5 Small Business Survival Tips In 2022

Many small businesses have been in survival mode for a while now.

To say the last couple of years have been difficult for small businesses is an understatement - particularly in the hospitality or tourism industries. Border controls, lockdowns, traffic lights, Covid waves, the volatile property market, and inflation have all combined to make this a difficult time.

And with inflation continuing to rise and Covid seemingly not yet done with the world, 2022 seems set to be another tricky period.

As a small business owner, though, it shouldn’t be all doom and gloom. There are signs this year, of things getting better.

Borders are opening, Covid restrictions are loosening, and there are signs that Kiwis are ready to get back out there. For savvy businesses who can get through 2022, things should look brighter.

So, here are our top 5 small business survival tips for small businesses in 2022.

Get Your Accounts In Order

Before you can do any planning, you need to know where you are now. And that means you need to get your accounts in order.

If you aren’t set up with an online accounting programme like Xero, we strongly recommend it. Using an online setup makes it much easier to keep on top of your finances and keep everything in one place. It also makes it easier to share information with your accountant.

Make A Plan

The end of the financial year is a great time to review your year and refine your business plan for the following year.

But if you haven’t done that for 2022 yet, it’s not too late. A business plan plots the direction for your business over the coming year, or maybe even 5 or 10 years. It also gives you something against which to measure your business to see how you are progressing.

Given how volatile things have been recently and are likely to be, it’s also a good idea to develop a business continuity plan and a risk management plan. These help you work out how your business will deal with changes or crises such as lockdowns.

Monitor Your Financial Performance Regularly And Be Willing To Flex

You might have been used to set a budget and forecasting at the beginning of the financial year and not really reviewing it that often. Nowadays, you need to be much more on top of that. You should be reviewing your budget at least monthly and be ready to adapt to changing situations.

Reviewing more often allows you to get on top of problems quickly or take advantage of a good month. It can also feel easier in an unstable financial environment to only think about small intervals rather than years ahead.

Keep A Close Eye On Your Cash Flow

Many businesses have at least one cash flow crisis throughout the year, and some have them regularly. Cash flow is a mighty important part of your business and a small problem can quickly snowball into a bigger one. 

In times of uncertainty when many people are struggling, if you rely on money coming in from invoices either from other businesses or individual clients, it’s important to keep on top of them. You might need to give people more time to pay, or be a little bit more insistent about your invoices than normal to ensure you have money coming in.

Watch this Video Session | How to Improve Cashflow in Your Business

Get The Right Support

It can feel like you have a lot of responsibilities resting on your shoulders as a small business owner. There are staff to pay, work to deliver, deadlines to meet, and that’s before you even delve into things like payables, receivables, rent, insurance, and all the other financial concerns.

In 2022 (or any other year), you don’t have to do things alone. Make sure you have the support team you need to help your business survive and thrive in the months ahead. Everyone’s support team might look a little bit different, but consider assets like a business coach, bookkeeper, financial advisers, marketing consultant, VA, or accountant to help you push forward.

Figuration Can Help Your Business Survive (And Thrive) 

Our bookkeeping and accounting services can help to keep your business on the right track and make sure that there are no surprises throughout the year.

We’ll keep on top of the financial side so that you can focus on the things you do best.

We love to see our clients not just surviving but thriving, so get in touch to book a call with one of our team today and see how we can help you.