A total of 98 per cent of all businesses in Australia are SMEs, making us a majority nation of independents. Having survived the pandemic and now navigating an economic downturn, they have developed an incredible layer of resilience. What’s more, SMEs contributed half a trillion dollars to the Australian economy in FY22, providing 5.1 million jobs to Australian residents.
However, while 83 per cent of Australian business owners are expecting growth, only eight per cent believe expanding overseas will contribute to that growth over the next year. This may not come as a huge surprise after Australia recently declined in rankings in a recent global competitiveness report, coming 19th out of 64 global countries.
So, what’s stopping Australian SMEs from competing on a global stage, and how can they overcome these barriers to entry?
Do your research
Each market has its own nuances that should be thoroughly researched before expansion. Your Australian marketing and sales strategy will most likely not translate well into other markets due to varying audience demographics and what they look for in a product. An inspiring example of an overseas expansion success story is the Australian unicorn, Canva, which strategically prioritised local partners and localised designs to gain a strong foothold in the Chinese market.
It is also critical to fully understand legal nuances, market regulations and financial considerations when expanding internationally. For complex financial processes like tax and salary management, consider hiring a local accountant as this will help you avoid costly mistakes and save you money in the long run.
Build a strong online presence
A localised website or eCommerce platform is not just a great investment to boost your business’s online presence in a new country, it’s a must-have when getting started. By prioritising your online presence at the start of operations, you will help mitigate dips in cashflow and ensure sales are consistent.
Developing a strong social media presence can also help to increase your business’s brand awareness. Digging into what social platforms perform the strongest in each market, or employing a local agency to help with the content strategy will ensure the brand generates more exposure and attracts potential customers and investors.
Get your finances in order
Lastly, securing sufficient funds to grow the business in a new market may be the most important tip of all. Whether the funds are secured through loans or a venture capital raise, it is essential your business can still sustain its headquartered operations before jumping into a new market. Preparing for essential costs like rent, wages and set-up logistics will also ensure a more stable transition into a new market.
One great example of how to do expansion right is Australian business PUPSTYLE. Its founder, Tatum Ioannidis, quickly realised the potential her business had during the pandemic when the demand for puppies skyrocketed. She took advantage of the increased interest and applied for a small-business loan to ensure all items can be restocked quickly to meet the high demand. As PUPSTYLE’s sales soared by more than 200 per cent, the natural step was expansion into the US, where Tatum found herself packing triple the number of orders than usual.
With so many Australian SMEs anticipating growth in the coming year, all that’s needed to see that ambition come to life is the right tools and proper planning. By ensuring you have thoroughly researched the market for nuanced audience preferences, have a strong eCommerce strategy underway, and are financially prepared for your initial set-up costs, there is no reason you can’t go global and be part of the wave of SMEs that changes Australia’s reputation as a global player for good. You’ll be well on your way to securing your place on the global stage.
