The Main Issues Affecting Small Businesses in AustraliaThe problems that every business should anticipate in its first three years. Some are big, some are small but how you tackle them can result in either growth or failure. January 22, 2018
Jumping on the entrepreneurship wagon comes with its gains and losses. The numerous problems that a business faces in its infancy are big enough to make it fail.
However, the hardships shouldn’t stop you from building your dream business and to providing the best services or product on the market.
Starting a business venture is easy, considering you know and understand the processes that you need to go through. What makes a good businessman, however, is figuring out a way to budget when money is tight and you compete against big enterprises. It’s inevitable to face challenges while running any type of business, but small business owners seem to have it the toughest in Australia.
Contemporary Businesses Issues in Australia
Small ventures face a lot of obstacles, some of which are easy to deal with, other hard to tackle, but all of them demand time and resources. If you have a glimpse of what the most common issues are, you may be able to prepare beforehand for the messes that you and your business might face one day.
Poor Business Planning
Often overlooked by first-time business people, a good business plan can make a crucial difference. The majority of businesses in Australia are small, meaning they don’t have employees or employ fewer than 20 people. Making up to 97% of all businesses down here, last year small businesses contributed more than 19% of the gross state product. Yet, 40% of small businesses don’t survive the first three years!
You can bet that it’s because most of them lack mid- and long-term business planning.
Good Cash Flow Management
Not everyone is good at managing money. The problem is that you have to be great at it. Small businesses usually operate between tight budgets, which demands perfect cash flow management.
Of course, if you have a good cash flow plan, you will be able to notice any potential cash pits and make sure that you don’t waste the majority of your budget.
If cash flow is one of the things that is hurting your business, then you can invest in a proper software or a professional in the field if you can afford it.
Often times small business ventures are a one-person-does-all. But marketing demands a great understanding of people and the potential clients that your business needs.
However, in today’s age, everyone can start learning how to market in social media, which has a great return value. Or, of course, you can always hire a marketing company to do the job for you.
Not Setting Targets From Early On
Like a business plan, a good target is needed from the beginning. If there are no targets set, people tend to get caught up and never do any actual growth.
It’s always best to set realistic targets and make them short period ones (3-6 months) coupled with hard work to reach them. You can use anything from vision boards hanging on the wall to software that syncs automatically between devices and employees.
Hiring the Wrong People
Every business’ soul is the well trained and motivated employees. The problem is that small companies often can’t afford to hire established professionals, resorting to people who aren’t the best in their field.
Because of this, small companies may end up losing money and slow their growth. We suggest that you research every candidate with the help of social media like Facebook and LinkedIn.
Up to 60% of small businesses don’t hire employees. The temptation of doing everything yourself can ruin any small company. Tiredness is a big problem, and as a one-person army, small business owners must set working hours and stick to them in order to avoid burning out.
Getting your first customer is hard, but building a loyal customer base is something that is harder, takes longer but meanwhile has a much greater return of investment (ROI).
As a small business, this should be one of the top goals. To know what you need to do you can ask clients to fill out forms. This is one of the best ways to know what the market likes and dislikes about the services or products that you provide.
With this said, you now know what are some of the challenges that a small business venture might face in its infancy in Australia. It’s not always easy to overcome them, but every successful business faced and overcame them.