by Dr Greg Chapman, MBA
Recently, Mr Tim Reed, CEO of MYOB, spoke at a dinner as part of this year’s National Small Business Summit. His theme was on the growing digital divide between big businesses and some small businesses with the majority of small businesses, who are unprepared for changes in consumer behaviour.
Reed explained that there is an expectation by customers that they should be able to interact with businesses online. He expected this trend to accelerate as the NBN is delivered. He went on to say that although times are tough for small businesses – getting online is a great way to prosper in difficult times, and wasn’t as hard as it may appear.
MYOB produces an annual Business Monitor of Australian Business Owners and Managers. Some of the statistics reported by Reed to demonstrate his case are that more than two businesses have seen their revenue decline in the past 12 months for every one that have seen it grown, but those that have a website are also 50% more likely to see revenue growth than those that don’t, and 35% more likely to have higher sales or work in the pipeline. They were also twice as likely to be anticipating revenue growth in the next year and 150% more likely to hire.
This relatively rosy outlook for businesses with website can be compared with data from all businesses, with just 19% expecting economic improvement, and only 30% predicting an increase in their revenues in the next 12 months.
Clearly there are no guarantees that having a website would enable a small business to buck these pessimistic trends, but Reed’s address certainly provided robust evidence that having a digital presence greatly increases the possibility the business will do so.
The MYOB 2012 Business Monitor Report contains much more valuable data for those interested in digging further, which I highly recommend.
May Your Business this Year be - As You Plan It.
Over to You. What do You Think? Post Your Comments Below.
Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.
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