Some factors critical for regional business success…..
While your business may have a proven track record and reputation for success at home in Australia, it requires considerable rigour and dedication to reflect that success in a subsidiary, joint venture or branch office within the South and South East Asian region.
Company commitment and perseverance, extensive market research and the ability to underwrite business development are obviously most essential. However, equally important when establishing such an enterprise is choosing the entry mode and business model that strategically fit with your long term objectives and risk profile. Such decisions also require you to find the most suitable cultural fit, one that not only reflects your business and its people but also your export business destination.
To ensure you maximise overseas opportunities and capital investment, I believe it is imperative to nominate a key executive to champion your export business both internally and in the region. As such an executive, I have spent some 10 years between India and Australia to manage our business endeavours. These opportunities, while they paid dividends for all concerned, often take patience in their realization and appreciation.
It is most essential that you demonstrate a commitment to the country where you are intending to establish a base. When opening an office, show this commitment by recruiting the most appropriate employees from within the local community as well as gaining an understanding of the country’s business culture and social customs. It is also important that there is a connection with your head office. In my instance, other principals and Australian managers visited our subsidiary regularly and gained further insights into how business is done.
It’s not without reason that you may well be asked if you are an investor when it’s your obvious intention to establish an export business. The difference? There is none, rather only the use of terminology. Our regional neighbours are, like we all do, protecting their interests, anxious that you aren’t going to sell them a product and never be seen again. To succeed you certainly will be an exporter and an investor when setting up your export business.