I remember meeting a business owner at a BBQ one Christmas, it was just after the Global Financial Crisis (2008), and my opening comment/question reflected the doom and gloom of the time.
“geez, how bad is it to be in business at the moment?”.
His answer surprised me…. (see end)
So, as we approach the end of another year, I thought I would take a moment to reflect on the challenges small businesses have faced in 2024.
Broadly, we have seen the following trends in our small business client base (from 2024 FY data):
Increased Workcover premiums – in most cases upwards of 40%.
Interest costs significantly increasing.
Stagnation in overall revenue.
Insurance premiums increasing by over 300% compared to 5 years ago
On top of the above, we are seeing the impact of inflation, which is reducing purchasing power, while also keeping interest rates high.
With all this going on, you would be forgiven to ask yourself why you are running a small business. It’s easy to make decisions based on what you see and feel now, however, is that decision based on a knee-jerk reaction?
Business success is measured in years, sometimes decades. Running a business does take hard work, and some years are harder than others. And, like the jungle, the strong survive and thrive.
When you own a business, you have the decision-making power, you can choose your work schedule.
Your business has unlimited income potential and growth opportunities. You can create your strategy and decide how to react to the current conditions.
So, back to the business owner - and his answer. I was just expecting him to follow my question with the same doom-and-gloom outlook. However, what I didn’t know, is that he started his business during a recession in the 1990’s.
He had started his business when it was hard, so future years seemed easy, and he already had the discipline to do the hard work and make the hard decision’s when the GFC hit.
And his answer to my question. “This is the time to grow my business”
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