Why do businesses trade in other countries?

An ambitious owner of a business in Australia will always be looking at ways to make the organisation grow and make more money. One way that many go about it is to trade in countries outside Australia. The HQ can be based here while also having a physical presence or be selling online into many locations globally, from the UK to Germany, Russia and beyond.

It is all about reaching out to new audiences and selling your goods or services to more people. By trading in other countries, businesses in Australia can expand their customer base and make more profit because the volume of the business conducted is increased. Trading in different territories is also superb for building up a globally recognised brand and helping people see your business as a leader in its field. Of course, it also makes perfect business sense. Operating or selling into a number of countries worldwide means that you spread your risk. If one market suddenly falls away, you have the sales from other countries to help ease the impact.

If you are thinking of expanding into international trade, it is wise to think carefully about it first. If you do decide to press on, here are some tips to consider.

Make sure there is a market

A first step is to perform some market research into the country where you plan to trade. You may think your services or products will do well there but without properly researching the market you are just guessing. Before you invest any time or money in trading somewhere else, look at whether there is a demand for what you offer and establish that there is enough room in the market for you.

Use a nostro account

Setting up a nostro account is advised for global trading. This type of account is one you can set-up through your local bank in Australia, but it is denominated in the currency of the country where you are trading. A nostro account is always in a foreign currency. These accounts are especially useful if your business is selling or buying goods online in other nations. This is because it makes it much simpler to deal with transactions from and too the other country where you are trading.

Make full use of social media

It is difficult to talk about business these days without mentioning social media. Platforms like Facebook, Twitter and Instagram are now very important business components for entrepreneurs. When you decide to trade in another country, you should make full use of social media to get your brand known there and to create a buzz about your products. A good tip is to use local influencers on social media platforms to give your marketing a push and get more people in that country interested in what you are offering.

Different countries, more opportunities

If you own a business in Australia, then looking at trading in other countries is a smart move. Not only will it help to grow your overall brand presence globally it will also bring new opportunities and consumers to your business.