Starting a business in Australia’s unpredictable economic landscape is no small feat. With startup failure rates hovering at a daunting 90%—one in three gone in year one, three in four by year five—cash flow woes and resource missteps can sink even the brightest ideas.
Yet, a chorus of seasoned entrepreneurs reveals a common playbook: lean operations, strategic investments, and a laser focus on value can turn survival into success. Here’s how they’ve done it, in their own words, weaving a tapestry of hard-won wisdom for fledgling founders.
ALSO READ: Cost Control 101: Simple strategies for SMEs to cut insurance, energy, and taxes costs
Doing More With Less
For many, the startup journey begins with a single rule—spend only what’s essential. Jim Cocks, Business Coach and author of Build Excite Ignite, cuts through the noise: “Shiny new thing syndrome is so prevalent in the startup space. Business cards, fancy websites, paid advertising, branding and logos can all come once you have a tested and profitable idea.” His advice? Zero in on sales first. “You only need to stay one week ahead of your first paying client,” he says, emphasizing that a killer conversation and a problem solved can seal the deal—no frills required.
Olivia Jenkins, Business & Marketing Consultant at Olivia Jenkins Co, doubles down on this frugal ethos. “In the early stages of launching a startup, mastering the art of cost management is essential for survival,” she asserts. Her tactic? Embrace the owner-operator role. “By taking on multiple responsibilities, entrepreneurs can minimise overhead costs associated with hiring additional staff.” It’s about stretching every dollar until revenue flows—then pivoting to outsourcing non-core tasks when time trumps money.
JP Tucker, Founder of OPTIDAN AI, echoes this “do more with less” mantra with a Shopify twist. “The first step,” he advises, “is app rationalization. Review your Shopify apps; many are likely redundant or underused.” In boom times, extras feel vital; in lean times, they’re dead weight. Tucker’s approach is surgical—keep what drives value, ditch the rest.
Smart Tools, Big Wins
Tech isn’t just a luxury—it’s a lifeline. Mollie Eckersley, Head of Operations ANZ at BrightHR, knows the stakes: “One in three startups fail in year one, half in year two, and three out of four startups fail by their fifth year.” Her antidote? “Invest in the right tools from the outset.” Software, she argues, is the cost-effective hero. “End-to-end software can take the admin load off your shoulders and free up your time and money to focus on growing your business.” For Eckersley, it’s the difference between sinking and scaling. Arjun Paliwal, Founder of InvestorKit, agrees but cautions against overkill. “It’s easy to believe you need every tool to solve your problems and kick goals,” he says. “However, as your business evolves, less is best to solve onboarding and upskilling challenges for the team.” His fix? “A quarterly expense and operation review is a great way to regularly evaluate and streamline success.” It’s about picking the winners and shedding the bloat.
Hayley Osborne, Founder of Hayley Osborne Consulting, flips the script with a digital-first hack. “Digital accessibility at our fingertips allows start-ups to launch, grow, and scale their businesses faster than the small business world has ever seen,” she says. Her go-to? Free or cheap upskilling. “Listening to marketing and business podcasts and following insightful experts on socials is a great way to upskill. It takes your time but doesn’t require money.” Apps like AppSumo, she adds, slash software costs—a no-brainer for cash-strapped founders.
Marketing That Pays, Not Drains
Marketing’s a double-edged sword—vital for growth, brutal on budgets. Doriena Parsons, National Head of Strategic Communications & Marketing at Moore Australia, warns against the social media trap. “We see many entrepreneurs focus on a purely social media centred marketing strategy, omitting important research,” she notes. “These startups often run out of cash before seeing tangible benefits.” Her strategy? “Consider carefully what your marketing goals are, where your target audience(s) get their information, and subsequently, which channels are appropriate for your product or service.” Spread the spend, reduce the risk.
Paliwal pushes back on cuts here. “When cost-slashing it is easy to remove a major function, such as marketing,” he says. “However, awareness and engagement with your brand is the secret to growth. Invest in your future early on.” For him, it’s a non-negotiable—even when belts tighten. Aramis Damond, SEO Account Manager at Megantic, offers a freebie gem: “One of the most cost-effective ways to advertise your startup business is by setting up and optimising a Google My Business (GMB) listing.” Quick, easy, and packed with punch—photos, hours, contact details—it’s a no-cost way to snag eyeballs. “The more information you can provide Google, the better,” he advises.
Cash Flow: The Make-or-Break Muscle
Andrii Bezruchko, CEO of Newxel, has seen the wreckage up close. “The average failure rate for new startups is currently 90%,” he states, pinning cash flow as a top killer. He recalls a client’s collapse: “They had a considerable market fit and raised $10M… However, one day, they informed us that they had run out of cash and faced financial problems.” His mantra? “I advise any founder to focus on and strictly control cash flow.” How? “Research the options for cost-effective locations and operations… outsourcing proves to be more cost-efficient.” Plus, “regularly review all the company processes and analyze how they impact your financial health.”
Chris Dahl, Co-CEO at Pin Payments, zooms in on a hidden cash drain. “Many small businesses are uninformed about transaction costs, when choosing a payment provider, and end up paying extortionate fees due to a lack of awareness,” he says. His fix? “Compare fees and look for transparent pricing structures that suit your sales volume and preferred payment methods.” Knowledge is savings. Jenkins adds a lean twist: “Negotiating with suppliers for favourable terms and implementing lean inventory management practices can help streamline operations and minimise expenses.” Every penny pinched fuels the fight.
Talent’s pricey—but critical. Paliwal’s clear: “I have always believed in paying top talent top dollar. It is important to nail a sustainable remuneration model in early stages to attract, and retain, the right people.” Skimp here, and “future costly restructures” haunt you. Value trumps cheap labor. Tucker flips to partnerships. “Convey your situation to your partners. Ask if they can pause payments or offer a grace period,” he says. “If you don’t ask, you don’t get.” It’s not begging—it’s building resilience through transparency. Osborne taps community instead. “Giving yourself access to group learning is one of the quickest and fastest ways to upskill and learn from the best rather than outsourcing,” she says. Membership groups offer “an instant community of like-minded individuals”—a budget-friendly brain trust.
Know Your Worth, Charge It Right
Paliwal ties it all together with a pricing gut check. “To attract new business it’s tempting to charge less,” he warns. “The price should reflect the value and expertise your business offers, not your stage of growth.” Undercut yourself, and you starve the engine. “By charging the right price, you can invest in business growth with a sustainable revenue model,” he concludes.
Bootstrap until sales kick in, wield tech wisely, market with precision, guard cash like gold, hire sustainably, and price your worth. It’s not about having it all—it’s about nailing what matters. As Tucker puts it, “This approach isn’t about compromise; it’s about smart management and maintaining agility.” In a game where 90% falter, these lessons are the edge that turns grit into growth.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
