In today’s episode, we’re tackling a question that every entrepreneur has likely encountered at some point: When your business hits a financial rough patch, how do you stay calm and composed?
It’s easy to feel overwhelmed when faced with uncertainty, but staying grounded is crucial for navigating these moments and coming out stronger on the other side. Let’s explore strategies to not only survive but thrive when the going gets tough.
Welcome to this week’s edition of Let’s Talk, our Experts, where we dive deep into the real challenges businesses face and offer actionable insights.
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Emma Boucher, Partner at McGrathNicol
“A proactive financial strategy is crucial. To develop an appropriate plan, you must first understand your company’s true financial position and liquidity runway: is there time for performance improvement or working capital adjustments to be implemented? If unsure, seek expert advice. Be aware of the levers available and focus on what you can control, such as reducing non-essential expenses in the short term and renegotiating contracts in the longer term. Being informed about your options, key risks, and disclosure obligations will help you maintain composure. With a clear plan and the ability to pivot, you can confidently navigate financial challenges.”
Kyle Willersdorf, Acting General Manager ANZ, GoCardless
“Running a business comes with plenty of pressure and late payments make it worse. 43% of business owners say overdue invoices add to their stress, causing sleepless nights over money that should already be in the bank. The financial hit is just as serious; 27% of small businesses estimate losing up to $6,000 a year due to unpaid invoices. That money could go toward hiring, marketing, or even just keeping the lights on.
“If you’ve hit a financial bump, take a breath. Panicking won’t fix cash flow, but a plan will – starting with making sure you get paid on time. Set up a cashflow strategy before (or as soon as) problems arise. Using direct debits to collect payments automatically and leveraging smart invoicing tools make collecting payments easier and reduce awkward conversations. Clear payment terms set expectations upfront, ensuring invoices don’t get ignored.
“Chasing payments can become a struggle over time. 42% of Aussie SMB leaders feel uncomfortable following up on overdue bills – but getting paid shouldn’t be hard. With the right systems in place, overdue invoices decrease, cash flow stays steady, and businesses can focus on what really matters; growth, stability, and strong customer relationships.”
Lauren Clemett, CEO, The Audacious Agency
“When your business hits a financial bump, it’s crucial to shift from a reactive mindset to a strategic one. For us, a significant partnership dissolution forced a move from scale-up mode back to a startup mentality. This required a cool-headed reassessment of our core operations.
“Our first step was a deep dive into our business model: rigorously analysing what was working, what wasn’t, and where we were incurring unnecessary expenses. We streamlined operations, focusing on delivering high-quality services to our clients. This meant ensuring our offerings precisely matched market demand so that we retained our existing client base and began attracting new clients by promoting the exceptional results we were achieving.
“We also reviewed our internal processes, simplifying workflows and ensuring the entire team was aligned with our core mission: providing premier services and delivering winning client outcomes. It wasn’t easy and managing your mindset as a business leader should be your priority when you’re facing financial concerns. Often there’s a silver lining, where the bump causes you to focus on what’s best for your business, and in the long term, you’ll learn it’s not a catastrophe, it’s an opportunity to improve.”
Michael Minassian, VP & Head of Instarem, APAC
“Every business faces financial hurdles, from cash flow crunches to unexpected expenses and market slowdowns. Rising inflation and shifting consumer spending patterns have only added pressure on small businesses, making financial resilience more critical than ever.
“Resilience comes down to control and adaptability. Understanding cash flow cycles is crucial and businesses should optimise their invoicing and payment systems, actively follow up on receivables, and negotiate early payment discounts with suppliers. Regular expense reviews and reductions in non-essential costs can also ease financial strain and improve stability.
“Beyond cost-cutting measures, businesses need to also prioritise smarter investments into core areas of the organisation that drive long-term value. For many SMEs, global expansion is no longer a distant goal but a present day reality. Whether working with international clients, sourcing from overseas suppliers, or expanding into new markets, businesses need savvy fintech solutions that enable seamless cross-border transactions and optimised global cash flow. By investing in technology that supports international growth, businesses can enhance efficiency, streamline operations and gain greater control over their finances.
“Australian SMEs have consistently shown resilience in the face of challenges. With a proactive, strategic approach, augmented by technology, businesses can weather financial bumps and position themselves for sustainable growth.”
Sharon Nouh, CEO, Prospend
“When financial turbulence strikes, staying calm is essential to making smart decisions. Are you managing company spending through disconnected systems and manual processes? A key strategy is embracing modern technology to streamline your financial processes. Gone are the days of relying on legacy finance systems that require manual handling. The hidden cost of these outdated processes isn’t just time – it’s errors, delays and the potential risk to business decisions. Instead, many CFOs are turning to integrated platforms that offer real-time visibility, automation and smarter data analysis.
“By investing in unified spend management solutions, finance leaders can eliminate bottlenecks caused by fragmented processes, freeing up valuable time for strategic decision-making. Automation tools powered by AI help reduce administrative burdens, allowing teams to focus on forecasting and growth rather than chasing approvals and reconciling discrepancies. This shift not only boosts operational efficiency but also provides insights into cost-saving opportunities.
“Understanding the bigger picture – adapting technology to improve efficiency while balancing short and long-term goals – enables CFOs to manage their finances effectively, even during uncertain times. Taking a step back to evaluate systems, streamline processes and invest in scalable solutions ensures a calm and strategic approach when navigating financial hurdles. This proactive mindset transforms potential setbacks into opportunities for growth and improvement.”
Alex Molloy, Co-founder and CEO, Valiant Finance
“For business owners, facing a financial setback can be stressful.
“Many tend to try to ignore the situation however, early intervention is often the best course of action so definitely talk to an expert sooner rather than later.This could be an accountant or a broker like Valiant, but getting specialist advice is key.
“They can help you take a step back and review your financial position. They will look at documents like your cash flow statements, and balance sheets and try to pinpoint the cause and magnitude of the issue. From there, they will help develop a plan that is tailored to your specific circumstances, rather than relying on a one-size-fits-all strategy. Or worse, no strategy at all.
“They’ll often suggest ways to quickly increase cash flow.
“A few strategies we’ve recommended include offering early payment discounts, reducing payment terms, or liquidating excess inventory.While debt is often seen negatively, access to additional funding can be crucial for keeping operations running.
“A good broker can help you consolidate multiple debt facilities, bridge payment gaps with invoice finance, and unlock equity from business assets. All of these initiatives can significantly boost cashflow and help SMEs navigate tricky periods.”
Michael Fingland, CEO of Vantage Performance
“Preparing for challenges before your business forecast looks grim is key to keeping cool, and even thriving, under financial pressure.
“However, it is not uncommon for businesses to suddenly find themselves in distress. We are currently seeing a greater demand for support from companies facing financial worries than we have seen in previous years.
“If you have hit an unexpected bump, here are three actions we recommend to clients to weather the storm with confidence:
- Narrow your forecast – Understanding your real-time position is key to peace of mind. A 13-week cash flow forecast shines light on your live position, establishes reliable long-term projections, and helps you pivot your plan accordingly.
- Focus on two key changes – Making too many changes in response to hardship can create a sense of overwhelm. Keep it simple. Whether it is reducing your product range or rationalising your supplier base, focus on just one to two operational changes that will make a difference.
- Communicate with your team – Well-aligned staff are more likely to support necessary operational changes. Earn team confidence through regular business updates and open communication. Maintaining a high trust culture increases the likelihood of your team’s support during uncertain times.”
Iain Salteri, Founder and CEO, KttiPay
“My answer to financial problems is not actually a financial answer. I’ve been there and it’s super stressful, and I know that when my body is running on stress and adrenaline, my decisions suffer. So, when finances get stressful, prioritising self-care isn’t indulgent: it’s strategic. Spend a little extra time making sure you’re eating well, and switching off from tech at night to maximise a solid night’s sleep. This will sharpen your focus and help turn the chaos into more manageable steps.
“Exercise is great too. Swap a sit-down meeting for a walking one so you get fresh air and steps in one go. Get off the bus a few stops early and walk the extra distance to the office. While they may seem tedious in the moment, these micro-moves can help you make smarter, calmer decisions when financial bumps are testing your resilience.”
Narendra Shukla, Director – Consulting Services, Edwise Consulting
“It’s easy to feel overwhelmed when your business hits a financial roadblock. So, staying calm and focused is what can help in getting back on track. First and foremost, accept the problem and take actions. Be open with your team members, partners, and creditors. It helps in shifting the conversation towards finding a collaborative solution.
“Keeping a close tab on your cash flow is essential to know exactly where your money is going and where you can cut back without hurting your core operations. Use data to your advantage, track your financial metrics and look for patterns that can help you prepare for future ups and downs.
“It’s better to have a curtailed outreach than no campaign at all. So, don’t stop marketing just because things are not going well. Rather, prioritise your outreach to prevent future revenue dips and help yourself prepare for a strong recovery. You can also reach out to experts for guidance if needed, as well as consider negotiating with creditors to make payments practically manageable.
“Clear thinking is crucial for making smart decisions, so prioritise your well-being too. With the right mindset and strategies, you can steer through financial challenges and come out stronger on the other side.”
Steven Nicholson, Founder, GearChange Business Advisory
“There will inevitably come a point in most business journeys when finances get tight. COVID-19, losing a major customer or supplier, flood or fire impacting operations, or over-stretching with an acquisition, can all create a financial bump to be steered around coolly rather than veering off down a steep ravine.
“I always advocate visibility over financial performance and robust cash flow forecasting as the key foundations to building a strong business, allowing informed decisions about growth and investment, with an eye on future cash flow implications. This should prevent self-inflicted bumps in the road.
“For other bumps, keep your cool by:
- Maintaining a cash buffer of up to three months of operating expenses
- Use a driver-based forecasting model to understand the impact of operational changes on business finances
- Have a hit list of expenses that can be cut immediately with little impact on business performance
- Ensuring insurance cover is sufficient to transfer risk and provide financial support
- Having a great finance professional on speed dial who knows your business and can guide you
“Prevention is better than cure. Next best is having visibility of incoming financial bumps, allowing you to plan how to stay on track and keep your cool.”
Mark Waller, Managing Director, One Click Group
“To keep my cool when we hit a financial bump, I rely on two core strategies—both of which are proactive rather than reactive:
- Knowing when a financial bump may be coming
- Exercising regularly
“Together, these make it much easier to stay in control.
“The first strategy is always having a plan – looking ahead by making informed assumptions based on historical facts. This means having a strategic plan, a business plan, and an operational plan, with a solid budgeting process to tie them together. The key is understanding the business assumptions behind the plan and regularly assessing whether they still hold up. That way, you’re managing the future of your business proactively, rather than reacting when a financial bump hits. Whether it’s raising money, resetting bank covenants, or managing investor expectations, it’s always easier to do this beforehand rather than scrambling after the fact.
“The second is managing my own health. Prioritising fitness has a big impact on how I handle hurdles. When I’m looking after my health, I feel in control—and when you feel in control, you can tackle challenges with a clearer mind. A run gives me time inside my own head, free from distractions, where I can plan my next move—and the one after that.”
Chris Dahl, Co-CEO, Pin Payments
“Every small business experiences financial ups and downs. Whether it’s a cash flow crunch, unexpected costs, or slower sales, staying level-headed is key to navigating uncertainty. Here’s how to manage financial setbacks effectively while keeping your business moving forward.
- Get Clear on the Numbers
Start by understanding the root of the issue. Is it a seasonal dip or a delay in payments? Reviewing real-time financial data and tracking cash-flow closely can help pinpoint the problem and guide your next steps. - Improve Cash Flow with Smarter Payments
One of the biggest pain points for small businesses is late payments. Offering digital payment options, setting up automated invoicing, and using real-time payment processing can help ensure money comes in faster. If your business relies on recurring revenue, consider flexible payment solutions that allow customers to pay in instalments or via subscription models to create more predictable income. - Prioritise Spending and Cut Smartly
When cash is tight, focus on essential expenses. Look at where you can reduce costs without compromising growth. Negotiating better terms with suppliers or delaying non-critical expenses can provide breathing room. - Communicate Proactively
If financial difficulties impact payroll, suppliers, or investors, open and honest communication is key. Payment flexibility and renegotiating terms can make all the difference in maintaining strong relationships. - Build Financial Resilience for the Future
A short-term bump doesn’t have to derail long-term success. Setting up better payment processing systems, diversifying revenue streams, and keeping a close eye on financial health through fintech tools can help businesses weather challenges more smoothly.”
Jacob Mann, Director, Cumulus Automation
“Every business faces financial bumps. It’s how you navigate them that matters. At Cumulus Automation, we manage risk by putting a lot of focus into a strong sales pipeline, so we’re not reliant on any single deal or client.
“We also take a conservative approach to cash flow, resisting the urge to overextend when things are going well. Our focus is on steady, sustainable growth, and having a financial buffer helps us manage unexpected challenges with confidence.
“Right now, many businesses are feeling the pressure of supply chain disruptions and economic uncertainty. When a client has to delay a project due to budget constraints, we understand that it’s rarely an easy decision for them either. Instead of seeing it as a setback, we focus on maintaining a positive relationship. A little patience and understanding go a long way, and more often than not, those projects come back when the time is right.”
Tony Guarna, Director, Governance Advisory Pty Ltd
“Most businesses will hit a financial bump. Your immediate reaction is likely to be – Why me? Why is the world against me? What did I do to deserve this? How am I going to tell my Partner? Welcome to the emotional rollercoaster that is ‘running your own business’.
“Snap out of it. Stop deflecting that it wasn’t your fault, because in some weird round-about way, it was your fault. Perhaps you expanded too rapidly, or you should have put more money away, or you should have looked over the finances, or you should have not extended credit beyond your normal terms, or you should have gone with your ‘gut-feeling’, or …
“The German philosopher Friedrich Nietzsche once penned, ‘what doesn’t kill you makes you stronger’ – wow, that’s so relevant today in business. Remember you’re not the first, and you won’t be the last, to be hit by a financial hiccup, in fact there have been thousands of owners hit by the same issue. It’s the way you go about rectification that will define your future.
“When the numbers don’t look great, keeping your cool is the most powerful tool in your arsenal. Think of it as a storm. If you panic, you’ll get swept away. But if you stay calm, adjust your sails, and navigate smartly, you’ll find your way to clearer seas. Financial struggles aren’t the end; they’re an opportunity to sharpen your business instincts, rethink strategies, and emerge stronger. Take a deep breath. Assess the situation. Determine what the underlying issue is and don’t feel bad calling in an expert.”
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Every entrepreneur faces it: financial crisis. But panic isn’t the answer. Discover how to stay calm and emerge stronger in this week’s episode of Let’s Talk Featured, Let’s Talk Dynamic Business
