Micro Business in Australia Defined
Back in 2014, I wrote What is Micro Business in Australia, this remains one of my most visited blogs all these years later. In that blog, there is not a large amount of information so it was now the perfect time for me to write another with far more information. If you are not already subscribed, please subscribe to receive a new blog each week.
A Micro Business can be defined as a business with a single operator. We may use terms like “Solopreneur”, “Mumpreneur”, “Dadpreneur”, “Youngpreneur” and many more have emerged over the years. Do you classify yourself as any of these?
There are MANY types of business that are perfect to run as a micro business and they can be incredibly successful too. Here’s a few below…
- Graphic Designers
- Gardening and Lawn Services
- Cleaning Business
- IT Specialists
Australians starting businesses increases annually – Have you ever thought about the failure rates too?
Australia remains a great place for people to be self-employed and create a lifestyle business that works well around their family commitments. The “Side Hustle” is yet another term that has evolved as many full-time employees start-up businesses in their spare time with the hope of making it their full-time job. Websites like Shopify and Squarespace make it easy to create an e-commerce store and before you know it you are trying to create the passive income of your dreams. The spare room becomes a warehouse of products and nights are spent working on the “Side Hussle”. Many Mum’s create a new business when they have babies in the hope that they can create a work at home business that fits in around the family.
The Australian Bureau of Statistics (ABS) reports ongoing growth of small business for the last 3 years with a 14% entry rate. There is still, however, a 12% exit rate over the same recorded period. The counts also reveal that Health Care and Social Assistance businesses were the most likely to survive from June 2012 to June 2016, with a survival rate of 74.2%. Accommodation and Food Services were the least likely to survive, with a survival of 53.3%.
Failure is Real!
Make no mistake failure is real in business environments small and large. Small business as defined by the ABS has a failure rate of over 60% within the first 3 years of operation. Failure isn’t all bad, it teaches you what you should have done better and maybe in the future when you start another business you will know what not to do again. Everyone has failures, some small, some large and even people like Sir Richard Branson have failed business attempts. It is just that the visual successes outweigh the failures!
Most people underestimate:
- How much it will cost
- How long it will take
- The hard work required
- The time required to put in
- Marketing for the business
- How to generate sales
- Plus much more
Micro Business, just like any Business, needs 3 things to survive.
So, you are an Australian, and you have decided that the world of small business and being self-employed is for you! It is an exciting time ahead and being self-employed can be wonderful and it can be the best thing that you have ever done. Don’t be scared by the rates of failure, just be educated by them. Going into business is about taking calculated risks, calculate the risks carefully and your chances or success are that much higher. At My Sassy Business, we are constantly working with small business owners to ensure that they are doing the right things to grow their small business and not wasting time on things that don’t work.
Some of the reasons below may be how you are feeling about the idea of being self-employed:
- Avoid the daily commute to the office
- You are sick of not being valued for your efforts
- Your knowledge can be better utilised
- You see an opportunity to fulfil a need in the marketplace
- Create a work/life balance
- Be available for your children
- Do something new / change of career
- Take charge of your own life
- Excited about what the future could hold
Here are the three things you need to succeed – If one of these areas crashes, so too may your business!
CUSTOMERS – Without customers, no business can survive. Your customers need to be varied too, don’t just go out and be in business with one customer – what happens when they want to change!
MONEY – Your new business may take years before it makes money. When I say makes money I mean the money left over after all the expenses are paid. Never make the mistake of thinking your new startup should pay you from day one.
RESOURCES – Are you selling stock, do you need a location, equipment, materials and more. Plus all these resources have to be replaced, repaired, grown and paid for.
Microbusiness and small business, in general, is amazing and you can have the business and lifestyle of your dreams. It takes time, money and hard work, but you will get there. Make sure you plan well, in the beginning, be strategic about finding your customers and ensure that you have enough money and resources to get you through the early years and any tough times.
If you need help Kelly and My Sassy Business have the knowledge to help you take the right steps with your business. So regardless of how far into the journey you are there is always room for improvement. Contact My Sassy Business today for all your Digital Marketing needs.