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King
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I’d look at option 2.

Some thoughts
Mid north coast will increase shipping costs to clients a bit. We operate out of a regional area and this is true for us.

Does your $8500 shipping cost include customs etc. Also add freight either from Sydney or Brisbane – about $2000 for the container (costs us $700 to go 150km)

26 clients may be hard, but depending on your sales skills and the market’s willingness to use your products (look at Govt who are increasingly obliged to use enviro products) then it may not be a problem. A sales course may help as well.

If things go well, you could be in a great position.