While it may be hard to believe, the end of 2024 looms just over the horizon and most of us are looking to 2025 against a backdrop of economic uncertainty. Interest rates are volatile, the Australian dollar has been struggling, and there’s a “harsh winter” predicted for China.
Even with these challenges, there are still avenues for growth. Downturns often reshape the landscape, offering unexpected opportunities in certain sectors.
While the trilateral partnership, AUKUS, is usually thought of in a security and defence context, there are chances for tech collaboration and innovation to strengthen ties between the countries. By leveraging AUKUS, Australian tech firms can gain easier access to two of the world’s largest and most advanced markets, fostering the exchange of cutting-edge technologies, talent, and investment.
Drawing from my experience in expanding an Australian-founded agtech company into the UK and US markets, here are some important factors to consider.
Deep dive into your chosen markets
Understanding the markets you want to expand into before you even set foot there is vital. I was speaking to contacts in the UK and the US two years before we realistically considered expanding to those regions. And it taught me an incredible amount about those markets:
The US: Complex and fragmented
The US is expansive and Australian companies often underestimate how its vastness can impact your operations. Given the size of the market, it’s crucial to carefully select which geographic region to enter first as it will impact resource allocation and customer engagement strategies. Australia also seems very far off to American customers, so your tech business will have to put some hard work into reassuring customers that the distance will not impact your service and support.
The US market’s fragmented landscape also means navigating varying state-level taxes, employee benefits, and regulations, adding complexity and costs. This is another reason to focus on specific states or areas when first entering.
The UK: Familiar yet foreign
In some ways, the UK presents a friendlier prospect due to the cultural familiarity between our two countries. From the metric system to a love of cricket, the shared understanding can go a long way when you’re looking to expand. However, even though both countries have a shared legal heritage with the common law system, the UK has its own set of regulatory frameworks, including company law, employment law and sector-specific regulations.
Australia does offer strong government support for businesses looking to expand to the UK, and the recent A-UK FTA is also creating new opportunities. Austrade, the Department of Foreign Affairs and Trade, and Australia’s Landing Pads initiative in London can help with workspace, regulation insights, and introductions to key leaders in certain industries.
Ensuring a good market fit
It’s essential to critically assess how your technology meets the needs of each market. This involves understanding local market demands and financial drivers motivating everyone across your supply chain.
In my own experience navigating the red meat industry in both jurisdictions, I discovered that the UK defines eating quality very differently from the US and Australia. In the UK, baseline tenderness is the market priority, unlike the focus on marbling in Australia and the US. Additionally, the UK places greater emphasis on sustainability.
The UK’s highly competitive retail sector also means that supermarkets wield the most influence in this sector. Contrastingly in the US (given the vastness and fragmentation), red meat processors hold more power in the space.
These insights can tell you if you need further product development, how you need to adapt your USP for each market and which decision-makers you should be engaging with in these markets.
Leadership and setting expectations
As a leader looking to take your endeavour global, you must immerse yourself in the target market, quickly identifying key areas of focus and building strong relationships with government bodies, industry leaders, and customers. This has been invaluable in my own experience and nothing will get you cut through like being there in person. This takes a certain amount of personal sacrifice and success is not guaranteed.
There may be unexpected obstacles. I never thought that time zones would be such a big factor in my entrepreneurial journey but I’ve learnt not to underestimate the importance of them.
This will flow into how you recruit for your team. You will need to set the expectations of global expansion early on and communicate the challenges of supporting customers in different time zones from the start with a view to eventually hire locally for additional support. Ultimately it’s about ensuring your team is prepared to operate as a global player.
In navigating the complexities of global expansion, especially in uncertain times, it’s essential to approach each market with a tailored strategy that respects its unique challenges and opportunities. The process isn’t merely about transferring a business model from one country to another; it’s about understanding and adapting to different cultural, regulatory, and economic landscapes. By embracing these principles, businesses cannot only weather economic storms but also emerge stronger and more resilient in a competitive global market.
By Remo Carbone, CEO MEQ
This article was first published by Smart Company