There are many reasons why companies chose to export as a growth strategy.  Some of these are:

• the domestic market has been saturated and there is no longer room for growth
• successfully selling in Australia and competing well against foreign brands
• seasonal nature of a product, allowing sales to take place all year around
• inquires and demand from overseas
• the product/service has been developed for an overseas market.  Companies that find themselves in this situation are considered born global.

Exporting can offer increased sales and increased profits, but it is not without cost. Business owners who decide to export must be committed to the process and invest the necessary time and money to be successful.

If you are considering export as a growth strategy, ask:

• Is everyone is the company from the factory floor to the boardroom committed to developing export markets?
• Does someone in the company, very often the business owner, have the time to develop export markets?
• Can the company invest in developing export markets, such as money for funding overseas trips, tradeshows and new marketing materials?
• Does your product/service have a unique selling point?

If the answer to these questions is “yes,” then exporting might be right for you.

Companies can develop export markets in the variety of ways including:

• using an agent or distributor in an overseas market and/or a combination of both
• selling and servicing the market directly from Australia, often chosen by services companies
• forming a joint venture or alliance/partnership with a company offshore
• franchising
• selling on-line
• setting up a representative office or incorporating offshore.

Each method of exporting comes with a certain amount of risk.  You should understand what the pros, cons and risks are before deciding on your export strategy.  Very often this may depend on how quickly you want to grow overseas market and the resources, including finances, that you have available.

Companies who are considering exporting or who want to expand their current export markets/sales, can receive assistance from a number of organisations and programs:

Export NSW

Australian Technology Showcase

Austrade

TradeStart   

Export Market Development Grant

Export Finance and Insurance Corporation (EFIC)

If you want to know if your firm is innovative, take the Innovation Quiz

For more information, also see the New South Wales and Federal Government innovation links.