Many Australian businesses are unaware of the government funds and grants in place to assist them to break into the international market or continue trade with international companies. One of these initiatives bought to the Australian business community is Austrade’s Export Market Development Grant (EMDG).
Who is eligible?
- Businesses with less than $50M in gross revenue
- Businesses that have $20K or more of eligible export expenses
- Businesses that have promoted their product or service in an international market
- Businesses who have sold their product or service to an international consumer or company
What do I get?
- Up to $200,000 of grant funds based on the ratio of foreign income to eligible expenses
What can I claim?
- Overseas representatives
- Marketing & Business Consultants
- Marketing visits (international travel)
- Free samples
- Trade fairs, seminars, in store promotions
- Promotional Literature & Advertising
- Overseas Buyers
- Patents, trademarks and insurance of intellectual property
I have prepared many of these claims in the past 5 years and one thing I note is that SMEs do not use these funds to their advantage. Having a strategic plan for your marketing endeavours based around EMDG is a very clever way of claiming the maximum funds allowed and giving the best competitive advantage to your company.
• Sit down 1 month before the end of financial year (or whenever you usually do your budget for the year) and whilst preparing the budget – put in place a detailed marketing strategy.
• Estimate your international sales (must be eligible for the grant) for the year
• Work out what your estimated marketing budget will be for the year
• In the first 2 years you can claim 50% of eligible expenses
• Review the marketing strategy and budget and look at ways of maximising marketing efforts towards international markets, whilst still being relevant to the Australian market
• Focus on the key areas listed in What can I claim? for areas to target marketing efforts
These are just a few small things to consider before you go into the financial year, as often those preparing an EMDG will review after the fact. There are many ways of maximising your business profits and the funding available to you. If you have any questions please call us or leave a comment below.