Why do so many small to medium enterprises fail?

Lack of business acumen

The myth is that most people who start small to medium enterprises are entrepreneurs.

Along with the fatal assumption that an individual who understands the technical work of a business can successfully run a business that does that technical work.

web: resultsprofessionals.com blog: kerylfedrick.blogspot.com

1950’s Australia post war building and economic boom

1950-1960’s Australia The Baby Boomers

Post war building and economic boom

Black and White TV introduced

Telephone became available to most

Women stayed at home and took care of the family

Less than 100 cars per 1,000 persons Cost of the car was 68 times the average weekly wage.

Home Loan Interest rates 3%-5% CPI average 11.495

Consumers shopped locally, there was little other choice available

1960’s Australia a period of change

1960 – 1970’s Australia Gen X

A period of change

Car ownership became affordable More than 400 cars per 1,000 people

More women entering the workforce meant they had the means to provide for

themselves

Home Loan Interest Rates 5% - 10.4%

Inflation rate average 2.7 CPI average 13.565

Consumers blended shopping locally with occasional trips to larger Metropolitan centre's

1970’s Australia major reforms in health, social security, foreign

affairs, education

1970’s – 1980’s Australia Gen Y’s

Major reforms in health, social security, foreign affairs, education

•Bankcard is launched •Medicare is launched

•Compact discs launched •First mobile phone launched

•IBM pc is launched •Internet is launched

Most Australians expect to have a fixed line phone in their home.

0G network established for mobile phones in cars. With mobility, large scale shopping centre's are starting to be developed bringing Major Department

stores to the suburbs.

Home Loan Interest Rates 10.4% - 17%

Inflation rate average 10.82% CPI average 28.2325

Convenience starts to impact local shopping

1980’s Australia the decade of entrepreneurial excess

1980’s – 1990’s Australia Gen Y

The decade of entrepreneurial excesses

Australia connects to the internet

Motor Vehicle ownership steadily increases to one in two.

16% of Australian homes have access to the Internet

Average portion of income spent on housing 35.4%

Home loan interest rates 9.13% - 17%

Inflation rate average 8.41% CPI average 70.2675

1990’s Australia The decade of reform and technological change

1990’s – 2000’s Australia

Gen Y

The decade of Reform and Technological Change Suffering from the effects of the recession we had to have

A decade of financial hardship

“Economic Rationalism”, and "Backlash" “globalisation", "outsourcing", "downsizing" and "corporate restructure"

The Internet brought Australia closer to the rest of the world than it ever had before. GST introduced

New media introduced to house-holds, the internet, pay television, and an increasing percentage of Australians owning computers.

Most families are now two income

Average portion of income spent on housing 50%

Home Loan Interest Rates 17% - 5.5% Inflation rates 2.2%

CPI average 113.987

Car ownership is at saturation point

2000’s Australia

2000’s – 2010’s Australia Net Gen

Australian businesses collapse leaving consumers high and dry.

25 Australian major companies collapse GFC hits although Australia is reasonably protected

89% of Australians have access the internet at home.

Markets are polarising, brands globalising, consumer expectations rising, space retracting,

transactions digitising and economies still struggling.

Home loan interest rates 8.05% - 5.5% Inflation rate average 3%

CPI average 165.417

New retail world with the fantastic rise of bargaining websites such as; Groupon,which created a half a billion dollar business from a standing start in two years,

and recently attracted a US$6 billion offer from Google.

NOW If you are not here you are invisible!

Post pc world

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5

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20

25

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35

Category 1

Technology embrace curve

Visionaries Early Adopters Mainstream Early

Mainstream Late Laggers

What does a post GFC consumer look like?

The post gfc consumer is making deliberate and considered buying choices with a conscience, they will pay but only if it represents value. Engaging with your customers is more important now than it has ever been. The solutions are inexpensive and require creativity and understanding of who your customer is and what they want.

What does this new customer want?

Value and Values Customers are demanding value and want to see your business with values, social, environmental etc. a business that is less selfish.

Discounting is out engineering real value into the offer first, we have become numb to discounts, how low can you go.

Distinctive: Customers are sick of the cookie cutter solution to shopping centers and are looking for a unique experience, brands with a history or a story,

Personal: Customisable, and tailored, once again customers do not want to be seen as just another customer. Businesses and stores need to have high interaction and high touch level, such as Apple stores

Luxury is coming back, but not faux luxury, value for money, well made, lasting luxe Quality second hand will be the new, new

What do we do to assist business? Communicate what business customers may not see; The 21st customer is ‘not always right’, as they may not be aware of the technology available now to assist them in their pursuits. •Engage with our business customers in a real and value add way •Encourage business social media pages •Encourage web site building with integration to social media •Make our business customers aware of changes in technology, legislations, trends, governance. •Assist with their competition in a global economy •©Keryl P Fedrick, 2013