Just one brief look at the global headlines is enough to reveal that the major world powers are on the brink of some major changes and challenges. On the other side of the equation, Australia continues to offer fast growth and the kind of stability that will continue to provide a haven for foreign business owners in these difficult times and beyond. While you may be very interested in starting a business in Australia, it is important to make sure you understand the fundamentals that will ensure success for you and your venture.
Legal Business Formation and Maintenance
As you may be aware, foreign citizens cannot own a business in Australia. You can, however, appoint an Australian citizen as the director of your company for this purpose. Today, we offer shelf companies as well as other services that will enable you to open just about any kind of business in Australia without having to worry about citizenship. Aside from being able to put all of your focus on day to day operations, here are some other benefits:
- Australian business law can be complex, and is changing rapidly to accommodate massive levels of growth and interest. It makes good sense to use our professional services, as it is our job to understand all these changes, keep up with them, and ensure that your business remains in compliance.
- Even though the global business market remains strong, there are bound to be changes in treaties and leadership outlooks that may make it harder for you to carry out certain business tasks in an overseas environment. Fortunately, when you open a foreign business in Australia, all of that work won’t be lost just because of complex global events. You can always rely on your partners here to keep your business running and ensure that it can meet the needs of your customers in difficult times that have nothing to do with day to day operations.
Money Markets and Trading
If you are interested in owning and operating a foreign business, then you already know that the currency value within a nation may not be the same as its value in relation to currencies from other countries. While some currencies remain relatively stable in both arenas, others may change quite a bit in periodic cycles. Australia is still considered a “rising star” in the FOREX or foreign currency exchange markets because it consistently gains value in relation to other currencies as well as within the nation of Australia.
When doing business in Australia, it is important to think about where and how you will spend and invest any profits that you may make from the business. If you are going to convert Australian currency to one from another nation, you will need to watch the markets to see where you will come out ahead. While a few cents difference may not seem like much on a daily basis, it can add up to thousands to millions of dollars depending on the amount of money being converted. By the same token, even if you only gain ten dollars on each transaction, that is still more money in your pocket that requires relatively smaller amounts of labour and effort.
Rather than convert your profits to a different currency, you may also decide that you want to invest in other Australian businesses. Considering the mayhem going on elsewhere in the world, you will find the Australian stock market and offerings far more stable and likely to be so for years to come. That being said, you still need to make your choices carefully so that you invest in worthwhile businesses that have a tangible path to success.
Global vs. National Trends
If you are someone that lives in a country other than Australia, you are bound to be more in synch with the interests of people in your nation. If you have an interest in building an international business, then you may also consider how various product lines will do in various countries. These observations and interests are distinctly different from owning and operating a business in Australia. Even though there may be places where the Australian business sector may match that of other nations, you will still need to study the nuances carefully. Here are just a few places where global trends may differ from Australian ones, and have an impact on how you operate your business:
- Time zones will always mean Australia is the ultimate nation people will look to when having an interest in outsourcing. No matter whether your nation of origin is 6, 12, or more hours behind Australia, there is no other place on Earth where you can maximize the use of time zone differences for getting work done and synchronize it with your local time. As a result, you will find that outsourcing to companies outside of Australia for data entry or other services will not be feasible. Count on having most of your in house staff and outsourced staff located in Australia rather than other countries.
- Many of the most dangerous problems associated with territorial conflict are occurring north of the Equator. There are still many lucrative places where you can export to from Australia south of the Equator. When you don’t have to be as concerned with shipments being lost, stolen, or ruined, it increases the level of confidence you will have when reaching out to neighbouring countries or those in a viable marketing area.
National vs. Territory and Locality Trends
Overall, you will find that Australian businesses are focusing more and more on a range of computer assisted technologies. This is just one trend of many, however, that may not be happening at the same rate in every locality and territory. Consider a situation where you want to start a business dedicated to making virtual reality glasses. Before you register your main office and decide to open a factory, here are some things you should consider:
- some of the more rural localities may not have adequate municipal electricity and other infrastructure needs to support your factory. While land and development costs in these areas may be lower, you may also need to have to add some extra equipment so that your business will have enough resources to operate without relying on resources that may take years to expand via municipal efforts.
- Since each locality is developing at a different rate of speed, licensing, zoning, and other requirements may differ significantly. It is very important to work with a professional business consulting agency that can give you all the best information on these matters so that you have the best chance of picking a location where you can succeed as quickly and easily as possible.
Cultural Values of the People
It is fair to say that unless you are born in a specific area and grow up there, you never fully understand the cultural values of the area as a matter of instinct. By the same token, when it comes to doing business as a foreigner in a different country, it can be difficult to grasp the pulse of consumer needs and present options in a way that works for all parties involved. Here are some tools you can use to accelerate your learning curve so that you can adapt as quickly as possible:
- Over 70% of people in Australia speak English. Therefore, if you do not speak at least one dialect of this language, you will need to learn it. Rosetta Stone, Rocket, and language immersion courses can all give you a good foundation in just a few weeks to months. If at all possible, try to find courses on Australian English so that you become proficient in this country’s colloquialisms along with the grammar and vocabulary aspects of this dialect.
- take a course on cultural immersion. If you do not have a local college that offers cultural immersion courses dedicated to Australia, you can try to look for one that offers something online.
- Do not simply rely on watching fictional movies about Australia and its diverse culture. You will be better served by watching Australian news broadcasts, and other resources that Australian people will watch as a matter of norm. If you do watch Australian sitcoms or other fictional content, be aware that fiction is still fiction.
- Interact with as a many different people as you can online via video chat and text. Try to find people from different parts of Australia who have diverse background and interests. Aside from making some wonderful new friends, you will also learn an enormous amount about how Australians view their country and what things really interest them.
As you consider doing business in Australia, it will be very important to understand potential employees, business partners, and customers. You will also need to understand how the Australian economy works internally, and how that affects this nation’s place in the global world of business. While this may seem like a complex task, you should keep in mind that running a business is also quite a challenging exercise which will always require a bit more from you than you were expecting. That being said, once you have partnered with our team at ARD Corporate Services and we begin assisting you in learning more about Australia and doing business in this country, you may just find that it is far more worthwhile and fun than running a business in your current nation.