Customers the key to business success
Thu 06 December 2007
Martin Wallace, Journalism
Sunshine Coast business owner Stephanie Breaden believes business success depends more on an increasing population and customer service than inflation rates, workplace agreements or government.
Ms Breaden, owner of a Healthy Life franchise, recently celebrated one-year of small business ownership and offers a glimpse into the health of the local economy.
“Business in the first year has gone much better than expected,” Ms Breaden says. And while one year is not long in the business world, Ms Breaden foresees a continued growth of her Healthy Life outlet.
“This is mainly due to the increase in population in our area,” she explains. “Also, an increase in customer satisfaction which will in turn create a loyal customer base.”
The Sunshine Coast population has been growing an average of just over 700 people a week since 2001 according to the Australian Bureau of Statistics (ABS). This population growth is largely credited for much of the economic boom still enjoyed in the region and has spurred the development and housing booms.
Yet the population increase is not the only thing that has helped small businesses on the Sunshine Coast. According to recent statistics by the Reserve Bank of Australia (RBA), Australians have accumulated $A40 billion in credit card debt and have a nationally combined limit of $A110 billion.
While the rate of spending on credit dropped slightly compared to last year, the overall national trend is towards a steady increase in credit-card based spending, something small business owners will appreciate.
Another topic up for debate in recent months has been the implementation of workplace agreements proposed by the Howard Government. While the debate runs hot on the political floor, Ms Breaden is finding it hardly relevant in her business.
“At the moment…our staff is casual,” Ms Breaden said. “Saying that we believe in a flexible working environment and find that our staff are very happy and comfortable with this arrangement.”
And while workplace agreements could be facing changes, an economic barometer that has undergone changes is the interest rate. Small businesses, as well as homeowners, are often depicted as maintaining a make-or-break budget that hinges on low interest rates. While exceedingly high interest rates are not desirable in any economy, a rate rise does not always spell out the disaster politicians and media like to imply.
While Ms Breaden noted that the effect of an interest rate hike would be “not high, if any” she did emphasis the significance of the tax rate. Responding to the question of how government could help her business she said: “Lessen the tax on products we sell which will therefore lead to better pricing for consumers.”
The exact formula for the perfect economy is elusive as the organic ebb and flow of the system changes from nation to nation and region to region. While the Sunshine Coast has its own economic strengths, Ms Breaden’s recipe for business success might apply anywhere: “a strong customer base – from there the profit will grow”.
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