| | | | | new customers through low cost e-marketing, |
| International business can be more costly and more | | | | partnering or perhaps a low cost diversification of your |
| risky than domestic business, and never more so that | | | | product that would attract a new market segment. |
| when the “r” word or even worse, the “d” | | | | Economic study after economic study show that |
| word, depression, are bandied around the UK. | | | | those companies that can maintain or even increase |
| But despite all the economic doom and gloom, pulling | | | | their marketing efforts in a down-cycle tend to enjoy |
| back from international markets, like the UK, might | | | | greater sales and market share in the eventual |
| not be the best strategy. This is particularly true for | | | | up-cycle than those firms who did not maintain their |
| firms seeking to enter the broader European market. | | | | marketing efforts. |
| The UK market has always been strategically | | | | In the areas of attack, if you have any cash reserves |
| important, especially to Australian companies. It’s | | | | at all try to use them proactively to get or give better |
| never just about how much 'bigger' the market is to | | | | terms to your creditors and debtors, identify |
| our domestic economy. The UK offers companies an | | | | opportunities to buy-out some of your competitiors |
| English-speaking gateway into Europe; it’s a huge | | | | who may not be as liquid as you, extend your reach |
| source of inwards investment, knowledge exchange | | | | and/or diversify your offerings – premium vs value - |
| and northern hemisphere partnerships. And Australian | | | | or target the customers of failing competitors. |
| companies come here in their thousands. | | | | Lastly, always remember that no matter what is |
| In fact, it’s estimated that there are more than 1 | | | | happening at the macro level, there are |
| 500 Australian companies with a physical presence in | | | | always pockets of growth occurring within an |
| the UK; this represents the highest concentration of | | | | economy, including the UK. So track emerging growth |
| Australian businesses anywhere other than the United | | | | sectors & market trends – eg. Online sales or |
| States. | | | | eco-nomics (“green” offerings) |
| Because of the strategic value of the UK market, | | | | This is proving a good tactic for many Australian |
| Australian businesses that are already here need to | | | | companies active in the UK where despite the fact |
| think very carefully about abandoning ship. Once you | | | | that many sectors are contracting, there are still good |
| pull out, it will take years to get back in, not to mention | | | | opportunities to either enter or grow within niche |
| the potential spill over effect on any other northern | | | | sectors. |
| hemisphere business. You may also have lost a golden | | | | Areas such as goods and services in clean tech, |
| opportunity to steal market share from your | | | | security, education, government services, health, |
| competitors and/or to show loyalty to your UK | | | | energy/water and waste efficiency, outsourcing |
| partners. | | | | services, and small niche luxury items continue to grow. |
| But according to a Business Sales Report, in the last | | | | As do online sales. |
| quarter of 2008, 2,428 UK firms were placed into | | | | For example, the increased focus on changing the |
| corporate insolvency. This was a 220% increase on | | | | regulatory controls on the UK financial industry, as a |
| the same quarter in 2007. | | | | result of the financial crisis, has lead to good |
| So with big name businesses closing down almost | | | | opportunities for security and compliance software |
| daily, unemployment soaring and trade finance hard to | | | | providers like DTEX Systems. |
| get, what choices do firms have? | | | | While the need for greater delivery of e-government |
| Essentially, options exist to defend or attack. | | | | services, provides opportunities for companies like Neo |
| In the areas of defend, its not rocket science, but in | | | | Products. |
| times of economic growth practices can get a little | | | | Increased demand in the education sector due to the |
| "looser" and so the challenge now is to re-establish | | | | growth in the unemployment market is creating |
| good discipline. For example, try to manage your | | | | opportunities for e-content providers like Roar Educate. |
| inventories tightly, incentivise early payment of invoices, | | | | And “Green” spend continues to remain strong, |
| tighten up debt recovery practices, identify what | | | | driven in part by a desire to reduce costs by finding |
| savings can you make in energy, water or waste | | | | ways to reduce energy, water and waste costs. |
| management, clearly identify your unprofitable | | | | So firms like Closed Loop Recycling, who provide |
| customers and either up-sell them or make the | | | | food-grade recycled plastic for reprocessing by the |
| decision to let them go, and for your profitable | | | | packaging industry, are seeing good growth in their |
| customers be sure to service them very well. | | | | business as companies seek to decrease their waste |
| Also don't decrease your marketing efforts if you can | | | | and landfill costs, while also reducing their carbon |
| at all avoid it. Instead think about how you can attract | | | | footprint. |