The market for SMEs has been characterised by uncertainty and various business stressors over the last two years. One of the newest emerging issues facing SMEs is a staffing shortage. Many businesses across diverse sectors are struggling to attract new staff. Resulting in necessary roles going unfilled for months or even years. Staffing issues are increasingly topical as supply chain issues continue to impact many essential services within Australia due to ever changing government regulations in respect to health guidelines. The latest crisis has highlighted the widespread issues that were dormant until highlighted by a new sense of urgency. As staff are forced into isolation periods the lack of available hands in retail, transport, food and various service and medical professions are becoming rapidly felt across the country.
Reflecting the lack of consumer confidence in the market at large, sales are down across the board. Businesses predominantly in the consumer market are experiencing consistently low sales resulting in a decline in revenue and consequently, cash flow. The general business situation is characterised by uncertainty that does not lend itself to confidence and free spending. Many businesses in the forefront of these issues have been subject to reduced operating hours or completely shut down.
Additionally, cash flow issues are becoming more prevalent as SMEs try to find new ways to drive revenue in the face of this instability. Cash flow woes are downstream from the staffing issues, as well as indicating (most apparent in retail) the lack of consumer confidence across the market. Many businesses that cannot meet their obligations such as rent and payroll due to cash flow issues have been forced to close their doors.
With all these converging issues it may seem to many SME owners that the business situation is too complicated to navigate. However, SV Partners experts are adept at assisting businesses with the most complex of circumstances in many operating environments. Read more about how business owners can identify the early stages of insolvency and seek resolutions here.