Small start-ups in 2015 such as Uber, Shoes of Prey and Wish are now earning millions with the help of investors, conferences and social media. For all those Aussies who are looking to become an entrepreneur, now is the time to take the leap and jump into business. The four major factors that will accelerate growth for start-ups are growth hacking, government grants, use of agencies and social media.
This term refers to when a person’s intention is to create awareness and drive business in a non-traditional way by combining traditional marketing with optimum use of code and technology. Companies such as: Dropbox, Instagram and Pinterest are some inspirational examples of companies born out of growth hacking.
Companies are experiencing expansionary growth and are now ditching the traditional forms of business and marketing. They are instead focusing on growth hacking. Advertising their companies in more traditional forms such as on TV and billboard signs are a 20th century thing; 21st century businesses grow on technological and innovative platforms.
“They are the investors, operators, and mechanics of their own self-sustaining and self-propagating growth machine that can take a startup from nothing to something”
– Ryan Holiday
Start-ups are focusing on hiring those who have thrown out the playbook of traditional marketing and replaced it with only what is testable, trackable and scalable. Growth hacking at its core is abandoning the notion that marketing is a self-contained act; that marketing begins and ends only with a products life cycle. It is a way of thinking and a mindset that optimizes technology and enable organisations to overshoot their potential limits.
It is believed that small start-ups require early-stage investors to fund the project and make sure right from the beginning the sold good will expand. The most used investment agency online is the Australian Investment Network as it shares over 6,000 investors in one month. Online investment agencies have doubled in number, seeing the large number of start-ups popping up all over the nation.
There are numerous not-for-profit organisations and government agencies that engage with entrepreneurs and act as angel investors. StartupAUS, Startup Smart and The New Agency are services which educate entrepreneurs and ensure they built a formidable business plan and structure. CEBit Startup Conference is an annual nation-wide conference in which start-up exhibitors can pitch their ideas to a panel of experienced judges, get funded, build and expand their network.
Small business grants from the Australian Budget were advantages after outstanding tax cuts were made in 2015 benefiting them. If your business earns less than $2 million, you are granted a 1.5% tax cut meaning the new rate will be 28.5%. A claim has also been added to the tax, where if an asset is bought under the $20,000 limit, you are able to claim back 15-25%. The $20 billion grant from the Australian Federal Government will help start-ups and small businesses gain profit and expand.
Facebook, Twitter and Instagram are the back bone of entrepreneurs as they are able to network with investors, engage with audiences, optimise brand image and thus, gain more profits. Sensis has created a report on social media and how it is being used regarding businesses around Australia.
- 32% of Australians follow brands and business online
- 52% of Australians are accessing the internet everyday
- 30% of Australian Small+ Businesses have a social media presence and 56% of large businesses have a social media presence
- In 2014, 33% of individuals used social media to find out and follow small businesses