Why So Many Businesses Fail in Australia (And How to Avoid the Same Fate)

It’s no secret that starting a business takes courage. But here’s the thing most people don’t talk about:
In Australia, around 60% of small businesses fail within their first three years. That’s more than half.

If you’ve ever started a business—or even thought about it—you know how much heart, hustle, and late-night Googling goes into getting it off the ground. So why do so many good ideas fall flat? Let’s break it down.

1. They’re passionate… but not prepared

A lot of small businesses in Australia are born from passion. That’s a beautiful thing. A love of beauty, baking, fitness, fashion, or anything else can absolutely spark a business. But passion alone isn’t enough.

What’s often missing?

• A plan for cashflow

• A clear pricing strategy

• A solid understanding of business expenses

• Systems that make things sustainable

Without these, even the most talented business owner can find themselves burnt out, broke, or overwhelmed.

2. They don’t track their money (until it’s too late)

It’s surprisingly common for new business owners to avoid looking too closely at their numbers—especially if finance isn’t their strong suit. But not knowing your income vs. expenses, breakeven point, or what’s really profitable? That’s a fast track to trouble.

Spoiler:
You don’t need to be an accountant to understand your finances.
You just need the right tools, a bit of guidance, and a habit of checking in regularly.

3. They try to do everything themselves

From posting on Instagram to replying to every client message, to designing logos, to doing the books… it’s a LOT. And while being a one-woman-show is pretty much a rite of passage in the early days, it’s not a sustainable way to grow.

Eventually, wearing every hat leads to burnout—or worse, missing the stuff that actually brings in money.

4. They don’t charge enough

This one breaks my heart because I see it all the time, especially in the beauty industry.

New business owners feel bad charging their worth. So they underprice, over-deliver, and work themselves into the ground—only to find they’re making less than minimum wage. And when things get tough, there’s no buffer to fall back on.

Let me be clear: You can’t grow a business on people-pleasing and fear. You need pricing that reflects your time, skill, and the value you bring.

5. They don’t have a long-term strategy

The early days of business are all about survival—getting clients, covering bills, making it work. But eventually, you have to lift your head and look ahead.

Where do you want to be in 1 year?
What about 5?
What kind of lifestyle do you want your business to support?

Without a vision and strategy, it’s easy to stay stuck in the hustle with no real growth.

So… how do you avoid becoming a statistic?

You don’t have to have it all figured out. But you do need to learn the parts of business that no one talks about in beauty school or when you’re first starting out. Things like:

✅ Cashflow basics
✅ Pricing for profit
✅ Setting up systems
✅ Managing growth without burnout

And that’s exactly why The Beauty Boss AU was established. But let me be clear, regardless of it you work with us or go it alone or maybe you have someone else in your life that can help you navigate all of these topics; it is essential that you do. You deserve a business that’s profitable, sustainable, and designed to support your life.

I wish you success, love and happiness in all that you do.

Bron x

You Can’t Build a Plan If You Don’t Know Where You’re Starting From

Let’s be real for a second.

You can’t GPS your way to success if you don’t even know where you’re standing.
You can have the most amazing goals—six-figure years, a waitlist of dream clients, working three days a week—but without knowing your starting point, it’s like trying to drive blindfolded.

And yet… this is where so many beauty professionals get stuck.

“I just need more clients... right?”

Not necessarily.

Before you hustle harder, launch another offer, or run a promo—ask yourself:

• What’s actually going on in your business right now?

• Are you making a profit… or just staying busy?

• Where’s your money going each week?

• Which services are really bringing in the income?

Most people are guessing.
Or worse—avoiding it completely because they’re scared of what they might find.

But here’s the truth: Clarity isn’t scary. It’s powerful.

Knowing your numbers isn’t about judgment—it’s about direction.

Once you know where your business stands, you can finally start answering the questions that matter:

💡Can I afford to hire help—or do I need to raise my prices first?
💡Is that promo I keep running actually worth it?
💡Where’s the low-hanging fruit to boost profit without burning out?
💡How much should I be saving for tax, stock, or a holiday break?

It all starts with one step: Getting real about where you are now.

So how do you figure it out?

Start small. Start messy. Just start.

Here’s what I recommend for beauty business owners:

✨ Track your income and expenses for the past 30 days
✨ Write down every service you offer and how much it’s really costing you (products, time, fees)
✨ Look at where your money is leaking—are there subscriptions or supplies you’re not using?
✨ Do a simple audit: Are your prices actually supporting your business goals?

Knowledge = control. And control = freedom.

When you know your numbers, you stop guessing.
You stop hoping things will “just work out.”
You start making confident, informed decisions that move your business forward—without the stress.

At The Beauty Boss AU, we help beauty professionals take that power back. Because once you know your numbers, you can create a plan that’s smart, strategic, and sustainable. You don’t have to have it all perfect. You just have to know where you’re starting. From there? Anything is possible.

Let’s map it out together

I wish you success, love and happiness in everything that you do!

Bron x

If I Asked You What Your Profit Margin Is… Would You Know?

Let’s cut straight to it.

If I walked into your salon today and asked,
“What’s your profit margin?”
Would you be able to tell me?

Would you know exactly how much of every dollar you bring in is actually yours to keep—after paying for product, supplies, rent, wages, and tax?

If your answer is “Umm…” — you’re not alone.

Most solo beauty business owners I speak to are killing it with their talent… but flying blind when it comes to their numbers.

So, what is your profit margin?

Your profit margin is the percentage of your income that’s actually profit after all expenses are paid. It’s the difference between running a business that looks busy on the outside… and one that’s quietly sinking behind the scenes.

You might be turning over $3,000 a week, but if $2,800 of that is going straight back out the door?
You’re not running a business—you’re running yourself into the ground.

Why does your profit margin matter?

Because:

📌 It tells you whether your pricing is actually sustainable
📌 It helps you plan for growth (without financial stress)
📌 It gives you the power to pay yourself properly
📌 It shows you if your time and energy are being invested in the right places

You wouldn’t take on a client without knowing the cost of your time, your products, and your setup…
So why run your whole business without knowing what you’re actually earning?

You don’t need to be a math genius.

You just need a simple system to track:

• How much you’re making

• What your expenses are

• What’s left over (and what that percentage looks like)

And from there? You can make smart, informed decisions.
Want to invest in a course? Raise your prices? Take time off? You’ll know what you can afford—no guessing, no guilt.

Knowledge is power. Profit is peace.

You deserve a business that supports your life—not one that drains you dry.

At The Beauty Boss AU, I don’t just want to help you fill your calendar.
I want to help you keep more of what you earn—and build a business that gives back to you.

So, let me ask you again: Do you know your profit margin?

If not, it’s time to find out.

I wish you success, love and happiness in all that you do!

Bron x

Sole Trader, Company, or Trust?

The Pros and Cons of Each Business Structure for Beauty Professionals

When you first set up your beauty business, choosing a business structure probably wasn’t the most exciting part. Let’s be real — it’s way more fun to pick your salon name, plan your services, and style your Instagram grid. But your business structure? That’s the foundation everything else sits on. And getting it right matters — big time.

Whether you're just starting out or you’ve been running for a while and wondering if it’s time to level up, this blog will break down the pros and cons of the most common business structures in Australia — so you can make smart, informed decisions about your future.

Why Your Business Structure Matters

Your structure affects:

• How much tax you pay

• How you're legally protected

• What happens if something goes wrong

• How easy it is to grow, hire, and get funding

• How you get paid and access your profits

So, whether you’re a mobile lash tech, a solo salon owner, or planning to open a multi-room space — your structure should support your goals, not hold you back.

Sole Trader

This is the most common starting point for beauty professionals.

Pros:

• ✅ Simple and cheap to set up (just get an ABN)

• ✅ You keep all the profits

• ✅ Easy to manage without a lot of admin

Cons:

• ❌ You’re personally liable for everything (if someone sues, they sue you)

• ❌ Limited tax benefits — you’re taxed as an individual

• ❌ Can look less “official” when applying for loans or funding

• ❌ Harder to scale or separate business from personal finances

Perfect for: New beauty professionals testing the waters or keeping things small.

Company (Pty Ltd)

This structure gives you a separate legal entity — the business is its own ‘person’.

Pros:

• ✅ Limited liability (your personal assets are better protected)

• ✅ You can pay yourself a wage and claim business tax deductions

• ✅ Looks more professional and credible to clients, banks, and suppliers

• ✅ Easier to grow, employ staff, or bring in business partners

Cons:

• ❌ Costs more to set up and maintain (ASIC registration, accounting, payroll)

• ❌ You can’t take out profits freely — there are rules around dividends or salaries

• ❌ Requires more admin (annual reviews, company tax returns, etc.)

Perfect for: Business owners looking to grow, protect themselves legally, or build a brand that goes beyond them.

Trust (Discretionary or Unit)

This structure is more complex and usually used for asset protection or family businesses.

Pros:

• ✅ Flexible income distribution (e.g. to family members)

• ✅ Tax-effective in some cases

• ✅ Can protect assets if structured correctly

Cons:

• ❌ Expensive to set up and run

• ❌ Requires a trustee and formal trust deed

• ❌ Not easy to manage without an accountant

Perfect for: Advanced business owners with high profits, family investments, or specific legal needs (only under professional advice).

So… Which One Is Right for You?

There’s no one-size-fits-all. But here’s a rule of thumb:

• Just starting out? Begin as a sole trader and revisit once you're earning consistently.

• Planning to grow or build a brand? A company structure is usually the best next step.

• Complex family/business goals? Only consider a trust with expert legal and financial advice.

Bottom Line

Your business structure is one of the most important decisions you’ll make — and you don’t have to make it alone.

At The Beauty Boss AU, we help beauty professionals not only build a business they love, but one that’s protected, profitable, and ready for growth.

Ready to get clear on your business structure?

Contact us for a free discovery chat and let’s talk through your options.
Because the right structure now?
Can save you thousands — and set you up for the success you deserve.