Case Study Malta Ltd.
Bjorn wished to build a business based on his hobby - computers and everything related to IT. Bjorn formed a company and invested in a small office and a powerful computer. His company grew rapidly to the point where he now has a world-wide customer base. Björn's decision to enlist the assistance of Verdun has dramatically increased his profits.
A Good StartBjörn's future business took shape when his hobby and his natural talent came together.
"I love the fact that I have been able to build up an operation around not only what I find enjoyable and am good at, but I also have a great deal of passion for".
After that it was simple mathematics. "It was 2007, I was filling in my tax returns when my fiancé said to me: "What in the world are you doing, you made more money from the computer on the kitchen table than you did at your 40 hours a week job".
"It was the moment of truth. I resigned, took a leap of faith and invested €3000 in a small office and a powerful computer".
Formula for success
Today Björn is building new IT-infrastructure's for several medium-sized European companies. His sales structure provides the client an advantage in terms of cash flow. Specifically he links his fee, as a percentage, to the increase business achieved as a result of the new IT-structure he has created. As a result of his partnership with Verdun Group, and as a result of the Malta taxation system, he has seen a dramatic increase in his profits which has enabled him to become more competitive and thus win and retain more clients.
An Efficient Corporate StructureNone of this had been possible if it had not been for a gradual use of modern innovative corporate structures including better accounting and client management programs.
"Three years ago our accounting system was only a spreadsheet with 20 boxes. Now it automatically calculates VAT rates individually to every country we offer services to irrespective of if the client is a VAT registered company or not. This enables me to print weekly and monthly reports. Its fantastic as this in turns enables me to standardise the pricing".
Handling Company Growth
Using a variety of corporate service providers was costly and inefficient with the result that during the early years Björn's management of the business was both stressful and ineffective.
"We discovered early that buying different services from different brands and stitching them together was not the right way to proceed. It was very frustrating. A local accountant would not necessarily understand the tax related consequences of all our foreign commerce. Were we offering our services based on the customer's conditions or on Malta's? "
The Verdun Solution
Now Björn works with the Verdun Group and has a single Account Manager for all his business' needs.
"It doesn't matter what our situation is or what services we need our Account manager at Verdun Group is always our first call. He is entirely capable to guide us in all tax related matters".
For example, Bjorn recently developed a third product
"We simply called our Account Manager who guided us through the service that would best satisfy our needs and was the most compatible with our infrastructure. We upgraded on a Friday and on Monday morning the company's infrastructure was up and running, all the networks, all seamlessly. An additional benefit is the fact that in Malta English is one of the official languages makeing both written and oral communication so very much easier".
Business Mobility, Remote Access
Challenge: One of Björn's critical activities is to visit different clients in a variety of countries and therefore quick and reliable access to his customer's software on the journey is essential. However frequently it is impossible.
"I can visit a client in a remote area for example. Often there is no office there, no equipment".
Solution: Server park in Malta
The Verdun Group introduced him to a series of server parks in Malta designed for optimal traffic movement and connectivity.
"You'll see me with my laptop almost everywhere I go. I can prepare quotes and show my clients in real-time what the figure are – no matter where I am".
Maximising Profits without a full time employee
As a small company that relies on technology, Björn is caught in the middle. He cannot afford to be unplugged but he can also not afford to be a full time administrator.
"I must be able to adapt the workload at any moment on any given day, so it is very important that the customer is not left out in the cold. Verdun Group helped me structure my company to benefit from the privileges that I thought only larger companies had access to. The Verdun Group's program "Think Big – Stay Small" does just that through their highly educated workforce that consistently contribute so that I can continue to grow without having to hire more personnel. It is fantastic how many languages their staff speaks; they have people from all over Europe. My profits exploded shortly after having joined them".
A Stable Legal Framework providing piece of mind
Verdun Group has removed the insecurity from the business equation.
"We know that the Verdun Group, if ever there is a problem, will resolve it very quickly. Malta's legal framework has displayed a real stability, which for me is critical to the long-term sustainable business operation. As a company owner that is always travelling this means I can finally afford a vacation!"