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Beginner’s Guide on Starting a Retail Business in Malaysia
Malaysia is home to more than 31 million people. With the huge population, there is a lot of opportunity for the investor in the retail sector. However, before you can go about starting a retail business here in Malaysia, there are a few things you need to sort out first. For one, mapping out your business strategy must begin even before starting the Malaysia company registration process.
A business strategy is a blueprint that will guide your business throughout the duration of its operation. Think of it as a map that you chart toward your business goals and successes. You need to be precise and add as much information as you go when you’re mapping out the details of your business. Your plan will give you clarity on what you want and what you do not want in your business.
Once you’ve detailed your business strategy, it’s time to move on to the other key steps below.
What the Retail Business Involves
A retail business is any business that sells a product or service to a consumer. The sale of the goods or services can take place through a number of channels. Some of these channels include face-to-face sales in person at the store, online sales, and even sales made through social media channels. In recent years, online sales and social media channels have become the preferred way for the majority of customers to shop.
Some examples of a retail business include department stores, grocery stores, warehouses, and online retailers. A sale in a retail business is considered successful when a customer exchanges cash for the goods or services they purchase. A lot of the success for a retail business comes from the ability to correctly identify your target audience. This should be completed during the business strategy portion of your preparation.
A business must correctly identify its target customer base. This step is essential not only to sell your products but also to ensure a firm two-way relationship between you and your prospective clients. When you reach this stage, be sure to study the demographics of the people in Malaysia, their background and economic status, age range and so on. This will help you to set reasonable pricing accordingly and be within your audience’s reach.
A retail business must also dabble in a little bit of branding. When you promote yourself to your audience, make sure to have a strong marketing plan to back it up. Branding is probably one, if not the most crucial aspect that will help you to increase customer recognition and enhance reachability. Not only that but branding also makes your product and company stand out from the rest and gives it a competitive edge. Your brand will showcase what you have to offer, and why should the audience give you a chance. Make no mistake in overlooking branding. Create, define and exponentiate your brand.
The Business Registration Process in Malaysia
Starting a retail business in Malaysia can only be accomplished if you register your business with the Companies Commission Malaysia (SSM). It is mandatory for all businesses to be registered with the SSM to be considered a legal entity in Malaysia. Thus, if you don’t register, you will be at risk of operating illegally in the country.
Company registration in Malaysia also requires a minimum of two resident directors who must be at least 18 years or older. These individuals must not have been declared bankrupt in the past.
Foreign investors benefit greatly from the help of experienced corporate service provider specialists like 3E Accounting. That is because trying to set up a business in a foreign country can bring with it a lot of unexpected things that you might not have been fully prepared for if you don’t know the local market well.
The Licenses and Permits You Need
Once you have successfully completed your Malaysia company incorporation, it is time to look at the necessary licenses and permits. Since the retail business can involve a broad scope of business types, you might require several business licenses and permits. This would depend on the nature of your business. 3E Accounting will be able to go over this in greater detail once we know the nature of your business.
There are two areas of licenses you will be looking at for your retail business. One is the general business licenses and the other is industry-specific licenses types. You can obtain General Licenses from local town councils. Industry-specific licenses would be issued by government ministries. Some examples of general license types include Business Premise Licenses and Signboard Licenses.
Setting up a retail outlet business in Malaysia, if done right will bear you great results. Even better results are waiting for you if you choose to start a retail business with 3E Accounting. For more information about our company incorporation services and more, contact us today.