Going international a boost for sales

Expanding overseas is proving to be the best boost of revenue for Australian companies.

Article by- Rhiannon Sawyer, Dynamic Export

A new Regus report suggests that 62 percent of companies are reporting high revenues than those that concentrate only on the Australian market. After polling more than 12,000 companies around the world, the Regus Global Survey also showed that 78 percent of Australian firms that already operate internationally intend to expand further in the next few years, with companies in the ICT and manufacturing and production industries indicating that they are the more likely to grow offshore.

While 40 percent of global companies on average are looking to expand into international markets, only 34 percent of Australian companies operating domestically plan to expand, below the global average. Regus regional vice president South East Asia, Australia and New Zealand said: “Our results indicate that in the current economic climate, Australian firms concentrating on the domestic front risk being left behind in fiercely competitive global markets.
“The findings should act as a wakeup call for these businesses and encourage them to find more effective and cost-efficient ways of moving cross-border in order to enhance their earnings and spread their risk.”

Property lease times and the decision over whether to have an Australian or local presence looking after the company internationally are among the bigger concerns for companies who are yet to expand. Willems said that these concerns aren’t necessarily viable.  “While property and people are perceived as potentially major challenges, the wide availability of flexible workspace options around the globe make the ‘property’ element more perception than reality. Technology in particular, has been a key enabler in helping firms overcome the difficulties of setting up a fixed office space. The phenomenon of the virtual office for example, has provided a platform for firms of all sizes to access global markets of scale but at a fraction of the cost.
“The ‘people’ issues however, do require careful judgement.  Decisions about whether to install a local manager or one from the company’s home country are critical and largely rest on whether sales are handled mainly through a few major distributors, or with direct contact amongst a wide range of customers. Such decisions will depend on the type and size of the business and the industry of operation.”

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