report: the 16 most dangerous facts & trends that every business owner, manager &...

DO YOUKNOW

The 16 Most Dangerous Facts & Trends That Every Business Owner,

Manager & Stakeholder Should Know About

© 2012 Businesses In HyperGrowth Pty Ltd. All rights reserved.

Sometimes sizedoes matter

#1: Business is risky …

Source: ABS, Cat. 8165.0, Counts Of Australian Businesses, Including Entries and Exits: Jun 2007 – Jun 2011 (Canberra: C’w of Aust., 2011), pages 11-12.

If you started or were in business in 2008, your’s might have been one of the

1,194,317Australian businesses

that had closed their doors by 2011.

Source: ABS, Cat. 8165.0, Counts Of Australian Businesses, Including Entries and Exits: Jun 2007 – Jun 2011 (Canberra: C’w of Aust., 2011), page 5.

If you had started a new business in 2008, you had a

52%likelihood of closing your doors by the end of 2011.

#2: New business is riskier …

#3: Existing business is only a little less risky …

Even if you had an existing business in 2008, you had a 40% likelihood of closing your doors by 2011.


#4: (As at 2000) Around 40,000 businesses fail each year with an estimated average loss of

$115,000.

In 2000:• It was also estimated that the

total cost of business failures is $4.6 billion each year¹.

• The average Australian mortgage was estimated at $110,000 - $115,000².

• ¹ Source: W. Reynolds, W. Savage and A. Williams, Your Own Business: A Practical Guide to Success(Melbourne: ITP Thomas Nelson, 3/e 2000).

• ² Source: Dept. of the Australian Parliament Library: Research Note No. 22, 2000-01 (Canberra: C’w of Aust., 2011), page 1.


$115,000.


$115,000.

#5: 29% of Australian businesses earn less than $50,000 per year¹ (at least $18,000

below the average wage).


Average Wage: $68,725pa

$50,000pa

$0pa

#6: 34.5% of Australian businesses earn between $50,000 and $200,000 per year.


#7: Only 1.1% of Australian businesses earn over $1,000,000 per year.

#7: Only 1.1% of Australian businesses earn over $1,000,000 per year.

Using the ABS Counts of Australian Businesses that reported 2,132,412 actively trading businesses in Australia as at June 2011¹ and the figures available from Dun & Bradstreet’s Company360 database² from March, 2012, there are only 23,475 businesses with declared incomes in excess of $1million per year.

¹ Source: ABS, Cat. 8165.0, Counts Of Australian Businesses, Including Entries and Exits: Jun 2007 – Jun 2011 (Canberra: C’w of Aust., 2011), page 5.² Source: Dun & Bradstreet’s Company360 database: Australia's leading 50,000 private and public companies (www.company360.com.au).

#8: There’s not a lot of business growth happening:From 2008-2011 only 4.9% of Australian businesses grew staffing levels, and 5.6% went backwards.


#9: 67.5% of business owners earn less than

$1,000 per week.

Source: ABS, Cat 8175.0 - Counts of Australian Business Operators 2007-08 (Canberra: C’w of Aust., 2009).

#10: Only 8.8% of business owners earn over $2,000 per week.

Source: ABS, Cat 8175.0 - Counts of Australian Business Operators 2007-08 (Canberra: C’w of Aust., 2009).

#11: Revenues for Small-Medium sized businesses are shrinking at a greater rate

than Large businesses.

Source: Australian Chamber of Commerce & Industry, Small Business Survey –

February 2011.

#11: Revenues for Small-Medium sized businesses are shrinking at a greater rate

than Large businesses.

… The divergence between small and large business sales performance is at its highest level since 1996.

Source: Australian Chamber of Commerce & Industry, Small Business Survey –

February 2011.

#12: SME business owners are deeply pessimistic about Australia’s economy improving.

Source: MYOB Business Monitor: The Voice of Australian Business Owners – October 2011.

#13: Pessimism in

economic recovery is

matched by reports of

plummeting business revenue.

Source: MYOB Business Monitor: The Voice of Australian Business Owners – October 2011.

#14: Companies are increasingly behaving like businesses in recession.

Source: D&B website (dnb.com.au) 2012 including Christine Christian, D&B CEO, talks about business expectations for the December quarter with ABC NewsRadio's Glen Bartholemew.

Christine Christian, Dun & Bradstreet (D&B) CEO, in referring to the D&B December 2011 Survey, reported that “companies, particularly in the manufacturing and retail sectors, are increasingly behaving like businesses in recession.”

#14 (cont.): Companies are increasingly behaving like businesses in recession.


The number of small business collapses soared through 2011 …

… and this year could be another tough one as poor sentiment outside of the

mining sector and tightened credit conditions take their toll.



D&B's analysis of business start-ups and failures –based on their own numbers and those of the corporate regulator – found that

… the number of small businesses going under lifted by 48% in 2011.



… This compares with a 42%increase in insolvencies nationwide across the year, D&B says.



Collapse among firms with fewer five employees grew by 57% through the year, whereas there was a 40% increase for firms with between six and 19 employees.



And collapse numbers rose by:

• 58% in service and construction, • 66% in construction, and • 28% in manufacturing.



Retail also had a shocking year,

with collapse numbers up 11% for the December quarter

and 115% for the year.



And start-up numbers have gone through the floor.

D&B says start-up numbers for firms with fewer than five employees slumped 95% through 2011,

and there was a near 100% fall in start-up numbers for the manufacturing, service and

finance sectors in the December quarter.



Christine Christian says there's an

"increasing risk that the global economic slowdown

will intensify the upward trend in insolvencies."



"Despite recent rate cuts, there is a palpable lack of confidence in the current operating environment.

This is obviously one of the side effects of long standing global uncertainty and can often be enough to deter businesses from entering the market, irrespective of actual conditions."



And start-up numbers have gone through the floor.

"Outside the mining sector, sentiment is generally still poor and the strong Australian dollar is straining profits.

This could lead to an increase in business failures

in 2012."



Christian says

“business failures have risen by more than 30%

over the past three years”.

#15: Despite reports to the contrary, Australia does have significant debt that is a

serious financial risk to the country.

Source: The Economist Magazinewebsite November, 2012 –www.economist.com/content/global_debt_clock

#15: Despite reports to the contrary, Australia does have significant debt that is a

serious financial risk to the country.

Source: The Economist Magazinewebsite November 2012 –www.economist.com/content/global_debt_clock

No matter which side of politics you may support, these taxes will impact businesses in what are already challenging times.

#16: And if that’s not enough … on July 1 2012, Australia acquired the Carbon Tax and

the Mining Resources Rent Tax

NOW YOU

KNOW

DO YOUKNOW

We live in challenging times.

"We choose to go...not because [it is] easy,

but because [it is] hard, because that goal will serve

to measure and organize the best of our energies and skills,

because that challenge is one that we are willing to accept,

one we are unwilling to postpone, and one which

we intend to win.”

– John F Kennedy

We live in challenging times…

and challenge is best met head on with

competence

DO YOUKNOW

The 21 CompetenciesTo Absolutely, Positively Grow A Business

… Independent Of The Economic Times

1. Strategy Development2. Strategy Implementation

3. Business Performance Optimisation4. Business Model Development

5. Elite Individual, Team & Organisational Development6. Training & Competency Development

7. Value Delivery8. Product & Service Innovation

9. Market Research10. Market Leadership

11. Competitive Advantage12. Marketing

13. Sales14. Relationship Management

15. Distribution Channel Utilisation16. Alliance, Partnership & Joint Venture Development

17. Continuous Productivity & Quality Improvement18. Process, Procedures & Systems Development

19. Testing, Performance Measurement & Management20. Business Planning

21. Financial Control

The 21 Competencies To Absolutely, Positively Grow A Business … Independent Of The Economic Times












Few would doubt that these

competencies, developed to

the point of mastery, would

absolutely, positively

result in significant business

growth

The Four Stages of Competency

1. Unconscious Incompetence

2. Conscious Incompetence

3. Conscious Competence

4. Unconscious Competence

The Four Stages of Competency

1. Unconscious IncompetenceThe individual, team or business does not understand or know how to do something and does not necessarily recognise the deficit. They may deny the usefulness of the skill. They must recognise their own incompetence, and the value of the new skill, before moving on to the next stage. The length of time spent in this stage depends on the strength of the stimulus to learn.

2. Conscious IncompetenceThough the individual, team or business does not understand or know how to do something, they do recognise the deficit, as well as the value of a new skill in addressing the deficit. The making of mistakes can be integral to the learning process at this stage.

3. Conscious CompetenceThe individual, team or business understands or knows how to do something. However, demonstrating the skill or knowledge requires concentration. It may be broken down into steps, and there is heavy conscious involvement in executing the new skill.

4. Unconscious CompetenceThe individual, team or business has had so much practice with a skill that it has become "second nature" and can be performed easily. As a result, the skill can be performed while executing another task. They may be able to teach it to others, depending upon how and when it was learnt.












Unconscious Incompetence

Conscious Incompetence

Unconscious Competence

Conscious Competence

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How do your people, your teams and your business score

To paraphrase Albert Einstein … “The definition of insanity is to continue to do the same thing but expect a different result”.

If you’re not pleased with the way your

scoring, of even if you are, but your business

is underperforming, then you need to

change what you’re doing or the way

you’re doing it.

Businesses In HyperGrowth is a business performance engineering company that engineers breakthroughs for client businesses so they can achieve and sustain exponential rates of growth.

We do that by turning business' overlooked assets, underutilised resources, underperforming activities, hidden opportunities and underdeveloped relationships into windfall profits and then turning those profits into ongoing, steady streams of income.

The method by which that growth is attained is the installation, development and mastery of up to twenty-one business competencies within the client’s business that can produce rapid, remarkable and sustainable results.

And we guarantee results for the clients we choose to work with. Where we work directly within client businesses as partners, we guarantee to produce immediate results in the form of agreed-upon bottom-line improvements within the first 90 days. And again, where we work directly within client businesses as partners, we guarantee sustained results for 12 months beyond our direct involvement.

NOW YOU

KNOW

Sometimes sizedoes matter

But competencymatters more

report: the 16 most dangerous facts & trends that every business owner, manager &...

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