Small businesses bring economic stress home - Microsoft

Tony Austin
Monday, 20 April 2009 13:13

Business IT - Technology

Microsoft provides the following top tips for small businesses:

• - Focus on the business's core strengths, competencies and long term goals.
• - Think big picture. Ensure you develop and work to a long-term business plan and that your employees are kept informed of operational decisions.
• - Invest in your people and focus on nurturing the relationships that you have with your employees.
• - Take note of longer term trends, rather than getting sidetracked by short term fluctuations or anomalies.
• - Harness the tough times to grow market share – economic downturns may provide opportunities to attract new customers and strengthen existing relationships.
• - Make the most of the IT you’ve already got to improve operational efficiency.
• - Take advantage of State and Federal government and corporate business assistance initiatives, rebates and grants.

Further information on the various Microsoft resources available to small business can be found at their Australian small business site.
 

A summary of the survey's finding is that:

• - 29% of Australian SMBs report that their business is struggling, and a further 9% report that their business is suffering.
• - 56% say that business pressures are more stressful this year with one in five (22%) saying that business is much more stressful this year.
• - Almost all business owners/ managers (92%) who said their business was struggling or suffering report that the health of their business is having a negative impact on their personal life and 33% say that it is having a large impact.
• - One third (35%) of SMBs are working longer hours now when compared to hours worked prior to the economic downturn (45% among struggling SMBs).
• - Currently, the primary focus among SMBs is customer retention and growth (42%), while for 34% the priority is cost management and this latter area is the primary focus of SMBs that are struggling (43%).

 

Microsoft's survey shows the main challenges for SMBs this year to be:

• - Customer retention and growth ... 54%
• - Keeping costs down ... 44%
• - Managing cash flow ... 40%
• - Minimising bad debt ... 21%.

The focus of SMBs is less on competition (11%) and topline revenue growth (10%).

Healthy companies were more likely to say that they will invest in technology to stay ahead of the competition (24% compared to 10% among struggling SMBs), with 18% of SMBs overall saying this.

You will understand this significant Australian business survey better by listening to the podcast with Inese Kingsmill, available here (podcast is in MP3 format, file size approximately 3.5 MB, duration 14:35).