Small businesses eyeing a cautious recovery
After two challenging years, small businesses may be eyeing a cautious recovery going into 2022.
Xero’s small business trends report 2022 takes a look at ten of the biggest considerations on the minds of small business owners and their advisors.
Based on surveys with business owners in North America, the UK, Asia, Australia and New Zealand, the report notes that 60% of small business owners have moved away from blanket cost-cutting. Experts believe this may signal a readiness to invest in growth.
Once bitten, twice shy
Given what most businesses have been through these past two years, any recovery will start off slow.
Rebounding confidence will be limited by cash flow, with 56% of businesses still feeling unsure about their liquidity. Meanwhile, supply chain issues continue to slow down 38% of businesses. However, the report shows how businesses are dealing with those issues while moving back into growth mode.
Takeaways for small businesses
There are a few things small businesses can do to help support their recovery according to Xero’s small business trends report:
- Be prepared to take advantage of the pent-up demand from customers by looking into different ways to market the business, especially online
- Use technology to get an in-depth understanding of your business cash flow, supply and staffing so you can bounce back quicker and stronger
- Keep a close eye on cost inflation and adjust prices accordingly
- Structure service contracts to take an upfront deposit from customers, so your cash flow doesn’t run dry
- Try not to be afraid of investing in the business, as that may be the best way to prepare it for recovery
For more tips, advice and bookkeeping essentials for your business, visit How We Help You and get started today with Notch Above Bookkeeping, Australia-wide.