The Export Market Development Grant (EMDG) program assists Australian SME export business to spread their wings and take on the world by supporting their growth in foreign markets. BlueRock’s Grants and Incentives team has helped many businesses secure the grant, and they’ve also written some great articles about the EMDG program , if you want to know more about it.
But here’s a quick refresher. EMDG funding is granted for eligible promotional activities for businesses across 3 tiers:
- Tier 1 (Ready to Export) – turnover of more than $100,000 in FY24 – grant up to $30,000 per year for FY26 and FY27
- Tier 2 (Exporting withing existing markets) – turnover of more than $500,000 in FY24 – grant up to $50,000 per year for FY26 and FY27
- Tier 3 (Exporting to new markets) – turnover of more than $1,000,000 in FY24 – grant up to $80,000 per year for FY26 and FY27
Now that you’re up to speed, we’re going to explain what to do with your EMDG funding once you get it.
You Qualified for EMDG Funding. Now What?
Entering or expanding into new markets is exciting as a business owner. It’s also a steep learning curve. Spending money is great but getting results is even better, and there are some key things to know and plan for, such as when you will run out of money and what key performance indicators (KPIs) will tell you if your promotional activity is working. Or perhaps more importantly, what key metrics will show that your promotional activity is not working, so you know when it’s time to pivot.
If you’re not good at running numbers, this is where a skilled accountant can assist with forecasting, budgeting and financial reporting – so you can make the most of your EMDG funding.
When you understand how much you’re spending and what the likely return on investment will be, you get a clearer picture of your business. Ask yourself if it’s able to self-sustain or does it need more capital deployed to continue on the path of international expansion?
Set Targets, Plan and Forecast to Capitalise on EMDG Funding
It’s easier said than done, but the solution to spending your EMDG funding wisely is to develop an intuitive forecast that maps out the business story over the next 3-5 years. This will set the stage for your annual planning that can be further broken down into quarterly goals.
Hitting or missing key milestones each quarter will determine whether the promotional initiatives are working or not, and will inform the decisions you have to make. Breaking down targets into quarterly cycles allows you to get enough information on your market, resourcing opportunities or constraints, and the effectiveness of different promotional activities.
BlueRock’s 5 Step Process to Help SME Exporters Succeed Through the EMDG
- Structure Review
Your legal structure needs to line up with the risk and operational effectiveness of your business in different markets. We look under the hood to see what parts of your business might need to be changed.
- Goal Setting
A wise person once said it’s easy to miss targets that you don’t set. Generic goals do not work, they need to make sense for your business and the markets you’re entering. We’ll help you set measurable and achievable goals to set you up for success.
- Budgeting and Forecasting
After working with you to set goals, we build them into your budget and forecasts. Business performance can then be measured against these forecasts.
- Reporting
Our accountants can provide insightful monthly reporting on the performance of both the business and specific initiatives. You’ll know how effectively cash is being spent and the reports will facilitate data driven decision making.
- Ongoing Support
We’re here to help you plan strategically and hold you accountable to hitting your targets. With monthly or quarterly management meetings, where we act as your sounding board by listening to your struggles and ideas and providing expert advice, we’ll help your business take off and ensure you get the most out of your EMDG funding.
Learn more about how our skilled accountants can help your business grow, or book a meeting with one of our accountants experienced in exporting to get your structure review done for free.
