Overcoming the main challenges of doing business internationally
Are you thinking of expanding overseas or exporting in the near future?
While we specialise in advising Australian businesses on strategy, auditing, and tax advice, some of our clients do come to us for assistance with expanding their operations.
The challenges of doing business internationally start with considerations about complying fully with the jurisdictions in which you will be operating. This means that getting the right advice from the beginning is absolutely crucial.
This was highlighted by one of our Directors, Karen Mortimore, recently in an interview in the UK, where she was asked about doing business in Australia.
The interview focuses on the reverse scenario of UK businesses looking at opening operations in Australia. However, it raises some key points that will be of interest if you are considering doing business internationally.
Some of the responses are good general advice for any business looking at opening internationally. There is also a healthy reminder of how lucky we are to be able to do business here in Australia!
I include below some of the main interview questions and answers that may be of interest to Australian readers:
What makes Australia an attractive place to do business?
- Australia offers a business environment that is ranked 15th out of 190 economies for ease of doing business;
- Australia provides a safe, low-risk environment in which to do business;
- Australia is globally successful in five key industries: resources and energy, agribusiness, financial services, education and tourism;
- Australia supports world-class, globally significant research and development opportunities;
- It is a resilient and growing economy;
- The country has a robust regulatory system noted for its stable institutional frameworks and strong finance and banking regulations;
- It offers competitive rates for office space and the remuneration of professionals; and
- The country provides a quality of life that is rated the seventh highest in the world.
Does the Australian economy look favourably upon British goods/investment?
Yes it does. Doing business in Australia is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Australia.
What is the most important piece of advice you would give to UK businesses?
I would suggest a new business gains a comprehensive understanding of local laws and regulations governing the target markets: from tax implications through to trading laws, as navigating legal requirements is important for any successful business.
Also, establishing the eligibility to trade is a significant consideration when entering into new markets.
What is the single biggest challenge a UK business looking to export to Australia needs to overcome?
Australia’s eastern cities are approximately 24 hours away from the UK by plane and Australia is between 7 and 11 hours ahead of the UK. This needs to be taken into consideration if issues need to be dealt with within the business either in person or discussions.
What is the single biggest challenge facing the accountancy world in your country right now?
Accountants will use increasingly sophisticated and smart technologies to enhance their traditional ways of working, and these technologies might even replace the traditional approach. Cloud software will support the move to support more outsourcing.
As a well-established and connected business advisory, chartered accounting and audit firm, SRJ Walker Wayland can assist Australian businesses considering international expansion or growth.
Contact one of our specialists for more information on getting it right with your international business plans.