Western Australia and Queensland - two states hit badly by the downturn in demand for resources - have the most proactive firms targeting new markets to stay on the front foot in the face of the global economic crisis.
Australia-wide businesses seem to be doing their best to dodge the economic downturn, venturing into new markets while undertaking more traditional cost cutting exercises when times are tough.
A third of respondents to a new survey say a fall in customer demand was a major impediment to expanding their business, but more than half say they are diversifying into new markets.
The research by international consultant Grant Thornton also found 37 per cent were developing new services.
"You can't just afford to retreat into a bunker in this current market," Grant Thornton Australia spokesman Tony Markwell said.
"Although a shortage in customer orders might derail the growth plans of some Australian businesses, many are already busy developing alternative ways to expand and scoping out new markets."
However, he said a valuable first step is to review costs and investigate where they can be reduced.
"As cash flow slows down you are going to need as much padding as possible to stay above water," he said.
The survey of 250 Australian businesses - as part of a larger poll of 7,200 respondents worldwide - found 56 per cent are reviewing costs and 53 per cent are introducing cost reduction strategies.
WA and Queensland seem to be particularly proactive with 66 per cent and 56 per cent of firms respectively targeting new markets to stay on the front foot.
Nationally, a quarter of businesses reported increasing advertising, while a fifth have taken advantage of easing employment conditions and have undertaken a recruitment drive.
