What is happening with Small Business?
We go through the data from the ABS, Treasury & Private Data to paint a picture of what is going on out there.
We then use that data to create “insights” which turns into targeted solutions. Go to the “About” tab to learn more about SSBA.
Small Businesses in Australia
%
fail within 3 years, and those that fail
%
had cash flow issues or high cash use, or
%
suffered poor strategic management
Businesses in Australia
%
Are small business
%
of those Businesses are innovating
%
have no factors preventing cloud adoption
People Employed via small business
Extra people employed compared to year prior
in salaries paid PA
%
total employment
95% of Failed Businesses had Cash Flow Issues or Poor Management
46% of small business fail in Australia within three years of starting operations. Of those businesses that fail, 49% had cash flow issues or high cash use, and 46% suffered from poor strategic management.
Simply put, people did not test their assumptions, they had a strategic vision that did not align to the reality on what is occurring in the marketplace.
Common errors are opening a business in an already saturated market, such as a fish and chip shop, where there are three competitors on the same street of shops.
That individual might of succeeded in a different location, however they did not do enough research and due-diligence.
Another common issue business owners face is that they have no way to report on their business performance to give a level of comfort to a money lender that they have the ability to repay the loan.
Though in a lot of cases, people had the business plan and every box ticked, it was just more profitable with less risk for the banks to lend for home loans. Banks demand putting your house up for a business loan, despite it being a profitable business. So business owners go to small lenders for a higher interest rate, some of those fees are about $20-$30k PA, in terms of extra interest costs. That’s getting close to hiring a junior that’s a digital native that can add value to a business. However that doesn’t happen, and businesses stagnate and constantly have their wheels spinning with more and more people having a drink off them, higher rents, higher capital costs, with inflation factored in, these are things that don’t add any value to their own business.
It’s not about blame, it’s about talking about the issues objectively, so the individual knows what’s going on, so they are informed enough to make a decision, that will impact their lives, and the lives of their family.
Click Explore below and we go through the solutions to the above
Click Context for a breakdown of what an economy is in simple, practical terms, with context of Australia’s current position
