Export Grant Saves Unprofitable Company
by Marie-Claire Ross
International promotion has enabled a Melbourne marine engineering company to dramatically turn its profits around. The spectacular growth was possible through accessing the Austrade grant and an Export consulting group.
In 2001, Steve Brown made the courageous step to purchase a run down and unprofitable company by the name of VMS Engineering (now called Fleet Services). The company specialised in both general and ship engineering, but was losing business due to the diminishing numbers of Australian fleet vessels.
Believing that the marine side of the company had growth potential, Steve knew that increased revenue could only be achieved by attracting foreign ship owners.
"I knew that I could grow the business by travelling overseas to tell commercial ship owners that we could fix their damaged ships in Australia. My problem was I couldn't afford regular travel. My accountant told me about the Export Market Development Grant (EMDG) that was administered through Austrade. I didn't have the time to work out all of the paperwork, so I got an Export consulting group to help me," says Steve.
He used the services of Export Solutions, a nationally based company that has been helping businesses for twenty years.
"Export Solutions made it all easier for me. Rather than deal with Austrade and get through their complicated paperwork on my own, Export Solutions advised me on what I needed to do and provided me with easy forms that I fill out."
"The grant has greatly assisted us. When I bought the business it was making $2 million. It is now making $5.5 million and the growth is purely from international business. Without the grant I would never have travelled overseas to get new clients because I could not afford to. I have spent $100,000 on travel and have got around $50,000 back from the grant."
Steve Brown's export success is not only due to accessing the grant, but being aware first hand of how to use it to his advantage.
According to Ross Marsh, Managing Director at Export Solutions, getting the most out of the EMDG can really help companies outperform their exporting goals.
"We help our clients maximise the grant by consulting as early as we can in the export cycle. By getting companies to plan their marketing strategies, we can help them use the grant to minimise the financial risk in implementing those strategies," says Ross Marsh.
"For instance, if a company is thinking about getting a promotional video made for a trade show, we can show them how the grant will help with the marketing spend. This means that by planning their marketing more effectively, their overseas marketing will be more fruitful."
While the grant is useful in reducing both marketing and travel expenditure, it can also be used in other business areas.
"We are able to recommend to clients the best way of opening an overseas office that allows them to access the grant. We can tell people what they can and cannot do with the grant. The legislation is always changing and we keep on top of it. By relying on our expertise to help build the exporting side of their business, companies can focus on what they do best".
"It makes life much easier to know upfront what you need to do throughout the year to get the grant, which often means you can get the rebate sooner," says Ross Marsh.
Successful exporting is an area that both Steve Brown and Ross Marsh know a lot about. Through experience, they have developed their own views on how to build an international client base.
Steve Brown's advice is, "The first thing you need to do is identify that you actually have potential for getting overseas business. You can't just guess. The most important thing is to know who your clients are and how to get them. Promoting overseas is a waste of time if you don't know who your clients are."
While Ross Marsh recommends "You have to seek out advice from all areas of exporting. Talk to freight forwarders, market researchers, competitors and Austrade. Visit the marketplace and act like a sponge by absorbing all of the information you can. Get as much advice as you can. Find out in which areas you should spend your money for the best return."
Marie-Claire Ross is from Digicast Television Production. A boutique production house specialising in creating promotional tools to grab the attention of international buyers. For more information, visit www.digicast.com.au To find out about either Export Solutions or Fleet Services, visit www.exportsolutions.com.au or www.fleetservices.com.au respectively.
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