What are the costs for tech companies entering the Australian market?

19 June 2017

Chris Romano / Business Development Manager / Australia

New Zealand technology companies looking to set up in Australia have a vast number of questions to consider before making the leap, including: how much will it cost to enter this market? 

Challenges to market entry

It can be tempting to land in Australia quickly, ostensibly to save money, without putting in the level of planning, strategy and execution required to succeed. Don’t rush foundational things like understanding your value proposition, fully validating the market and hiring the right people.  

Companies tend to succeed when they focus on Australia alone first and don’t try to enter other markets at the same time. Sometimes New Zealand companies think of Australia as an easy market to enter that less expensive and complex – which is not true. If you enter the market with these expectations, Australia will be a frustrating and slow market for you.

How much do successful technology companies invest to get started in Australia?

Before making a full financial commitment to the market, the most successful companies ensure product market fit in Australia. You should be confident in whom you are targeting, the problem you solve for them and your value proposition.

Assuming a product-market fit, your costs will vary depending on your go-to-market strategy and your goals for the business. 

If you’re looking to scale your business in Australia, a common amount successful companies invest is around A$1.5 million to A$4 million, over 18 months to two years. This figure takes into account the cost of finding and hiring the right staff, bringing them up to speed, regular visits from the CEO to Australia, renting of office space and key marketing activities to build the brand. 

Staff will take up a major portion of your market entry costs, and hiring people that can execute is critical. Research salary costs in advance of setting up in Australia. Though they will depend on the level of experience you are looking for, as an example salary costs can range from $150k to A$300k+ for a sales person with the right experience.