Do you want to ensure success for your small business?
Small businesses have always played a crucial part in the Australian economy, currently contributing to over 50% of Australia’s Gross Domestic Product (GDP) while creating approximately 7 million Australian jobs. The sentiment of how important small businesses are to Australia’s economic prosperity is shared by the Government as they continue to introduce new laws and regulations with the intention of aiding these businesses.
Whilst small businesses play a significant role in the performance of the economy, they have to face a high level of competition, not only between with each other but also with larger corporations; ones which have access to a greater abundance of resources. Having these resources readily available allows these larger businesses to make changes and adapt to shifts in the market with ease and efficiency. However, the gap that has existed for some time between large and small businesses is decreasing in some respects with the lowering costs and increasing availability of cloud accounting thus allowing small businesses to claw back some of this advantage through their increased accounting efficiency.
The enhancements in technology and access to more affordable resources are undoubtedly assisting small businesses to be at a more competitive level with large businesses. However, these changes alone do not guarantee success for small businesses, nor do they lead to immediate increases in profit. The true benefit from these enhancements stem from them being used in the most effective manner. In order to achieve optimum effectiveness, small businesses need to use their available resources efficiently. One of the best ways for businesses to do this is under the guidance of an independent and experienced advisor who not only is able to understand how your small business operates but also how the industry it is involved in functions.
One of the main variances between these differently scaled businesses is that small business owners tend to be more heavily involved in their business; having a passion for the goods and services they provide. In turn, the goals of large businesses can vary. Their focus will typically lie with generating healthy profits to return back to the owners which is done through having target driven employees who aim to be as efficient as possible with their time and the resources they have access to. This way of functioning as a business has its pros and cons, like any other business structure. However, it is more suited to larger businesses than it is to the functionality of smaller sized businesses.
Small businesses may not have the mentality and structure of being purely profit driven as some large businesses are and this is where they need to identify other effective business models that still allow for profitable results at the end of each financial year.