Australian businesses urged to celebrate milestones for morale

Research from Xero has shown that a significant proportion of Australian small business owners are not recognising or celebrating their business milestones.

According to the data, only 51% of small business owners reported achieving a business milestone in the past year, while 32% said they had not reached such a milestone in more than three years. The research, gathered from a survey of 500 Australian small business owners, found that although 59% acknowledged the importance of celebrating achievements, only 21% took the time to mark these occasions.

The correlation between recognising business milestones and positive outcomes was clear, with many owners reporting a link between celebrating such moments and improved employee wellbeing (80%), performance (79%), morale (78%), and team happiness (67%).

Challenges and influences

The study identified several factors impacting the ability of small businesses to reach significant achievements. Macroeconomic pressures such as inflation and rising interest rates were noted by 83% of respondents, while 53% pointed to the specific product or service they offered, and 46% referenced employees as an influencing factor.

The report outlined the most commonly cited business milestones. Half of entrepreneurs considered gaining repeat customers (50%) as a noteworthy achievement. Others pinpointed paying themselves a salary (47%) and receiving positive customer reviews (41%) as meaningful milestones. By contrast, fewer business owners marked events such as reaching profitability targets (35%), launching their business (31%), making the first sale (30%), or expanding into new regions or countries (16%) as occasions to celebrate.

Views from Xero

Angad Soin, Managing Director ANZ and Global Chief Strategy Officer at Xero said: "We know small business owners are often stretched for time, to the point that they're not stopping to recognise their achievements. However, capitalising on those 'made-it moments' is not only enjoyable, it's good for business.

"When our culture only acknowledges success via a global ranking, it tells founders their progress at home doesn't count. A smarter approach is to champion the incremental wins, because that's what builds the momentum and resilience needed for long-term success," Soin said.

Soin also commented on the significance of motivating small businesses to value their achievements, stating, "For Australia to compete, we must get serious about fostering ambition. That starts by valuing the moments where a small business proves it's building something that is not only scalable, but meaningful."

Made-it moments in practice

The report included accounts from small business owners about their own celebratory milestones. Susan Toft, who started The Laundry Lady on the Sunshine Coast in 2012 to work from home while raising a young family, highlighted her business's national recognition as a key point of validation. Seeing her mobile laundry service featured in a national campaign affirmed for her that she was building more than just a laundry service.

Pete Ceglinski of Seabin in Byron Bay described his first major achievement as successfully raising USD $150,000 through a crowdfunding campaign. This milestone provided him with validation and the confidence that his vision for an ocean waste collection product resonated with supporters.

Cultural attitudes and spending

Australian small business owners reportedly spent an average of AUD $4,600 on celebrations over the past year. Despite the reported benefits, some have concerns about the cost and the potential for setting unrealistic expectations among employees. The report notes that these reservations have prompted Xero to develop resources aimed at fostering a culture of recognition within small businesses, without requiring significant expenditure.

The findings from Xero highlight the diversity of experiences and attitudes towards celebrating success across the Australian small business landscape.