The Truth Most Business Owners Never Want To Hear...
43% of micro and small businesses operate at a loss.
Over 80% of small businesses in Australia fail.
Surprisingly, 50% of these were profitable at the time of closure.
Passion and hard work aren't always enough. Without clear strategies and systems, even profitable businesses can falter.
What This Score Really Means
If you scored under 45%, here’s what’s likely happening behind the scenes:
Overexertion without proportional growth
Underpricing services or lacking financial clarity
Revenue without sustainable profit
Reactive decision-making instead of strategic planning
Wearing too many hats without delegation
Staying busy, but not working on what actually moves the needle
Making decisions based on gut feel, not data
You're skilled in your trade—that's 80% of the equation. The remaining 20%? It's about implementing structure, accountability, and strategic planning to truly thrive.
Top 5 Reasons Businesses Fail
According to a study by the University of Technology, Sydney, commonly cited reasons for business failure are, in order of frequency: financial mismanagement, bad management, poor record-keeping, sales and marketing problems, staffing problems, failure to seek external advice, general economic conditions and personal factors.
In most cases, it is a combination of several reasons that ultimately causes the failure. Often many of these factors merge or shade off into one another, leading to something like a chain effect.