Achieve Small Business Success in the New Year

Did you know, approximately one in two small Australian businesses are confident they will experience growth over the next 12-months? According to research conducted by the Commonwealth Bank of Australia, the willingness to accept new technology is a key indicator of how confident a small business owner feels. 

The survey found that businesses that integrated technological advancements into their everyday operations early on are more likely to experience higher levels of Small Business Success and revenue growth in the New Year, and in the months to follow.

SMEs positive

Sensis Business Index also conducted a survey into Small Business Success and confidence, where they found that small to medium businesses operating in a metropolitan area are more positive about their financial position, and the strength of the economy. 

Also, these type of business owners also expressed generally positive feelings towards how they think the economy will be sitting in 12-months time. Some of the key indicators measured by the Sensis Business Index were geographical location and the level of confidence felt by owners towards their local government and their own businesses.

Furthermore, out of the six in 10 industries that felt the most positive, the health and community services sector were the most optimistic. Although small to medium businesses operating within the hospitality, retail and manufacturing industries said they felt conditions were more difficult for them.

Small Business Success and Cash Flow Management

Next element of success, managing a steady cash flow. In fact, it’s usually one of the biggest areas of concern for small to medium-sized businesses. You see, money is often tight and expenses are high. However, despite 42% of business owners opting to not take home a pay cheque in the past year because money has been tight, this is down from 51% in the previous year. 

Although, despite a high number of SME’s applying for finance within their first five years of operation, the attitude towards business growth still remains high. This is, in part, due to business success stories.

For instance, Sydney specialist events agency, Sense, experienced Small Business Success and rapid growth when they managed to land a couple of globally recognised clients, including Google’s very own YouTube. After ten years of working with mid-tier clients, they finally managed to scale up their business with the larger-scale clients they were after. 

The success of landing an account from Google made moving to a larger premises and hiring new staff possible. From there, they were able to take advantage of even more unprecedented growth. The expenses associated with their business growth were even funded organically from the increase in profits they started enjoying when they began working with Google.

Precautions to Take During Business Expansion

For businesses to achieve this level of Small Business Success, certain steps must be taken to manage growth responsibly.

• Increase staff productivity and hire better-qualified employees.
• Avoid over-reliance on a single client or project.
• Target clients that will help sustain positive cash flow.

Additionally, mitigating risks with proper insurance coverage is crucial. As businesses expand, revising insurance policies becomes vital to ensure adequate protection for new risks and exposures.

Understanding business insurance jargon insurance simplifies this process, making it easier to choose policies aligned with your business needs. For instance, recognizing the distinction between Business Interruption Insurance and Product Liability Insurance could be the key to recovering quickly or facing prolonged downtime after an unexpected event. Regularly reviewing and updating your coverage safeguards your operations and helps manage growth with confidence.

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