While making a pivot in business requires comprehensive research and financial investments, the benefits of seizing new opportunities could protect business continuity longer term.
In this changing landscape, what are the key challenges exporters are facing and how are they approaching them?
“Exporters looking to make a pivot in the market have been much more reliant on specialist advice,” said Aleks Henderson, Business Development Director WA at Export Finance Australia.
“It has become more important for us to, firstly, increase awareness of our funding support available, and secondly, connect our customers with government and industry bodies. This ensures that they have access to insights on alternative target markets as well as other markets not previously considered and assess the opportunities available to them,” Aleks explained.
How businesses are approaching new opportunities
Building insights through more comprehensive research and identifying alternative ways to enter a new market have been popular strategies for businesses looking to pivot in response to some of the changes in the market.
Active Apparel Group is one business that adapted in response to COVID-19 after identifying a pivot opportunity to manufacture and export non-medical grade reusable face masks to buyers in the US.
Adapting to new ways of connecting
One of the difficulties with being able to seize opportunities has been the inability for businesses to travel and create a footprint internationally.
Online networks such a LinkedIn have become useful tools for business. By researching the key agencies their competitors use in target markets, businesses have been approaching and connecting with new contacts directly online.
In supporting Australian businesses looking to expand into new markets, Aleks said that making introductions for our customers has been more important.
“We have been working more closely with Austrade and AusIndustry as well as peak industry bodies such as TradeStart and the Chamber of Commerce and Industry WA to make introductions to our customers where they didn’t already have those connections.”
Making global local
DXN Limited (DXN) is redefining the way modern data centres are constructed and operated. DXN delivers modules and built-to-order data centres designed to meet the unique needs of its customers. With growing demand for its services, DXN needed additional working capital to deliver four critical projects in the Pacific.
We provided crucial financial support to close cash flow gaps between the building process and receiving payment from customers. This not only enabled DXN to meet key milestones, but has opened doors to new export opportunities.
“Logistics and cost are two of the biggest challenges when exporting: getting your product into the market and competing against other countries with a much lower cost of manufacture,” said Greg Blenkiron, Chief Financial Officer, DXN.