6 Outsourcing Tips for Startups Expanding into New Markets

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This article by NNRoad for startups will provide outsourcing insights for making decisions when expanding a business into new markets.

Why look to global markets for expansion? 

In the past, companies may not have immediately decided to expand business globally to find new sources for profit. Instead, companies may look to new geographic or demographic segments to expand their company. So why, now, is it so important to internationalize your business to strike new profits?

Some of those reasons include:

  1. To expand the size of the market. The first reason to expand to new areas is often the desire to find a new, profitable market.

  2. To diversify your offerings in a market. When entering a new market, your company may be able to introduce a product or service that works specifically for the new market but may not have worked for the original market.

  3. To increase profitability and cost-efficiency. Companies that expand to other areas may find that the cost of operation in a new region is significantly lower, therefore providing for a greater opportunity for profitability.

  4. To compete effectively in a global economy. Companies will often follow their competitor into global markets to reap benefits. On the other hand, a company may expand to other areas to have an edge over its competitor.

After realizing that you should expand your company overseas, it is important to begin working on a business plan with clear objectives. The steps following your decision to expand are crucial to the success of your company and should not be overlooked. Any wrong decisions could result in a loss in time and money.

So, what is the best method to enter a new market for startups? 

It is generally recommended to outsource any non-core business activities to a knowledgeable company. While your core business activities are those that set your company apart from others and generates profit, your non-core business activities are those that involve human resources, payroll, and accounting, and typically represent a cost-generating activity rather than a profit-generating one.

These are activities that your company does not specialize in but, unfortunately, has to keep up with to ensure other operations can be carried out. Because these services do not represent your core competencies, these can be outsourced to a more experienced firm.

What should be outsourced when startups entering a new market? 

Below we’ll list seven tips about outsourcing that are crucial when entering a new market:

1-Create a business plan with advice from local experts

It’s important that start-ups are conceived from the outset with an international idea. Raise your business strategy considering internationalization as one of the key factors. In order to do this correctly, it is necessary to have a solid strategic business plan in order to find out:

  • Where are the customers?
  • What does the company need to reach its strategic objectives?
  • Which market are we reaching?
  • What are consumer trends in this market? What is the global status of this market?
  • What is the political and social climate of the country/countries
  • How will the tax laws in this country impact our company? Are there free trade policies or tax treatises?

Being confident in your company’s approach to a new market is vital to your success. Changing course once already established in a foreign market will cost the company time and resources, so make sure to do your research well in advance.

It is always advantageous to have extensive knowledge in the area you are entering. For a startup, it may be difficult to be an expert in several markets around the world at once. Contacting local experts may prove to be the best method to ensure your strategic plan is on the right track.

2-Strengthen your brand 

When you are expanding to new large markets, you are also going to be competing with more brands.

Prepare for the competition and you must start with your branding. In order to be able to compete with well-established businesses, you should look forward to building a brand that is able to stand out from its competitors.

3-Contact a company formation partner

Using a company formation partner to set up your entity in a new market is also recommended when expanding abroad. The use of such can ensure that your entity setup is in total compliance with the local requirements. In addition, it also enables a smooth setup managed by local professionals who are familiar with the process and experienced in dealing with local authorities.

Furthermore, a company registration partner can assist you with HR outsourcing and payroll services while also assisting you to find an office space.

4- Outsource tax and bookkeeping duties

After ensuring your brand can compete against local competitors and receiving local advice on company formation, you will be ready to outsource your tax and accounting responsibilities to an experienced accounting partner.

Even basic bookkeeping standards differ from country to country, creating the possibility of incorrect filing methods that could lead to a loss in time and money. If you add potential language barriers into the equation, it could spell trouble for your company.

Tax and bookkeeping compliance can be outsourced to local agencies in order to avoid any potential mistakes that could affect your profitability or compliance as a foreign company.

5-Payroll & Tax

After the complex decision of establishing a startup into a new market, likely you will have to administer the payroll and taxes on behalf of your company. A solution for that is outsourcing to a payroll service company.

Companies specialized in payroll customized and cost-effective end-to-end payroll management solutions of all sizes of enterprises. For example, in a country like China where there is complex Individual Income Tax (IIT) system, local and foreign employees are subjected to different taxes even in different regions within the same country.  These regulations may differ from area to area and are subjected to change at any moment, requiring an expert to be constantly up-to-date with new policies.

6-Outsource IT support and Webpage development

Our world is now connected by the internet, creating many new possibilities for several industries. In many cases, the first get-in-touch point with new customers will happen in a digital environment. Therefore, it is vital for your company to have a fully functioning, convenient website for your customers to find you. Depending on your industry, your website may need certain features to ensure that you are providing your audience with the best online attention possible.


Although it is now vital for all companies to have a global presence, entering a new market is still a financial risk and all steps to set up in a new area should be taken with precaution. Even after the company is established, it is easy to make mistakes if your company does not fully understand the market it is entering. Additional mishaps could occur if your company overlooks certain aspects of the culture in the country or if there are language barriers.

By following the previously mentioned tips, your company is setting itself up for success in a new market. These tips should facilitate the entry into a new market for newcomers.

For additional information, contact NNRoad to help successfully expand your business to international destinations!

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