The difficulty of scaling an Australian business

Businesses the world over often struggle with the issue of adding scale. So how do modern Australian businesses achieve this feat?

As Jared Fisher, founder of Rogue Beauty, points out, the relatively small Australian market means certain industries are unable to add scale within our borders.

“The benefit of being in the US, I guess, is you can have a bit of a niche brand – a small number of products in a niche little channel – and still have a relatively large business. You can be niche and large,” he explains.

“Whereas I think in Australia, that can be quite difficult – to build anything of scale with a small offering.Coloured arrows pointing upwards

“The market is smaller here.”

Hair care and beauty product supplier Rogue Beauty has diversified to become a manufacturer, as well as a distributor of foreign brands through the establishment of lucrative business partnerships.

“Building out this portfolio of brands … convinced me that it was an opportunity that could work in Australia, whereas if it was just the one brand we had launched with originally in 2008, it may have been a bit of a more difficult decision,” says Jared.

Such business models are just one example of how to add scale to a business. Antonio Cerqueira, founder of fast food giant Oporto, previously told My Business that he embarked on establishing a franchise network for exactly the same reason.

It is a tactic that other business owners, such as Belinda Bow of Green Chilli Marketing, have also employed to allow their business to grow in scale without sacrificing their commitment to their existing customer base.

Listen to more insights from Jared about scaling a business and determining your route to market on the My Business Podcast now!

 

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