More than 60 per cent of small businesses in Australia fail, primarily because the idea was a bad one in the first place, or they lacked a long term strategy, or they simply didn’t have the capital (or faith that they could raise the capital) to support themselves during the time it takes to get established.
Even those that get themselves established, can find it challenging to move from being small and operating from the spare room or lounge room, into a medium sized organisation.
One of the major stumbling blocks when scaling up a small business is putting in place the resources you need to support its development. Do you take the risk of employing someone full time in the hope that you can pay them? Will that person have all the skills you need (it’s unlikely)? Will they have the capacity to grow their skills – or will you invest in their skills development – as your business needs change? And will investing in them mean that you don’t have the capital to invest in other equally important areas, like information technology, financial advice, product development, research, sales and marketing.
Engaging contractors can help you through this tricky growth period – you can take on people with the skills you need in a part-time capacity for a short term then, when you’re ready, find a new contractor with the skills to take your business to the next level. While you have the contractor on board, it’s a good opportunity to learn from their expertise. You may even decide, having worked with them for a while, that they’d be the sort of person you’d like to offer a full time permanent role.
Engaging the services of experts to manage specific aspects of your business that are not your strength may feel like you’re spending money unnecessarily. But that’s not the case. Those hoe know the ins and outs of a specific task will get things done faster and with greater effectiveness, leaving you with much more time for business development. Additionally, you’re likely to reduce your risk of being non-compliant with essential issues like data security, tax compliance, etc.
Before you jump in
Before you invest in taking your business to the next level, you need to assess where you’re at. Conduct market research, do some customer analysis and turn your business plan into a sustainable business model.
Ask yourself the answers to the following questions:
- What is the current demand for your product and is there room for growth?
- What are your competitors doing… do you need to refine your offering in order to give it a point of difference?
- Is your brand strong enough to connect with and inspire your audience?
- Have you found yourself a repeatable, scalable business model – is your business capable of increasing profits over time, by growing revenue while avoiding cost increases?
Finally, before you embark upon the next period of growth, make sure you get advice from experts in the field – consult industry representatives to understand the broader market, talk to your accountant about your strategy and capacity for growth, and speak with business experts.
With 20 years in the business, Ayers has bespoke payroll systems and software backed by unrivalled knowledge and experience to manage your administrative requirements – we guarantee compliance which will reduce your audit and insurance risks.
And, if you’re considering employing resources from overseas, Ayers has an Australian Government issued On Hire Labour Hire Agreement – we are the experts in the process of attaining SBS or sponsorship visas. Talk to us today.