Five key lessons (and a bonus tip) from an entrepreneur who successfully expanded from the city to the regions
For businesses that are considering regional expansion, here are five key lessons (and a bonus tip) from the CEO of efex.
In the dynamic world of technology, businesses often thrive in major urban centres, leaving regional areas overlooked and underserved.
It’s rare to find a company that defies this trend, unless you include tech billionaires with ‘offices’ in Byron Bay. Very few businesses are successful in actively expanding beyond the confines of cities. Our capital cities have historically been seen to be where the rivers of gold flow.
Covid-19 changed everything. People started to look at the regions through new eyes as they were forced to stop, and in many cases, this led to a reappraisal of their quality of life.
You could say that businesses like ours worked this out many years ago, creating opportunities and fostering growth in regional Australia long before it was fashionable. But the pandemic has been a welcome tailwind that has strengthened towns and regional cities beyond the capitals.
From humble beginnings to regional success
efex began its journey in 2013 as a one-man operation in a modest North Sydney office. I was a typical of most ambitious entrepreneurs with a clear vision, seeking to support the SME market with technology as a print reseller.
From the early days we recognised the importance of staying ahead in the quickly evolving tech industry and strategic acquisitions helped us to strengthen our position and broaden our geographical reach and service offerings.
Acquisitions started with Panaquip in Sydney, followed by the acquisition of regional IT providers such as Cloud Click Copy in regional Victoria, the BMS Group in the Illawarra regional, Think Office Technology in regional Queensland, Logic Plus in South Australia and In Touch Technology in Albury.
We are now a 250+ strong team of people spread across Australia, helping businesses of all shapes and sizes with their technology needs. This is an ever-changing role — our business must evolve to anticipate the technology needs of our clients as a full-service provider.
Thinking outside the City
Expanding into regional areas has brought a multitude of benefits to our business but also the businesses we have acquired. We have given local businesses the infrastructure to expand without the risk, additional services for their SME clients and created employment opportunities for people who may have otherwise been limited to migrating to cities for career prospects. We have been able to tap into the rich talent pool in regional Australia, to invigorate local economies by supporting businesses to support their SMB clients.
Our regional offices provide full-service technology solutions to clients, and have an important role in helping to bridge the digital divide between cities and regional areas. This allows regional businesses to compete on a level playing field, unlocking their growth potential, and enabling them to thrive in an increasingly digital world. By leveraging advancements in cloud computing, cybersecurity, managed IT services, and telecommunications, regional businesses have the tools they need to stay competitive and agile.
For businesses that are considering regional expansion, there are five key lessons we have learnt in the efex journey which may help regional-preneurs.
The importance of understanding the regional market
Conduct thorough market research to gain a deep understanding of the regional market you are expanding into. Consider factors such as local competition, customer preferences, economic dynamics, and industry-specific challenges.
Establish local partnerships
Forge strategic partnerships with local businesses, organisations, and industry associations in the region or consider acquisitions to buy in the local expertise. These partnerships can provide valuable insights, networks, and support, helping you navigate the regional market more effectively. Collaborating with established local entities can also help build trust and credibility among regional customers.
Customise marketing and messaging
Develop marketing and communication strategies that resonate with the regional audience. Tailor messaging to address the specific pain points, values, and aspirations of customers in the region. Consider local sensitivities to ensure your brand and offerings are relatable and appealing.
Invest in local talent
Build a team comprising local talent who understand the regional market and can contribute their insights and expertise. Hiring employees from the region not only brings local knowledge but also helps foster a sense of community and builds relationships with customers.
Adapt to local infrastructure and connectivity
Be mindful of the infrastructure and connectivity limitations that may exist in regional areas. Ensure your products or services can function effectively within any connectivity constraints or other regional infrastructure challenges.
And a bonus tip is to embrace regional values and support community initiatives. Engage with the local community and demonstrate a genuine commitment to regional values. Support community initiatives, sponsor local events, and contribute to causes that matter to the region. By actively participating in the community, you can build strong relationships, establish goodwill, and strengthen your brand presence in the area.
Expanding into regional areas can offer significant growth opportunities for businesses. However, to succeed like efex, you can’t just be a city company doing business in the bush. You need to be a part of the fabric of the place, so you truly understand how to best serve your local customers.
Nick Sheehan is the CEO of efex.
