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Latest MYOB Business Monitor: Australian SME's Brace for More Pain

26 Oct 2011

Cash flow concerns to replace Christmas cheer

New research from the MYOB Business Monitor released today reveals Aussie business owners are very pessimistic about an improvement in Australia’s economy any time soon, showing declining revenues and low expectations of improvement within 18 months. Traditional optimism about Christmas period sales increases has evaporated.

The October 2011 MYOB Business Monitor finds:

  • Two thirds of business owners (68%) do not expect an economic recovery in the next 12 months
  • 42% expect the economic recovery to be more than 18 months away (up from 17% in March 2010)
  • Business revenues have fallen with three quarters of Aussie SMEs (76%) reporting revenue at the same level or down on a year ago with the average decrease being 27%
  • 30% of businesses expect lower sales in Christmas Quarter compared with 14% last year
  • Only 29% expect increase in sales in Christmas quarter compared with 49% last year (full state by state breakdowns at end of release)

Tim Reed, CEO MYOB, said, “Today’s findings paint a stark picture of how tough Aussie business owners have been doing it over the past year. Queensland business owners have been particularly hard hit, with 50% of all business owners reporting revenue falls.”

“With little or no prospect of a Christmas boost to sales, many businesses will need to take other action. We suggest business owners talk to their business advisors or accountants to review or create a cash flow plan, particularly managing purchases. Managing team leave carefully is also another area to look at as this can impact on both cash flows and bottom line results. It is also important to be smart about marketing - getting online to reach more customers if your business isn’t already using the internet is a good idea,” Mr Reed advised.

Longer term revenue predictions are also gloomy with the majority of Australian business owners (58%) expecting revenue to remain the same or reduce in the next 12 months. 

The Christmas Quarter (October-December 2011) report card:

 

 More work or sales in pipeline for Q4 than usual Less work or sales in pipeline for Q4 than usual
National average 29% (was 49% in 2010) 30% (was 14% in 2010)
South Australia 36% 28%
Victoria 33% 25%
New South Wales 29% 28%
Western Australia 27% 30%
Queensland 26% 38%
City/Metro 31% 27%
Rural 27% 28%
Start-up businesses (<2yrs) 44% 23%
Establishing businesses (2-5yrs) 28% 34%
Maturing businesses (5-10yrs) 27% 34%
Established businesses (>10yrs) 20% 40%

-ENDS-

About the MYOB Business Monitor
 

The MYOB Business Monitor is a nationwide survey of 1,000 Australian business owners, across a range of small and medium businesses, from sole traders to mid-sized companies, and representing the major industry sectors. The MYOB Business Monitor is designed to research key areas of business performance, including profitability, cash flow and pipeline work.

 

For further statistics, comment or other information please contact:

Kristy Sheppard
Manager - Public Relations, MYOB
02 9089 9068 / M: 0407 450 860 / kristy.sheppard@myob.com

About MYOB

Established in 1991, MYOB is now Australasia’s largest business management software provider. Its 50+ products and services have been employed by more than one million businesses in Australia and New Zealand. MYOB serves businesses of all ages, types and sizes, delivering solutions that simplify accounting, payroll, client management, websites and much more. With a network of more than 20,000 accountants and other professional partners, it provides the support and tools that help make business life easier. Today, MYOB is extending its solutions online and delivering innovation through cloud computing, enabling clients to make smarter connections with their business partners and customers: http://myob.com.au/smarterconnections.

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