In Denmark, the procedure of starting a business is same for both the citizens and the foreigners. The country is preferred for starting business because its bureaucracy levels are low. This makes the start up process easy. In addition, the country offers massive opportunities for all investors in terms of low interest rates, high levels of education, and unequivocal tax laws. Presented herein is a business plan and how to start the business in Denmark.
Before starting any business, one should have an idea of the type of business to be started. In Denmark, it is always important to consult an accountant or a lawyer just in case one is not sure of the business type that can work best. In the plan presented herein, a private limited company was selected as the business type. After identifying the business type, it is important to identify the management board. The board of directors is charged with the responsibility of organizing and managing the business. The business is then registered. The registration involves obtaining of the digital signature and registration with the Danish Commercial and Companies Agency. This is done using webreg. A receipt is then issued for every successful registration. The business can then start the operation after acquisition of funds and after hiring the required staff.
The business plan
The business plan contains the executive summary, which is basically a statement of the purpose of the business; and the body of the business plan which contains the description of the business, the market, operating procedures, competition, business insurance, the financial data, and the supporting documents among other requirements.
The procedure for starting a business (in this case, a public limited company) is highlighted below.
The executive summary
As the world becomes smaller and smaller due to globalization, vast opportunities are created and the dream of every company is to become globally competitive and exploit these opportunities so as to maximize the income. This is the reason behind the start of this business. The business described herein is a private limited company. The company has one director and operates in a wide range of home appliances. In the home appliances industry, no single manufacturer commands more than 10% of the world market. Only a few companies who offer the whole product range are present in all the key markets. The Danish market has no such companies. The chances of the company thriving and capturing the Danish market are therefore high. Danish economy, being one of the best in EU, is characterized by high growth and low unemployment. The low interest rates have also boosted private consumption, which has offered vast opportunities for new businesses. This plan gives the business description, the market, competition, the operating procedures, business insurance, and the financial data.
Description of the business
The company is a distributor in the home appliance industry, majoring in the distribution of white goods appliances like washing machines, water heaters, household air conditioners and the commercial air conditioners, and other household appliances like water dispensers, electric fans, and air purifiers among others. For the supply, the company plans to collaborate with the major producers of these products. Even though the company is starting as a distributor, the business is expected to expand and incorporate the manufacture of these products. Thereafter, the company would integrate research and development, manufacture, sales and services.
Denmark provides a very lucrative market for household appliances. Because marketing and sales promotion is one of the major factors that influence a company’s performance, the company intends to carry out an intensive marketing so that the products can be promoted. We intend to create customer awareness, as we highlight the benefits of our products through advertisements.
Generally, Denmark has no major producers of household appliances especially the white goods appliances. During start up, we expect stiff competition from the well-established distributors. However, we expect to develop competitive advantage and maximize the little we have. This would enable us move steps forward and start the manufacturing. Once producing these products, we expect to explore the vast opportunities including the well educated workforce so as to produce unique products that must surely create an impact in the market. Through the development of strong brands, we expect our customers to have brand loyalty, which would make us have the competitive advantage.
The company is to operate in the major towns of Denmark. However, for the start, we shall establish the main distribution centre and the head office at the nation’s capital. The company shall abide by the labor laws, which include normal working hours of 37 hours per week and not more than 48 hours per week, and holidays to the employees depending on how long they have worked in the company. The company shall be operating from Monday to Friday from 0800/0900 to 1600/1700. Our attire must comply with the general business etiquette. We are also prepared for negotiations as we create space for other people. We expect to maximize on Danes’ punctual at business. For all our meetings, the agenda would be sent prior to the meeting as this is the mark of protocol in Denmark.
The compulsory insurance to the company, which we are obligated to undertake are work accident insurance, statutory liability and occupational insurance. Work accident insurance covers the workers during industrial injuries and is meant for the compensation in case of such an occurrence. This we shall obtain from a general insurance company. Since we have to register vehicles in the company, we are compelled to take liability insurance cover. The Labor Market Occupational insurance is also mandatory. We are therefore compelled to take it as well.
Other than the mandatory covers, as the owner, I must take the health insurance, the occupational, and the accident insurance.
The financial Data
Denmark has wide range of finance sources including banks, public incentives, institutional investors, private investors, and venture capitalists. The choice of the most appropriate financing means would largely depend on the company’s development stage, the capital needed, the management, and the business activities.
The startup procedure involves four main procedures: Obtaining the NemID signature; depositing the startup capital at a bank, which is at least DKK 80,000.00 for a private limited company; registering the company over Webreg system with the Danish Commercial and Companies Agency; and finally registering the employees with the workmen’s insurance.
Business plan. Retrieved at http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/writing-business-plan
Eric S. Siegel, Brian R. Ford, Jay M. Bornstein. The Ernst & Young Business Plan Guide’. New York: John Wiley and Sons, 1993.
Establishing a business in Denmark. Retrieved at http://www.investindk.com/Establishing-a-business-in-Denmark
Pinson, Linda. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. 6th Edition. Dearborn Trade: Chicago, USA, 2004.
Starting a Business in Denmark. Retrieved at http://www.doingbusiness.org/data/exploreeconomies/denmark/starting-a-business
Why Start A Business In Denmark? Retrieved at http://www.startupoverseas.co.uk/starting-a-business-in-denmark