Selecting the optimum Startup Business Model in Mexico

An Expert's View about Business Support Services in Mexico

Posted on: 6 Apr 2010

In Mexico, Startup providers are offering a range of startup business models to assist foreign compaies to establish manufacturing operations. This presentation summarizes the key characteristics of 3 main models.

Selecting the optimum business model for a manufacturing startup in Mexico April 2010 Consider a proper On-Going Business Model  The long term success of an implementation in Mexico is strongly correlated to a thorough planning of the project at inception  Among the numerous considerations that must be taken care at the upfront of an offshore implementation in Mexico is the selection of the proper business model for startup and continuous operation  Numerous business models are available for companies desiring to establish a manufacturing operation in Mexico  These models have been created to meet special needs and requirements and provide different sets of benefits and constraints  A successful implementation will carefully review and select the optimum business model that will best meet the short imperatives and the desired long-term mode of operation  The present presentation is a highly summarized review of some key considerations for the 3 most popular startup business models in use in Mexico A spectrum of Business Models at your availability Responsibilities distribution Supplier?s share Client?s share Business Models R e s p o n s i b i l i t i e s m a n u f a c t u r i n g a d m i n i s t r a t i v e C o n t r a c t M a n u f a c t u r i n g M a n u f a c t u r i n g S u b - c o n t r a c t i n g S h e l t e r S t a r t u p a s s i s t a n c e A d m i n f u n c t i o n s A u t o n o m o u s S t a r t u p The Purpose of 3 fundamental business models Turnkey Startup Services Stand Alone Shelter Shared Resources Shelter Goal: Goal: Goal: Ach Achieve the immediate ieve a fully self- Achieve a practical and suff operational benefits of a icient Mexico financially viable manufactur dedicated stand-alone ing operation implementation in Mexico organization while in the least amount of through a Shared t benefiting from a longer ime and thus benefit Resources Shelter and from the support services period lowest benefit from economies operat and preserving your ing cost possible of scale not possible as soon as poss ultimate goal to become ible. otherwise on your own. self-sufficient. Minimize the use of upfront human and financial resources while quickly establish operations in Mexico Best suited for Turnkey Startup Services Stand Alone Shelter Shared Resources Shelter Best Solution for: Best Solution for: Best Solution for: Large operations Medium to large sized Small operations operations Medium operations with near- Business for which a term expansion plans Business that needs to dedicated support spread upfront Non-Recurring infrastructure in Mexico would Operations with very steep investment for Startup over be disproportional to the size ramp-up and growth curves longer-term of the manufacturing activities Operations that are Businesses that lack internal Business for which future technologically complex and/or have resources to learn and take expansion in Mexico does not significant technology responsibility for Mexico anticipate a size that would transfer hurdles administrative functions in justify the burden of a fully Asset intensive businesses short / medium term. stand-alone operation Requires total operational Business that do not require Business that lacks internal control to achieve efficiency immediate autonomy or resources to learn and take and integration with other sister business administrative responsibility for Mexico operations control administrative functions Seek lowest Life-Cycle cost to Wish to have an option to Business that do not require project transition to an autonomous total internal control of Des business in the future business administrative ire the option of longer- term adm functions to achieve inistrative outsourcing of se performancelective functions Additional Benefits Turnkey Startup Services Stand Alone Shelter Shared Resources Shelter Option Option Option Outsourced Services - Optimized Setup for eventual Self-Sufficiency Once fully autonomous, a Not all Shelter setups Shared Resources Shelter client may want to provide equal easiness for requires co-location of the outsource, for efficiency an eventual self- Client nearby the Shelter reasons, some of its sufficiency.. Check for the provider. Consequently, administrative services. terms and conditions to exit this business model is from the Shelter offered by the different Shelter providers only at specific cities and industrial parks. The Everest Group provides Startup Solutions, ranging from Turnkey Startup Services to Shelter Services Everest provides advisory services on Offshore strategies for Mexico Want to know more about us: Luc Beaudoin ? VP Business Development Tel: +1 (514) 667-1534 Cell: +1 (514) 916-1720 Luc.Beaudoin@TheEverestGroup.com w w w. T h e E v e r e s t G r o u p . c o m
Posted: 06 April 2010

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