Blog
How to Manage Your Small Business in New Zealand Today
31/03/2025
Running a small business in New Zealand is no small feat. Whether you're a retailer or service provider, the challenges of operating in an uncertain economic environment can be daunting. Rising costs, supply chain disruptions, and fluctuating demand all contribute to the pressure. But don’t worry—there are ways to navigate these difficult periods and keep your business on track.
1. Reassess Your Financial Position
One of the first steps to managing your business during tough times is to take stock of where you stand financially. This means reviewing your cash flow, outstanding debts, and current expenses. A few key questions to ask yourself:- Do I have enough working capital to sustain operations for the next few months?
- Are there any unnecessary expenses I can trim?
- Can I renegotiate payment terms with suppliers or lenders?
2. Get on Top of Your Cash Flow
Cash flow is the lifeblood of your business. Without it, even the most promising business can struggle. Here are a few strategies to keep your cash flow positive:- Invoice promptly: Don’t delay sending invoices, and follow up on overdue payments regularly.
- Encourage early payments: Offer small discounts to customers who pay early.
- Negotiate better terms: Speak with suppliers about extending payment terms to ease short-term cash constraints.
- Cut unnecessary spending: Review your subscriptions, utilities, and other overhead costs. Can you find a better deal elsewhere?
3. Diversify Your Revenue Streams
If your core business is struggling, look for ways to diversify your income. For example:- Retailers: Explore e-commerce opportunities if you haven’t already.
- Service Providers: Offer online consulting, training, or workshops to attract a broader audience.
4. Strengthen Customer Relationships
During tough times, loyal customers are invaluable. Keep them engaged and reassured by:- Communicating openly about any changes to your business operations.
- Providing exceptional customer service to retain their trust.
- Offering flexible payment options to make purchases easier.
- Creating loyalty programs or discounts for repeat customers.
5. Seek Professional Advice
You don’t have to face challenges alone. Reach out to your accountant, business mentor, or financial advisor for expert guidance. CMK Accountants, for example, can help with tax planning, debt consolidation, and restructuring to keep your business financially viable. Additionally, organisations like the Regional Business Partner Network offer support and funding for small businesses looking for guidance.6. Manage Your Stress and Wellbeing
Tough times don’t just impact your business—they take a toll on you personally. Managing stress and maintaining your wellbeing is just as important as managing your finances.- Talk to someone: Whether it's a mentor, fellow business owner, or support service, discussing your concerns can help.
- Take breaks: Overworking yourself won’t solve problems—it may create new ones.
- Prioritise health: Eat well, exercise, and get enough rest to stay resilient.
7. Plan for the Future
Even in tough times, it’s crucial to have a long-term vision. Set realistic goals, develop contingency plans, and prepare for future challenges by:- Keeping up with industry trends and technological advancements.
- Investing in training and upskilling for yourself and your team.
- Exploring strategic partnerships to strengthen your business.
