Business Consultancy – why not for small businesses?
Australia’s small business market is booming, with continued growth
The Australian Bureau of Statistics (ABS) estimated that more than 1.93 million active small businesses were operating in Australia (2007), representing 96 per cent of all businesses. More than half were non-employing businesses, whilst around one third employed between one to four people.
Home-based small businesses make up the large majority of the total number. More than 60% of all small businesses in Australia, operating across a wide range of sectors, face a unique set of challenges by being home-based.
Each year, on average, more than 10,000 new businesses are registered in Australia each month. Yet, when it comes to small businesses, statistics shows that approximately 10% cease operating in their first 2 years.
Over the two-year period 2003-2005, more than 20,000 businesses ceased operating (ITSA 2005).
The ABS also indicated that 68% of Australian small businesses operating today would not exist ten years from now (2003 report*). These numbers are not encouraging. Yet, it does not have to be this way.
Why do so many small to medium Australian businesses fail?
One of the hardest parts is to simply get your business started. Others, who already have their own business, may be unsure how to get the most from their existing clients and maximise the potential already inherent in their business due to the growing competitive market and the constant changing environment.
When opening a new business you face many uncertainties and questions. Indecisions abound: how to reach your target audience on a limited budget: word-of-mouth, advertising through local newspapers, printed media, e-mail campaigns? In short, what is the best way to approach your potential market?