--- title: 6 Challenges Australian Businesses will face in 2018 description: 2018 is just around the corner - Challenges small and medium businesses will face next year include Facebook organic reach, Amazon retailers, NBN internet.. image: https://blog.arrowdigital.com.au/hubfs/000-1.png --- [![Arrowdigital](https://blog.arrowdigital.com.au/hubfs/Arrowdigital%20April%202017/image/Arrowdigital-1.png)](https://arrowdigital.com.au/) - [ABOUT](https://arrowdigital.com.au/digital-agency-melbourne/) - [APPROACH](https://arrowdigital.com.au/approach/) - [WHY ARROW](https://arrowdigital.com.au/why-arrow-digital/) - [CLIENTS](https://arrowdigital.com.au/digital-marketing-case-studies/) - [CONTACT](https://arrowdigital.com.au/contact-us/) [![Arrowdigital](https://blog.arrowdigital.com.au/hubfs/Arrowdigital%20April%202017/image/Arrowdigital-1.png)](https://arrowdigital.com.au/) - [ABOUT](https://arrowdigital.com.au/digital-agency-melbourne/) - [APPROACH](https://arrowdigital.com.au/approach/) - [WHY ARROW](https://arrowdigital.com.au/why-arrow-digital/) - [CLIENTS](https://arrowdigital.com.au/digital-marketing-case-studies/) - [CONTACT](https://arrowdigital.com.au/contact-us/) Search this site on Google Search Google # Arrow Digital Blog # 6 Challenges Australian Businesses will face in 2018 Posted by [Anup Batra](https://blog.arrowdigital.com.au/author/anup-batra) on Nov 6, 2017, 8:24:00 AM - [Tweet](https://twitter.com/share)   ![000-1](https://blog.arrowdigital.com.au/hubfs/000-1.png)   Although it feels like just yesterday we made our New Year Resolutions for 2017 (cue the collective ‘whoops’ as we all remember the empty promises we made to ourselves), and as much as we hate to admit it, 2018 is just around the corner. 2018 will bring with it a wealth of change and opportunities. House prices are set to decrease, self-driving cars are going to increase, and Trump’s reign is thankfully one year closer to its end. 2018 will also bring it new challenges, changes, and opportunities to Australian small and medium business owners. Below are 6 of the biggest challenges we can expect in 2018. ![wifi](https://blog.arrowdigital.com.au/hs-fs/hubfs/wifi.png?width=164&name=wifi.png) # Slow Internet Speeds The Australian government has rolled out its long awaited NBN fixed broadband services, much to the dismay of many. Initially promising a fibre-to-the-premises rollout (FTTP), with lightning fast internet speeds, the government abandoned it for a fibre-to-the-node (FTTN) system, relying on the existing copper wire to deliver internet from the node to your house. Small business owners have already begun to voice their complaints of the slow speeds, claiming the NBN rollout and internet provision have cost their businesses [hundreds of thousands of dollars](http://www.9news.com.au/national/2017/10/24/18/11/war-veteran-claims-nbn-debacle-cost-his-business-160k). Slow speeds during peak times are a common complaint, with many stating it has caused potential customers to leave their site without purchasing, or has hindered communication between the business and clients. # Limited Cash Flow As of June 2017, just [50.7 per cent](http://www.smh.com.au/small-business/finance/small-business-on-the-brink-with-only-half-recording-positive-cash-flow-20170911-gyeurw.html) of Australian small businesses had a positive cash flow. The percentage which fail is on the rise, with [41 per cent](https://www.cashflow-manager.com.au/is-poor-cash-flow-the-reason-so-many-australian-small-businesses-are-failing/) blaming inadequate cash flow or high cash use. Reasons given for poor cash flow include poor strategic management, lack of good records, and trading at a loss. ### ![facebook](https://blog.arrowdigital.com.au/hs-fs/hubfs/facebook.png?width=175&name=facebook.png) # Organic Facebook reach decrease Facebook has recently been conducting [split-news feed tests](http://mashable.com/2017/10/23/facebook-explore-publisher-post-organic-reach-drop/?lipi=urn%3Ali%3Apage%3Ad_flagship3_pulse_read%3BDWgEreu5TJaniWoNLRJovA%3D%3D#S4gYQxIrpPqg), where user’s feeds are split into two tabs – one reserved from posts by friends, family, and promoted posts, and a second ‘explore’ tab to show content from organizations and pages that the user has either liked or followed, or is likely to be interested in. Businesses exposed to the test have reported a [decrease in organic reach](https://www.linkedin.com/pulse/what-weve-learned-from-facebooks-split-newsfeed-tests-anup-batra/?published=t), and are being forced to ‘[pay to play’](https://arrowinternet.com.au/blog/pay-play-facebooks-split-newsfeed-test-means-organic-reach-businesses/) to have their posts and content shown to their customers and communities. While Facebook states they have no plans to roll the test out further, the emergence of the test suggests troubling times for businesses in the near future on Facebook, with a potential for increased reliance on promoted posts and Facebook ads. # Superannuation payments ![superannuation](https://blog.arrowdigital.com.au/hs-fs/hubfs/superannuation.png?width=178&name=superannuation.png) Many small business owners do not pay themselves superannuation, with the Small Business Ombudsman [spokesperson](http://www.smh.com.au/money/super-and-funds/the-big-problem-of-super-for-smallbusiness-owners-20170525-gwd9qa.html) stating that the super balance of owners is “unlikely to be sufficient”. Many business owners hope that their retirement will be funded by the proceeds of selling their business – however, many are simply not growing at a profitable rate, leaving some business owners concerned about their future.  Arrival of Amazon # ![amazon.png](https://blog.arrowdigital.com.au/hs-fs/hubfs/amazon.png?width=181&name=amazon.png) Amazon, one of the largest retailers in the world, and [larger than](http://www.news.com.au/finance/business/retail/the-graph-that-shows-amazon-is-going-to-be-massive/news-story/2bc744fd179d96fc00e635f2ce118c2f) any Australian retailer, has landed at our shores and has presented itself as a force to be reckoned with. The implications of such a fast-growing retailer on Australian retailers could be massive, having a material impact on retailer profits by prompting more consumers to [shop online.](http://www.afr.com/business/retail/amazon-entry-to-australia-will-hit-retailers-landlords-and-economy-ubs-report-20170731-gxm2ko) Fashion, electronics and sporting retailers are likely to be the most affected, with those selling hardware, auto parts, and groceries least likely to be impacted. # Growth Limitations Slow internet speeds, increased competition, and limited cash flow are all likely to impact businesses’ ability to grow at a saleable rate. According to the Australian Bureau of Statistics, [more than 60% of small businesses](https://www.nirmal.com.au/challenges-faced-by-small-businesses-sydney/) Australia fail during the first three years of establishment, with even more stagnating at a particular growth phase. Luckily, growth is a problem that can be addressed through measurement, mindset, innovation, marketing, and culture. [![Take the Quiz](https://hubspot-no-cache-ap1-prod.s3.amazonaws.com/cta/default/2886949/c19b8d95-61c2-4ca9-85a0-ce07dbe89567.png)](https://hubspot-cta-redirect-ap1-prod.s3.amazonaws.com/cta/redirect/2886949/c19b8d95-61c2-4ca9-85a0-ce07dbe89567) Learn more about our [6-step formula of business growth here](https://youtu.be/5z-dsY3HW_A), or take our [quiz](http://www.anupbatra.com.au/what-business-growth-phase-are-you-in/) to find out what phase of business growth your company is in.       Topics: [Growth](https://blog.arrowdigital.com.au/topic/growth), [Owner](https://blog.arrowdigital.com.au/topic/owner), [Small business](https://blog.arrowdigital.com.au/topic/small-business), [Challenges](https://blog.arrowdigital.com.au/topic/challenges), [2018](https://blog.arrowdigital.com.au/topic/2018) ## Aim, Thrive and Conquer with Arrow ### Your go-to industry arsenal At Arrow, we've been blogging since 2007 on the how tos of search and social media marketing. 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