"The past has no future"

Issue 019

Thomson Reuters has released an interesting White Paper, Leading Australian SMEs in 2023s Changing Economy, which has some interesting information for all business people.

“Throughout our interviews, a number of ominous words were used to describe what the majority of SMEs have faced over the last couple of years – challenging, difficult, unprecedented, and demanding.”

“However, looking forward, the new mantra for SMEs should be “THE PAST HAS NO FUTURE.”

“In 2023 and beyond, turning the focus to strategies that can bring growth to revenue and profit is key for SMEs.”

“FLEXIBILITY IS KEY – this relates to where people are working as part of the aftermath of the pandemic. Businesses are still feeling the impact, some considerably more than others.”

“We have seen loads of CBD operations close their doors – Melbourne has been worse than Sydney”.

“Working from a location near home for many people has been an attractive option – this is where growth opportunities lie!”

“FOR MANY, CASH IS TIGHT!”

“There’s been an incredible push in our industry to increase remuneration to both attract and retain staff”.

“THE ONLINE TRAINING MARKET PRESENTS LOTS OF OPPORTUNITY!” – “Younger generations are very happy learning online. I feel the vast majority of organisations in Australia do not have an online learning platform”.

“WE MUST GROW TO SURVIVE!” – “For us it’s going to have to be growth otherwise we won’t be in business. It’s as simple as that”.

“We can’t maintain the level of overhead and the losses that we are having with our infrastructure that’s been built, being utilised, and fully deployed unless our volumes increase significantly.”

“Directly linked to this are sales. We can’t just keep on producing and stockpiling product. The products we make need to be sold and sold sooner rather than later. We can’t afford to have our machinery sit idle.”

KEY TAKEAWAYS FROM THE THOMSON REUTERS “WHITE PAPER”…

“All businesses, no matter what sector, need to keep moving, to adjust and adapt to changing market conditions. If such movement doesn’t happen in the right way and time, business can be negatively impacted.”

“Here are some practical ways in which businesses can consolidate operations and defend against the challenging economic conditions predicted throughout 2023 and beyond”:

“EXPLORE THE POTENTIAL OF NEW MARKETS – small businesses can consider testing new markets in order to access new customers and revenue streams.”
“ENGAGE IN BUSINESS PLANNING AND STRATEGY DEVELOPMENT – small and medium-sized businesses can benefit from regularly reviewing and updating their Business Plan and strategy in order to identify new opportunities for growth and set clear goals.”
“THINK ABOUT ALTERNATIVE SOURCES OF FINANCING – such as grants, loans or investment, in order to access the capital needed to grow and expand. So long as expert advice is obtained, exploration of different types of finance could bear fruit.”
“TAKE ADVANTAGE OF GOVERNMENT SUPPORT PROGRAMS – small businesses can research and take advantage of government support programs and initiatives that are available to help businesses grow and prosper.”
“BUILD A STRONG NETWORK OF CONTACTS AND MENTORS – small to medium-sized businesses can benefit from building a strong network of contacts and mentors in their industry, as this can provide valuable insights and support.”
“EXPLORE NEW PRODUCT OR SERVICE DEVELOPMENT – small to medium-sized businesses can consider developing new products or services in order to stay competitive and meet the changing needs of their customers.”
“UTILISE DATA ANALYTICS - small businesses can use data analytics tools to better understand their customers and make data driven decisions about their business.”

This overview of the current market conditions and outlook for 2023 and beyond has highlighted the need for SMEs to be “TURNING THE FOCUS TO STRATEGIES THAT CAN BRING GROWTH TO REVENUE AND PROFIT IS KEY FOR SMEs.”

For many SMEs this process will start with a full review of the business to identify what is working now in the context of 2023 and planning where you go from here.

Towers Business Development is keen to assist you on this journey of discovery because as the White Paper indicates “THE PAST HAS NO FUTURE.”

If this extract from the White Paper has raised issues for which you require answers, please do not hesitate to contact Peter Towers, Managing Director of Towers Business Development Pty Ltd on 1800 232 088 or email . You can also visit our website, www.towersbusiness.com.au, for information on the non-tax return services that we provide including: