The export market is ripe for small business expansion, provided they research the opportunities beforehand. We outline the steps for businesses looking to take the plunge.
1. Do your research
Use the research already conducted by government bodies, such as Austrade and its Go Global Toolkit to learn as much as you can about your target markets.
2. Make a plan
Start by seeking clarity around your reason for exporting. Is it about business growth, exploiting extra production capacity or, smoothing out lumpy, seasonal demand? This plan must include your product, pricing, distribution, marketing, and how you’ll enter the market – via distributors or retailers, etc.
3. Train your team
It’s vital that the export skill development involves multiple staff members, not just the business owner. That way, there’s always someone available to handle export issues and maintain momentum if the owner is occupied with other priorities.
4. Understand legal and regulatory issues in your target markets
Look for territories that have free-trade agreements with Australia. That will make things a lot easier, as these FTAs have facilitated easier market access, reducing tariffs and non-tariff barriers.
5. Consider tailoring your product and marketing to a local market
You can tailor a website that is specifically built for the particular market you want to trade with as different cultures use different language around particular pieces of clothing, such as jumpers/sweaters or jam/jelly. Also, certain colours of packaging, words, or images might need to be adjusted for various cultures.
6. Protect your intellectual property
Having your IP protected in Australia will not help you in foreign markets. You could also inadvertently infringe on someone else’s trademark. Make sure you get the right legal advice.
7. Understand how costs and payments work
In international trade, there are what we call Incoterms. Incoterms dictate who is responsible for specific tasks and payments. Understanding these terms is vital – if you ship products out of your warehouse without receiving payment, you need to know if you can afford to operate that way.
8. Understand the costs and risks of shipping
You will need marine insurance to cover any mishaps. This insurance not only protects the value of your cargo but also provides coverage in various unforeseen circumstances.
9. Know what government grants and support programs are available
There are numerous grants available to SMEs launching into the export space, including the Export Market Development Grants (EMDG) | Austrade.
10. Get the right advice
Consultants who have had many years of experience can assist to make sure you receive the maximum funding possible.
Export Market Development Grant – Round 4
- The Export Market Development Grants (EMDG) program will open on the 12th of November 24.
- Encourages small to medium enterprises with a turnover of less than $20 million to market and promote their goods and services globally.
- Successful applicants will receive grants agreements for 2 years, covering planned expenditure from 2025-26 to 2026-27.
- Grants will be awarded on a first-come, first-served basis. The grant round will close once available funding is exhausted.
- A tiered based program that’s dependent on a business’s export market status during the relevant claim period.
- SME’s must show the capacity to spend at least $20,000 annually on marketing and promotional activities which must be their own funds and not covered by the grant.
- Businesses must have been operating for a minimum of 2 years with the same ABN.
- Tier 1 applicants need to demonstrate export readiness by completing approved export training or passing the Export Ready Test.
Eligible Categories for Expenditure
Patents and Trademarks/Social Media, Websites, Marketing/Travel overseas and within Australia (economy flights only)/Trade Fairs/Exhibitions/Marketing Consultants/Training/Overseas Representatives/Free Samples/Overseas Buyers.
RADBE, an experienced consultant supplies all the relevant templates and guidelines to submit a successful application and manages the process for the 2 years of funding.
Build your market, your brand and your business
Any export journey, must begin with building awareness of their brand in various major markets.
That might include various opportunities to participate in events in strategic locations where visibility will be high.
Every customer is a potential link to a new market.
For small companies, this is often their first step into export, when a foreign customer finds their product and asks for it to be sent to them.
That person starts talking about it on social media – news travels fast in today’s digital world – and suddenly more orders come from that territory.
