Small Business Statistics

What Can We Learn From Statistics?

There is much that we can learn from small business statistics.

Small businesses in Australia are defined as businesses with between 5-19 staff.

According to small business statistics a profile of a typical Small Business Owner is:

male, Australian born

tradesperson or professional

30 - 50 years old

year 12 or trade qualified

works full time in the business

has been trading for 1-5 years

used own funds to start the business

in a partnership or company

has no formal management training

has no business plan

(Source: Australian Bureau of Statistics 2007)

Statistics provide an enormous amount of useful information. This information can assist you in the research, planning and marketing efforts of your business.

Small Business Statistics can also provide growth rates of particular industries, average turnover figures and also reasons why businesses cease trading or operating.

The Australian Bureau of Statistics can provide you with extensive information for each State and Region of Australia. This information is available FREE of charge.

Some of the information that they can provide includes:

population

age groups

country of birth

average weekly income for individuals and households

family characteristics and

information on dwellings

The information is very detailed and can provide you with a wealth of information to assist you in with your marketing and pricing strategies.

The type of information available can help you to clarify if your business has a chance of succeeding in a particular market. You will also be able to decide on pricing and marketing strategies.

For example if you were looking to set up a podiatrist service for elderly people you wouldn't set your business up in an area that has a growing population of young families and a low percentage of elderly residents.

Big businesses use this information constantly. For example, car companies do their research before setting up a new dealership. They realise that it isn't effective to set up premises in an area where the public are not interested in their product. To illustrate this point, it wouldn't be viable to set up a motor dealership selling $200 000 vehicles in an area where the average weekly household income is $1000.

Likewise it would probably be foolish to set up a store selling umbrellas in an area that has minimal rainfall each year.

These business statistics will give you information on small businesses and will also provide demographic data that will help you to set goals and objectives for your business.

Statistics help enormously when it comes time to write your business plan. You may also identify opportunities that you may not have previously considered.

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How to Start Small Business