With a rapid influx of new businesses in the Australian market and increasing demand for government support for start-ups, established businesses are facing an onslaught of new competition.
According a survey by Dun & Bradstreet, 62,160 enterprises commenced operations during the second quarter of 2014, up from 50,539 in the three months previous and 57,504 in 2013*.
Andrew Beck, national head of turnaround and insolvency at RSM Bird Cameron said,
“While competition can be a good thing, forcing businesses to perform at their best to thrive, there are some factors that established businesses need to take into account to stay on the front foot.
“A lot of the newer players in the market are young, tech-savvy and well-versed in social media. This is where established businesses can fall behind.
“Established businesses can’t afford to rest on their laurels and must constantly seek out new challenges to remain abreast of the changing market. They must evolve with the market, and keep up-to-date with technology and new ways of operating.
“Despite this, there are some advantages that established businesses undoubtedly have over start-ups. Business owners, CEOs and boards need to play to these advantages when competing for business. These businesses have been around the block; they know what works and what doesn’t. They have had successes and failures, and have a tried and tested modus operandi that works.
“Most importantly they have customer references they can draw on to demonstrate their offering. And, successful businesses will have a solid reputation to stand on.”