Figures released by the Australian Bureau of Statistics show Australia’s economic growth slowed over the past financial year to be the lowest since 91-92, as the economy continues to feel the impact of persistent inflation and higher interest rates.

It comes on the back of ASIC figures showing the number of business insolvencies rose 39% in 23-34 compared to the previous year.

While it’s clear that many businesses are finding current conditions difficult, it remains possible for businesses to continue to grow and expand, even in this environment.

As a business founder and owner of more than two decades, I’ve experienced significant business challenges in the past, including the global financial crisis, and the challenges of the pandemic years.

It’s the lessons learned during difficult times, such as now, that help establish the foundations for SME longevity.

The GFC for example was an early lesson for our business on the importance of keeping costs down and perfecting customer service, as every inquiry had to be treated like gold.

Similarly, our business standards around hygiene and safety assisted us throughout the COVID years, as it meant when the pandemic arrived we were already well positioned to meet higher community expectations, without adding extra cost to the business.

The current economic environment has its own set of challenges, however there are steps businesses can take to manage and mitigate these in order to have the best chance of achieving longevity.

  • Red Tape: Navigating red tape and business approvals can be a significant time and cost impost to any business, and so it’s vital to stay up to date with industry-specific regulations and requirements, seek professional assistance where needed, and plan well in advance. Our new facilities took so long to approve, we’ve already started the approvals process on a bigger site, to ensure we can stay ahead of the game.
  • Staffing: Securing skilled workers in the current market remains tough, which is why it’s important to build a strong, positive team culture that encourages and fosters retention. If you are hiring, think not only about finding a person for a role, but the right person with the attitude and ability to fit into your team.
  • Manage Growth, Regardless of Size: Growth of any kind needs to be considered in terms of ensuring there’s enough product to meet demand, enough space to store the product, adequate staff to service more clients and keeping an eye on cash flow. There needs to be a balance of what’s happening right now, but also thinking ahead about what the business will need going forward.

Our company marks a significant milestone this year, celebrating 21 years in business.

What started as a company of one is now a medium-sized business employing more than 50 full time staff, and we recently opened new state-of-the-art facilities – an achievement we’re particularly proud of, as it comes at a time when we’re seeing other businesses forced to close.

There’s no secret formula when it comes to achieving business longevity – however by heeding the lessons of the tough times, working hard, and continuing to provide better quality and service than your competitors, there is the opportunity to achieve success and continuity.