Report: The 16 most dangerous facts & trends that every business owner, manager & stakeholder should know about

DO YOU
KNOW
The 16 Most Dangerous Facts & Trends
That Every Business Owner,
Manager & Stakeholder
Should Know About
© 2012 Businesses In HyperGrowth Pty Ltd. All rights reserved.

#1: Business is risky

If you started or were in business in 2008,
your s might have been one of the

1,194,317
Australian businesses
that had closed their doors by 2011.

Source: ABS, Cat. 8165.0, Counts Of Australian Businesses, Including Entries and Exits:
Jun 2007 Jun 2011 (Canberra: C w of Aust., 2011), pages 11-12.

#2: New business is riskier

If you had started a new
business in 2008, you had a

52% Source: ABS, Cat. 8165.0, Counts
likelihood of closing your Of Australian Businesses,
Including Entries and Exits:
doors by the end of 2011. Jun 2007 Jun 2011 (Canberra:
C w of Aust., 2011), page 5.

#3: Existing business is only a little
less risky
Even if you had an existing business in 2008, you had a
40% likelihood of closing your doors by 2011.

Jun 2007 Jun 2011 (Canberra: C w of Aust., 2011), page 5.

#4: (As at 2000) Around 40,000 businesses fail each
year with an estimated average loss of
$115,000.

#4: (As at 2000) Around 40,000 businesses fail each
year with an estimated average loss of
$115,000.
In 2000:
It was also estimated that the
total cost of business failures is
$4.6 billion each year¹.
The average Australian
mortgage was estimated at
$110,000 - $115,000².

¹ Source: W. Reynolds, W. Savage and A. Williams,
Your Own Business: A Practical Guide to Success
(Melbourne: ITP Thomas Nelson, 3/e 2000).
² Source: Dept. of the Australian Parliament Library:
Research Note No. 22, 2000-01 (Canberra: C w of
Aust., 2011), page 1.

#5: 29% of Australian businesses earn less
than $50,000 per year¹ (at least $18,000
below the average wage).

Average Wage: $68,725pa

$50,000pa

$0pa


#6: 34.5% of Australian businesses earn
between $50,000 and $200,000 per year.


#7: Only 1.1% of Australian businesses earn
over $1,000,000 per year.

#7: Only 1.1% of Australian businesses earn
over $1,000,000 per year.

Using the ABS Counts of Australian Businesses that reported 2,132,412
actively trading businesses in Australia as at June 2011¹ and the figures
available from Dun & Bradstreet s Company360 database² from March,
2012, there are only 23,475 businesses with declared incomes in excess
of $1million per year.

¹ Source: ABS, Cat. 8165.0, Counts Of Australian Businesses, Including Entries and Exits:
² Source: Dun & Bradstreet s Company360 database:
Australia's leading 50,000 private and public companies (www.company360.com.au).

#8: There s not a lot of business growth happening:
From 2008-2011 only 4.9% of Australian businesses
grew staffing levels, and 5.6% went backwards.

Source: ABS, Cat. 8165.0, Counts Of
Australian Businesses, Including Entries
and Exits: Jun 2007 Jun 2011
(Canberra: C w of Aust., 2011), page 8.

#9: 67.5% of business
owners earn less than
$1,000 per week.
Source: ABS, Cat 8175.0 - Counts of Australian Business Operators 2007-08
(Canberra: C w of Aust., 2009).

#10: Only 8.8% of business owners
earn over $2,000 per week.

Source: ABS, Cat 8175.0 - Counts of Australian Business Operators
2007-08 (Canberra: C w of Aust., 2009).

#11: Revenues for Small-Medium sized
businesses are shrinking at a greater rate
than Large businesses.

Source: Australian Chamber
of Commerce & Industry,
Small Business Survey
February 2011.

#11: Revenues for Small-Medium sized
businesses are shrinking at a greater rate
than Large businesses.

The
divergence
between small
and large
business sales
performance is
at its highest
level since 1996.

Source: Australian Chamber
of Commerce & Industry,
Small Business Survey
February 2011.

#12: SME
business
owners are
deeply
pessimistic
about
Australia s
economy
improving.

Source: MYOB Business Monitor:
The Voice of Australian Business
Owners October 2011.

#13:
Pessimism in
economic
recovery is
matched by
reports of
plummeting
business
revenue.

Source: MYOB Business Monitor:
The Voice of Australian Business
Owners October 2011.

#14: Companies are increasingly behaving
like businesses in recession.

Christine Christian, Dun & Bradstreet (D&B) CEO,
in referring to the D&B December 2011 Survey,
reported that companies, particularly in the
manufacturing and retail sectors, are increasingly
behaving like businesses in recession.

Source: D&B website (dnb.com.au) 2012 including Christine Christian, D&B CEO, talks about
business expectations for the December quarter with ABC NewsRadio's Glen Bartholemew.

#14 (cont.): Companies are increasingly

The number of small business
collapses soared through 2011
and this year could be another tough
one as poor sentiment outside of the
mining sector and tightened credit
conditions take their toll.



D&B's analysis of business start-ups and failures
based on their own numbers and those of the
corporate regulator found that

the number of small businesses
going under lifted by 48% in 2011.



This compares with a 42%
increase in insolvencies nationwide
across the year, D&B says.



Collapse among firms with fewer five
employees grew by 57% through the
year, whereas there was a 40%
increase for firms with between six
and 19 employees.



And collapse numbers rose by:

58% in service and construction,
66% in construction, and
28% in manufacturing.



Retail also had a shocking year,

with collapse numbers
up 11% for the December quarter

and 115% for the year.



And start-up numbers have gone through the
floor.

D&B says start-up numbers for firms with fewer than
five employees slumped 95% through 2011,

and there was a near 100% fall in start-up
numbers for the manufacturing, service and
finance sectors in the December quarter.



Christine Christian says there's an

"increasing risk
that the global economic slowdown
will intensify the
upward trend in insolvencies."



"Despite recent rate cuts, there is a palpable lack of
confidence in the current operating environment.

This is obviously one of the side effects of long standing
global uncertainty and can often be enough to deter
businesses from entering the market, irrespective of
actual conditions."



And start-up numbers have gone through the floor.

"Outside the mining sector, sentiment is generally still
poor and the strong Australian dollar is straining profits.

This could lead to an increase in
business failures
in 2012."


Christian says

business failures have risen
by more than 30%
over the past three years .


#15: Despite reports to the contrary,
Australia does have significant debt that is a
serious financial risk to the country.

Source: The Economist Magazine
website November, 2012
www.economist.com
/content/global_debt_clock

#15: Despite reports to the contrary,
Australia does have significant debt that is a
serious financial risk to the country.

Source: The Economist Magazine
website November 2012
www.economist.com
/content/global_debt_clock

#16: And if that s not enough on July 1
2012, Australia acquired the Carbon Tax and
the Mining Resources Rent Tax

No matter which side
of politics you may
support, these taxes
will impact
businesses in what
are already
challenging times.

DO YOU
KNOW

We live in challenging times.

We live in challenging times

"We choose to go
...not because [it is] easy,
but because [it is] hard,
because that goal will serve
to measure and organize
the best of our energies and skills,
because that challenge is one
that we are willing to accept,
one we are unwilling to postpone,
and one which
we intend to win.

John F Kennedy

and challenge is best met head on with

competence

DO YOU
KNOW

The 21 Competencies
To Absolutely, Positively Grow A Business
Independent Of The Economic Times

The 21 Competencies To Absolutely, Positively Grow A
Business Independent Of The Economic Times
1. Strategy Development
2. Strategy Implementation
3. Business Performance Optimisation
4. Business Model Development
5. Elite Individual, Team & Organisational Development
6. Training & Competency Development
7. Value Delivery
8. Product & Service Innovation
9. Market Research
10. Market Leadership
11. Competitive Advantage
12. Marketing
13. Sales
14. Relationship Management
15. Distribution Channel Utilisation
16. Alliance, Partnership & Joint Venture Development
17. Continuous Productivity & Quality Improvement
18. Process, Procedures & Systems Development
19. Testing, Performance Measurement & Management
20. Business Planning
21. Financial Control

Few would 1. Strategy Development
doubt that these 2. Strategy Implementation
3. Business Performance Optimisation
competencies, 4. Business Model Development
developed to 5. Elite Individual, Team & Organisational Development
the point of 6. Training & Competency Development
7. Value Delivery
mastery, would 8. Product & Service Innovation
absolutely, 9. Market Research
positively 10. Market Leadership
11. Competitive Advantage
result in 12. Marketing
significant 13. Sales
business 14. Relationship Management
15. Distribution Channel Utilisation
growth 16. Alliance, Partnership & Joint Venture Development
17. Continuous Productivity & Quality Improvement
18. Process, Procedures & Systems Development
19. Testing, Performance Measurement & Management
20. Business Planning
21. Financial Control

The Four Stages of Competency

2. Conscious 3. Conscious
Incompetence Competence

1. Unconscious 4. Unconscious
Incompetence Competence

1. Unconscious Incompetence
The individual, team or business does not understand or know how
to do something and does not necessarily recognise the deficit. They
may deny the usefulness of the skill. They must recognise their own
incompetence, and the value of the new skill, before moving on to
the next stage. The length of time spent in this stage depends on the
strength of the stimulus to learn.
2. Conscious Incompetence
Though the individual, team or business does not understand or
know how to do something, they do recognise the deficit, as well as
the value of a new skill in addressing the deficit. The making of
mistakes can be integral to the learning process at this stage.
3. Conscious Competence
The individual, team or business understands or knows how to do
something. However, demonstrating the skill or knowledge requires
concentration. It may be broken down into steps, and there is heavy
conscious involvement in executing the new skill.
4. Unconscious Competence
The individual, team or business has had so much practice with a
skill that it has become "second nature" and can be performed easily.
As a result, the skill can be performed while executing another task.
They may be able to teach it to others, depending upon how and
when it was learnt.

How do your people, your teams and your business score
Unconscious Conscious Conscious Unconscious
Incompetence Incompetence Competence Competence

1. Strategy Development 0 1 2 3 4 5 6 7 8 9 10
2. Strategy Implementation 0 1 2 3 4 5 6 7 8 9 10
3. Business Performance Optimisation 0 1 2 3 4 5 6 7 8 9 10
4. Business Model Development 0 1 2 3 4 5 6 7 8 9 10
5. Elite Individual, Team & Organisational Development 0 1 2 3 4 5 6 7 8 9 10
6. Training & Competency Development 0 1 2 3 4 5 6 7 8 9 10
7. Value Delivery 0 1 2 3 4 5 6 7 8 9 10
8. Product & Service Innovation 0 1 2 3 4 5 6 7 8 9 10
9. Market Research 0 1 2 3 4 5 6 7 8 9 10
10. Market Leadership 0 1 2 3 4 5 6 7 8 9 10
11. Competitive Advantage 0 1 2 3 4 5 6 7 8 9 10
12. Marketing 0 1 2 3 4 5 6 7 8 9 10
13. Sales 0 1 2 3 4 5 6 7 8 9 10
14. Relationship Management 0 1 2 3 4 5 6 7 8 9 10
15. Distribution Channel Utilisation 0 1 2 3 4 5 6 7 8 9 10
16. Alliance, Partnership & Joint Venture Development 0 1 2 3 4 5 6 7 8 9 10
17. Continuous Productivity & Quality Improvement 0 1 2 3 4 5 6 7 8 9 10
18. Process, Procedures & Systems Development 0 1 2 3 4 5 6 7 8 9 10
19. Testing, Performance Measurement & Management 0 1 2 3 4 5 6 7 8 9 10
20. Business Planning 0 1 2 3 4 5 6 7 8 9 10
21. Financial Control 0 1 2 3 4 5 6 7 8 9 10

If you re not pleased
with the way your
scoring, of even if you
are, but your business
is underperforming,
then you need to
change what you re
doing or the way
you re doing it.
The definition of insanity is to
To paraphrase Albert Einstein
continue to do the same thing but expect a different result .

Businesses In HyperGrowth is a business performance engineering company that engineers
breakthroughs for client businesses so they can achieve and sustain exponential rates of
growth.

We do that by turning business' overlooked assets, underutilised resources, underperforming
activities, hidden opportunities and underdeveloped relationships into windfall profits and then
turning those profits into ongoing, steady streams of income.

The method by which that growth is attained is the installation, development and mastery of up
to twenty-one business competencies within the client s business that can produce rapid,
remarkable and sustainable results.

And we guarantee results for the clients we choose to work with. Where we work directly
within client businesses as partners, we guarantee to produce immediate results in the form of
agreed-upon bottom-line improvements within the first 90 days. And again, where we work
directly within client businesses as partners, we guarantee sustained results for 12 months
beyond our direct involvement.

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