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