Finding Your Next Frontier.
Finding Your Next Frontier.
We wrote about what companies can do when exploring expansion options SE Asian markets. You can read more about that here.
For one, SE Asia isn’t just one market. Consider that there are potentials in each individual country within that region based on GDP:
Australia GDP: 1.397 trillion USD
India GDP: 2.869 trillion USD
Malaysia GDP: 364.7 billion USD
Singapore GDP: 372.1 billion USD
Cambodia GDP: 27.09 billion USD
Indonesia GDP: 1.119 trillion USD
Myanmar GDP: 76.09 billion USD
Laos GDP: 18.17 billion USD
Philippines GDP: 376.8 billion USD
Thailand GDP: 543.5 billion USD
Vietnam GDP: 261.9 billion USD
Total GDP for Southeast Asia: USD 2.767 trillion
GDP Data source: World Bank 2021 Statistics(worldbank.org)
Consider the following triggers or patterns in your business:
Additionally some trigger questions to ask:
Now with that said, here are some of the issues and challenges and mistakes that companies make when expanding to APAC:
And much more.
Any business expansion into uncharted territory is fraught with a lot of challenges, the biggest one perhaps being that it takes quite a while to start seeing any ROI, which could take anywhere up to 10 years. You need to decide if this is something your business needs and what the benefits are.
Now, there certainly are benefits, where the value certainly outweighing the costs. We lay out some of the reasons and benefits you might want to expand into a foreign market. With our five points, you will understand what you need to know to convince others that it might be worth the risk to your organization.
As you continue to succeed in your area of business, you will eventually want to expand your operation to include more areas. This might include:
There are several reasons why international growth might be beneficial to you. The following are the most significant five reasons for doing so.
When you operate in one location, you'll be restricted to the abilities you may discover within the local talent pool or attract to your region. If you establish a firm in another region, however, additional sources of talent will become accessible to you.
You must also consider how your organization might change due to the international talent. New workers from other countries may have different salary expectations than you do. You could locate individuals who will perform the same task for a lot less money. As a result, you'll be able to get the same high-quality work at a lower price.
Having a workforce with various backgrounds leads to more innovative solutions for potential problems. This process also allows you to better understand areas where your current methods may be lacking. Consequently, this will save you time and energy in the long term.
Diverse teams, in many instances, are more successful than homogeneous ones.
If you expand your business, it's possible that you'll find locations with cheaper running costs but without compromising profits.
You don't have to move your whole operation, but just a small element of it. you can set up a customer service call center in another country where the wages will be much lower than what you're paying now.
Alternatively, you could cut your costs down significantly by moving your manufacturing process closer to the source of your materials.
Moving your HR, payroll, finance, or any other part of your operation to another location might also improve and be more affordable.
If your company is concentrated in one nation, it's very vulnerable to disaster. In that region of the world, business may fall off or supply issues might develop and put your ability to provide products or services at risk. On top of this, local politics or natural disasters can have a significant influence on which endures.
By marketing in multiple locations, you create a safety net for your business. If sales dip in one area, you can pivot and rely on other areas to make up the difference. This way, you can always maintain a steady stream of revenue.
By expanding your business outward, you open yourself up to new opportunities for growth that might never have been possible before. New areas may hold benefits and assets unknown in your home market, allowing you to grow at a faster rate than ever before.
On top of that, you might find that these new markets are undiscovered territory for your service or product. You can get in before your competition and establish yourself as the go-to authority before they even realize you are expanding.
Do your market research before investing in a new location to avoid wasted effort and money. Look for places with an interest or need in what you're offering.
The tax and compliance advantages you may gain when opening offices in other countries is another incentive to expand globally. Some nations may have lower company taxes or less-complex taxation regulations, for example.
Utilizing these areas of the world could help you save money by paying taxes at a lower rate.
You should be sure that you are following all local tax regulations in all locations where you do business. It's possible that your company's country of origin will tax you more than once because to earnings or expenditures in a foreign nation. In this case, work with your accountant or lawyer to figure out what you need to do.
After reading the above, you should have a stronger idea of how to get the most out of an international business expansion. When you do, expanding your workforce will be necessary in order to match the new location. Luckily, that's what we're here for.
All you have to do now is get in touch with us and we'll answer any queries you may have about our procedure.
Empowering clients to succeed in global markets.
