News

Mildura businesses urged to position for stronger 2015

Fri, 14 Nov 2014 11:09:00

Murray Darling small to medium-sized businesses are being urged to take a more confident approach by viewing current market conditions as a time of opportunity.

The 2014 SmartCompany – Crowe Horwath SME Directions Survey identifies the top trends among small to medium enterprises (SMEs).
It identified cashflow concerns, tax and business red tape, and the sluggish Australian economy as the top three concerns set to plague Australia’s small-to-medium business community in 2015.
Crowe Horwath managing principal in Mildura Anthony Venneri found said the survey showed the small business community was maintaining a tepid outlook overall with many feeling uncertain about growth prospects for the year ahead.
Be more confident
He urged small to medium business to be more confident and see the current market as a time of opportunity.
“There’s been a lot of instability facing SMEs in recent months, in terms of both the local and the international economy, and that has not helped instil confidence in the local business community,” Mr Venneri said.
“There is very much a ‘wait and see’ feeling among consumers and businesses – waiting to see if things improve,” he said.
“But despite the noise, the Australian economy remains in relatively good health, and SMEs should be more confident in their outlook for our nation.
“I’d also urge businesses to look towards 2015 as a time of opportunity.  A slower economy can be a great chance for businesses to stop and take stock to ensure they’re on the right path and that their existing clients are happy with what they’re doing,” he said
“Be confident in your business and you’ll be in a strong position for growth when things pick up.”
The survey found rising costs and an uncertain global economy were among the concerns for business for 2015, as well as skill shortages - among those SMEs looking to hire.
“Just over 40% of businesses surveyed said they had plans to hire in the new year, while 30% said they didn’t plan to hire any time soon, and 23% were unsure,” Mr Venneri said.
The survey also found that SMEs aren’t necessarily happy with the direction of the Coalition Government.  A sharp majority of respondents (69%) said the Government wasn’t living up to its promise of cutting red tape and only 20.5% of respondents said they had initiated new business efforts since the federal election.
SMEs ruled by heart not head
Despite these uncertain times, Australian SMEs are taking a proactive stance around measuring their business performance.  According to the survey, metrics favoured by SMEs focus primarily on information obtained from customers, such as customer feedback surveys, company reputation and customer base growth.  The survey found the majority (71%) of SMEs are yet to take advantage of benchmarking tools to identify opportunities for improvement.
Anthony Venneri said while it’s encouraging SMEs are looking at ways to measure success, many would do well to consider benchmarking tools, to make business decisions based on hard data rather than emotional sentiment.
“Benchmarking helps translate complex business information many organisations have floating around into business intelligence – helping businesses measure and manage their data and make better business decisions.”
Mr Venneri said that those SMEs not using benchmarking could be missing a trick by not getting the full picture of how they are performing in relation to their peers and competitors. 
“Benchmarking is an important tool that creates an understanding of how to create wealth and build a profitable business.  If SMEs want to be as successful as some of their peers, they need to understand what other businesses are doing differently and work on their own competitive edge.”
The fifth annual SmartCompany – Crowe Horwath SME Directions Survey was based on 437 respondents across Australia, operating across a range of sectors including, property and business services, retail and wholesale trade, finance and insurance.
To obtain a copy of the 2014 SmartCompany – Crowe Horwath SME Directions Survey please visit www.crowehorwath.com.au/smedirections.
The Worry List – SME’s top concerns for 2015
1. Cashflow
2. Tax and business regulation
3. Australian economy
4. Rising costs
5. Global economy
6. Skills shortages
7. Interest rates
8. Australian dollar
9. Industrial relations
10. Pace of technology