MYOB Business Monitor: Brighter 2013 for SMEs?
Small and medium businesses may have reached a turning point this year, after taking a beating from the global financial crisis.
According to findings from the MYOB Business Monitor, a majority of businesses polled expect either stable or rising revenue this financial year. This positive trend may spell a brighter outlook next year due to an expected rise in economic confidence.
Furthermore, new legislation introduced this year may boost business performance. In July, the government had increased the tax free threshold for individuals from $6000 to $18200. This may see more part time workers joining the workforce, allowing operators to draw from a larger group of skilled candidates for their staff. Another positive contributor is the small business instant tax write off increase to $6500.
However, despite 3 cash rate cuts between May and October this year, consumers didn’t spend any more during this period(1). With the Australian dollar expected to remain high, this makes local exports and tourism less affordable for overseas buyers and overseas travel.
But the good news is online shopping may be more appealing for Australians. Businesses should really consider trading online, or at least having a company website. Of those polled in July, 60 per cent of businesses did not have a website compared to 38% who do.
Meanwhile the top pressure points for businesses were fuel prices, followed by cash flow and profit margin. Fuel prices will be felt especially by those in transport, postal and warehousing businesses. Try teleworking (working from home) or use cloud computing tools such as online accounting to drop the geographical barrier.
The press release of this study can be found here. With 2012 drawing to a close, let’s hope next year will indeed be a brighter year for business owners.
(1) Commonwealth Bank Business Sales Indicator October 2012