Did you know small and medium-sized enterprises (SMEs) have the lion’s share in Australia’s GDP? According to a report, small businesses form the backbone of the Australian economy with a colossal contribution of 57% to its annual GDP and 7 million job generation.
Owing to favourable market conditions and increasing investments, the SME sector in Australia has evolved dynamically. Small business owners are continually shifting gears, preparing themselves to get on the next level. Recent research suggests that a considerable proportion of small enterprises are prioritising expansion. It is believed that every one in ten small businesses is in a perennial state of expansion.
With most SMEs already preparing to go into the expansion mode, it is essential to identify some of the key factors that ensure successful business expansion:
1. Review Your Finances
As your business grows and acquires new customers, the profits will also multiply. These changes make it increasingly essential to invest in vital resources like new technologies, stockmarket or digital assistance. In addition to this, the growth of a small business may require more staff and physical space, possibly in a new city, state or country. This adds up to the payroll and other property-related expenditure. As income and expenses become more complex, companies should adopt automated finance platforms in order to manage various costs, process payment data and create an all-encompassing finance report for a systematic budget revision.
2. Establish a Smooth Chain of Command
If your business is expanding to the point where you do need to employ more staff, it is worth creating separate departments within the organisation, with each division assigned a separate set of responsibilities. Furthermore, with the creation of new factions, your business requires good and experienced leaders that can manage various projects. It is important to set a smooth chain of command to streamline business operations and help your employees achieve their full potential.
3. Streamline Internal Operations
A growing company with increasing responsibilities and scope requires a strong digital platform to support this paradigm shift. There are a plethora of emerging technologies that can help your employees have better access to information and work productively. This will free your staff from repetitive and unproductive tasks and instead divert their expertise to more productive and business-critical tasks that can actively fuel your business growth.
Get insights and advice from our specialists at Bayside Business Accountants to take your small business to the next level.