Doing business with Australia is a highly attractive option for many UK companies, start-ups and entrepreneurs, given the similarities between the two nations.
There are no language barriers, it is a well-developed country with a wide range of industries and a similar market to the UK.
How to Create A Cost-Effective Business Between the UK & Australia
However, given the distance between the two countries and many other differences; it can be a costly risk to begin exporting to or importing from Australia. It is important you seek out the most cost-effective methods to avoid financial ruin when doing so.
1. Pick a Profitable Market
As the Australian market is very similar to the UK, many of the popular markets are the same. Which can make it easy to enter. However, it also means that these can be highly competitive already and much harder to access and make a profit.
Therefore, if you’re starting a business, then choosing an up-and-coming market will increase your chances of success.
In 2016 the fastest growing Australian imports were aircraft, tobacco, vegetable products and cereal.
As there is clearly an increasing market for these products; jumping on the back of such trends should open your business up to many more potential customers and clients.
Other markets such as technology are constantly growing and seeking new innovations as well.
2. Export Right
One of the biggest costs for businesses exporting to Australia can be when products get held up, or do not make it through, customs.
Exporting correctly eliminates the chance of your products or business assets being held up or returned from customs. Which will not only waste your money sending them nowhere but could also lose you customers.
It is important you are familiar with the correct tax and customs considerations of Australia. As well as having paid them and any other duties owed to ensure everything goes through smoothly. As a business, tax and customs will differ from sending parcels to friends or family.
3. Save Money on Deliveries
One of the biggest costs involved in doing business with Australia is delivering products to and from the country. Sending a package to Australia can be done in an affordable, cost-effective manner while meeting all your requirements. (whether you want to send a few items quickly or an entire pallet).
Again, you need to ensure all import taxes and charges are covered to avoid hold ups or added costs occurring later on.
Where possible, it will likely work out cheaper to send a large pallet with many products at once, rather than constantly shipping individual items.
4. Make Local Connections
One of the easiest ways to get a new business off the ground in a foreign land is to seek help from those who already know the market. Asking business leaders for advice on things such as marketing in Australia, branding and much more can help you avoid making expensive mistakes.
For physically sending over products, it is a good idea to have a contact in Australia to take care of everything.
They can oversee imports, ensure items get through customs and deal with any problems much quicker. This is due to them working on Australian time.
5. Bank in Australia
When exporting to Australia the two easiest ways to get by are either registering ads a foreign company or creating an Australian subsidiary to register as an Australian company.
The latter can have many financial advantages and create an easier process, and it will be worthwhile banking in Australia as well.
This can avoid losing out financially when exchanging invoices and payments in Australian dollars back to pound sterling. Especially if you are going to invest and further establish your company in Australia.
Consider these points if you are thinking about exporting to Australia as a new business, to stay financially safe.