You’re ready to choose international markets for your products and services, a decision that’s critical to your export success.
Thorough market research is critical at this stage of the export journey. It’s not just about finding a destination with high demand for your exports—understanding a new market also means recognising and planning for the additional risks of doing business there.
Managing the cost of finding markets
The costs of international research can add up quickly. You may travel to target countries to gain first-hand experience of how the local market operates, meet potential buyers and attend trade fairs to promote your products and services. You might also pay for visits to Australia by interested buyers who want to meet you and view your facilities.
With no certainty that your research will lead to signed export contracts, it can be difficult to get bank finance for these activities. You’ll probably have to rely on your usual sources of business finance, such as a business credit card or bank overdraft, which may strain your working capital.
Fortunately, government assistance is on hand to help with the expenses of finding overseas markets. To find government grants and tax concessions available to you at this stage of the export journey, use the search tool on the right.
The Australian Government’s Enterprise Connect initiative also gives eligible firms access to expert advice and funding (matched by the firm) to develop an export marketing strategy.
Assessing the risk of an overseas market
Your research should include a careful assessment of the risks of each potential export market, including:
- political risk—how stable is the market politically, economically and socially? For example, is it likely that foreign government regulations or other events might block outward transfer of your buyer’s payment or affect whether it can be converted to another currency?
- legal and regulatory risk—what difficulties might arise from dealing with unfamiliar and perhaps quite different legal and regulatory systems?
- business risk—will you have to deal with different business and cultural practices which could cause misunderstandings or delays?
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