Are you ready for expansion?
At the initial stage of your expansion, it is easy to be focused on chasing revenue. However, you cannot lose sight of how profitability can be your best asset. Measuring profitability will give you the clarity needed to determine if expanding your company's operations is the most viable solution.
Have you evaluated the real estate market in your next expansion destination?
The last thing you want to do is to expand into a new area where competition is intense and stops you from standing out in the crowd. Evaluate current market trends and future real estate forecasts to determine if it will be a strong or soft market for development.
Go the extra mile to understand the project profile, different schemes of financing, ownership restrictions, local statutory requirements and the target buyer market. You will also need to have a clear understanding of how you plan to finance the project and if there are repatriation issues or restrictions that may arise.
Do you have a strong relationship with your business partners?
Singapore constructions companies often form strategic partnerships with domestic companies from their expansion destination. This collaboration allows them to leverage their partner’s existing expertise, manpower and equipment when working on new projects.
Building a trusting relationship with your business partner is crucial to success. Figure out ways to incentivise your partner so that they remain motivated to ensure project success and continue to advise you on local practices and how to avoid common pitfalls.
How are you helping your partners?
Partnerships should be mutually benefitting and to ensure that it starts on solid footing, it is important to highlight how it benefits your foreign partner when they support your projects.
Since Singapore is recognised as a global leader in the green building sector, expertise in this area is a good selling point for local construction businesses. You may also be able to contribute advancements in construction technology that are vital to boosting your partner’s competitiveness.
Do you have the working capital for expansion?
In addition to making sure your finances are stable domestically, you should also have the financial bandwidth to comfortably handle partnering with a foreign company. Those first few months or years may not be as profitable as expected. You will need to have enough capital on hand so you don't strain your finances trying to keep operations afloat.
Perform a company assessment and risk management evaluation
Singapore contractors need to do proper project due diligence and risk evaluation for their operations to minimise current and future issues. These will help highlight areas in your processes that need improvement so you can lower risks and while ensuring business goals are reached.
WE SPECIALISE IN SERVING REAL ESTATE & CONSTRUCTION BUSINESSES
Each industry is unique and the hallmark of a great business partner is the ability to understand and identify the needs and goals of each business in its own context. Our vertical industry units are designed to help companies grow through tailored services with insightful, practical and effective advice.
Learn more about our Real Estate & Construction industry unit!