Top Five Reasons Why Market Research is Crucial for Your Exporting Business
Taking your business into foreign markets requires a lot of commitment and is something one cannot do alone. If you want your business to succeed overseas you must first be able to demonstrate that your project is viable to internal and external stakeholders.
Scroll below for 5 ways market research can boost the success of your exporting project
1. Secure that Bank Loan
The more potential your project has, the more funding you will get. It’s important to note that the bank will have little interest in your business unless they know that there’s potential profit in for them. Banks operate on traditionalist models – they make decisions based on hard evidence and facts. An exporting project are seen by them as a risky business venture. There’s always that uncertainty as to whether the market is suitable and whether a business might face cash flow challenges. This is when market research can help. Getting market research done can help mitigate risks and give banks reassurance that you are taking the best route possible to maximise the success of your exporting project. It also gives them confidence that you are investing the necessary resources to follow through with your business project and helps boost your credibility in the eyes of the bank.
2. Boost Chances of Gaining Export Grants
How does getting all your prospection and marketing expenses refunded to you sound? The Export Market Development Grant in Australia allow you to claim 50 percent of total eligible expenses, and of maximum of up to $150,000. Individual states also offer grants of up to $25,000 (check out our list of available grants here). One of the first eligibility criterias for applying for grants is to demonstrate evidence of market research and/or an export strategy. Getting market research done is really a no brainer here.
3. Business Visa and Sponsorship
While countries may be keen to accept your business overseas, they may be less keen to hire overseas staff. Preference is often given to the local labour force. However, hiring only local staff may not be the best way to go for your business. You will need some who already knows the ins and outs of your business to be on the ground and make sure all the operations transition smoothly. The current staff will become expatriates who will need a working visa to go overseas. Depending on the type of visa, a sponsorship may be required. The government will need evidence that your business will be profitable and has the potential to recruit local staff in the future. Smart Mango has helped business partners conduct market research to provide as evidence for business sponsorship. This is crucial to ensure you can successfully kick-start your business in new markets.
4. Boost Organisation Morality
Venturing out to new markets is a big thing for any business. Market research isn’t just for you, but it’s for your staff and stakeholders as well. As a business leader you need to make sure that your organisation’s people are on board with you on the project before making any next moves. There’s no doubt your staff and stakeholders will have many questions. They make wonder why you are entering this new market. Australia from a European perspective may seem like a small and distant market. How will you convince your them that Australia is a good fit for your business? How will you convince existing staff to make the move to a new country? Market research will give you’re an overview of the market and the specific avenues of opportunities for your product or service. It can provide insight into the lifestyles, living costs and what the general culture of the country is like. That way you can ensure that the people around you have confidence in what you are doing.
Exporting should not be a gut feeling. You must be sure of your decision and that the market you are entering offers the best opportunities for your product or service. Sometimes you may form perceptions about countries like Australia based on stereotypes and media generalisations. But in fact, Australia is a very diverse and multicultural country with boundless opportunities to pursue business ventures. Market research can offer insights into the ways customers think, their buying patterns and trends that is pinpointed to a certain demographic or location. Having that research-based backing to inform your decision making is crucial for any exporting project.
Get tailored market research done for your next exporting project
Smart Mango is a Sydney based export marketing development agency giving you access to 35 plus countries globally.
Our experts can provide you with market research and distributor search as well as local representation to help your brand expand to global markets. We tailor our services to your needs – looking closely at the demographics, trends and spending habits of markets specific to your product or service.
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