Expanding your business to overseas markets can be a daunting challenge, especially in this uncertain economy. But it can be the right thing to do, as it brings numerous benefits, such as opening up new business opportunities and revenue streams. Many companies like ShopBack, Secretlab and the more renowned Grab and Razer launched in Singapore first before expanding across borders successfully. The recent DBS annual SME Pulse Check survey, revealed that 60 percent of SMBs in Singapore are keen on exploring new markets, and that they are prioritising overseas expansion this year.

If you are thinking about taking your business to new markets as well, here are some key steps to follow.

Start by doing market research

The first and foremost task is to understand which markets to expand into, and whether these are the right ones to explore. This requires thorough market research where you first identify the potential options, understand the demand and competition while also looking at local regulations. The key is to pick markets that align with the product or service offering, ensuring a strategic fit for sustained growth.

When looking at options, analyse the market size, growth rate, competition, and customer preferences. Additionally, remember to think about and understand the cultural differences and consumer behaviour in the target market. You could use a variety of sources for this, from Statistica for data on different markets and also resources from Enterprise Singapore, where you can find a lot of information on schemes, initiatives, guides and toolkits for global expansion. 

Explore partnerships and collaborations

Establishing partnerships and collaborations can be a useful strategy to gain a foothold in a new market. SMBs can tap into existing networks, industry associations, and local experts to gain insights and establish credibility. Collaborating with local businesses can help navigate cultural nuances, understand consumer preferences, and accelerate market penetration.

To identify potential partners for this, you can look at trade shows and networking events with other businesses in the new markets that you have identified. You can even do this remotely before having a physical presence in the market by attending online webinars and interacting with panellists during information sharing sessions through platforms like LinkedIn. Take care to evaluate potential partners by researching their reputation, financial stability, and compatibility with their business goals.

Start with a digital-only presence

When launching your business in a new market, it does not necessarily have to be a physical launch. You can always start with a digital-only presence. If your business involves selling products, think about creating an e-commerce platform that enables consumers in the new market to make purchases on. This way, you will only be required to arrange for delivery, and even that can be accomplished through the partnerships you have made with local providers, or global delivery service providers like DHL or FedEx.

This approach allows for a gradual entry, minimising upfront costs and operational complexities, while giving a cost-effective “trial” to gauge market response. By having a digital presence, SMBs can also reach out to a wider audience and build brand awareness. 

4. Tap into the gig economy and freelance network

Before setting up an office and hiring full-time staff, you might want to consider tapping into the gig economy and freelance network in the region first. This allows you to assess the local talent pool, establish a relationship with them, evaluate the company fit and ease the onboarding process if and when they are made permanent.

This approach offers SMBs the flexibility and agility to scale their workforce based on project requirements and allocate resources accordingly. Working with freelancers and independent contributors also provides access to a diversity of skills, as you may go with a few different specialists to focus on specific tasks instead of expecting a permanent staff member to oversee all of them. 

There are a number of online platforms and databases where you can find such independent contributors and freelancers. Upwork is a global freelancing platform that connects businesses with freelancers and agencies specialising in a range of skills, from general marketing to writing, design and software development. Hire Digital is another similar platform but with added benefits like screening and curated talent lists. Fiverr and Toptal are other similar platforms with a global network for freelancers, and there may be more region-focused networks in the markets you are considering expanding to.

While you are beginning to work with these remote collaborators, it is also important to ensure clear and frequent communication on what is expected of them. This can be achieved through business communication and collaboration platforms like Microsoft 365, which comprises individual tools for sharing, editing and viewing files with team members, as well as messaging and video conferencing features. 

5. Conduct thorough financial planning 

Expanding to a new market comes with a number of financial responsibilities and risks. It is critical to do comprehensive financial planning to mitigate risks and ensure a successful launch in the new market. Some of the costs to consider for expansion include travel, legal fees, taxes, and currency exchange rates. You should also take into account currency exchange fluctuations and international transaction costs if you will have cross- border payments. 

With these steps, you should have most bases covered in your global expansion. Remember that while it is a challenging venture, many other SMBs have expanded across borders to achieve great success.