I want to export but my shareholders want dividends

Dear Aunty B,

We have commercialised software developed by some Melbourne academics. Although its applications are specific to an Australian marketplace, we have an opportunity to go into Asia with the product.

My problem is I have 10 very demanding shareholders who insist on big fat profits giving them big fat dividends. I just can’t find the money in the company to push overseas, as we need the money for marketing and also to make some adjustments to our products for the Asian markets.

I feel exhausted with trying to grow and expand the business and meet the demands of my shareholders. At this stage it seems easier just to go out and sell to the Australian market and satisfy their craving for money.

LS,
SA

Dear LS,

Sometimes I think we should lure all greedy shareholders in the world onto a large ship and then just blow it up. Poof! Gone! And then we could all float along willy nilly doing exactly what we want to expand the business. But we can’t. And your role running the whole shebang is to reconcile those two problems.

First, you need to develop a strategy to raise the cash.

Look at government grants. There are plenty of consultants around who can recommend the right grant and fill in the paper work. Surely you will be eligible for the Export Marketing Development Grant that will give you back some of your marketing costs.

Second, you must find a very good accountant to ensure you are claiming all the right R&D grants and other money you are entitled to.

Third, you must select one market and go on a holiday for 10 days. After day five and a great rest, go and meet with Austrade representatives and start to arrange some meetings with possible joint venture partners.

While you are doing this you need to make sure the Australian business is ticking along and you have a great sales force in place.

Lastly, you must manage the expectations of the shareholders. Redo your plans and show them that although they might take a hit in profits for the next few years, in the long-term they will be better off.

Get them to buy into the vision of the successful Aussie company exporting to Asia with their great new technology.

Make sure you have all the data you need to back up your vision.

Good luck,
Your Aunty B

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!