Paccloa

Paccloa

International expansion support for SMEs

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FIRST

Thank you for visiting.
Paccloa Co., Ltd. is a consulting company in Osaka that provides practical support to small and medium-sized enterprises for international expansion. We have two websites: our corporate website , which you are looking at now, and “Paccloa Q,” a media site that provides specific information on how to expand internationally.
The two websites together contain over 120,000 words of information, and it takes about three and a half hours to read all of them.

This page is organized in an easy-to-understand manner for first-time visitors and for those who do not have time to visit us.
(This page should take approximately 12 minutes to read.)

Please note that there are links to the relevant sections of both sites in the middle of this document.

Before international expansion

For those who are interested in international expansion but do not know who to talk to, what to ask, and how to go about it.

For beginners, we recommend using the free consultation services of public institutions that can provide impartial information.

If you have not yet decided whether or not to make an international expansion, but would like to know first whether or not your products or services will be accepted overseas, and you do not want to spend as much money as possible, we recommend that you visit your local government or administrative office for a free consultation.

At first glance, the government’s consultation service may seem intimidating, but when you actually use it, you may find that you can get a level of information that is so much better than what you can get for free.

For example, if you apply for a free consultation at https://biznavi.smrj.go.jp/advisors/, an independent administrative agency under the jurisdiction of the Ministry of Economy, Trade and Industry, “Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, JAPAN)”, they will set up a consultation slot for your company within one month. You can also search for information on free consultations in other municipalities in your area by entering “International expansion, prefecture name”.

For beginners in international expansion, “who to consult first (don’t start at the wrong entrance)” is more important than you can imagine.

If you take advantage of less-frequent administrative consultation, you can avoid detours and major mistakes that you don’t have to make. Also, working from neutral and holistic information gathering is one of the best budget-saving options.

For those who do not know how to proceed efficiently with international expansion

The efficient way to proceed with international expansion varies from one commercial product to another.

(1) Products that can be sold on cross-border e-commerce sites

If your products are B2C products (consumer products) that are unknown overseas, it is efficient to outsource the entire overseas sales channel development because attracting customers to cross-border e-commerce sites is the key to your business.

For example, outsourcing companies include companies that specialize in international web marketing, international logistics, and cross-border e-commerce support companies.

Unless there is someone in the company who specializes in international SEO, it is not realistic to start with “no international customers” and then work in-house to attract customers to the site, as this would require a lot of manpower and time.

However, if the product is not unknown and the brand is recognized to some extent, or if there are repeat customers overseas, it may be possible to attract customers without outsourcing by steadily continuing to send out information on social networking services in-house.

(2) Services and products that require real international sales

On the other hand, for B2C products (products for consumers) that are also intended for real sales (local retailers, etc.) and for B2B products (products and services for businesses), it would be more efficient to train in-house personnel and aim to make the international business self-starting over a period of two to three years.

Developing international sales channels for the first time takes a certain amount of time. The process of understanding the unique global distribution of your product or service overseas while developing specialized local trading companies, agents, and distributors for the product or service you are trying to expand internationally is the latest in know-how, and real-life interaction and research is a must.
Even if there is relevant information on the Internet, it may not always be the exact answer your company needs.
Even if we are lucky enough to find the right local partner at an early stage, that one company cannot cover the entire world, so we have to assign a person in charge within the company to develop the business horizontally (gradually build up international sales channels).

Know-how is required for creating an internal organization, exhibiting overseas, and signing international contracts, so hiring an international expansion consultant or someone with expatriate experience as an advisor is faster and more efficient than repeating trial and error on your own without any guidelines.

However, if the product is “extremely easy to handle” and can be sold even if international sales are outsourced, then outsourcing the international sales itself is an option.

For example, products that do not require overseas specifications to be changed for international markets, do not require explanation or training for overseas distributors, can be sold based on specifications and model numbers alone, are less expensive than Chinese products, or are unique in the world in terms of technology (although such products are rare).

For those who do not know how to choose an international expansion consultant

The first step is to clarify what your company lacks, rather than hiring an international expansion consultant out of the blue.

Does your company lack tools for international expansion, human resources, or both?
Generally speaking, if you lack human resources, you also lack the (appropriate) tools for international expansion.

If you have all the tools for international expansion, but lack only human resources, this means that until recently you had a person in charge of international operations in your company and were making some progress in your international business.
If this is not the case, the first priority is to secure human resources.

For example, we can secure human resources for international expansion by: ・Recruiting people from within the company who are willing to work on International expansion
・Hiring people with experience in international sales in mid-career.

If you have secured internal human resources, but do not feel comfortable entrusting them to a single person, or if you feel that you need to reinforce their abilities, you may wish to:
・ Receive global human resources training (pre-deployment training, cross-cultural gap understanding courses, etc.)
・Ask an international expansion consultant to accompany you in setting up your business.

When bringing in an international expansion consultant, it is best to ask someone who has experience in both international business at a business company and experience in supporting the management of small and medium-sized companies.
Then you can expect support that is tailored to your needs.

When hiring a mid-career international sales person, it is better to hire someone who has experience and a proven track record in new business development, rather than someone with route sales or existing sales experience, as they are more likely to produce results.

Tools for international expansion are the following items that will be needed step by step when advancing international expansion (exporting and investment), negotiations, and contracts with foreign companies.

While there are some cases that can be outsourced, there are others that can be managed in-house if one works hard enough.
While an international website is essential for any company, other tools may or may not be necessary, depending on the overseas business that each company is aiming for.

【Examples of tools for international expansion】
(tools) / (provider of finished product or party to accompany until completion) Overseas
business strategy planning / overseas expansion consulting company
Overseas market research / research company, overseas expansion consulting company Overseas
customer candidate list / research company, overseas expansion consulting company
Overseas branding / Overseas branding support companies
Overseas websites / Overseas web production companiess
Overseas web marketing / Advertising agencies, overseas web marketing companies
Overseas SNS management / Advertising agencies, overseas SNS marketing companies
International exhibition participation / Overseas organizer agency, International expansion consulting company

If all your company lacks is the above tools, and if you have the personnel in-house who can use the tools if they are available, then finding a service provider that fits your company’s needs will bring you much closer to international expansion.

In this case, it is advisable to check each company’s website for past results, inquire based on customer testimonials and select those that are similar to your company in terms of problems, case studies, and company size, and after you have compiled some of the necessary specifications for your company, ask each company to submit proposals and carefully compare them.

If you are concerned about putting together the specifications for the “tools” you need on your own because you lack both “tools” and “human resources,” or if you want to be able to expand internationally on your own as your ultimate goal, or if you want to become “self-sufficient” in international expansion, please contact Paccloa.

We will work with you to determine whether your products and services can be sold overseas and to explore the possibilities of doing business locally.

For those who want to make international expansion with only a website, without exhibiting internationally or conducting international sales

Consulting with a web production company first is actually not the right first action.

Research international competitors on your own as well, and have a specific site image in mind before making a request.

Have you ever been concerned about whether web production can really produce an international website for your company when you are told the following by them?

We will not check the English translation, but our partner company will handle it. We have no experience in international website design, but we will google search for international companies and make a rough draft for you. We will need a monthly contract after the site is completed in order to actually increase the number of international visitors, but we cannot promise a higher ranking.

However, if you think about it, most Japanese web production companies are small to medium-sized companies whose clients are domestic companies, and they have no experience in international expansion.

It is somewhat unreasonable to ask a vendor with little experience in doing business with international companies to produce tools that will work in international markets. The first step to success is to realize that someone needs to make up for that lack of experience with something.

For example,
・Consulting with a printer manufacturer about wifi connection problems,
・Consulting with an Internet banking service about security software settings and interference problems,
・Requesting a Japanese printing company or advertising agency to translate catalogs and banner stands to be used at an international exhibition, etc.
These are all unprofessional consultations that are not normally handled by the vendor.

If the vendor is able to provide services other than “website construction,” it is only if they also provide the following services:
・Research on international competitors’ websites
・Survey on XX industry for building cross-border e-commerce sites
・English copywriting, localized writing.

Or, only if you clearly state that you will produce an international website including those items.

If none of the above is the case, it is necessary, for example, to research international competitors on your own, and make an effort* to communicate specific requests to international customers, such as what to show them and how to attract them.

*One of these efforts is to organize and summarize specifications and thoughts in a request form called an RFP and submit it to the web vendor.

International Web Request for Proposals RFP [Word].

For international expansion through a website alone, since the website is the only point of contact with customers, it is even more necessary to build an international website that can attract customers with a high degree of certainty.

If you do not want to make a mistake in creating an international website, but you feel that you are not able to finalize your specific requirements on your own, please contact Paccloa.

For those who want to expand internationally, but would like to consult across the business without separating domestic and international, real and web businesses.

It is very important to have a sense of speed in one place, both domestic and international, real and web. Choose a general counsel who can “do” both.

However, even if you want to select a general counsel who can “do” both, the reality is that such a person or company is hard to find.

Let’s continue talking about websites, for example,

When renewing a website, it is better to create an English website first, and then translate it into Japanese, in that order, so that logical content can be created and fewer redos are needed,
Wouldn’t it be easier if, when signing a contract or negotiating actual business with an international company, the consultant could give you this kind of web marketing advice at the same time?

Whether it is domestic or international, real or web-based, will soon be connected in doing business, so a one-stop service is essential.

In order to promote international business, an understanding of the business model (monetization and future potential) of the company’s domestic business is essential in the first place.

By resolving issues across domestic and international operations, you can reduce the time and cost of return, increase the spillover/synergy effect on domestic operations through International expansion, and connect the Web and the real world.

All of these things are necessary for a growing SME, and an able chief strategist will run with you.

Before developing a new product, exhibiting at a trade show, or making a major decision, please consult with a trusted advisor (so that you do not have to re-create the same product for an international market). If you do not have such a person around you, please contact Paccloa.

For those who have already set aside a budget of several million yen per year for international expansion, but are complete beginners and do not know how to proceed.

First, get an idea of what international expansion looks like and get inspired to take action.

However, do not suddenly go international without preparation. Preparation is 90% of the key to international expansion.

For example, Paccloa offers a 15-20 page “International Expansion Feasibility Assessment” for 110,000 yen (tax included), which is a concrete proposal that outlines what your company’s international expansion could look like if it were to succeed, and what kinds of international expansion you should avoid. (We will ask you to fill out two forms in advance.)

The “International Expansion Feasibility Assessment” will also provide you with specific percentages of the likelihood of international expansion.
If the likelihood is low, there are things that need to be done before international expansion, and we will provide advice on how to resolve those issues.

If you anticipate the possibility of international expansion, we will explain our “on-the-job training support” service, which will help you acquire the necessary skills for international expansion, and present you with a schedule plan, which we encourage you to carefully consider.

Currently expanding internationally

For those who are (or have been) working on various initiatives for international expansion, but are at a standstill.

Choose a completely different solution than you have in the past!

The various efforts we have made on our own regarding international expansion have not been in vain.
This experience will definitely help you in the future. We are confident that this experience will be useful to us in the future, as we have gone through a great deal of trial and error to figure out what to do and how to do it for international expansion.

I just have one question.

Is your domestic business currently doing well, are sales growing each year, or do you have firm plans to grow in the future?

If your domestic business continues to grow and remain stable, but only your International expansion is not performing well, you may be lacking an objective perspective on the international market.

Companies tend to focus on selling what they want to sell, but it may be a good idea to reexamine whether there really are (and still are) needs of international customers and whether they are correctly grasping the problems of international customers, and once again choose a completely different solution than the one they have been using.

On the other hand, if there is uncertainty about the future of the domestic business, the first step is to eliminate that uncertainty.
International expansion will not proceed smoothly if there is still a seed of uncertainty.

As a practical matter, international expansion costs several million yen per year (not including labor costs). (Not including labor costs)
If there is uncertainty about the domestic business, sales are flat at best, and the upfront investment for international expansion continues, no matter how great the products and services are, it is impossible to give them your full attention.

We recommend that you first work on strengthening your domestic business and then make your international expansion with full confidence.

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