More than half of the Fortune 500 companies are using offshore companies to their advantage. Unfortunately, a lot of press around this topic is related to government authorities fighting tax evasion practices but this shouldn’t discourage someone from thinking big – going global.

Going Global: Why would you want to register an offshore company?

The benefits of going offshore are simple:

• legitimately lower tax burden
• better asset protection
• and/or greater confidentiality

Keep in mind that tax savings strategies can come entirely from legal methods of reducing one’s tax burden. The illegal methods, known as ‘tax evasion’, have become ineffective in recent years, as tax authorities around the world and the OECD have worked to crack down on evaders.

Using an experienced corporate service firm can help avoid any issues as they will know the procedures and due diligence requirements to ensure that all legal obligations are met in your home country and the offshore jurisdiction.

What about ‘tax havens’?

‘Tax haven’ has never been a legal term. It’s a colloquial term referring to jurisdictions that have gained a reputation as top destinations for setting up an offshore company and international bank accounts.

The labeling of jurisdictions as ‘tax havens’ almost seems arbitrary, as the Cayman Islands and Switzerland are repeatedly slandered with the term, while equally favorable jurisdictions like Dubai don’t receive the same attention. The term is falling out of favour, but in general, the term is used to refer to jurisdictions that offer low, or no tax.

Which country offers the best benefits for registering an offshore company?

This question has multiple answers and really depends on an individual’s situation and company’s business objectives. However, the most appealing destinations tend to be in Asia/Middle East, with Dubai, Singapore, and Hong Kong being some of the most popular choices for entrepreneurs who are going global to expand their business.

Great business environments, competitive tax rates, startup incentives, and top-notch infrastructure all contribute to these three jurisdictions being an excellent choice for someone wishing to go global with their business.

Why do governments allow offshore companies to be incorporated in their jurisdiction?

Short answer: it’s good for business and their economy.

• Offshore companies are a great source of foreign investment, bringing large amounts of foreign income into the country. The capital brought in allows for improved infrastructure, which stimulates the economy and creates jobs.
• It’s for these reasons that governments work to implement double taxation treaties to directly support offshore company registration. Even the US government, which has stated a desire to curb offshore investment, has over 60 double taxation treaties in place.

Are offshore companies used for illegal purposes?

If an entrepreneur was intent on lowering their tax burden by illegal means (hiding assets), it is definitely possible. However, the majority of offshore companies are used for legal purposes as they can still be beneficial without the risk or hassle.

Is owning an offshore company illegal?

There is nothing illegal about owning an offshore company. Owning shares in a local company is no different than owning shares in an offshore company. While some governments tax transfer of capital to offshore locations, effective tax planning can make this negligible compared to the benefits of the offshore investment.

Is there more than one type of offshore company?

Several jurisdictions have their own names for this type of company.

For example, they are called International Business Companies (IBC) in the Seychelles. Non-resident companies, special license companies and business companies are all commonly used names as well. They all share the same key qualities: they are their own entities, capable of having assets and receiving income.

Going global is not a decision to be taken lightly.  Registering a company in an overseas jurisdiction and opening an international bank account can be done easy enough but it should be researched to determine if it is the ideal strategy to meet business objectives such as expanding to foreign jurisdictions, improving efficiency of international operations, asset protection and more.

Engaging the services of an experienced agent has the advantage of using their knowledge and experience of offshore markets, international tax and company laws to help prevent issues arising. It also helps make the process of going global a smooth one and ultimately a long-term one.

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Tweak Your Biz: An international business community with roots in Ireland

Tweak Your Biz  (formally Bloggertone) started out as an Irish online business community and in a few years has gone on to become one of the largest and most respected International small business communities on the internet.

10 Reasons to write for Tweak Your Biz in 2013

• The site passed 100,000 unique visits per month - during December, 2012.
• The average time that people now spend on the site has doubled in the last year from just over 5 minutes to now over 10 minutes. Or putting it another way, businesses are now spending 16,667 hours on TweakYourBiz.com every month.
• Our content reaches every corner of the globe. We have readers from North and South America, Europe, Asia, Australia, Africa and in every major city, the world over.
• Articles on Tweak Your Biz get read by 1000′s of businesses and are regularly featured by the New York Times, Business Insider and SmallBizTrends, to name but a few.
• Tweak Your Biz content get 10,000′s of shares across all the main social media including LinkedIn, Twitter, Facebook, Google+ and Pinterest.
• When you write for us, you also get submitted to our sister site. BizSugar is an award winning small business social media site that has a community of over 500,000 members.
• Sage are our sponsors, we have a great new managing editor, and our leader Anita Campbell is one of the most successful independent online publishers in the world.
• And remember, unlike some of the other big guest article business sites, we’re not an exclusive club. So long as you provide valuable content for our readers and play an active part in our community, we will publish your content and support you in growing your business.
• Our contributors are successively building their brands, getting new clients and growing their sales as a result of their Tweak Your Biz content and participation. I’ve personally secured over $250,000 in new contracts from Tweak Your Biz  in the last 6 months.
• It’s a fantastic free opportunity. So if you haven’t written for us already – what are you waiting for?

Some of the places Tweak Your Biz authors have featured recently!

Related: How To Be Irish On St Patrick’s Day. Even If You’re Not!

6 steps to tap the POWER of Tweak Your Biz

1. Read our blogging for business guide. [Pay close attention to how we like Titles, SEO and Formatting]
2. Sign up for Tweak Your Biz. [Ensure that your e-mail is associated with a Gravatar]
3. If you are approved to write for the site, you will be sent your log in details and a confirmation e-mail for each section you requested. Make sure you click on the link in the emails to confirm. [If you haven’t used WordPress, we recommend that you familiarize yourself with the platform]
4. Fill out your Bio. [Include your website and social media channels]
5. Submit your first business article. [500 words, must be original content and not self promotional. See our F.A.Q.s & Content Guidelines]
6. Once your post is published share it on your social media channels. Also share and comment on other posts you see on Tweak Your Biz and you’ll soon become part of the community and your generosity will be reciprocated.

Happy Saint Patrick’s Day from all at Tweak Your Biz!

Related: With the ‘Gift of the Gab’ The Irish Were Great Social Networkers Long Before Facebook Or Twitter

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Why form a company in Australia?

Australia is the perfect example of consistent strong economic growth, boasting an adjusted GDP per capita of US$39,721 – higher than Germany, the UK, France and Japan. Australia benefits greatly from a highly developed financial sector that provides stability through its well regulated banking system. This perfect storm of competitiveness, location and stability has made Australia a highly sought jurisdiction for foreign direct investment.

How do you set up a company in Australia?

The first step to company registration in Australia is to choose between a public company and a proprietary Limited company, the two most popular Public companies require a minimum of 3 appointed directors, and at least 2 of the directors must be Australia residents, in addition to a company secretary residing in Australia. Proprietary Limited (Pty Ltd) companies only need one director and member, though the director still needs to be an Australia resident.

The next step is to contact the Australian Securities and Investments Commission (ASIC) to confirm that your desired company name is available and, if so, to reserve it. Company name reservations last for two months, so company formation should be completed within that time frame.

The final step is to register with all of the authorities required by the Australian Corporations act. Companies must register for an Australian Business Number (ABN), which is used to identify your company in any business transactions and on invoices. Companies must also be registered with the ASIC. Finally, the company must register for Goods and Services Tax (GST), assuming the company meets the GST turnover limit of $75,000 or more.

What tax considerations should be made?

There are three major tax considerations that need to be made.

1. The first is the Tax File Number (TFN), a unique reference number given by the Tax Office that quotes the tax office when the company applies for an ABN or when they first file tax returns. The TFN is not mandatory, but it makes the entire tax monitoring process significantly easier.
2. The second is the pay-roll tax, a State tax placed on the wages paid out to employees. As this rate directly affects employers, and the rate and exemption limits differ between states, entrepreneurs should find a suitable tax professional for advice on how best to manage this tax.
3. Finally is the pay-as-you-go withholding tax, which legally requires companies to withhold certain amounts from payments employers make to their employees. The ABN is particularly useful, as companies must withhold amounts when paying other companies unless the ABN is quoted in the invoice. These withheld amounts must be paid to the Tax Office.

It may be known as the land down under, but it is a major global business hub. Company incorporation in Australia is not so difficult, but regulations can differ from state to state and a professional services firm is needed to help determine the best pathway to taking advantage of the immense benefits provided by Australia as a jurisdiction. A savvy entrepreneur investing in Australia with the assistance of the right global services provider can quickly and efficiently form a company capable of effectively meeting any desired business objectives.

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With the world growing smaller by the day because of new technology it means we can deal with other countries as though they were just down the road. Therefore Tweak Your Biz believes it is very important to understand the different cultures and needs of our global readership. We would also welcome new contributors from Asia-Pacific so please do get in touch.

The following collection of posts have been written by our contributors with the Far East in mind however we would like to know what business topics matter more to you in the Far East; perhaps what challenges that are faced that Europeans may take for granted over here.

Doing Business In Singapore A recently new contributor to Tweak Your Biz, Aidan Healy is originally from Ireland but now living in Singapore. A chartered accountant he now focusses on setting up businesses abroad, especially in Singapore and Asia, and he highlights the advantages in forming a company in the thriving Singapore. From company formation to location, visas to business cultures, Aidan explains everything you need to know.

What The Year Of The Snake Could Predict: 8 Best Practice Tips For Business  One of our regular contributors is Elish Bul-Godley who describes herself as “A 3rd Generation descendant of the Irish Diaspora born in Singapore, now in Dublin. Someone who has negotiated the Cultural changes when migrating from Singapore to Ireland, with a strong sense of her Far Eastern origins and Irish Roots.”  Elish recently wrote about the Year of the Snake and the comparisons that can be made with business, providing some great “snake smarts” that even I, being petrified of snakes, can acknowledge are very clever.

6 Ways To Handle Opaque And Fast Changing Sales Environments In Asia Sylvain Lejeune lives in Singapore and wrote this great piece for Tweak Your Biz about ways to be successful in selling within Asia and understanding the different cultures – the pros and cons to look out for. The different culture can be a barrier to business and Sylvian points these barriers out and how to get over them to create a successful business relationship.

What You Need To Know About Chinese Markets: Insight From CBi China Bridge Another post from Elish highlights how Western businesses need to understand Chinese customers and companies in order to develop business between East and West. Elish uses insights from Cathy Huang of CBi China Bridge from a talk that she gave in Dublin last year.

Can You Close Your B2B Sales Engagements On Relationships Alone In Asia?  And finally another insightful post from Sylvain explaining the best ways to deal with businesses in Asia and how strong relationships are key to succeeding. As with all business a good working relationship is important but Sylvain explains how it is even more vital in Asia and how to achieve this successfully. Ensuring you have a strong business case and quick payback time are the most valuable factors according to Sylvain.

I hope you’ve enjoyed the above posts and we’d like to wish you prosperity, longevity and good luck. May you be happy and prosperous, “Gong xi Fa Chai”.

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Images:  ”Snake Calligraphy, Chinese New Year 2013 Translation: 2013 / Shutterstock.com“

Warm to the touch and quite timid in real life; the snake is known as keen and cunning, intelligent and wise in Chinese lore. You may agree or disagree. Either way have fun with this fresh look at the year ahead based on the Far Eastern attributes of the Snake.  See if it fits with your plans!

Guido Mocafico’s Magnificent Rectangular Serpents taken from thisiscolossal.com

Best Practice Tips from the Year of the Snake

In 2013; the year of the calm Water Snake could be a welcome cooling antidote to the the fiery tumultuous, game-changing Year of the Dragon, we have all just endured.

A welcome Yin to last year’s Yang.

It arrives at the time when the whole world awaits eagerly for the first shoots of growth. How will you prepare your business for this next phase?

Here’s my take on what the Year of the Snake suggests:

Snake Smarts 1

The year of the Dragon in your part of the world may have shook things up, led to lots of new ventures or resulted in the creative destruction of your old status quo.

• The year of the Snake suggests its a good time for some remedial steady progress – engaging in some R&D or investing in innovation and technology in a deliberate yet forward looking manner.
• It suggests lasting solutions not quick fixes this year.

Snake Smarts 2

It is said those born in the year of the Snake can be influential and insightful. The deliberate and careful snake thinks awhile before jumping into things.

• A reminder to businesses to assess carefully the events of 2012 especially if you believe them to be game changing.
• Apply some planning to future ventures this year.
• It is said this is a good year for carrying out detailed, logical work and risk assessment.

It is also the Year of the Black  Snake – implying inscrutable and uncharted waters. all the more reason to tread carefully

Snake Smarts 3

The Water Snake can also be a vibrant influence.

• The cooling water element implies its a good time for education, training and up-skilling as we try to emerge from the last few years of immense change and re-position in this new landscape.
• We may have let some people go and consolidated our costs last year – now we have to use what we have left in the most effective way possible using innovation, focus and discipline.
• Snakes shed off adversity like old skin and can be self reliant in this respect.

Snake Smarts 4

Snakes don’t attack unless disturbed or hungry. The Snake is unassuming, efficient and low key

• Down to the bone, we need to avoid extemporaneous spending or extravagant behaviour. Diving right into decisions without weighing consequences, can cause financial ruin when you have few resources to spare. The worst nightmare for any business this year would be jumping head first into a financial deal or a buying spree.
• It’s time for streamlining – look at maximising what you already have, intelligently.

Snake Smarts 5

How DO you maximise scarce resources? Snakes can be sneaky, remember the term “snake in the grass”? Not always negative thing in my books. They look for loopholes and find routes that are not clearly visible.

• You should be re-imagining your marketing campaigns with some guerrilla low cost behaviour,
• checking your finances for hidden sustainable ways to save,
• collaborate with people you may not have considered in the past or
• exploit new uses for your product or services offering.

Snake Smarts 6

Snakes have a forked tongue and that can be seen as threatening. They are considered introspective and intellectual yet are good communicators. A combination of qualities that could make one misunderstood and isolated in terms of personal relationships.

• Watch your words, be expedient in what you say and communicate with clarity in the year ahead.
• 2013 should be about rebuilding and this extends to relationships that need to be fostered and cultivated like your stakeholders, partners and alliances who have stood by you in the challenging times.

Snake Smarts 7

Snakes are considered refined, cultured and elegant. Perhaps a case of understanding now more than ever, that Less is really more.  That its worth aiming for a higher mutual good when doing business.

• Having less is the mother of invention, the jump start to sustainable design.
• Its a call for a more socially intelligent way of doing business that seeks to foster communities and safeguard the environment whilst also generating profit.

Snake Smarts 8

Last but not least Snakes are quite sexy creatures because they are mysterious and sometimes deadly. They don’t strike often but when they do its decisive and wastes no time.

• Make sure your business plan this year has reserves and contingencies that allow you to strike at opportune moments.
• As far as your customers are concerned – make sure they keep coming back for more as you tease them with a better offering.

And as for being sexy….I’ll let you figure that one out.

Do any of these pointers resonate with you or do you have a different interpretation of the year of the Snake? I am curious to find out as this year unfolds.

Gong Xi Fa Chai! Gung Hay Fat Choy!

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If you remember Wall Street; that celluloid homáge to Capitalism, you may remember one of its best quotes taken from Chinese philosopher Sun Tzu :

“If your enemy is superior, evade him”

Read on to discover the key elements in this priceless handbook on strategic and tactical thinking.

Business Strategy Lessons from The Art of War by Sun Tzu

Master Business Strategy with 13 Tactics from The Art of War

# 1. The Laying of Plans, Calculations and Estimations

The Book states: before any steps are taken, research and planning are the key to any venture. My Interpretation? Any blueprint or business plan has to be compiled with reference to 5 basic points:

• Seasonal Factors and Timing
• Landscape or Operational Terrain,
• Leadership Qualities – wisdom, sincerity, benevolence, courage and strictness
• Management skills – covering logistics, methodology and organizational structure
• Moral Law  – The Way of the World and the Laws of human Nature.

This strategy handbook proceeds to lay out 7 methods for forecasting based on your capabilities these factors. In short it calls for a SWOT Analysis .

Here, it also calls for leaders to adhere to classic principles in Project Management.  It advises you to have awareness of your capabilities and surroundings, adjust your plans to suit your resources, and track or monitor your operations against possible deviation from the original plan.  Get back on track as quickly as possible, he says.

Once plans are in operation we have to outwit our competition by not betraying our course and be subtle in our direction. One of the most succinct quotes from this treatise says:

“All warfare is based on deception.”

# 2. Waging War – The Challenge

The next segment focuses on the importance of decisive behaviour, correct timing and economy in your actions. Before embarking in any ventures, we can minimize challenges, conflict and ensuing costs by:

• Focusing on the Logistics of any plan and prevent over-extension of your company’s resources.
• Maintaining organizational Morale and keeping the “Troops” motivated and well resourced.
• Sun Tzu provides us with a clever tip – If you are low on resources and want to save: focus more on exploiting your competitor’s weakness rather than throwing more cash/resources at the problem.
• Consider the wisdom of having effective Exit strategies in place if something does not work.  That reminds me of the (Colin) Powell Doctrine.

My favourite takeaway here is something all marketeers can relate to:

“let your main object be victory, not lengthy drawn-out campaigns. “

# 3. Attack by Stratagem or Planning Offensives

Here Sun Tzu echoes that old adage, its Not Size but Unity that determines strength and organizational effectiveness. He makes that now-famous quote:

“the skillful leader subdues the enemy’s troops without any fighting”

In other words, avoid competing head on and avoid using up resources directly against competitors. Aim instead for excellence so that no other organisation would even dare compete. In short, create a  natural Monopoly.

How?

• In a business environment, I interpret this as taking the initiative and being first to market or innovate. Engage a pre-emptive “attack” on your competitors with your superior offering thus demotivating any would-be contenders with your superior market share. Invent the most innovative product, process, occupy new territory or be the first to secure the marketplace.

• Failing that, “Surround them” assuming you have adequate resources to cover the market and try for a Me-too approach.
• If you have insufficient resources, a Divide and Conquer approach maywork. Segment the market or break your problem into parts and attack each individually.
• Failing that – your only option is to meet your (enemy) competitor head on. In business terms I interpret this  as a potential Price war.
• Failing that you will be forced into a Siege Mentality which is costly for both attacker and the attacked.
• Once you run out of resources, will have to Retreat or drop out of the market – become the victim of shake-out.

A Chinese bamboo book – copy of “The Art of War ” (on the cover, “孫子兵法”) by Sun Tzu. Taken from Wikipedia

Sun Tzu also points out ways you can really screw things up as a leader:

• Having insufficient vision and a poor overview of the situation.
• This resultsin using the incorrect amount of resources or methods to meet the right challenges.
• Not being decisive or flexible enough to exploit opportunities – not knowing when to act / when not to act
• Running an organization that does not have the means to respond to your directives & isn’t able to act on its own initiative when required.  Recruiting of decisive and strong management is essential here.
• Conversely, not communicating your Goals clearly and leaving your team to their own devices – the mark of a poor leader who has an undisciplined team.
• Poor human resource management skills that utilize the wrong people for the wrong task, the inability to motivate your team or facilitate it.

In other words:

“If you know neither the enemy nor yourself, you will succumb in every battle”

# 4. Tactical Dispositions or Positioning

This phase of his treatise emphasises Defensive behaviour;  securing and consolidating the resources you have and using them effectively as a solid base for exploiting new opportunities when they occur. I see this as a reminder to business to get yourr housekeeping in order, be efficient and lean cost-wise. Have insurance or fail-safes before embarking on anything new or risky.

This  line says it all:

“One may KNOW how to conquer without being able to DO it”

# 5. Energy & Direction

This Chapter is about capturing momentum and synergy.

“The quality of decision is like the well-timed swoop of a falcon which enables it to strike and destroy its victim.”

Sun Tzu outlines Direct and Indirect / Subtle methods of accomplishing your mission or let us call them obvious versus not-so-obvious downright sneaky methods.  He encourages us to use these 2 approaches creatively and in tandem.

Being able to alternate methods generates momentum and ensures sustainable results.

Tips on how to “win” the battle include

• The Element of Surprise
• Deception: Masking your true strength when trying to outflank or outwit your  “opponent”
• Using Bait to outwit your oppononents and draw their true intentions and positions.
• Not relying on any one person but instead focusing on the discipline and unity of your team.

# 6. Weak Points and Strong / Illusion versus Reality

Here Sun Tzu helps us spot the best opportunities for attack, how to spot weaknesses in your opponent and position yourself in the most advantageous way. In business terms, I interperate his advice as follows:

• Take the initiative  rather than play catch up – you may waste more resources playing catch up than in taking entrepreneurial risks.
• Be aware of your Competition’s weakpoints, expose them and hasten to do better in these areas quickly.
• Be aware of markets or territories where your Competitor has no presence and exploit these gaps.
• Be aware of  Competitive advantage. Maximise your resources where you possess natural barriers to entry.
• Be a Moving target and make it hard for your Competitors to guess your next move.
• Never overextend yourself and focus on your Core Competencies. If you have weak organisational flaws, consolidate your resources in strengthening a few critical areas not all of them at once.
• Timing is everything- make sure you research the accurate moment with which to activate your plans.

My favourite Line:

“Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.”

# 7. Maneuvering and Dealing with Direct Conflict

There will be times when we will still have to meet difficult challenges head on and may not circumvent them. Sun Tzu advises us to maintain the following if we are to emerge unscathed and maximise our tactical advantage.

My key takeaways here:

• Personnel - Maintain harmonious relationships between all levels of your hierarchy and create a unity within your organization that operates to an internal discipline. Ensure they get a share of the “spoils” to keep them motivated and help them buy into company Mission.
• Logistics – Always ensure clear l lines of supply secured to sustain you throughout your campaign.
• Local Knowledge – Make sure you have good local knowledge of your market with an insider’s view if possible.
• Competition – Know when they are operating at peak strength and only launch your attack when you know they are recovering from another campaign or when they are on downtime.
• Do not enter into an Alliance until you are certain as to the motives of your partners

 ”The difficulty of tactical maneuvering consists in turning the devious into the direct, and misfortune into gain”

# 8. Variation in Tactics aka The Innumerable Changes

I believe this section talks about the art of Judgement. Good tactics also means knowing What NOT to do. It is not enough to know your business and environment well, you also need Versatility of Mind.

• In business terms I interpret this as: knowing what paths not to follow, markets that are not worth pursuing or contracts & alliances that are a No Win for your business.
• If subordinate to a higher command, Sun Tzu implies there are situations where you must not even obey your superiors. You could even say it may be a good thing to flout conventional wisdom.
  
• In everything you do, always have the versatility of mind to inhabit the thinking behind Competitors or Customers’ actions.
  
• Take a 360 Degree approach to everything you do and be mindful of all your stakeholders in any action you take, this allows you to escape hidden pitfalls or exploit every potential advantage/opportunity not just obvious ones. The sort of thinking can be found in guerrilla marketing approaches or CSR marketing that exploits non- obvious opportunities.
  

 ”in the midst of difficulties we are always ready to seize an advantage, we may extricate ourselves from misfortune”

# 9. The Army on the March / Moving the Force

This segment focuses on observing the right signs in your “enemy”.  I interpret this as  the ability to read your environment correctly and forecast effectively based on the current behaviour of your competitors, economy,  potential customers and even stakeholders. He goes on to detail clever practical tips for reading your enemy’s behaviour on the battlefield.

A great leader has the ability to  read the signs around him, track history and therefore be alert to deception or sudden changes by correctly extrapolating future behaviour.

He gives an Acute reading of human behaviour here:

 ”When envoys are sent with compliments in their mouths, it is a sign that the enemy wishes for a truce.”

# 10. Terrain or Situational Positioning

In anything we do – we will encounter points of resistance.  How we position ourselves may result in assorted advantages and disadvantages. In the original text, he inventories the types of geographical terrain an ancient army may encounter and prescribes the best positions to take.

My takeaways? Sun Tzu emphasises:

• A Point of Vantage. Make sure that no matter where you are, you have a clear view of the endgame.
  • Sneaky tip 1: when no one makes the first move or you don’t know where your competitor is : do a false retreat to draw out your prospective opponents
  • Sneaky tip 2: if your competitor has a superior position than you , entice them to focus on something else and fool them into vacating their no.1 spot
• Secure  Lines of supply and good Communications throughout your organization are essential otherwise there’s a disconnect between your best laid plans and execution on the ground.
• Find yourself trying to match up to your competitor and always trailing behind? Me – Tooism can be a destructive acitivity that eats up too much resources.  You should reconsider the campaign in the first place.

6 signs you are failing as a leader

• Flight: when you pit your organization against a superior force with no preperation
• Insubordination: when management is weak and discipline falls apart.
• Collapse: when workers are under resourced
• Ruin: when Management does not buy into the organizational mission and rebels.
• Disorganization: when there are no clear organizational rules, roles or best practice laid down.
• Rout: when the wrong resources or tactics are being used

 ”The power of estimating the adversary, of controlling the forces of victory, and of shrewdly calculating difficulties, dangers and distances, constitutes the test of a great general.”

# 11. The Nine Situations / Terrains

According to Sun Tzu, there are 9 common stages in any campaign. He prescribes reactions to each one in terms of  old world battle scenarios.  Some prescriptions are obvious..

1) On Home ground; don’t waste too many resources campaigning here.

2) On Entering New territory; keep pushing aggressively early in the campaign as long as nothing gets in the way, and as long as you have a clear easy exit strategy. You aren’t too heavily invested at this stage and can turn back if needs be.

3) Contentious ground or Strategically Essential Territory; Do not be the first to move without smoking out your competitors’ intentions first and understanding their strategy too. Hide your true interests and distract the competition where possible from discovering them.

4) Open ground or easily Accessible territory - don’t get in the way of other competitors assuming their activity is of no strategic relevance to your mission.

5) Ground of Intersecting Highways, where there is activity from more than one interested party or contender – form alliances with others.

6) Serious ground; where much effort was required to secure this territory and you are in a precarious position. It may be hard to exit and hard to move forward – A “ Winning Hearts and Minds ” policy is required here.  Do not antagonize any stakeholders and do your best to sustain all of your business relationships at their optimum levels.

7) Difficult ground or difficult conditions in which to operate – keep going and don’t stop until you are in a safer position. In Business terms I interpret this as consolidating resources, being cost conscious and keeping your productivity high, maintaining and pushing for  higher targets.

8) Hemmed-in ground; where it is difficult to extricate oneself from this situation – Resort to Deception, Intrigue and Stratagem.

9) Desperate ground; where there is no exit possible – once there you have to stick it out and give it everything you’ve got, its all about survival.

Sun Tzu compares a Skillful tactician to a species of mountain Snake due to his ability to react quickly  :

“Strike at its head, and you will be attacked by its tail; strike at its tail, and you will be attacked by its head; strike at its middle, and you will be attacked by head and tail both.”

# 12. The Attack by Fire

This next segment does seem a little esoteric especially if trying to apply to contemporary business models – Sun Tzu talks about 5 ways to attack by fire. Nevertheless I  see it as a reminder on the strategic ways you can mount an offensive campaign to any competitor (from the inside).

• The Soldiers  – Poach their personnel , demotivate them or use them ?
• The Stores – Attack your competitors financial investments ?
• The Baggage Trains – Their logistics, lines of supply or key suppliers?
• The Arsenal and Magazines – Attack your competitors cash-cows and sources of Revenue?
• Hurl fire on your enemy as Artillery – Attack their operations, throw a spanner in the works ?

Most importantly – Follow up the internal attack with your own offensive on the outside and be  resourced, time it right and don’t get caught up in the fire.

“Unhappy is the fate of one who tries to win his battles and succeed in his attacks without cultivating the spirit of enterprise; for the result is waste of time and general stagnation.”

# 13. The Use of Spies / Intelligence

Sun Tzu warns us against wasteful campaigns that expend a lot of resources or hours of  labour  when a simple use of intelligence or Foreknowledge would be more efficient.

According to the text it can only be obtained through scout masters, reconnaissance or 5 kinds of spies:

1) Local spies;

2) inward spies;

3) converted spies;

4) doomed spies;

5) surviving spies.

Key pointers here:

• Reward your spies liberally and be sagacious yet sincere when dealing with them.  Above all keep this operation in utmost secrecy internally.
• If you wish to convert  someone into a spy – spoil them. A converted Spy is your greatest asset as they can help you recruit more.

“Spies are a most important element in water, because on them depends an army’s ability to move.”

The Art of War On Video

For a more entertaining (if not slightly hokey) background to the book,  I found this Documentary for those military enthusiasts amongst you: The Art of War documentary from the History Channel:

Click here to view the embedded video.

Lovers of chess and the Japanese game “Go” will find his book an affirmation and a helpful guide too.

Other interpretations of the Art of War

• The Business Insider Magazine War room does a quick handy overview too in The Art of War – Sun Tzu
• In this article: Productivity and “The Art of War”: Applying Sun Tzu’s Teachings to Business Tucker Cummings translates its teachings into modern goals for productivity.
• There’s even an Art of War App for the busy executive : The Art of War in Business

In Summary

Throughout my interpretation of The Art of War, runs is a misleadingly simple idea that touches on a fundamental thread in Far Eastern thinking – that paradoxical notion of Doing by Not Doing and Illusion. You will find similar ideas in Taoism, Kung Fu, Fengshui, Zen Thinking and many other Asian practices I will be exploring in the future. Conversely Conflict and disruption  are anathema to Far Eastern sensibilities and their philosophy considers chaos and disruption a sign of failure, not a route to success.

In other words, if we can position our businesses into a Harmonious operation with the world around us – beyond the reach of any threat by being superior & indispensible, practising excellence and manipulating our environment to remove all obstacles, success is within our reach. The building blocks you might say of most strategies cited in any Marketing 101 textbook.

Nevertheless I suspect,  as time goes by I shall unearth deeper or different inteprretations from this book as I understand more of the world.

Have you read the book and have a different interpretation? I would love to hear your biggest Business Strategy takeaways from this enduring classic.

Footnote & Credits

All quotes used in this post are referenced from the following site www.suntzusaid.com a site created by John Watson. General information on the Structure of the Art of War was taken from Wikipedia using translations of chapter headings by Lionel Giles (1910), R.L. Wing (1988) and Ralph D. Sawyer (1996)

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While China tends to get the majority of attention, recent governmental deflationary measures have their economy growing at its slowest rate since the early 2000’s. The more prudent investors are realizing the greater advantage lies in the rapidly growing, investor-friendly environment found in Singapore.

Location

Globalisation means business is being done at all hours of the day, and a Singapore company is especially advantageous due to its geographical position.  Singapore’s location allows it easy access to the Asian Pacific region and other rapidly expanding economies like Hong Kong and Vietnam. What is more, Singapore is in a unique time zone that allows business day contact with the EU, the Middle East and the US.

Company Formation

There are several things that need to be considered when registering a Singapore company. Singapore company formation can be a complicated process with several steps required.  For these reasons, entrepreneurs tend to seek the advice of an experienced corporate service company.  A professional advisor is generally required to determine the optimal corporate structure to meet specific business objectives.

In the case of entrepreneurs outside of Singapore, the company service provider may be necessary to manage the company registration process and to take care of the business in the director’s absence. If an entrepreneur has undertaken reasonably comprehensive research and come up with a business plan, the corporate service provider can manage every other aspect of incorporation.

As is the case in all incorporation, due diligence is required to complete Singapore company registration. This usually includes details of resident director/s, your company’s address (which your corporate service provider can assist with), and any relevant financial details like projected expenses and annual revenues for the newly incorporated company.

Work visas

If workers are going to be brought in to run the company, work visas will be required for any foreign employee. Using a corporate service provider really becomes necessary when considering that the Singapore company act requires all companies to have a resident director. Corporate service providers can often handle this requirement for you.

But besides the legal processes of setting the company up, an experienced service provider can give insights into other aspects about doing business in Singapore, or whatever jurisdiction you are starting up in.  This may be related to the culture, common employment practices, lifestyle aspects, travelling in the region and more.

Asian business cultures

Learning Asian business culture practices should be a given.  Simple practices like making time at start of meetings to properly greet senior members of the potential business partner, exchange business cards correctly, read the business card etc.  This shows respect to the people you are meeting and can help you with the correct pronunciation of names, learn job title, recognise seniority, for example.

The entire process of doing business in Singapore, and Asia, can seem overwhelming but the rewards are clear.  Singapore has consistently ranked highly by every metric important to investors and the economic growth rate has been among the best in the region lately.  If you’re looking for an environment with phenomenal infrastructure and a government creating pro-business incentives at every opportunity, doing business in Singapore can be a rewarding endeavour.

Have you done business in Singapore or considering it?

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Images:  ”Cityscape at Marina Bay Business District – Singapore / Shutterstock.com“

Kingsley Aikins

Kingsley Aikins has had a fascinating career promoting Ireland throughout the world, including:

• Five years in Australia working for the Irish Trade Board and the Industrial Development Authority (IDA) of Ireland.
• He played a key role in founding both the Australian Ireland Fund and the Ireland Fund of New Zealand.
• Kingsley subsequently served as Executive Director of The American Ireland Fund before heading up the Worldwide Ireland Funds, which have – to date – raised over three hundred million dollars for projects of peace, culture, community development and education throughout the island of Ireland.

Connecting the Diaspora

Kingsley now delivers expertise to many countries, including Haiti, through his consultancy firm Diaspora Matters and is a co-founding partner in Networking Matters. He was also invited by US Secretary of State Hillary Clinton to deliver a keynote address  at the 2012 Global Diaspora Forum.  In conjunction with the 2011 Forum, Kingsley produced a Diaspora Strategies Toolkit, which is available for download from his website.

 ‘Creative Clusters of Connected People’

In this exclusive interview, Kingsley tells me how he secured significant investment for Ireland from Roy Disney, why he credits the commitment of the US to the Northern Ireland peace process as nothing short of sensational and why he believes in ‘creative clusters of connected people’.

Click here to view the embedded video.

Sincere thanks to Kingsley for sharing his wisdom and I would love to hear your thoughts on the importance of diaspora and networking in the comments section below.

Related: With the ‘Gift of the Gab’ The Irish Were Great Social Networkers Long Before Facebook Or Twitter

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In order to compete and survive in today’s globalised markets, a business must keep up-to-date with the accelerated pace of tax, legislative, and regulatory developments around the world. Challenges such as new business models, liquidity concerns, and ever-changing information technologies make efficient business management on a global scale extremely difficult.

Thus, it is evident that many precautionary actions are taken to stay afloat in the current economic climate of our ever-developing world. Various businesses and working individuals currently utilize an international tax planning strategy in order to legally minimize international tax liabilities.

Cross border transactions

All cross border transactions have tax implications. The fundamental principle underlying international tax planning is to legitimately minimize such tax obligations in the country of one’s residence by using the benefits added within foreign jurisdictions. This can range from simple advice like ensuring tax reliefs are claimed through to more complex solutions like restructuring a business.

Some of these can be relatively straightforward requiring minimal specialist consideration, however, once an individual is established in a, or multiple, foreign jurisdictions, matters may become far more complex. Consequently, one is often faced with unforeseen tax liabilities or missed opportunity for legitimate tax minimization.

Tax laws

Tax laws are domestic, meaning that they vary from nation-to-nation. Tax and government authorities have no jurisdiction outside their territory. Thus, when investing financial capital in another country you need to consider the laws of both the country you live in and the jurisdiction being investing in.

Tax havens

Countries with minimal or no taxes levied on the income of individuals and companies are often referred to as ‘tax havens’. The tax haven jurisdiction also benefits from the investments in the nation’s development or infrastructure. The term ‘tax haven’ is being used less and less as more jurisdictions adapt to the internationally recognized Organization for Economic Cooperation and Development (OECD) standards for disclosure of financial-related information.

Tax treaties

Countries that have tax treaties with high tax countries are known as ‘treaty havens’. If a country does not have a treaty in place with the US, there is a 30% retention tax.

Many business owners accumulate wealth by taking advantage of various sources in numerous jurisdictions to legitimately minimize tax liability. For example, a business operated in the US invests its money in a foreign jurisdiction benefiting from the terms of a tax treaty and is hence charged little or no withholding tax. The company operator may thus transfer assets to another entity and can accumulate funds in the offshore jurisdiction.

Tax treaties were introduced to mitigate effects of various double taxation policies and to encourage cross-border trade efficiency, yet very few tax treaties are alike. Although this was not the intended use, investors may benefit from treaties to make legitimate tax-free savings. However, it is becoming increasingly difficult for individuals to identify legitimate tax-free solutions as the IRS, with assistance from the OCED’s guidelines, are making great efforts to abolish tax evasion activity. As a result, new treaties are in the process of negotiation as to benefit both parties.

Multinational investors and corporate service firms are professional tax experts who can give personalized advice on how an individual or company can manage their assets. International tax planning is an increasingly complex process, but remains a legitimate, and important, aspect to consider with international business operations.

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Rebrand

2012 has been an eventful year for Tweak Your Biz. With Anita Campbell joining us as CEO at the end of 2011 and then the rebrand from Bloggertone to Tweak Your Biz in March 2012.

Wedding bells

Our very own Niall Devitt took the plunge finally and got married in July to the lovely Marie Therese so his bachelor days are well and truly over now.

New Managing Editor

Whilst Niall went off on a honeymoon I stepped in tentatively to cover for him and then at the end of September I was appointed the new Managing Editor – something I’m incredibly proud to do.

International site

Traffic is now hitting record levels and we are growing on an International scale around the world. Long may this continue.

Community

Of course Tweak Your Biz wouldn’t be what we are today without the community of brilliant writers who I can regularly rely on for great posts. Not only that but they share, comment and vote on others articles too. I know that collaborations have grown from this community and it’s lovely to see. A lot of friendships have been made too. Thank you so much for your support folks.

So I’m really looking forward to 2013 and taking Tweak Your Biz to new heights, with the support of the community behind me as ever.

A Merry Christmas to everyone and may 2013 be a Successful and Happy New Year for all, from the team at Tweak Your Biz.

Sian

Images:  ”Blackboard, Merry Christmas/ Shutterstock.com“