The Facts

If you are an Australian small business owner, you are not alone - there are about 2.25 million small businesses in Australia (and that number is growing every year).

More than 60% of Australian small businesses shut down within their first 3 years.
73% of Australian small businesses said lack of sales is not their biggest barrier to success.
19% of small business owners work over 60 hours a week.

So, why do so many small businesses fail within the first 3 years?

The big issues facing Australian small businesses are:

Australian small businesses also tend to have trouble with record keeping and tax (like not registering for GST).

Cash flow
- Maximising your cash flow should be your top priority, and luckily for you, last month we dedicated a whole post to this topic! You can find it here.
Marketing effectiveness
- You cannot underestimate the importance of advertising and having an online presence. Investing in a quality website and targeted advertising will help give you an edge over your competition and also give you access to new markets.
Lack of support
- If you are run off your feet doing 60 hour working weeks, it’s time to seek help. The best thing you can do is to lean on your bookkeeper - they can help take the load off by ensuring your business is compliant (to keep the taxman off your back), reduce your paperwork by utilising online accounting software like QuickBooks Online or Xero, and help you to capitalise on opportunities by acting as a business adviser.
- Check out business.gov.au to discover services that might be available to you to help support your business (like government grants and networking events).
Hiring the right people
- If you are flying solo but are thinking of hiring your first employee, check out this post which covers all the basics.
- Invest in your employees (and yourself!) - keeping everybody’s skill set up-to-date at all times should be a priority. Not only is it cheaper in the long run to retain employees than hire new ones, it will also add a competitive edge to your business if you are always at the top of your game.

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