5 Top tips for SMEs to thrive in a rapidly changing economy
Leading national invoice financing specialists, Earlypay, have been assisting the nation’s small businesses overcome their cash flow challenges for nearly 25 years, and firmly believe if the nation’s 2.5 million SMEs are doing well, then the economy will follow.
Earlypay Chief Executive Officer, James Beeson, says the nation’s SMEs are at the heart of Australia’s economy.
“They’re the engine room of the economy. They should also lie at the heart of all economic policy related to business, whether that be easing the regulatory burden on small and medium-sized businesses, or assisting them navigate change, such as the rise of artificial intelligence and increasing cyber threats,” Beeson says.
Taking this into account, Beeson believes there are five key areas that will enable SMEs to get ahead at present:
Protect your intellectual property (IP)
Your business is built on your ideas, whether that’s a unique product, service, or brand identity. Protecting your IP isn’t just about trademarks or patents; it can also involve contracts with staff and suppliers, confidentiality agreements, and monitoring competitors to ensure your brand isn’t being copied. A proactive approach safeguards your competitive edge and ensures the value you’ve built remains yours.
Strengthen your cyber defences
As more business moves online, cyberattacks are one of the fastest-growing risks to SMEs. Beyond antivirus software, businesses should conduct regular vulnerability checks, keep software patched and updated, train staff on phishing awareness, and develop a clear incident response plan. The Australian Cyber Security Centre provides up-to-date alerts and practical guides and free resources that SMEs can action straight away. You can also check scamwatch.gov.au for tips and general information.
Invest in industry connections
Stay up to date with developments in your sector by joining an industry organisation, where you can stay informed about emerging issues while also engaging in valuable knowledge exchange with peers. For business owners who often work in isolation, these networks can be a vital support system when challenges arise, helping to mitigate the isolation that can often accompany business ownership.
Make use of government and wellbeing support
There’s a wide range of assistance programs available across federal, state, and local governments. This includes grants, tax incentives, training programs, and free advisory services. Many SMEs miss out simply because they aren’t aware of what’s on offer. Setting aside time to explore these programs, or subscribing to updates from relevant agencies, can uncover opportunities that reduce costs and open new avenues for growth. Support also extends to the wellbeing of business owners themselves. Running a business can be isolating and stressful, which is why mental health resources are increasingly important:
- NewAccess for Small Business Owners is a free, confidential coaching program run by Beyond Blue. Over six sessions, you’ll work one-on-one with a coach who has a small business background, building practical skills to manage stress and pressure better.
- Ahead for Business is a digital hub designed specifically for small business owners, offering tailored resources, an online community, and tools to track and improve your mental health and wellbeing.
By tapping into both financial and wellbeing support, business owners can strengthen their operations while also looking after themselves.
Keep cash flow under control
Financial stress is consistently the biggest concern for business owners, and it usually stems from cash flow pressures. Reviewing cash flow regularly allows you to spot problems before they escalate. Options like invoice finance can smooth out lumpy income by unlocking working capital tied up in unpaid invoices. This ensures businesses can cover payroll, meet tax and super obligations, and still have room to invest in future growth.
One particular SME resource is the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), whose most recent Small Business Pulse shows a continuing uptick in sentiment among business owners at present.
The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, says business optimism is cautiously gaining strength after years of headwinds.
Mr Billson said one major concern is that corporate insolvencies remain relatively high, with unincorporated business insolvencies starting to rise.
Bearing all this in mind, the ASBFEO noted that research into finance options to ensure cash flow is on the rise, including invoice factoring, which involves a business selling its unpaid invoices to a third party to ease any cash flow problems.
Beeson says Earlypay’s invoice finance solution helps SMEs maintain a steady cash flow and meet payroll and superannuation obligations.
‘Invoice financing allows SMEs to secure funding against the value of their outstanding invoices, providing a much-needed alternative to traditional bank loans that often require real estate as security”, Beeson says.
