continue growing your overseas business
is to start your own. Given the inevitable
overhead that needs to be covered, I recommend
starting a business when sales
have reached a level of about $2 million.
As reps on average take 15% commission,
this target will provide a roughly
$300,000 cushion to cover initial overhead
and pay the first employee's salary
and expenses. I do not recommend appointing
someone from the parent company
unfamiliar with the local situation
to become the manager of the new venture
other than for a transfer phase.
Hiring the right person to run the business
is obviously key to this venture and
the image the company will present to the
local market. It must be someone who is
technically qualified and intimately familiar
with the local market. From a legal
standpoint I recommend establishing
a corporation that is owned by the parent
company, limiting its exposure should
things not work out with the new venture