Boasting more than 27 years of consecutive economic growth, Australia is a country unlike any other. Not only does it house a multicultural workforce and offer easy access to millions of new workers, but it has strong and stable foundations, a pro-business government, and a string of globally successful industries, in energy, agriculture, finance, education, and tourism. To top it all off, Australia is globally connected, offering unique trade relationships and barrier-free access to markets including Asia, Europe, and the Americas. Simply put, Australia is an investor’s dream.
However, whether you’re based in Brazil or Bangladesh, England or Ecuador, it’s important that you take into account the challenges of establishing a business on the other side of the world. In Australia, business is done very differently to the way in which you may do things at home, so we’ve put together this useful guide, packed with tips when starting a business in Australia…
Setting up a Business in Australia – Spot A Gap In The Market
It doesn’t matter whether you’re opening a new brick and mortar store or you’re setting up a brand new company on the other side of the world – all big business decisions require you to take risks. That’s also true in Australia, as you’ll need to pay for transport and accommodation, as well as the costs of incorporating a new business and paying for it to grow and expand in the country. So before you get started, you should determine a gap in the market, or come up with a unique value proposition that will set your company apart from other businesses in Australia.
Unlike when setting up a business in an emerging market, Australia is an established, maturing market. As such, you’ll likely face higher levels of competition and the demand for your products or services may be lower than expected. Be prepared to work hard and invest in a significant sales and marketing campaign if you want to get ahead of key players in a crowded industry.
Incorporate With The Right Structure
Once you have decided to establish a business in Australia, you should look through Australian business structures and determine which is right for your venture. While it’s possible to change your company structure once you get started, it’s more cost-effective to start with the right one.
Incorporating as a sole trader does what it says on the tin – you’ll be self-employed and will be responsible for your profit and losses. You’ll be able to take on employees and must pay them as if you were a business, but you’ll be personally liable should your company make a loss. With a partnership, on the other hand, you’ll share profits and losses equally amongst shareholders, whilst Companies are the most popular structure and allow you to become a Director. You’ll be responsible for paying super guarantee contributions to your workers, and your Company will own the profits of your business, rather than you as an entrepreneur. The final structure is the Trust, which is usually incorporated for investment and business purposes; this structure offers some incentives and allows businesses to distribute profits tax-free to beneficiaries in Australia.
Network With Australian Businesses
It’s important to network with local and international CEOs and key decision makers, as it can take a long time to build a name for yourself and encourage people to buy from you, rather than from one of your locally-established competitors. Attend networking events, conferences, and exhibitions, and consider hosting your own business events to generate leads and customers.
If you’re selling exclusively B2B, then you could even consider partnering with an established business who can distribute and sell your wares in the country for a percentage cut, and this would reduce the level of risk and enable you to grow brand awareness at a faster pace.
Utilize Its Free Trade Agreements
Being thousands of miles from many of the world’s most lucrative economies, Australia has had to rely on free trade agreements to fuel its economy. The country describes itself as having a “globally integrated economy” and has partnerships with Asia, Europe, and the Americas to boot. This is great news for businesses in the country, as it allows them to sell their products and services to billions more customers – not only in Australia but in key markets around the world including the United States, China, Japan, and Singapore. When incorporating your business in the country, you should utilize these free trade agreements to shift more stock and enable you to grow at a faster rate, but remember to account for distribution costs and fees.
Operate In One Of Its Growing Industries
If you’re looking to reduce your level of risk and hit the ground running from day one when you start a business in Australia, then you should enter into one of its growing industries, whether that be energy, agriculture, financial services, education, or tourism. The country is the world’s largest producer of iron, gold, and uranium, it’s one of the top ten producers of agricultural goods, and it has one of the world’s largest managed fund assets markets in the world. Whilst entering into one of these would result in high levels of competition, it would also increase the likelihood of securing contracts with firms and finding members of staff to grow your brand.
Get To Grips With Its Business Culture
Finally, you should take the time to get to grips with Australian business culture when you begin work in the country, as the way in which professionals operate may be different from that of your home country. Australian’s are famed for their modesty, straightforward attitude and in taking their time when making key decisions, so learn to adapt to their way of thinking if you hope to enter into long-term contracts with businesses and individuals. If you’re too heavy-handed in a meeting, for example, decision-makers will likely be put off and choose not to work with you.
Rely on Biz Latin Hub
With an Australian CEO and years of experience offering our services in the country, you can depend on us to guide you through the process of setting up a company in Australia. From due diligence and legal through to recruitment, market entry and accounting, we offer a full suite of back-office support services designed to make your overseas expansion simple and pain-free.
To find out more, reach out to us today here and a member of our experienced Australian business team will get back to you with a personalized strategy.