Expanding Abroad: Risky, Scary, and Exciting

Wear a helmet if you plan to expand your business abroad

Even though our core team is made up of five different nationalities all across Asia, Tech in Asia is still legally a Singapore-based startup. Singapore is small and it seems like a mandate that all local startups have to somehow expand abroad. As a budding Singaporean entrepreneur, I have to admit that it’s tough expanding business beyond this cozy, sunny island. It’s fun too, of course. There are all sorts of issues which we have faced, and I thought it might be helpful to share three of them with you below:

1. Hiring

We needed a lot of hard work and luck to form our current core team, spanning across China, Japan, Singapore, and Indonesia. And in Asia, at least from my experience, it’s very difficult to find the right fit. It makes things even more difficult for us when we don’t really have a physical office. We work virtually in an IRC chatroom; it’s part bootstrapping and part the nature of our work. We needed people to be based in key cities throughout Asia. I owe a lot to the many kind referrers who pointed us to the right people for hire.

We made a bunch of hires that didn’t quite fit as well (although that doesn’t mean they are not good). But that’s just part of the game. We couldn’t afford to spend money to advertise for job positions on LinkedIn or job portals. So asking around is the best way to for us to find the right talent. We still do that even today.

2. Culture

It’s good to be a Singaporean because we get exposed to many different cultures even when we’re young. Whether we are in China, India, or Indonesia, we at least have a little basic understanding of the various cultures. But that’s just on the surface. Every culture has different business practices. Some good, some frustrating. But to do a business in any country, you have to live and breathe its culture. The worst thing that could happen to a Singaporean is to bring “Singapore arrogance” to the table.

But seriously, no one gives a shit about you or your product. If you’re in their country, you play by their rules and customs. I don’t claim to be an expert but I’ve come to learn that no matter where you’re doing business, sincerity is of utmost importance. You can’t really fake it because eventually your body language will give you away over time. If you provide value and at the same time are on good terms with the person who you’re working with, things should roll out just fine.

3. Legal and tax

This is perhaps one problem that startups neglect the most. But to do business in any country, you have to understand its legal system. Or at least the laws that will or might affect you. For this speak to your lawyer and to folks who have done or are doing business in the country you’re planning to expand to. Spend time to understand the potential pitfalls and how to avoid them. It is a big hassle, I agree. But a needed step to be on the safe side.

So there are three points which cover the major issues we have seen when expanding and hiring abroad. Of course it is by no means a complete list. So for readers who have additional points, please add them via comments below. Its always good to see startups who are planning on expansion. Other issues we face include adapting to languages, payment methods, and also corporate structure.

While it’s tough doing business abroad, it is worthwhile doing so. We didn’t take much of a rest after Startup Asia Singapore before jumping full-time into Indonesia. It’s been a crazy ride — exhausting yes, but extremely fruitful. We move fast, take huge risks, and we could easily fail. But we just love seeking new experiences. And expanding abroad certainly gives us that, as well as lots of great new opportunities!