Financial strain and cash flow are among the top stressors for small business owners in Australia. With the rising cost of living, and many still recovering from the financial impact of COVID-19, you may be worried about the ongoing profitability and survival of your business.
A recent survey by Small Business Loans Australia revealed that 76% of small and medium-sized enterprises (SMEs) in Australia said their cash flow would be impacted by the current climate. This was as a result of difficulty collecting customer payments, difficulty attracting sales, or both. Despite the likelihood of financial strain, over 40% of SMEs did not have a plan in place for maintaining cash flow through tough times.
Financial stress can lead to stress in other aspects of your business and personal life. You may be working longer hours, experiencing difficulty sleeping or having relationship issues. If you’re struggling financially, you may also feel guilty for taking time off when sick or to take care of yourself. You may also feel unable to afford support. These additional strains only add to your stress and have a negative impact on your wellbeing. That’s why it is important that you look after yourself – without you, there is no business.
Being prepared for cashflow difficulties will help reduce stress and prevent rushed or irrational decisions being made in times of crisis. There are many online tools and resources you can use which might help you start planning. If you are looking for additional support, there are many free services that can help: