Australia is the home of small businesses. In fact, according to the Reserve Bank of Australia in a report they published in 2012 titled ‘Small Business: An Economic Overview’ , 96% of the 2.1 million active businesses in Australia were small businesses. However, the small business has to overcome some pretty big hurdles, according to the Australian Bureau of Statistics since 2008 more than 30% of small businesses will fail, and usually in their first couple of years.
The main reasons for failure are lack of experience and being under capitalised. While a business owner might have experience in their particular profession, what they soon discover is that there are a number of elements and different skill sets required to successfully operate and grow a business.
Typically a start up will open with minimal capital outlay, and because they are small there is limited overheads. They get a few customers, they start to generate an income and then they have ambitions of growth. But to grow they need to start outlaying cash they might not have. They need an office, and extra people resources. These overheads can be crippling as they need to put the infrastructure in place before they start to see a return, and if there isn’t a lot of capital resources the business can collapse very quickly.
Beepo has been called an inspirational Australian business. We have grown from a zero revenue to an enviable $4 million in just two years. We built a sustainable business through leveraging the best talent we could find at the lowest possible price and the outcome has been a sustainable business.
While Beepo specialise in the offshore staffing industry, we have demonstrated through our own business just how possible this is. All of our team members are talented, educated and experienced Filipino staff. While traditionally businesses have looked to the Philippines to do process driven roles such as customer service or call centres we have shown how businesses can outsource almost any of the functions in their business. Very early in the Beepo journey we outsourced HR, training, recruitment, accounts, marketing, client experience consultants and account managers.
If a business needed a financially skilled person such as an accountant, this may be outside of their budget for hiring someone in Australia. However, for around $2000 AUD a month they could have a Filipino worker full time. Not only that, they would be tertiary qualified and industry experienced. Suddenly a business has an experienced and skilled worker at a fraction of the cost in Australia that they can leverage to expand their business and ensure its long term viability.
Imagine the possibilities if those 30% of small businesses that fail due to inexperience and being undercapitalised could bring experience into their business at the lowest possible cost? Would this be the difference between a successful or failed venture?
The bigger picture is the rewards for others. Not only is the Australian business contributing to the economy within the Philippines, but their increase in success then contributes to the Australian economy. As the business continues to grow there will be a requirement for more staff both in Australia and the Philippines which further increases their contribution to both communities. Ethically Beepo is ensuring the development of our people and the families that they support. The staff employed at Beepo and those that we source for other Australian businesses are paid seven times that of the average wage in the Philippines. So while it may be cost effective for Australians, it is actually helping these communities and their people enhance and develop their own lifestyles.Beepo is an entrepreneurial success, an inspiration for other Australian businesses. But more importantly we are the blue print of how other Australian entrepreneurs and businesses can further their own ventures and grow at a pace that was previously unattainable.
Get Offshoring information straight to your inbox. Subscribe now to our Education Series.