Top 5 Lessons for Running a Successful Business in 2025

Small to medium-sized businesses are the backbone of our economy. According to ASBFEO, they employ over 60% of all Australian workers. When run well, these businesses can become a source of independence for many young entrepreneurs. Recently at Investax, we’ve seen a number of small to medium-sized business owners struggling to keep up with the many facets of running a business. Some are falling behind on compliance, tax payments, and superannuation contributions, even though their businesses have strong revenue. It appears that some owners lose sight of the core essentials and fall into a cycle of financial challenges.

Many people ask me what they should focus on to avoid these pitfalls, so I’ve identified five essential items that every business owner should prioritise. This article won’t cover business structures or high-level strategies. Instead, we’ll focus on the fundamental activities that every business owner should stay on top of. If you take care of these five essentials, I am confident they will lead to the success of any business you operate.

Keep you Books up to date 

If you’re a small business owner, keeping track of your income and expenses is a must. Thankfully, it’s getting easier. Tools like Xero, MYOB, and QuickBooks can automatically pull every transaction from your bank, so all you need to do is match up your income and expenses. Instead of seeing these tools as just another expense, try looking at them as an investment in your small business. They’ll help you see what you’re really earning, what you’re spending, and whether you’re setting enough aside for GST, taxes, or even a property investment down the line.

If you’d rather skip the software, and you’ve got some time, you can track things yourself by downloading data from your business bank account into a spreadsheet. But be warned—it can get tedious and might end up costing more in the long run. Making record-keeping as smooth as possible is essential because, as a small business owner, it’s something you’ll need to stay on top of. Even if you hire a bookkeeper, you’ll still need to guide them, confirming expenses and making sure things are recorded correctly. In my experience, a lot of small business owners think that having an offsite bookkeeper for few hours a week means they don’t have to be involved, assuming the bookkeeper will just “know” every transaction. 

Not All Income Is Yours to Keep

Cash flow can be the biggest challenge for a small business owner. Many young entrepreneurs make the common mistake of thinking that the cash in their bank account is 100% theirs to keep. But down the line, this mindset often leads to serious issues. When we’re employed, our employer handles withholding tax and superannuation for us, allowing us to manage our lifestyle and investments without much hassle. However, as soon as we transition into running a small business, we sometimes forget about taxes, GST, supplier expenses, and other costs. It’s easy to fall into the trap of thinking, “I’ve earned this, so why not treat myself?”

As a small business owner, managing cash flow requires discipline—almost like a Jedi. If you’re registered for GST, setting aside 10% of your income for the tax office is essential. You’ll also need to allocate funds for expenses and, depending on your business structure, put aside 20-30% of your net income for annual income tax or quarterly PAYG instalments. Resisting the urge to spend it all is crucial; otherwise, you’ll find yourself in a constant cash flow struggle. Take it from me—I work with hundreds of small business owners and see this challenge play out all the time.

Stay on Top of ATO Compliance

Staying on top of ATO compliance is essential for any small business owner’s success. This means lodging your GST Return (BAS) on time to calculate and meet ATO payment obligations, filing your annual tax return by the due date, implementing Single Touch Payroll (STP) if you have employees, and ensuring superannuation contributions are lodged and paid on time so that they remain tax-deductible. The ATO is tightening its approach to business owners who delay superannuation payments, regularly introducing new strategies and payment regimes to ensure small business owners meet super obligations for their employees. If super isn’t paid on time, the ATO may impose significant penalties, including interest charges and the denial of tax deductions for those contributions.

Compliance today is more complex than it once was. Many business owners who don’t pay close attention to their ATO compliance requirements find themselves facing steep penalties, often learning costly lessons the hard way.

Use Business Professionals 

As a small business owner or entrepreneur, it’s essential to consider working with a range of business professionals to help manage and grow your business. While you may need to handle the finances yourself in the beginning, hiring a bookkeeper as soon as you can afford it is a smart move. With cloud technology, hiring a bookkeeper has become much more affordable than in the past. A good bookkeeper can track your financials, freeing you up to focus on what you love most. However, as noted above, it’s important to work collaboratively with your bookkeeper; as a small business owner, you know your expenses better than anyone, so your guidance is key.

If hiring an experienced tax specialist isn’t feasible at the outset, consider moving to one once your business starts growing and your needs become more complex. Many young entrepreneurs continue working with the same accountant who managed their personal tax returns in the early days, but as a business owner, you need a tax specialist who understands the nuances of business restructuring, investment structuring, and effective tax planning. Not all accountants are trained alike, so it’s important to find a tax specialist with expertise in the business and investment ecosystem. While they may charge more than the accountant who handled your taxes for $80, a skilled tax adviser is an investment in your business—not just an expense.

Find the Right Marketer for Your Business

Finding the right marketer can feel like one of the hardest parts of running a successful business, much like a slow-burning candle—you may not see immediate results, but the impact is essential. Many businesses struggle with marketing because it’s difficult to gauge short-term returns on investment, even though it’s critical for long-term growth or even just to maintain current levels. If you’re in the service industry, you need to continually seek new clients to replace those who leave, simply to maintain the same revenue bracket. If you’re in the product business, consistent marketing is crucial not only to retain existing customers but also to reach new ones.

Often, business owners either don’t have the budget to hire an experienced, skilled marketer or find it difficult to identify someone who truly understands how to elevate their brand. But investing in the right marketer can transform your business, helping to build a solid reputation, increase visibility, and reach the right audience. A skilled marketer won’t just promote your products or services; they’ll craft strategies tailored to your goals, ensuring that every campaign adds value to your brand over time. For a business to thrive, having a great marketer is as crucial as managing finances or providing quality products—it’s an investment in growth that pays off with patience and consistency.

Conclusion 

As we head into 2025, operating a successful small to medium-sized business demands more than just hard work—it requires a sharp focus on key fundamentals, disciplined planning, and a commitment to continuous improvement. By prioritizing these five essentials—maintaining accurate records, managing cash flow, staying compliant with evolving ATO regulations, leveraging expert guidance, and investing in strategic marketing—you’re setting the stage for sustainable growth and long-term success. Navigating these areas alone can be challenging, especially with the increasing complexities of tax compliance and strategic financial planning.

We offer a 15-minute free consultation to discuss your tax, property investment and business needs. Book your complimentary consultation now.

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If you’re ready to elevate your business in the new year, Investax’s team of business tax specialists is here to provide the insights and support you need. Reach out today to discover how we can help you achieve your goals and tackle the financial and operational challenges every business owner faces. Let us partner with you to build a solid foundation for your business’s future success in 2025 and beyond.

Reference 

Australian Small Business and Family Enterprise Ombudsmen