Lesson 4.8

5 simple steps to help grow your small business

Whether it’s a side hustle you’re looking to upgrade or an existing small business you want to expand, there are many different avenues you can explore to turn your passion to profit. 

It is estimated that 97% of businesses in Australia are small businesses each employing fewer than 20 people, representing 2.5 million small businesses and accounting for a third of Australia’s total economic output.  

From retail to hospitality to the trades, small businesses play a vital role in employing Australians and unlocking opportunities for growth. 

Running a small business can be a time-consuming and sometimes challenging path. But there are strategies available to help unlock cash flow, boost your online presence and access support and grants, among others. Read on for five simple steps you can take now to nurture and grow your small business.

Step 1. Hone your business plan

All thriving businesses have a clear vision of the business purpose and mission. They know why they’re doing what they do, what problem they are solving and how they’re helping their customers.

It can help to write it all down in a Business Plan. You can try this business plan template available on the Australian Government website.

Ask yourself: Who are your ideal clients? How big is your potential market? Who is your competition? What's your marketing strategy? Your potential revenue, costs and profit margin? Spend time some time honing a one-sentence ‘mission statement’ to clearly identify the customer need your business fulfils.

Visit the CommBank Small Business Hub for more tools and insights to help you write a financial plan and get your small business up and running.

Step 2. Master your cash flow

For small business owners, the line can often be blurred between your business and personal accounts. You can save yourself hassle at tax time by opening separate accounts for your business and personal lives.

Managing cash flow is one of the biggest challenges for small businesses, especially if there are large gaps between payments.

Ideally, you don’t want to be using personal funds to cover shortfalls in your business, although there is no one-size fits all approach.

Familiarise yourself with your ‘cash conversion cycle’ – this is the time it takes before your outlays for expenses are returned to you as profit. Learn about ways to shorten your cycle, such as shortening your payment terms for customers.

Step 3. Know your financing options

Many viable businesses experience moments in time when their incomings are not quite enough to meet their outgoings. To make sure you can continue investing and growing your small business, educate yourself about the financing options available to you. 

From a business overdraft to business loans to buy equipment, to unlocking cashflow in unpaid invoices, there are many ways to fund the expansion of your business, even during tough times.

Step 4. Access grants and support

As a small business owner, you may be eligible for a range of government concessions and support. Search the Australian government’s grants and support finder on the Grants and support website.

CommBank customers can also use the Benefits finder feature in the CommBank app to search for both personal and business benefits they may be eligible for. 

You can also check with your local small business council to see what support may be available in your area.

Step 5. Talk to a business banker

As a small business owner, you wear different hats and juggle many tasks. Speak to a business banking specialist who may be able to help you identify ways to unlock growth in your business. Book in for an obligation free chat today.