The year of small business? Personalised service expected to drive consumer shift in 2017
Australians are increasingly shunning big business for their entertainment and retail needs in favour of small and medium sized retailers which can offer personalised experiences.
New figures from independent EFTPOS banking institution Tyro suggest that spending on eating out, holidays and other entertainment at small and medium sized businesses will rise by 10% in 2017, which Tyro CEO Gerd Schenkel attributed to the personalised service trend.
"It seems David is beating Goliath when it comes to the hearts and minds of Aussie consumers, as personalised hospitality beats the often homogenous and soulless experience of some large chains."
"Based upon the detailed sales results of thousands of our customers, we estimate SME sized hospitality sales will reach $80 billion this financial year, compared to only $24 billion for larger hospitality businesses,” he said.
The Christmas period proved particularly jolly for smaller businesses, with Aussies flocking to them for their festive entertainment needs.
“In December alone, Australia’s 62,000 small and medium sized hospitality businesses, employing up to 200 staff each, saw sales increase a staggering 10 per cent to $8 billion,” said Schenkel.
Australia’s 78,000 small and medium sized retailers also experienced a festive boon with $23.5 billion in sales during December, an increase of 3% on 2015.
"This was a cracking finish to 2016, and we expect more of the same over the coming six months to the end of the financial year,” said Schenkel.
"The sales figures show that smaller retailers are defying the drift to international online sales, and continuing to provide a viable alternative for discerning Australian shoppers.”
Tips for small business success in 2017
- Shop around for the best loan rate
Make sure that you’re getting the most cost effective funding for your business. Business loan rates in the Mozo database range from 4.29% to 12.80%, which goes to show that it really does pay to shop around before taking out a loan.
- Re-negotiate with your landlord
Prime retail space is one of the most important assets for many businesses, but it may be time to reassess the benefits of a top location if costs are running too high. But before making any drastic moves ask your landlord for a better deal on your rent.
- Don’t let your insurance rollover
Close to renewal time for your insurance? Don’t be complacent! Take the time to compare the market to make sure you’re getting the best offer.