There are many challenges facing small businesses and with a new year that has just started, now is a good time to start addressing these straight in order to establish a stronger business. Whether you are a small enterprise just starting out or a mature business looking for an additional growth, there are challenges that will really shake up your ability to grow. However, these issues can be overcome if owners invest the time and effort into planning for the future to realise new growth potential.

1. Cash Flow

One of the biggest concerns for many small businesses in Australia continues to be cash flow, with the time it takes to receive payments playing a major role in how well companies can meet their ongoing expenses. Planning ahead and carefully managing cash flow can help to ensure that these concerns don’t affect a company’s longer-term viability.

2. Digital Strategy

The ever-growing digital realm is continuing to reward organisations that have a comprehensive digital strategy, while also making it harder for organisations that aren’t investing in this area to gain influence. 2015 saw how mobile friendliness was introduced to Google’s website ranking algorithms, and with good reason. Devices such as tablets and smartphones are moving quickly, becoming the devices of choice for consumers and are increasingly common in business.

The division between those businesses that have a strong digital strategy and those that don’t will become clearer this year. Staying ahead of developments, like growth of mobile devices, will ensure that companies manage this trend effectively.

3. Innovation

The drive to become more advanced has positively increased for Australian businesses. As the pace of change within the economy has grown, organisations are forced to find new processes and opportunities to unlock growth potential. According to the Reserve Bank of Australia, even though small businesses are proving to be incredibly innovative, smaller firms are still less likely to engage in innovation than larger firms.

However, according to the Organisation for Economic Cooperation and Development, its report found that small businesses are becoming more innovative, with lower barriers to entry in many sectors making it easier for businesses to break new ground.

4. Succession Planning

Succession planning is an issue for companies of every size, with businesses looking for new ways to guaranteethat they have people in place to cover key responsibilities. Family businesses, in particular, are struggling to plan for the future, particularly in relation to senior roles and preparing for the next generation. Small businesses should seriously consider how they will plan for the future in areas like succession and business continuity.

5. Overseas Expansion

Business development can no longer be limited to Australia alone and many are now looking for new opportunities overseas. While many small businesses might feel they are too small to consider engaging with international markets, falling trade and investment barriers mean it’s an increasingly appealing option.

In 2015, Federal Government entered into a number of key trade agreements. The deal with China has supplemented further agreements with Japan and South Korea that are already in force. Alisthas been released by Export Finance and Insurance Corporation into the overseas markets and China was on top of the list for international trade, with 13% of respondents expecting the country to be the main area of revenue growth over the next two years. Overseas expansion may well be the key to future competitiveness.

While these issues all play a major role in the success of a business, they can all be addressed if businesses put in the effort now. It means taking the time to plan ahead and to seek professional advice to ensure they aren’t left in a difficult financial position.