5 tips to reduce financial stress for SMEs
Small and medium-sized enterprises (SMEs) make up 97% of all businesses in New Zealand. As the owner of an SME, you’re doing your bit to provide employment, aid the economy and put Aotearoa on the map in an increasingly globalised world.
But running your own business can be incredibly stressful, especially if your business is in the dynamic world of the hospitality industry. Success is not just about providing excellent service and memorable experiences; it also hinges significantly on effective financial management.
New research from RFI Global research, commissioned by Prospa, shows that seven in ten New Zealand SMEs are feeling stressed and burnt out. On the whole, this stress comes down to economic pressures, cashflow worries and the time commitments of being an owner.
There are some practical things you can do to reduce your financial stress.
Review your business strategy
If you’re losing sleep about your company’s ongoing profitability and survival, it may be a good time to refresh your business strategy.
The business landscape has changed a lot in the past few years, but your overall strategy may not have. Does it still align with today’s operating conditions? As well as looking at your overall business vision, what are your business’s strengths and weaknesses, and are there any potential opportunities or threats?
Look at your financials from a more holistic perspective
You can’t change external factors like the economy, but you can get deeper you’re your overall financials. Your financial decision-making will guide your business in allocating resources efficiently and effectively. In industries where costs can fluctuate due to seasonality, market trends, and unforeseen circumstances, this is paramount. It enables you to anticipate expenses, plan for investments, and set realistic revenue targets.
Look for a business mentor
Partnering with an experienced business mentor can work wonders for both your business knowledge and your mental health. Mentors can share their experiences of the lean times, and what they did to overcome the challenges.
Get a fresh perspective
You can’t have your business brain turned on 24/7. Schedule time away from the business to improve your work/life balance. Time away from your business can be hugely beneficial, allowing you to come back refreshed and motivated.
Additionally, the long hours of running a business are not always conducive to healthy living, both for your physical and mental health. Try to eat and drink healthily, and also make time for exercise, social activities and a greater focus on relaxation, mindfulness and your personal wellbeing. All this can help to bring a fresh perspective on your business and help you to identify where you need to focus your attention.
Work closely with your accountant
You don’t have to shoulder those financial worries alone! Working closely with an accountant can provide you with support where and when you need it. Keep your cashflow in a more positive position, prioritise budgeting, cost control and revenue management, while also providing wider financial, advisory and business support.
Talk to us
We understand the pressure you can feel as a business owner. And, we’re here to help take on some of the load, whether it’s strategic business advice or cashflow forecasting we are here to help you drive your business forward. Give us a call today.