SME’s and The Global Market
We have all heard the phrase of “Globalisation” which can trigger all sorts of social debate, however, if your business is one that has been established with unique products or services, then consideration of new geographic markets is something that should be seriously considered. Today, like no other, access to other sovereign markets has been made much more accessible than in the past and there is considerable assistance to help the “little Aussie battler” make their mark on foreign soil. However, like any new market penetration strategy, care must be taken as there still exists many pitfalls that can result in costly mistakes being made.
Assistance to SME’s For Export Market Development
The Australian Governments “Export Market Development Grants” scheme is an excellent service that encourages Australian SME’s to proactively develop export opportunities. In short, you may be eligible to claim up to 50% of expenses directly related to activities to develop your export markets, where your total expenditure is greater than $15,000 (there are conditions attached to this so if you wish to enquire about further information please do not hesitate to contact us here at Advivo). The result of this is that it can assist you in de-risking the total investment required to source these markets.
Tips on Entering the Global Market
If creating new markets in foreign countries is something that is in your planning, either formally or as a thought bubble, then here are a few tips to consider that will often be the foundation of success:
- Know your market extremely well: this takes considerable research and “localised knowledge” but is absolutely imperative to ensure that you come to a strong understanding of the local nuances. Seek local partners and test your product/service before taking the real plunge
- Strategy: think clearly about your expansion strategy. What will business model (distribution, licensing, franchise, partnership or full self-funded ownership with direct sales) you use to expand? There are pro’s and con’s to each model so spend some time taking a close look at which model will work for you
- Forecasting: once you have developed your strategy and then progressed this to a full business plan, ensure that all activities are well costed so that you have a very clear idea of the true costs associated with your venture. Keep revenue forecasts conservative and build in contingent expenses. If it all stacks up in a conservative case scenario then improved outcomes on your forecast will produce an even better return
- Know the local laws and regulations: each country that you enter to do business will have different laws and requirements. AusTrade is very active in most common international markets and can assist in many ways, especially in gaining access to local knowledge and even introductions to authorities you need to talk to
Becoming an exporter can be an exciting step for any small business and the way we can operate many functions of our business remotely enables us to seriously consider expansionary strategies into foreign parts of the world where demand for our product/service can be far greater than here at home.
At Advivo, we are passionate about taking your business to the next level so if the temptation of seeking foreign markets is something that you might consider, be sure to give us a call and start the conversation of how to plan for your success. Get in touch with us on 07 3226 1800 or use our Contact Form.
YOU MIGHT ALSO BE INTERESTED IN:
- Business Innovation Hampered by Lack of Funds
- How to increase your chance of success: Innovation and Commercialisation go hand-in-hand