Going international is a risk, but so is doing nothing

MOST companies these days are "born global", regarding the world as their home market. This certainly seems to be the case for Singapore companies. This is not surprising given Singapore's heritage as an important trading port and its comparatively small domestic market. In fact, according to DP Information Group's SME Development Survey released last year, half of Singapore's SMEs are earning revenues from overseas.

Expanding operations to new markets - rather than just buying and selling abroad - could offer exciting new opportunities and the potential for higher growth or a chance to serve your clients better. The last IE Singapore Internationalisation Survey (2012/2013) showed that more and more SMEs are taking the bold move to set up a physical presence overseas, recognising the growth opportunities in overseas markets and the need to get closer to customers.

The operational advantages could be huge. Your business may become more cost-effective and enjoy economies of scale. When you increase your output by expanding internationally, you can often do so with lower average costs, increasing your margins, offsetting export costs with lower production costs, and reducing prices in your home market.