Small businesses are a vital component of Australia’s economic landscape. They constitute approximately 97% of all businesses in the country, contributing around $590 billion annually to the economy and employing about 5.4 million people, which is roughly 42% of the private sector workforce.

Running a small business in Australia is both a rewarding and challenging endeavour. While small businesses are integral to the country’s economy, they also face unique hurdles that require careful navigation.

Before starting your small business, here are a few things you need to consider.

Challenges and Rewards

Three major challenges are faced by small business owners in Australia today:

  1. Increasing Costs
    Rising operational costs, including energy, rent, and wages, have been a major concern for Australian small business owners. A survey indicated that 82% of small to medium business owners are feeling the impact of these increasing costs.
  2. Cash Flow Management
    Cash flow remains the top concern for 40% of small business owners, particularly in sectors like construction and retail.
  3. Business Sustainability
    Statistics show that 60% of small businesses fail within their first three years, often due to factors like poor financial management and inadequate market research.

While there are risks to running a small business, some entrepreneurs focus more on the rewards of being their own boss, which include:

  1. Autonomy and Flexibility
    Being your own boss allows for greater control over business decisions and work-life balance.
  2. Innovation and Agility
    Small businesses can quickly adapt to market changes and implement innovative solutions.
  3. Community Engagement
    Operating locally enables businesses to build strong relationships within their communities. They create spaces for people to interact, fostering community-building while boosting the local economy.

Thinking of starting a business?

Starting a business at any scale entails risks and rewards that you must take into consideration to make a more informed decision.

At BJT Business Advisors, we specialize in providing tailored financial and business consulting services to help small businesses thrive. Our team of experts is here to guide you through financial planning, cash flow management, and strategic growth initiatives.

Contact us today to schedule a consultation and start scaling your business with confidence.

FUTURE PLANNING, FUTURE FREEDOM

Setting you up for the future, from the very beginning.

We will nurture your freedom to succeed by supporting you to make sound financial decisions every step of the way. We work with business owners through all business stages and with business of all sizes.