Commitment and resources*: Developing export markets can be costly in terms of time, money and resources and you will need to show management commitment to be successful. You must take a long-term view and be prepared to be persistent and patient while you wait for returns. Consider how many resources and how long it takes to break into a new regional area in Australia. This can be multiplied several times when you are looking at an overseas country. Exporters entering the China market sometimes can expect to take two-three years however, some niche products can be introduced to the market in as little as a few months.

 

Product/service*: Your product or service needs to be able to better the competition in the market you are entering. Some international markets have multiple competitors from countries where labour costs are much lower than Australia and subsequently their product or service margins may be more flexible. Price may not always be the deciding factor. Market niches can sometimes be won on superior quality. You may need to change product design or service offering to suit different industry or demographic needs. Product/service literature should preferably be to international standards and be tailored to overseas requirements. This may mean translation into the local language of the market you are planning to enter. Remember you wouldn't be able to read a Chinese brochure in Australia. In the same way many Chinese buyers can't read an English brochure.

 

  Marketing*: A strong grasp of marketing is vital in export. Does your company have solid marketing knowledge and experience gained by successful selling in a number of Australian states? If your product/service has had limited exposure in Australia it could be more cost-effective to expand at home before tackling new export markets. You must also consider the cultural nuances of marketing. Product marketing may need to occur in different ways to help you enter the new market.

 

  Management*: Exporting will require considerable management time and can be a major distraction from the domestic business. Does your company have the available management capacity, which will be required to develop and service exports? Is it necessary to strengthen the management team to service overseas exports properly? It is true that many businesses who commence exporting start to forget their domestic business while they're focusing on the international market. You must be able to handle this dual focus. This may mean employment of additional staff - are you ready for this?

 

  Supply capacity*: If you obtain export orders they must be filled correctly and promptly. Does your company have the supply capacity to develop export distribution? Can the existing capacity be expanded quickly when required? Your product, service or technology might be more suited to a licensing arrangement but you must consider all Intellectual Property Issues (IP) early. This can cost time and money. 

 

  Finance*: Breaking into any new export area requires considerable funds (airfares, accommodation, advertising, sales promotion, new brochures, training of overseas sales agents, setting up of joint servicing offices offshore, etc.). Does your company have the financial strength to commit, say $40,000 for the year or more it may take to develop a new overseas market? For more complex countries such as USA or Japan, the amount and time required could be double or more than this rule of thumb. Schemes such as the Australian Government funded EMDG scheme can lessen the burden for new exporters but, costs need to be incurred up front so cash flow needs also to be considered.

 

  Research capability*: Accessing information and making the right decision about which country to enter first when you are convinced you are ready is important. You need to ensure that you access the right information. Some of this information is available for free on the internet. Organisations like Austrade can assist some new exporters without cost. Ninness Consulting also can undertake in-country research on your behalf.

 

*Adapted from information supplied by Austrade  www.austrade.gov.au