A guide to safe risk taking in order to grow your small business!

Tyro’s core business is providing payments and cashflow solutions to small and medium enterprises (SMEs) in Australia. I’m proud to work for a company that services this market given the important and influential role these businesses play in the Australian economy.

Did you know…

– There are around 2.5 million Australian small to medium size businesses
– They make up 99.8% of all businesses
– 8 million Australians work for an SME
– They generate 57% of the nation’s Gross Domestic Product!

Risks worth taking to see your business succeed

Taking risk drives innovation, advancement and is required for a business to succeed. This can take several forms:

1. Innovation and differentiation: Helping your business stand out from the competition can attract new customers, particularly in the competitive retail, hospitality and health industries that Tyro is focused on.
2. Expansion: Opening an additional store or setting up an online shop can be daunting. Tyro can help via our cashflow lending product.
3. Investing in new technology: Adopting new technologies can streamline operations, improve efficiency, and enhance customer experiences. While the initial investment may be significant, the long-term benefits often outweigh the costs. And don’t forget the Tyro loan!
4. Product Diversification: Introducing new products or services can attract different customer segments and reduce dependency on a single revenue source. Pilot programs or limited releases can help test the waters before a full-scale launch.

Since the 1960s, there has been a noticeable decline in risk-taking behaviour around the world. Increased regulatory environments, higher costs associated with failure, and a general cultural shift towards risk aversion is blocking innovation, and risk taking is key to innovation for businesses.

Safeguard risk taking for your business: Things to avoid!

1. Taking on too much debt: Running out of cash is a key reason why SMEs fail. High loan repayments can lead to a death spiral that cripples your business.
2. Losing focus: While diversification is important, neglecting your core business in pursuit of new opportunities can be detrimental. Ensure your primary revenue streams are stable before branching out.
3. Cutting corners: Whether it’s compliance or product quality, don’t overlook the basics or you could lose customers and get into trouble with regulators.
4. Scaling too quickly: Rapid scaling without a solid foundation can lead to operational inefficiencies and customer dissatisfaction. Grow at a pace that your business infrastructure can support.

Taking risk is how businesses grow and succeed, so don’t be scared. By embracing risk, you can drive innovation, expand your market presence, and build a resilient enterprise. However, it’s equally important to take considered risks and not be gung-ho. Tyro is here to help you along the way with our reliable payments product and innovative lending product that adjusts repayments depending on how well your business is doing.