Map data: Sydney, Australia
Google Earth, Google Maxar Technologies
BYG Advantage has helped dozens of SMBs enter new markets over the last decade. Many US companies are understandably interested in the expanding their reach into Australia. On the surface there is much about the market that seems familiar, culturally, territorially, and this perception often leads many US companies think they can simply ‘run the playbook’ on what’s worked for them thus far, with their US domestic expansion. There are, in fact, numerous subtleties which can trip up new entrants to the Australian market, if not properly thought through and factored into a company’s calculus. Senior Advisor Chris Ford based in Sydney, offers the following strategies to other SMBs who are interested in taking on the challenge of expanding their businesses to the Australian market.
When attempting to expand and work with local vendors, Chris believes it is important to first define the goals of the company and align on precisely what the immediate expectations are around near-term revenue goals, and match those with what’s realistic for a new entrant given the unique competitive climate. It’s critical to develop a richer understanding of what the local competition might look like, and whether the incumbent’s position is strong or subject to unique vulnerabilities that may or may not be present elsewhere. Similarly, are the client targets that make sense back home, necessarily the right focus for Australia or does the country offer unique challenges or new target possibilities.
Once you’ve determined the market opportunity is solid and an initial pipeline of targets is understood, it’s worth thinking through a suitable partner strategy. Are the targets large enterprise, SMBs, MSPs, education, government? Different reseller partners may have different capacities for different market opportunities, and geographies. A cyber security client may have a unique value proposition for, say, higher education. A dedicated reseller to universities might be worth cultivating to plant a first flag and drive from there. Another reseller partner may be uniquely qualified to drive local and federal government sales. With enough traction it may well be worth rolling up an entire reseller portfolio into one distributor who can coordinate reseller activity, contract locally and provide help securing payment in local currency, while remitting in USD.
Coordinating this broader activity, identifying qualified local partners, assessing the competitive landscape, etc., it can be helpful to work with companies like BYG who have qualified resources with access to well-established networks. Additionally, research into complementary vendors already in-market to find out if your solution might be a fit for solutions that vendors already sell will help to facilitate entrée with local partner companies.
When establishing relationships with local vendors, the key thing to keep in mind is what can be offered to the potential partners to motivate accomplishments. Chris suggests having a well-established partner portal that includes onboarding materials, sales enablement tools and product documentation all of which help to make it easier to local partners trying to work with you. Take the time not only to share performance metrics with resellers but listen to what has worked for partners in the past, to motivate the field team so that they properly prioritize your solution. Chris also highly recommends having marketing development funds set aside to establish presence through webinars, at trade shows, webinars, publications and briefings to reach a wider net of potential customers.
A final crucial piece to entering a new market, is planning both the launch and support of your product with local vendors. First, it’s important to set up a structure for how one plans to offer ongoing support for both partners and customers. Consider how much technical knowledge is required for product implementation as well as how often, and when and where will support be available. After establishing support, it’s also key to think about how communication will be streamlined or potentially automated. Chris counsels to plan for this, as during his experience, it can be exhaustive for both sides if communication is not well established. Having a flushed-out partner program can help in this area as with regular, scheduled calls and a clear process for support for the reseller network.
In discussion with Chris and his experience bringing companies to Australia, he strongly suggests new entrants to scale up in the market slowly. Manage expectations, take the time to find the right focus and engagement as large sales efforts across wide across the continent can lead to burn out. A narrower focus at the outset, and a flexible, adaptive disposition, can better cultivate the partnerships. Additionally, having sales teams on the ground, who operate on the company’s behalf, like BYG also helps to reassure partners, prospects and customers there on the ground. There are often cases of companies securing initial sales and then managing everything at arm’s length, with no local presence or engagement thereafter. Having resources that can offer reassurance to potential partners and customers is strongly recommended.
Chris Ford’s advice comes from years of experience in sales in Australia. Working to establish a presence in the Australian market as an SMB is achievable and can be streamlined with the help of working with professionals like Chris, who can utilize their experience and offer counsel and resources to connect one’s business to their ideal customer while creating a sustainable architecture.
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