Why do 60% of Australian small businesses fail within the first three years? How do large corporations grow and post massive profits while so many small businesses fail? Find out how to beat the odds and succeed like the big guys.
We’ve all heard the statistic that over 60% of all Australian small businesses fail within their first three years of operating. But you never hear the same dire prognosis for big business.
Ever wondered why? We have.
How do large corporations continue growing and post massive profits each year, while so many small businesses fail?
The Australian Securities and Investment Commission (ASIC) has shed some light on the problem in the past decade. Since 2004-05, ASIC corporate insolvency statistics show that the main causes of small business failure are:
SOURCE: ASIC Australian insolvency statistics: Series 3.3 statistics for 2004-2016 in Excel: Table 3.3.6 - Initial external administrators' reports by causes of failure, ANNUAL PERCENTAGE: http://asic.gov.au/regulatory-resources/find-a-document/statistics/insolvency-statistics/insolvency-statistics-series-3-external-administrator-reports/
Big corporates are less prone to these factors thanks to their vast infrastructures and specialist teams dedicated to maintaining their businesses, controlling losses and improving performance. This includes expensive software and technical experts to monitor the business daily and ensure operations are running smoothly and productively.
In our experience, small businesses don’t have access to these kinds of resources which leaves their operations vulnerable to failure. This is due in large part to inefficiencies that lead to wasted time, and therefore money.
Cost is normally the biggest barrier to these services for small business. It is often too expensive to hire full-time analysts to monitor and report on performance, and too costly to employ full-time programmers to build custom tools to improve productivity, as and when you need them.
So, what can small to medium sized businesses do to survive and grow? How can SMEs tap into, and also benefit from the same resources that big corporates have at their fingertips?
Thankfully, it is entirely possible for SMEs to access the exact same specialists and tools that keep big businesses viable and profitable. More importantly, it doesn’t have to cost the earth.
This is exactly what we do at Calcul8ors. We specialise in providing small businesses with affordable, on-call access to experienced and qualified professional analysts and programmers, to provide the disciplines you need for success, and the tools to get you there.
Our business analysts perform critical functions such as:
Our programmers build affordable, customised software using existing technology to help you:
These services and tools help you understand your business better, minimise wasted resources, save time and increase profits. They provide a disciplined and consistent approach to managing your business and can ultimately determine your success or failure as a small business.
Benefitting from these services doesn’t have to blow the budget. Our analysts and programmers are on-call and ready to work on any project, no matter how big or small. They will be your own “big business infrastructure” working for your business at a fraction of the cost of employing a full-time team yourself.
We are qualified business experts with many years of experience working for large and small organisations in many different industries. We have an in-depth understanding of business principles, methodology and strategy so we understand what you’re trying to achieve.
We’ve seen how the big guys do it, and helped them succeed. Now, we’d like to help you.
Here are some outlines of projects we’ve completed for clients, and the benefits they’ve provided:
Calcul8ors - QUALIFIED, EXPERIENCED, COMMERCIALLY FOCUSSED BUSINESS EXPERTS, ANALYSTS AND PROGRAMMERS. READY WHEN YOU ARE.
Important information about the graph
NOTE 1: More than one failure cause can be nominated for each report. Annual percentage is calculated using the annual total divided by the number of reports. Therefore, each financial year will not total to 100%.
NOTE 2: ASIC insolvency statistics provide insight into small business failure because 80% of businesses included in the results meet the ABS small business definition of having less than 20 employees.