, company register etc.)
When market research is done, from collected data could start modeling expansion strategy and detailed plan, in which would show all needed steps with terms and budget.
Looking to optimize future processes, we recommend to open a juridical status (company) in Lithuania, regarding that it would help with employee hiring, negotiations with suppliers and clients etc.
It depends from your business sphere and team needs, office space is not always necessary in the beginning of expansion.
One of the most important step – is team recruitment. Of course, it also depends from your business sphere, sometimes team is not necessary and big amount of work could do outsource companies (example: sales, administration, marketing, IT, design etc.).
Therefore, we still recommend, to have one or few peoples, who’s going to work full time in your branch. But to do that you should hire HR partner, who’s would publish work position in mother language, would communicate with candidates and select the best ones. In the same time, they would describe for potential employees your company culture, values, work conditions etc.
Therefore, when team is recruited or you have outsource partner, another very important aspect – team trainings and preparing them to represent your company in highest quality.
In addition, the last step, which is obvious, is team supervising, set KPI’s etc. It’s nothing new, what you doesn’t do right now, but you have to understand that in other market there’s other people mentality and culture, so all these things have also to be done in the right way.
Therefore, we describe shortly what steps you have to take if you want to expand business into Lithuania market. However, we have a good news, that our team could done all this process until branch start generate incomes and became profitable. We are providing Head of Lithuania branch and consulting services, so everything could be done in easier way, according to the created plan. In this way, you would save not only big amount of investments, but also time resource.
If you are interested in our services, more information about us and our services could find there: branchin.lt