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International Business - 7 min read
The world has never been more globally connected. In 2018, there were more than 42 million movements across Australia’s borders, up 5% from the year before. Also, small- and medium-sized businesses are targeting international customers in growing numbers. For example, a recent study showed that 17% of Australian businesses with 20 to 29 employees were using the internet to target overseas customers. The movement goes both ways. While some Australian companies are reaching out overseas, many foreign businesses are moving or expanding to Australia.
Could your business benefit from internationalising its operations? Could you tap into new markets and take advantage of the many benefits of establishing your business in Australia?
Australia is a great place to do business. It’s a beautiful country with a highly educated workforce. And its business-friendly environment allows companies to reach new customers and thrive in new markets.
In this post, we’ll look at two ways of internationalising your business: setting up a business in Australia and internationalising your already established Australian company.
A business launchpad in Australia can help you tap into new markets and take advantage of a robust and educated workforce. If you’ve been seeking a way to position your business as a springboard to the Asia Pacific region, look no further. Many companies have experienced explosive growth tapping into Australia’s substantial foreign investment and dynamic services sector.
The first step toward setting up your business in Australia is to make enquiries into potential locations. Use best practices to perform your due diligence regarding market research and business strategy. Start small until you feel comfortable, and then introduce your full suite of services and products.
Internationalising a business is a significant undertaking, but when you approach it methodically and thoughtfully, it can transform your company and lead to incredible opportunities. Let’s take a look at the steps toward internationalising a business.
Using reliable and accurate metrics, evaluate the market attractiveness of each country under consideration. Look for the best fit for your particular products and services, noting the following factors:
Tools like Porter’s Five Forces and the classic SWOT analysis can be beneficial in determining the advantages and disadvantages of setting up a business in specific countries. As you analyse your options, pay special attention to the external environment, since this will be the most substantial departure from your current operations.
Will your current business model work well in the new country? To successfully enter the new market, you may want to consider acquiring a local business to capture their core business expertise. In this way, you can access local knowledge or make a strategic alliance with an existing company.
You know and understand your position in the current local market, but you’ll need to consider your positioning in international markets. Evaluate the competition and their positioning to help you find your own place. Some businesses find that they must seek out a new niche or modify their products to fit well in their new market.
Due to differences in consumer taste, lifestyle, and spending, you may need to target different customers internationally than you do at home. Carefully analyse geographical, demographic, psychographic, and behavioural data as you narrow in on your target customer base.
Do your current products and services meet the needs of consumers in your target countries? Many businesses find that they need to adapt their products to suit the needs and desires of their international customers.
Market research will help you to determine demand in your target countries. If you can meet specific needs and wants of local consumers, your chances of success will increase substantially.
Once you’ve gathered about your market position, target customers, and products and services, it’s time to evaluate your core competencies.
Do you currently have access to the skills and resources you need to position your business internationally successfully? If not, do you know how to acquire those core competencies? Will you be able to hire locally for critical positions? Alternatively, will you need to relocate workers for specific jobs?
Internationalising a business requires attention to importing/exporting, franchising, regulations, and licensing. Do you have systems in place to manage all elements of your supply chain? How will you acquire everything you need in your new location? Moreover, how do the costs stack up with your current cash flow and budgetary requirements?
Consulting with an international business expert can help you to determine whether now is an advantageous time for your company to internationalise. Team up with an adviser who knows the ins and outs of the process. Get in touch with us at Altus Financial.
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
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