A recent Commonwealth Bank (CommBank) survey reveals that nearly 80% of Australian small to medium businesses (SMBs) have faced cash flow challenges in the past year. The primary factors contributing to these difficulties include declining revenue (35%), low cash reserves (30%), and seasonal fluctuations (27%).
In response to these challenges, 85% of SMBs have implemented specific strategies to manage their cash flow. Common approaches include reviewing or decreasing expenses (34%), maintaining cash reserves (27%), exploring additional revenue streams (26%), and increasing sales or adjusting pricing (25%). Notably, over a quarter (27%) of business owners have resorted to using personal savings or forgoing their own salaries to sustain operations.
Rebecca Warren, CommBank's Executive General Manager of Small Business Banking, emphasizes the importance of effective cash flow management for long-term business success. She notes that while many business owners are taking proactive steps, strategies like dipping into personal savings or not paying themselves may not be sustainable in the long term.
To support SMBs in navigating these financial challenges, CommBank has partnered with the Australian Graduate School of Management at UNSW Business School to offer a free online Cash Flow Management course. This course provides expert advice, strategies, and practical tools designed to help business owners better understand and optimize their cash flow. The program is accessible to all 2.5 million Australian small businesses, regardless of whether they are CommBank customers.
At SMB HQ™, we understand the unique challenges small businesses face in maintaining healthy cash flow. Our team augmentation services provide access to a pool of highly skilled professionals who can seamlessly integrate into your existing team, allowing you to scale your workforce efficiently without the long-term commitment of full-time hires. This flexibility enables you to address specific skill gaps and manage workload peaks effectively, ultimately reducing overhead costs and enhancing productivity.
Additionally, our AI automation solutions are designed to streamline your business processes, automating repetitive tasks and freeing up valuable time for your team to focus on core activities. By implementing AI-driven tools, you can improve operational efficiency, reduce errors, and achieve significant cost savings.
Partnering with SMB HQ empowers your business to navigate financial challenges with confidence. Explore our services today to discover how we can support your journey toward financial resilience and sustainable growth.