When is the best time to start exporting? The answer is quite simply: when you have done your homework!
There’s lots of talk at the moment about the opportunities that are availing themselves to businesses during this global economic crisis. Everything seems to be cheaper: rent, people and capital.
With low interest rates, if the banks will be kind to you and lend you what you need, it looks like an attractive time to take the plunge.
In this downturn, more than ever, the Scout’s motto of ‘Be prepared’ should be the mantra of every Australian business looking to expand overseas. Get on a plane and go and look closely at the markets you intend to operate in.
Look at what your competitors are doing. Decide on how you can differentiate your product to win. There are a lot of ordinary products and ordinary services out there and their market share might be ripe for the picking.
Do a reverse feasibility so you know exactly what you can lose rather than looking only at the upside.
Make sure you have more than just a good idea. Products working in one market may not cut it in other markets. Learn the regulations and administrative conditions and all the extra costs you might incur.
Look at flexible options so that if things do go wrong, you can get out quickly and not be committed to renting premises, capital investment or hiring a big team. In many economies, there are real incentives to just stick your toe in the water: ‘Free Zones’ are not as restrictive as they once were in the boom times, they just want clients right now. Serviced offices and virtual offices are a cheap and flexible way to not stick your neck out too far.
There are some great opportunities for you if you are prepared to do your homework. There are options out there that will allow you to cut costs without cutting corners and without getting burnt while you work out whether it’s the right time to commit to your new export market. Get out there and do your research.
—Taine Moufarrige is the executive director of global serviced and virtual office provider Servcorp.
