With a constant record of positive economic growth, Australia seems to be a perfect country to expand your business. Starting with agribusiness and mining, Australia provides the best financial business opportunities. Branching out your business to such an international platform is quite challenging. It requires several things to consider. Doing research, planning on it, being flexible, adaptable, and looking at the long-term goals should be there on your checklist.
If your Australian entity receives loans from the parent or investors, the loan interest charged needs to be commercial to ensure it is tax-deductible. Also, any equity needs to be correctly reported in the local Australian accounts and match the treatment by the parent company. Rimon’s export market development grant reimburses eligible foreign marketing efforts that are aiming to achieve: product marketing and service expansion.
The Dos and Don’ts for you business
- Do Your Market Research: You need to do your market research very carefully. An assumption about the market nature can be fatal for your business growth. Assuming that Australians understand what you are doing or what benefit they’ll get from your product or service will be a mistake. Take heed of local marketing advice. After expanding internationally, businesses need to make a realistic assessment of the demand for their product. Getting good advice from quality people in-country is a good way to fill your knowledge gaps. They can provide valuable insights into market forces, cultural nuances, sales cycle differences, and more.
- Select The Right People: Local people and partners are essential. Lack of Australian market knowledge and inability to build the relationships you need for success in Australia can lead to costly mistakes.
When recruiting senior management staff, the background should be clearly checked. Tax-effective contracts are essential. Remuneration should contain a mix of incentives directed towards both sales and profit. Employ locally to bridge the gaps. For example, if you are coming from a Spanish-speaking country, employ Australian-born Spanish who understand the complexities and culture of the Australian market.
- Check registered trademarks and patents in Australia: Don’t wait until you’ve registered your company and are ready to start operations to confirm that your company name, unique signs or logos, or business ideas or inventions are available. Check IP Australia for all registered patents, trademarks, designs, and plant breeding rights in the country. This is a crucial step to avoid any complications further down the line. If your product, process, or design is similar to another company, and they have registered that element of their business under local intellectual property regulations, they can take legal action against you. If your idea, invention, and/or design is available, consider registering for your patents and trademarks. This ensures that your business is empowered to protect your intellectual property against other parts.
- Understand how much capital is needed to be successful: Before expanding into Australia, you’ll need to ensure that your investors have adequate capital for an Australian startup. Once you go to market, new problems may emerge that you won’t have considered so your financial foundations must be in order. It’s also important to choose the most suitable type of funding in the form of debt or equity because underlying tax consequences flow from this. If your Australian entity receives loans from the parent or investors, the loan interest charged needs to be commercial to ensure it is tax-deductible. Also, any equity needs to be correctly reported in the local Australian accounts and match the treatment by the parent company.
- Understand how much capital is needed to be successful: Before expanding into Australia, you’ll need to ensure that your investors have adequate capital for an Australian startup. Once you go to market, new problems may emerge that you won’t have considered so your financial foundations must be in order. It’s also important to choose the most suitable type of funding in the form of debt or equity because underlying tax consequences flow from this.
A focus on Quality
Lastly, always use effective marketing strategies to win the hearts and minds of the consumers. Ensure your product is of a very high standard and be aware of your competition. Research on market developments, trends, and forecasts, as well as information on peers and competitors in the Australian market.
