home > why choose nova solutions > smes industry information

Nova Solutions - SMEs Industry Information

SMEs Industry Information

The Federal Government describes the SME business sector as the engine room of the economy because it employs the vast majority of Australians. Unfortunately it is these same businesses that bear the brunt of penalties and fines for non-compliance with Federal and State Government laws and regulations. Nova Solutions™ has been designed specifically with the SME market in mind with a vision to level the playing field and assist to build sustainable businesses with enhanced profit streams and asset value.

Business Driver

Nova Solutions™ Benefit

There are over 1 million SME businesses in Australia employing between 20 and 200 people each. Australian Bureau of Statistics www.abs.gov.au

Nova Solutions™'s community development model means that these businesses can share the benefits of content and tools development, levelling the playing field and giving SMEs the opportunity to compete more effectively with the big end of town.

Where the owners of a business are vital to the profitability of the business, the lack of a successor and the lack of adequate business-process documentation will cause the potential income and value of a business to be adjusted down during a business valuation.

Nova Solutions™ provides the perfect platform for SME businesses to create high quality business-processes and systems. These systems will improve the prospects of attracting high quality successors and increase the value of the business itself.

30% of leaders of family businesses intend to retire within the next 5 years and another 27% within 10 years. Only 1.5% intend to close their business on retirement which means that 98.5% intended to either sell the business or to pass the business onto the next generation.

Nova Solutions™ opens up exit options for all SME business owners by creating sustainable infrastructure and reducing reliance on owner founders. This means higher profits and higher business value.

The average duration of absence of an injured worker at an employer of less than 20 staff is almost double that of an employer of over 100 staff (i.e. 103 days for the small employer and 57 days for the larger employer).
The average direct cost of a workers compensation claim in a workplace of less than 20 staff is $18,000 (not taking into account indirect costs).

The average direct cost of a claim in a workplace of more than 100 staff is only $13,000.

The reason SME's workers compensation costs are substantially higher than larger business is that they often do not have adequate internal systems and controls to manage workplace safety concerns.

Nova Solutions™ delivers detailed online Workplace Safety Programs that can be simply adapted to your particular needs.

In order to maintain or improve profitability, Australian businesses focus on:

1. Cash management; followed by
2. Cost reduction; followed by
3. Investing in new technology.

Grant Thornton, International Business Owners' Survey 2004

Nova Solutions™ is a technology solution that can deliver huge cost savings to your organisation in the medium to long term. Our license fee structure means no upfront capital expenses. Nova Solutions™ achieves all 3 key objectives at one time.

20% of Australian small businesses have no insurance cover and a further 75% are underinsured.

Nova Solutions™ provides the corporate governance platform that enables underwriters to be able to assess and value the risk associated with the business. Not only will Nova Solutions™ assist businesses in being able to obtain appropriate insurance cover, it will help them get the right cover at the right price.

News,
White Papers & Useful Links

Watch this space for the latest news, papers and useful links.