Two-thirds of SMBs have experienced growth over the last two years, which a new survey is attributing to good business planning and financial management, and many expect continued growth over the next two years.
The RSM Bird Cameron thinkBIG 2012 survey results show over 63 percent of local SMBs experienced growth in last two years. The thinkBIG survey looks at the planning practices of business owners and assesses the impact of recent global financial conditions.
The research revealed 77 percent of SMBs expect to grow in the next 12 months, up from 69 percent in 2010 and 76 percent in 2011.
The figures also show around 76 percent of businesses are undertaking formal planning to prepare for this, a 30 percent increase compared with 2011.
“RSM Bird Cameron’s experience shows that businesses who plan are the most successful ones. It is great to see business owners investing in this important process,” Andrew Graham, national head of business solutions at RSM Bird Cameron, said.
thinkBIG 2012 found financing remains a struggle for SMBs, with many not expecting to see an improvement in the availability of finance.
“It remains incredibly difficult for local businesses to obtain funding for their business. This is something that owners need to take into consideration and plan for,” Graham added.
Thirty-nine percent of respondents said they have or will use an external advisor, such as an accountant, to help with business planning – which is consistent with 2011’s figures.
“Following improved revenue growth over the last two years, SMBs owners appear more willing to focus on growth and are using external expertise to plan their future,” Graham said.
The survey also revealed 26 percent of SMB owners have or will use a financial planner for superannuation planning and 20 percent will use a financial planner for retirement planning.
“Considering how complicated it can be to run your own business, ensuring everything is in order with regards to tax, superannuation and so on, it remains important for these business owners to get advice from specialists. This will also help maintain and grow their business,” Graham added.