Making money is a high priority goal for every entrepreneur. In fact, one of the reasons for starting or buying a business is to make money. Ask around and many business owners would say that they are in it to ‘make money on my terms’.
Paradoxically however, despite this desire to make money, most small to medium business owners miss the mark when it comes to hitting their financial goals. Let’s have a look at some numbers recently published by the Australian Small Business Ombudsman in August of 2023:
• 43 per cent of small businesses are making zero profit.
• About 75 per cent of small business owners earned less than the average Australian wage, despite working longer hours.
Now, what makes these statistics hit home is the fact that 98 per cent of all Australian businesses are classified as small businesses, 93 per cent of which have a turnover under $2 million.
It is thus no surprise that the current economic woes are hitting home so much…
Having said the above, it is not all doom and gloom for the business sector. Look into any industry and you will find businesses that are doing well. Small to medium businesses that are generating an excellent financial benefit to the owner/s, despite the economic challenges many of us are facing.
How is this so? Savvy business owners know that there are things that can be done in virtually every business that can assist in improving both the top and bottom line. These activities are broad and varied, ranging from making changes to roles and responsibilities thereby making people more effective, through to adjusting marketing activities, thereby improving lead generation capability, and many many more activities. The same savvy business owners intimately understand their business, not only knowing the exact ‘current state’ of the business, but also having clearly defined strategies, goals and plans that are proactively being implemented.
With the Christmas and New Year holiday period almost upon us, now is the best time for business owners to plan ahead for the coming year. Using a process of reflection (what did we do well, what could we have done better), diagnosis (what is the current state of the business across all its facets, what challenges do we face, what opportunities do we have) and planning (what actions will we undertake and what will this look like), savvy business owners will hit the ground running in 2024 when we all return to work, maximising their chances of hitting their financials goals for the year ahead.
You don’t have to do all the above alone, however. January and February are ideal months to seek advice from an experienced business advisor. The BOOM! Business Value Builder program developed by our team here at Benchmark Business Advisory is the perfect solution for the savvy business owner and entrepreneur seeking to not only hit their financial goals in 2024 but wanting to end the year with a more valuable business as a result. The program is affordable, effective and has been designed over many years in the real world.
Interested and want to know more? Contact Peter Spinda today for a confidential chat. peter@benchmarkbusinessadvisory.com.au or visit our BOOM! Page by clicking here.