TEC’s Confidence Index Report (CIR) paints an optimistic future for Australia’s businesses, even if there may be some challenges ahead. The CIR outlines not only some of the positive aspects of the Australian marketplace but also some of the most pressing issues CEOs must address if they are to succeed. With a well-developed strategy, business owners should be able to leverage this coming year for sustainable and aggressive growth.
Australia’s economic outlook is bright
82% of CEOs believe the economic conditions of Australia will either grow or stay the same. This stability is incredibly important for businesses that expect to begin building their growth in the coming year. Even a stable economy — without growth — is a boon to a well-managed business.
Though a well-run business can succeed at any time, a strong economy improves upon all factors, from the cost of customer acquisition to the cost of goods. Businesses will be investing more in their own infrastructure, which in turn will contribute more to the growth of the economy overall. Even a perception of a stronger economy can have a resounding impact, especially at a local level.
Business owners expect an increase in sales revenue
78% of business owners anticipate an increase in sales revenue in the year ahead, and this is going to encourage business owners further to continue investing — not only in themselves but also in products and services from other local companies. An anticipated increase in sales revenue is due to an increase in customer spending, which naturally occurs when the economy is doing better.
At the same time, low consumer confidence may require that business owners become more creative and aggressive with their marketing techniques. By coming up with innovative ways to captivate their customers, leaders will be able to separate their companies from their competition. In fact, they will have to if they want to leverage the current economic conditions.
Businesses will be featuring new products and services
72% of business owners are citing new products and services as a part of their growth plan. As businesses grow, investing in a product base is a solid strategy as it gives consumers something new and exciting to be interested in.
At the same time, investing in new products and services can also be a risky bet for an entrepreneur. Without substantial market testing, companies can find themselves extending too far financially on products and services that they aren’t able to move.
Though market testing cannot eliminate this possibility, it can reduce the risk. New products and services can then open up brand-new markets for the business and aid them in development and expansion.
Altogether, the CEO outlook is an exceptionally positive one. But that doesn’t mean there isn’t a lot of work to be done. Though CEO confidence is high, consumer confidence is not. And CEOs are finding many challenges along the way, such as time management, skill development, and innovation.