An expansion only makes sense if it can contribute to achieve more turnover, profit, or market share – or in the best case to all the three critical success factors.
An expansion only makes sense if it can contribute to achieve more turnover, profit, or market share – or in the best case to all the three critical success factors.
1. Assessment of Financial Triggers
We will help you to calculate a financial forecast to figure out, whether an expansion makes sense or not. In that, we will include the main triggers market share, profitability and turnover.
Bear in mind though that an expansion not only gives you the opportunity to save costs, but also to attract new talent, optimize your customer service level, or being closer to your customers and enter new markets.
Any expansion must be well thought through as it should be a long-term investment.
you want to calculate a financial forecast whether an expansion to Mexico makes sense?
Get in touch with us and we will discuss in a meeting how we would calculate your financial forecast.
Contact Us1. Assessment of Financial Triggers
Any expansion must be well thought through as it should be a long-term investment.
We will help you to calculate a financial forecast to figure out, whether an expansion makes sense or not. In that, we will include the main triggers market share, profitability and turnover.
Bear in mind though that an expansion not only gives you the opportunity to save costs, but also to attract new talent, optimize your customer service level, or being closer to your customers and enter new markets.
you want to calculate a financial forecast whether an expansion to Mexico makes sense?
Get in touch with us and we will discuss in a meeting how we would calculate your financial forecast.
Contact Us2. Financial Service - Quantitative Factors of an Expansion
Together, we will make a cost estimation and calculate a detailed forecast respectively create a cash flow, balance sheet and profit/loss statement with the scenario of an expansion.
Labor Costs
We calculate all the necessary labor costs which will occur with an expansion. In Mexico, the workforce is up to 10x cheaper than in the United States with the same qualifications.
Tax Costs
In the financial forecast, we will also see how much money can be saved through the tax advantage of Mexico, called the Immex program.
Financial Forecast
Together, we work out a detailed 5-year plan including the current year. We will then compare it to your actual forecast which will give us a conclusion whether an expansion make senses or not.
Asset Costs
Mexico has a modern and cheap infrastructure. We will show you how much you have to pay for rent, logistics, or offices.
Initialization Costs
Be aware that you need a significant amount of money to do the setup of the company; rent, lawyer, employees, transfer machines, training, etc. Read more below abou that subject.
Freight Cost
Freight cost should not be underestimated when you undertake an expansion. You also have to take into consideration that we need a freight and logistic partner which will also generate cost.
Yearly Budget
Preparing a detailed, yearly budget plan is a critical success factor as you can compare different financial factors with your actual budget numbers.
Liquidity
We will calculate what liquidity is needed to run the operations in Mexico.
2. Financial Service - Quantitative Factors of an Expansion
Together, we will make a cost estimation and calculate a detailed forecast respectively create a cash flow, balance sheet and profit/loss statement with the scenario of an expansion.
Labor Costs
We calculate all the necessary labor costs which will occur with an expansion. In Mexico, the workforce is up to 10x cheaper than in the United States with the same qualifications.
Tax Costs
In the financial forecast, we will also see how much money can be saved through the tax advantage of Mexico, called the Immex program.
Financial Forecast
Together, we work out a detailed 5-year plan including the current year. We will then compare it to your actual forecast which will give us a conclusion whether an expansion make senses or not.
Asset Costs
Mexico has a modern and cheap infrastructure. We will show you how much you have to pay for rent, logistics, or offices.
Initialization Costs
Be aware that you need a significant amount of money to do the setup of the company; rent, lawyer, employees, transfer machines, training, etc. Read more below abou that subject.
Freight Cost
Freight cost should not be underestimated when you undertake an expansion. You also have to take into consideration that we need a freight and logistic partner which will also generate cost.
Yearly Budget
Preparing a detailed, yearly budget plan is a critical success factor as you can compare different financial factors with your actual budget numbers.
Liquidity
We will calculate what liquidity is needed to run the operations in Mexico.
3. Financial Service - Qualitative Factors of an Expansion
An expansion offers you a lot of new opportunities; you will not only have a higher turnover, profitablity or market share but you will also increase the quality of your customer service.
With an expansion, you should not only take into the consideration the financial aspects but also qualitative.
Breaking Language & Cultural Bridge
By setting up your company in Mexico, you will hire people who have the knowledge of the language and culture. This will help you to avoid missunderstandings with your clients oversea and improving your customer service level.
Supply Chain / Distribution Center
As you are settled down on the same continent as your client or supplier, you increase your efficiency in the supply chain.
Faster Return Service
Beside saving costs through cheaper infrastructure and low return time, having a warehouse close to your customers means also being faster and higher efficiency with your return service.
24h availability
You will avoid the time differences and ensure to be available 24/7 – the whole year.
3. Financial Service - Qualitative Factors of an Expansion
An expansion offers you a lot of new opportunities; you will not only have a higher turnover, profitablity or market share but you will also increase the quality of your customer service.
With an expansion, you should not only take into the consideration the financial aspects but also qualitative.
Breaking Language & Cultural Bridge
By setting up your company in Mexico, you will hire people who have the knowledge of the language and culture. This will help you to avoid missunderstandings with your clients oversea and improving your customer service level.
Supply Chain / Distribution Center
As you are settled down on the same continent as your client or supplier, you increase your efficiency in the supply chain.
Faster Return Service
Beside saving costs through cheaper infrastructure and low return time, having a warehouse close to your customers means also being faster and higher efficiency with your return service.
24h availability
You will avoid the time differences and ensure to be available 24/7 – the whole year.
4. Initialization costs
The set up costs should not be underestimated in an expansion process as there are many factors which have to taken in mind. We have listed up some costs which (might) occur:
- Advertising costs to find employees
- Business investigation expenses such as surveys, market studies, and consultants' fees;
- Accounting and legal fees that are not organizational costs;
- Travel and other expenses incurred in lining up prospective distributors, suppliers, or customers; and
- Salaries and wages paid to trainee employees and their instructors;
- Founding the company, licenses, legal aspects
- Preopening advertising and promotional efforts;
- Salaries, employee benefits, insurance, and overhead;
- Preopening repair and maintenance of capital assets to be used in the business;
- Employee training;
- Costs of expanding (machines, raw material, assets)
- Salaries or fees paid or incurred for executives, consultants, and professional services.
- Rent and utilities for space maintained in the preopening phase; and
- Travel and entertainment (for efforts to find a location, to secure suppliers or customers, etc.);
- Mortgage standby commitment fees to ensure financing for the new venture;
4. Initialization costs
The set up costs should not be underestimated in an expansion process as there are many factors which have to taken in mind. We have listed up some costs which (might) occur:
- Advertising costs to find employees
- Business investigation expenses such as surveys, market studies, and consultants' fees;
- Accounting and legal fees that are not organizational costs;
- Travel and other expenses incurred in lining up prospective distributors, suppliers, or customers; and
- Salaries and wages paid to trainee employees and their instructors;
- Founding the company, licenses, legal aspects
- Preopening advertising and promotional efforts;
- Salaries, employee benefits, insurance, and overhead;
- Preopening repair and maintenance of capital assets to be used in the business;
- Employee training;
- Costs of expanding (machines, raw material, assets)
- Salaries or fees paid or incurred for executives, consultants, and professional services.
- Rent and utilities for space maintained in the preopening phase; and
- Travel and entertainment (for efforts to find a location, to secure suppliers or customers, etc.);
- Mortgage standby commitment fees to ensure financing for the new venture;
by VOCSO
