Overall, 59 per cent of SMEs expect to see half-year revenue growth, which is nearing the record high of 62.6 per cent achieved in 2014. However, this was tempered by one-third of businesses stating that they expect revenue to decline.

The Index noted that the average projected revenue growth rate across all SMEs nationally was 1.4 per cent, with the most positive business flagging 18 per cent revenue growth and the most pessimistic predicting a 30 per cent decline, a vast 48 percentage point gap.

Mining-related SMEs are the nation’s most optimistic, predicting average revenue growth of 6.3 per cent, while construction SMEs are the most pessimistic, anticipating revenue to fall by 8.3 per cent.

At a state level, Queensland SMEs registered the highest confidence levels with an average revenue growth forecast of 10 per cent, and WA SMEs were the next most positive at 7 per cent. Victoria remains the only state with negative revenue expectations, with SMEs projecting an average 9 per cent decline.

ScotPac group executive, client acquisition, Craig Michie, said that despite the patchy national results, it was encouraging that most SMEs are projecting a short-term revenue increase.

“Considering the cost challenges SMEs faced in 2024, it’s great news that average revenue forecasts remain in the black,” Michie said. “The surge in optimism from businesses in resource-rich states shows no signs of slowing, while SMEs with tight margins or high exposure to discretionary spending are understandably more cautious about the future.”

ScotPac expressed caution as well regarding the challenges facing business owners ahead with the super guarantee set to rise again in July, and the ongoing uncertainty around tariff policies.

However, with inflation and interest rates expected to ease in the coming months, the lender believes that SME confidence levels will be rising across more states and sectors.

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ISB: What inspired you to start Burzerk?

AB: I was watching a guy ride past on an e-bike and instantly imagined myself in his place – I just knew I wanted one. Later, I had a dream that took me back to Pop and Grandma’s farm, ripping around on motorbikes with my brother. Whenever the parents yelled, “You better slow down – going berserk like that, you’ll hurt yourself!” It only fueled the fire. We charged it even harder. That memory hit me hard, and I woke up knowing I needed to build something real that captured the feeling of freedom. Within five minutes, I’d registered the Burzerk name and domains. No hesitation – with the “charge it” mindset.

ISB: Where did your initial funding come from and how did you deploy this across the business?

AB: The initial funding came from a private loan. From there, we quickly found our footing and learned to navigate the stormy seas of start-up life – something I know many readers here will relate to. Strategically, I focused the investment on product development and marketing while ensuring we had systems in place to understand our logistics and e-commerce data. This gave us insight into key areas – customer targeting, content strategy, and distribution channels that suited our product: electric bikes. Planning ahead is crucial, especially with a three-month lead time for production and shipping to Australia. You’ve got to be both proactive and flexible to stay in flow.

ISB: What marketing moves helped you stand out from your competition?

AB: We focused on building a brand around a feeling, not just features. The story, the nostalgia, the energy – that’s what people connect with. Our slogan, “charge it,” is about more than just hitting the throttle – it’s about showing up, pushing through, and choosing courage. We’ve leaned into strong visual storytelling and community-focused content that reflects relatable scenarios. On the retail front, having major partners like Harvey Norman, Bunnings, and Myer on board has been amazing. We also recently partnered with Tracks, which featured our e-bike in a Rip Curl campaign.

ISB: You sold over $300k worth of products in your first seven months. What actions were most pivotal in achieving this?

AB: A third of those sales came from in-person efforts – it was a busy summer! Behind the scenes, it was long nights learning to be a bike mechanic, writing email flows, creating ad campaigns, managing socials, updating the website, monitoring performance, writing articles, shooting content, looking after customers, building networks, partnerships – doing it all. I’ve even fallen into the rabbit hole of AI implementation a few times! There’s always more to do, so prioritisation is everything. The key was caring enough to actually act – that’s what brings things to life. That mindset of “charge it!” didn’t just apply to riding – it became my business compass.

ISB: What was the most challenging obstacle you faced, and how did you overcome it?

AB: Working with overseas suppliers comes with challenges, especially around communication. I’ve learned the value of partnering with people who are coherent, reliable, and aligned. Managing everything solo was intense. Every day I was across product development, inventory, logistics, marketing – basically all operations. I had to learn to give myself space to recharge – beach time really helped. I also made time for surfing, running, tennis, soccer, and the gym to stay balanced. Good food, water, exercise, sleep, and the right environment make a big difference. Eventually, bringing in advisors, a marketing team, and mentors gave me the clarity and structure I needed.

ISB: What is the most important lesson you’ve learned in this business journey?

The one lesson that stands out is this: when you’re truly passionate about something, and you take fast, intentional action like your life depends on it – it resonates. People feel that energy. Some customers have taken a bike for a spin, come back, and within minutes, I’m seeing the funds in my account. I like to take a genuine but brutally honest approach, and I think that builds trust. Finding the right balance between work and personal/social life was tough at times, but collaborations like the Tracks party reminded me to enjoy the ride. The surf industry crew have the best vibe.

The post Q&A: How Burzerk made $300k in seven months through feelings – not just features appeared first on Inside Small Business.

The report also found that SME optimism about the Australian economy has grown, supported by expectations of lower inflation and anticipated interest rate cuts, which are seen as key factors providing a clearer path for growth. As such, 39 per cent of businesses are prioritising growth over the next 12 months, which the report noted is the highest level since February 2024. Simultaneously, the proportion of SMEs planning to exit or downsize continues to decline, which is seen as a sign of greater business confidence.

The Hospitality sector has led this growth momentum, having benefited from strong holiday trading. On the other hand, the Retail and Production sectors continued to face challenges with weaker results.

Recruitment activity remains in the low as well, with only 11 per cent of SMEs actively hiring—the lowest level in the past 12 months and a significant decline from 27 per cent in January last year.

While satisfaction with the Federal Government has been improving, the report noted that overall sentiment remains negative. Futrthermore, SME leaders are found to have a generally hold a negative view of the Trump administration’s potential impact on the Australian economy, with female business owners and those in smaller SMEs less likely to anticipate positive outcomes.

Fifth Quadrant, Managing Director, James Organ commented, “Overall, SMEs are entering 2025 with cautious optimism, balancing growth ambitions with careful cost management and workforce planning, while remaining mindful of broader economic and political influences.”

The post SME growth sustains momentum appeared first on Inside Small Business.

The report found that 33 per cent of SMEs predict higher revenue in 2025, while almost a third plan to increase their employee count (29 per cent). About a quarter (24 per cent) believe customer demand will rise in the coming 12 months.

The NAB Report isn’t the first positive sign for SMEs this year. Fifth Quadrant’s SME Sentiment Tracker also recently discovered that small-business owners are more optimistic right now than they were in 2024.

The report identified a few key reasons for this more positive outlook. One is the likelihood of an interest rate cut that could take effect in the mid-year, another the positive impacts of last year’s tax cuts.

Remaining challenges

Despite the sunnier outlook, challenges remain for small business.

The business owners surveyed cited the cost of doing business as their primary obstacle right now. In fact, 76 per cent of SMEs expect these costs to increase within the next 12 months.

The report also found that the operating environment is also expected to be harder for many, with 41 per cent of survey respondents pointing to an increase in the level of red tape experienced by their business and 35 per cent pointing to a rise in cybersecurity and scam risks.

A substantial number of small-business owners also see profitability (22 per cent), revenue (19 per cent), availability of suitable labour (18 per cent) and customer demand (16 per cent) decreasing over the next year.

What are businesses focusing on this year?

The NAB Business Report noted that businesses will likely focus more on cost-saving measures like streamlining operations, negotiating with suppliers, reducing energy consumption and managing inventory more effectively for 2025.

Other measures involve investing in robust cybersecurity measures, protecting assets, and maintaining trust and confidence.

Proactive measure to avoid future increases in costs, plus an uncertain market, were also popular:

• 41 per cent of business owners were looking to increase their adoption of technology to enhance their business
• 32 per cent wanted to improve their efficiency and productivity
• 32 per cent of business owners are expected to further their adoption of AI across their businesses for improved business efficiencies
• 30 per cent look to increase AI adoption in their cybersecurity investment

The post Why small-business confidence is rising – and the cost-cutting strategies businesses are using in 2025 appeared first on Inside Small Business.

According to CommBank, the online course will include expert advice, strategies and easy-to-use tools that will empower small businesses to manage their finances.

“The Cash Flow Management course is designed to provide practical insights that empower business owners to make informed decisions and build financial resilience,” said Professor Nick Wailes, Dean of Lifelong Learning at UNSW. “By offering this course, we aim to reach as many small-business owners as possible, helping them create sustainable growth and secure their future in an increasingly challenging economic environment.”

The course can be accessed on UNSW’s Australian Graduate School of Management website, and is self-paced.

Vast majority of SMEs dealing with cashflow challenges

A new survey commissioned by CommBank has revealed that nearly 80 per cent of Australian small to medium enterprises (SMEs) have gone through cashflow challenges in the last 12 months,

The research found that the most common factors impacting cashflow are declining revenue (35 per cent), low cash reserves (30 per cent), and seasonal fluctuations (27 per cent).

To address this issue, the research found that 85 per cent of surveyed businesses employ one or more specific strategies, such as reviewing or decreasing expenses (34 per cent), maintaining a cash reserve (27 per cent), finding additional revenue streams (26 per cent), and increasing sales and/or pricing (25 per cent).

However, 27 per cent were found to have dipped into personal savings or didn’t pay themselves a salary, or both, in the last year, which is a cause for concern.

CBA Executive General Manager Small Business Banking Rebecca Warren stated that cashflow strategies are important for long-term business success and business owners must have the knowledge to help them apply the strategies that are right for them.

“For small businesses, success often hinges on a delicate balancing act as they constantly juggle various aspects of their operations, from managing customers and employees to dealing with suppliers and vendors. It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMEs,” Warren said.

The post UNSW and CommBank launch free cashflow management course appeared first on Inside Small Business.

The report noted that 38 per cent of SMEs are prioritising growth in the coming year, aligning with levels seen last December and surpassing other months in 2024. This optimism is attributed to improved revenue and profitability trends, with 28 per cent of SMEs reporting higher revenues compared to 12 months ago and 58 per cent achieving positive earnings.

On the other hand, confidence in the Australian and global economies for the next three months remains subdued, which the report notes as continued caution amidst economic uncertainty. And while cost pressures remain a significant challenge, SMEs are responding by streamlining product offerings, discontinuing unprofitable services, and refreshing their customer value propositions.

Financial challenges for SMEs slightly eased in December, the report added, with many key issues affecting financial health declining compared to the previous month. Debt management has improved, with the proportion of SMEs carrying no outstanding debt rising from 30 per cent in August to 37 per cent in December. However, the share of SMEs unable to meet debt obligations in the next six months has also increased to 12 per cent.

Demand for finance has also shifted, with funding for growth in new markets, trade finance, and M&A activities declining, while domestic growth remains a priority.

Fifth Quadrant, Managing Director, James Organ commented, “After navigating a challenging year, SMEs are entering 2025 with renewed optimism and determination with rising revenues, profit and growth expectations boosting confidence. While obstacles and economic uncertainty remain, SMEs are well-positioned to enjoy a more prosperous year ahead.”

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The latest edition of the quarterly Unleashed Manufacturing Report highlighted this positive outlook as average sales revenues increased by 4.5 per cent across all industries during the Q3 2024 period.

The report added that the strong sales encouraged SME manufacturers to increase stock levels in anticipation of a further surge in sales.

“To see sales revenue rise is a welcome relief for struggling SME manufacturers. The last few years have been tough, and as a result, we have seen businesses carefully strengthen their sales pipeline, manage overstock and generally upgrade their business health,” said Unleashed Head of Product Jarrod Adam. “Because of this we believe a lot of AU manufacturers will be in a strong position to take advantage of the change in economic fortunes.”

The increase in sales revenue is evidence of confidence rebuilding in the manufacturing SME Manufacturing Industry, Adam added.

“Sales revenue is the lifeblood of any business, and this is particularly true in times of economic uncertainty. To see this metric start to rise will be a welcome relief to many businesses that have been feeling the pinch of inflation, and will give them the ability to take advantage of a better economic climate,” he said.

Purchase orders strong

Adding to the positive outlook was the fact that purchase orders were very strong across the board. On average across all industries purchase orders were up 8.6 per cent in Q3.

Unleash noted that an uptick in purchase orders is a positive predictor of future revenue, for manufacturing industries with longer sales cycles. Combined with climbing revenue overall, including standout performers in the Beverage, and Clothing, Footwear & Accessories industries, Australian manufacturing may be turning a corner from the same period last year.

Profitability: down but not out

The report also noted that profitability (measured as Gross Margin Return on Inventory, or GMROI) is down at an average of -8.36 per cent this quarter. However, it also pointed out that it is likely a temporary flip side of upcoming gains

Taken in the context of rising sales and purchasing, the reduction in profitability is noted to have reflected an increase investment in inventory that is yet to be sold by manufacturerss. Whether this additional stock represents yet-to-be-invoiced sales or is simply preparation for forecasted demand, it says it will likely resolve into improved profit margins over time.

“While profitability is a measure of past performance, purchase orders point to the future. Taken as a whole the report is not a condemnation of future profitability. It actually shows a good news story for the Australian manufacturing industry, as we are seeing businesses put a difficult period behind them, and look towards a brighter future,” Adam said.

Excess stock is holding steady

The report also highlighted that average excess stock levels have held steady. Excess stock levels were up 0.6 per cent on last quarter, and up by 27.70 per cent compared to the same quarter three years ago, at the height of the pandemic.

While holding more inventory than required is an expensive exercise for manufacturers, Adam reiterated that overstock is a positive indicator of future sales for Australian producers.

“With the exception of industries with perishable products, an intentional stockpiling of goods indicates a fresh level of confidence amongst Aussie producers. After the post-pandemic overstock crisis, Australian manufacturers were trying to empty their warehouse shelves and free up capital. What we’re seeing now, coupled with an increase in purchase orders for future sales, is that local manufacturers are feeling confident about the future,” he said.

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Business customer data from Commonwealth Bank highlighted that overall spend during this festive period is 11 per cent higher than the average monthly turnover. Historical data from 2023 noted that the following sectors saw the strongest performance in December that year, in comparison to the month prior:

• Motion pictures (+164 per cent)
• Book stores (+96 per cent)
• Hobby, toys and game shops (+53 per cent)
• Amusement parks, circuses, carnivals, and fortune tellers (+52 per cent)
• Home furnishing (+45 per cent)
• Gift, card, novelty, and souvenir stores (+41 per cent)

The Australian Retail Association also predicted a record spend of $6.7 billion for this coming Black Friday and Cyber Monday, an increase of 5.5 per cent year on year.

CommBank Executive General Manager Small Business Banking, Rebecca Warren, said the spend data provided valuable insights for small businesses seeking to take advantage of big upcoming shopping events in the festive season.

“Black Friday and Cyber Monday mark the start of a busy season for Australian small businesses as we head into the last month of the year. As consumer demand for a good deal reigns and more competition enters the market, it’s not too late for small businesses to take advantage of tentpole moments like these major shopping events.”

Warren added, “Our data shows the top five best performing industries by spend during the 2023 festive season were restaurants and bars, beauty and barbershops, clothing and department stores, homewares and travel. While these industries continue to perform well, the festive season generates gains for the broader small business community, driving revenue into supporting sectors like marketing and advertising, printing, courier and delivery services.”

CBA noted that regional small businesses can also expect to achieve strong sales this holiday season. While fast food, cafes and restaurants, and beauty and barber shops are consistently popular choices around the country, people tend to spend more money in regional areas on lodgings, hotels and resorts as well as drinking establishments than in the major cities where purchases at bakeries and jewellery stores are more common.

CBA also pointed out the importance of the holiday sales season for many Australian small businesses who, having faced a challenging year marked by rising operational costs and economic pressures, hope the revenues generated would provide them a boost for the year ahead.

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SB: What was the inspiration behind Miss Amara?

AW: it was based on our own experience buying a rug. We tried and eventually gave up and when we asked our friends and family they all had a similar experience. We realised that for a lot of customers buying a rug for the first time – it can be an extremely daunting task due to the sheer size of the product. So we had a goal 10 years ago to create the most enjoyable and uncomplicated experience to buying your perfect rug – bringing happiness to every barrier that once was confusing or not particularly fun.

ISB: How do you monitor evolving design trends to keep your products current?

AW: It’s really important to get ahead of the design trends so that our product development cycle of production is far before the trend lands. We do this by immersing ourselves in all things not only in the interior space but the art space, fashion space, and anything really that is related to aesthetics and how people interact with design. My background is architecture so the relationship between people and design is something that’s always at the forefront of my mind. Their opinion is really the only one I care about as trends are nothing if they can’t be accessible to the final customer.

ISB: You’ve seen a 36 per cent sales increase in three years. What changes did you make to your business operations to achieve this?

AW: Whilst we’ve always put our customer first, we’ve worked hard in the past few years to profoundly understand them. We’ve increased our focus on metrics like NPS and invested in highly in-depth voice of customer projects and studies. We want to know everything about our customers and we discovered the need for more robust products that work with our customer’s lifestyles. Our product team doubled down on R and D which resulted in us investing more into broadening our washables range for example. Today this range makes up 25 per cent of our sales and continues to climb. Addressing B2B as a huge opportunity and focusing on this has also been a massive contributor to this uplift.

ISB: What is the dynamic like when it comes to working as a couple?

AW: One thing in our relationship that always stands true is our mutual love for business and respect for entrepreneurship. So we lean into that and it’s become something we enjoy and celebrate. Our values in life and in business are 100 per cent aligned and in a business partnership I think this is the one thing that is the most important factor for success. Another important factor is that our areas of expertise are very separate and whilst we place huge value on each other’s opinions (and often disagree!)  we ultimately have the utmost respect for who has the final say in our respective areas. We are hugely proud of being couple co-founders and we openly speak about it being our superpower.

ISB: Where do you envision Miss Amara in the next couple of years?

AW: The business has worked hard on our efforts on B2B. Traditionally we’ve been B2C and we’ve been so blessed in the way the customers and the online market have received us. We are working towards addressing the rest of the market which in reality is fragmented and always will be. Our goal is to get Miss Amara at every place a customer is looking to buy a rug, and the opportunity on a B2B level will continue to be vast and significant. We have also had some exciting product category expansion into areas like beach rugs and playmats, which we are really excited about. We want to produce products that enhance our customer’s lifestyle because ultimately Miss Amara is a lifestyle brand.

ISB: What is the most important lesson you’ve learned in this business journey that a would-be entrepreneur should take to heart?

AW: The best service that you can do for you and your business is to hire the best people in their respective areas of expertise and trust them wholeheartedly. Whilst you want a seat at the table, over time there will be more and more tables, you can’t be at every one, so you want to choose to seat at the right ones! There are staff members in the business that I trust with my life, and I have revelled in their capabilities. This has made me put my full focus into the areas that I am the strongest. As our products power the business we have only benefited exponentially from this.

The post Q&A: Miss Amara’s design for success appeared first on Inside Small Business.

A previous report found that SMEs are rolling back their paid ad spend due to pending privacy regulations. Despite this, paid ads still ranked as the second most popular strategy for attracting new customers this peak season.

The following social media-related strategies are being used by retailers in attracting and retaining customers:

• 70 per cent of SMEs said they would prioritise social media engagement for customer retention, followed by providing exclusive offers and promotions (42 per cent) and enhancing customer service (38 per cent).
• Organic social media content (47 per cent) and paid advertisements on social media (32 per cent) ranked as the top two strategies for attracting new customers, with a substantial 72 per cent citing strategies related to social media, affiliate marketing and influencer partnerships overall.
• 63 per cent said they will leverage social media platforms for direct sales.

Seasonal strategies

The report found that Australian retailers are focussing on several key strategies for their peak holiday season plans:

• Expanding into new product areas (31 per cent)
• Improving ROI on marketing spend (30 per cent)
• Reducing operating cost (27 per cent)
• Expanding into new sales channels (22 per cent)

Shopify also noted that these strategies reflect the current economic climate and its impact on consumer spending, both of which remain foremost in the minds of retail entrepreneurs.

Despite such concerns, 33 per cent of Australian retail entrepreneurs are optimistic about the upcoming peak sales season, particularly for Black Friday/Cyber Monday, though 35 per cent are feeling less optimistic. 

Moreover, Australian businesses are looking resilient amid the challenges. Their drive to adapt and innovate to meet the needs of today’s consumers remains strong, according to the report.

Cost of living concerns impacting consumers and retailers alike

The report also noted that a rising cost of living and inflationary pressures continue to be the driving factors behind consumer habits, a key concern for retailers. Small retailers have cited consumer spending levels (77 per cent), inflation (76 per cent) and local economic conditions (71 per cent) as factors that have affected consumer behaviour as of late.

As a result, 44 per cent of retailers have noticed an increased customer interest in discounts, while and 43 per cent have noticed an increase in price sensitivity. Meanwhile, 51 per cent have noticed a decrease in discretionary spending, while 50 per cent cited a decrease in frequency of spend, and 36 per cent noted a decrease in average order value.

The report underscored that these factors have pushed merchants to revisit their pricing strategies, targeting new audiences, and introducing compelling new offers to remain competitive. Among these strategies are:

• 48 per cent are adjusting pricing strategies to remain competitive, while 46 per cent are increasing promotional activities to boost sales.
• 37 per cent are investing more in digital marketing to reach broader audiences.
• 28 per cent are shifting focus to more cost-effective products.
• 24 per cent are redesigning their marketing messages to emphasise value and affordability.

Shaun Broughton, Managing Director, APAC at Shopify commented, “As Australian entrepreneurs navigate the current economic climate ahead of the holiday season, it is crucial that they not only deepen their engagement on social media — where their customers spend significant time — but also remain agile in responding to growing price sensitivities. Investing in technologies like AI that drive greater efficiencies while reducing costs, has also emerged as a valuable strategy for improving business readiness.”

“Black Friday/Cyber Monday and the broader holiday season present a valuable opportunity for businesses to explore new initiatives and strategies to maximise reach and help them stand out. Although venturing into new markets or adopting new technologies can be daunting, it is important to think creatively and stay forward-focused,” he added.

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