Here is some scary statistics and information. As business owners and key stakeholders we need to be looking at opportunities to do better and run our businesses better.
Despite the better business outlook, many businesses remain uncertain about their road to recovery.
A ScotPac survey asked 1,253 small businesses about their strategies for recovery and growth in 2021.
Two-thirds of small businesses (65 per cent) said they will make changes to the structure of their business in 2021, in order to recover from the pandemic or to take advantage of opportunities.
According to the survey, other signs of SME concern about recovery include one in four SMEs being unsure about how to recover and almost one in four having cash flow issues after being declined from a lending product.
Further, one in five SMEs is having to cut costs to replace stimulus funds, almost one in five said they will make arrangements with the ATO to manage their cash flow, while one in six will replace stimulus funds by using working capital finance.
ScotPac chief executive Jon Sutton said any move to restructure includes looking at other ways to fund their businesses.
“I believe business owners are on the right track with this intention, because to be in a position for recovery and growth, it’s essential to have adequate funding in place,” Mr Sutton said.
Yes, jobs will be lost and, yes, businesses will go under — it’s predicted there will be 8,000 insolvent businesses by the end of Q2 this year.
It is imperative that we are as pro-active and forward thinking as possible to get through this time. The key thing is to plan and get organized to take the opportunities that are out there. That is why the Global Business Camp (19 – 21 July, 2021) is critical for businesses.