On many occasions, when companies consider expanding into new markets, doubts arise in their analysis as to the net results, given that a cost structure will be created without knowing what potential top line income such a move will generate. Should a client prefer to test the waters before opening a fully functioning office in Bulgaria, we provide a popular Company Representation service. This service enables our clients to enter the local market with a low overhead base, by using our own office space and working in close contact with our consultants. Whether you need a dedicated sales representative, or are seeking providers in country, a lead consultant will work arm in arm with you in the relevant role, advising and guiding you through your early growth phase in Bulgaria, until such time as you decide to increase your structure and set up your own independent staff and business premises in Bulgaria.

CASE STUDY

Textiles Tarifa SL is a company that manufactures sports equipment and clothing. Based in central Spain, the company supplies schools, universities and sports clubs with all their sporting needs, offering them quality materials at very competitive prices, with a high level of customer service.

Having just served the national Spanish market, Tarifa Management decided to look to export opportunities to further sales growth. After analysing the international market, the company decided to focus on Eastern Europe, and one country that was identified, in particular, as having good potential, was Bulgaria.

Textiles Tarifa consequently approached Consultia-Bulgaria for advice and guidance. After an initial consultation between one of our specialist consultants and Textiles Tarifa´s management, in which various market entry options were discussed, it was decided by Textiles Tarifa that the best manner to start up entry into the Bulgarian market was by contracting our company representation service.

Consequently, our Human Resources department, who, having created the job description together with the client, identified an initial list of potential salespersons. After interviewing them, a short list of three was made, before the final selection decision was taken in agreement with the client, to hire a bilingual salesperson with ample experience and initiative.

Following strategic guidelines from Textiles Tarifa in Spain, Consultia Bulgaria devised a sales and marketing plan, and soon the dedicated salesperson, working under supervision of an experienced manager, was at work, creating leads and making contacts. On a daily basis, Textiles Tarifa’s Export Manager was able to view the progress of the marketing activity and sales visits via a web based application, as well as download weekly reports and view contacts. Within a month, the first sales order was placed, and thereafter, sales grew on a steady basis. In order to facilitate the importation of goods, Consultia Bulgaria worked closely with the selected local transportation company.

After six months, a review was held between senior management of Textiles Tarifa and Consultia-Bulgaria. Reviewing the progress, various issues were discussed, and it was decided, mainly due to the increasing level of sales but also to take advantage of the 10 % flat tax rate in Bulgaria, that the best policy for Textiles Tarifa was to set up a company office in Sofia. Consultia Bulgaria´s legal department carried out the necessary procedures, and soon Textiles Tarifa EOOD was operating as a Bulgarian registered company, based in their own offices, with the same salesperson running the local company. To ensure increased post tax profits for Textiles Tarifa, Consultia Bulgaria also provided specialized international tax and accounting advice.