How to reduce stress and find business opportunities in challenging times

Although it’s becoming easier for small- and medium-sized businesses to access expert advice, it’s still a challenge getting input they can trust. They could sign up for a business mentor, for example, or join a networking group of peers where they can share ideas and ask questions. However, unbiased and independent counsel can be hard to find.

The result is that they often miss out on opportunities, particularly due to a lack of expert financial advice. The world of finance can be daunting and confusing if you don’t have a trusted advisor in your corner pointing out the opportunities, as well as the pitfalls to watch out for. Not knowing which way to turn can often lead to a paralysis of decision-making, so SME owners end up making no decision at all.

A poll by Rebus partner, ScotPac, found that just one in five small businesses seek expert advice for long-term strategic planning. Consequently, they suggest five ways to open your small or medium business up to future opportunities.

1. Partner with independent and unbiased advisors

Research from Xero and Forrester found that, although small businesses represent more than 90% of global businesses, just 26% of them consult a trusted financial advisor. Instead, they rely more on customer feedback (47%), online research (37%), or – scarily – ‘their own instinct’ (34%).

Small and medium-sized business owners are well known for wanting to be independent. It’s also the Australian way to stand on your own two feet. However, this DIY approach may be short-sighted, because experts can provide advice and insights to help you better understand your cash flow position and take proactive steps to strengthen your financial situation.

2. Consider non-traditional funding options

Traditional bank funding often relies on business owners offering their family home as equity against funding. This is a scary prospect for many, which could mean they pass on taking advantage of better working capital solutions.

Research by East & Partners found that long-term strategic planning remains a low priority for many small businesses, especially those who say they are in a declining or static business phase. This group is characterised by a higher level of primary bank funding (22.7%) compared with growth SMEs, only 15.8% of whom use primary bank funding for growth.

This highlights that it’s important for smaller businesses to consider other, more suitable, funding solutions. This could include thinking about financing options from non-bank lenders, who are increasingly becoming a preferred choice for small- and medium-sized businesses due their more agile approach.

3. Invest in your business

When times are challenging, it’s human nature to want to hunker down and wait for the storm to pass. This is particularly true of many businesses in our post-COVID world, who have adopted a survival-only mentality. A recent survey from ScotPac underlines this, highlighting that just 46% of more than 700 respondents said they were on track to hit their business targets for 2022.

Reasons for this under-performance include staff shortages, COVID restrictions, depressed demand, and supply chain disruptions. However, one-third of them noted that poor access to finance was a key reason they were unable to meet their business expectations.

There is a sense among small and medium-sized businesses that, although they have come out of the pandemic period with an upbeat outlook and an eagerness to invest in their business, they’re being let down by the traditional banking process. Most SMEs still turn to the major Aussie banks as their first funding option and many are yet to understand there are faster and more efficient funding alternatives that don’t require them to tie up their assets.

While there might be a perception that sitting back and accepting the current state of affairs is the safer route, this may mean that SMEs lose out on future opportunities. Being proactive about finding alternative funding options to cover cash flow challenges and support business growth will yield dividends. However, this often means finding a trusted external advisor and asking for help to develop a robust working capital solution.

4. Restructure your business, don’t tinker

Sometimes fine-tuning a business isn’t enough to transform in the face of significant change, like we’re currently experiencing in our post-COVID world, and a complete restructure is needed. Too often, however, restructuring focuses on cost-cutting, rather than using growth to power out of a slowdown.

Some of the best opportunities arise during challenging economic times but it requires foresight, balanced advice, and courage to capitalise on them. A good place to start is to reassess your funding options to improve your terms and have financing readily available for when the opportunities present themselves.

5. Consider entering new markets

One way of growing out of slowing economic conditions is to introduce new products and services or enter new markets. There are some good examples of Australian businesses who have diversified during and after the pandemic, showing that there are opportunities for smart, agile players.

Capital funding can help boost your business, as Rebus clients Meluca Group, Dicky Bill, and Hill Earthworks have found. There are various options available from reputable lenders that can deliver fast funding no matter what your need is, for example, equipment, stock, inventory, or raw materials.

Don’t go it alone

What is clear is that SMEs shouldn’t – and don’t have to – go it alone. Don’t hunker down and wait for things to change; be positive and look for a trusted external advisor who can help you thrive in these changeable and unpredictable times.

If you haven’t considered a non-bank partner before, perhaps now is a good time. You’ll find they are generally more understanding and available than traditional banks and they can help you make sound commercial decisions based on the opportunity and the right strategy, rather than a rigid set of criteria.

How Rebus can help you unlock opportunities

They have great skills and experience and can look at your balance sheet in a more strategic way. Rebus, for example, will work alongside you as your partner and tailor solutions to meet both your short- and long-term goals. We take the time to listen and really understand your requirements.

We fill the gap between banks and non-banks, so we understand what each has to offer and use this knowledge to create a plan that’s unique to your situation and your business. We always work to improve your business structure and consolidate debt to improve your balance sheet efficiency.

Now’s the time to act strategically. Get in touch with the team at Rebus today for a no-obligation chat to see how we can help unlock the opportunities lying dormant within your business.