There was a recent article published in the UK by Timothy Adler, that talked of the issues in UK small business and quoted that one third of self-employed were struggling with making a good living.

Now that particular statement did not raise any major alarms as it is often the case. However, the next comment made me start thinking about our situation here in New Zealand. Timothy stated that more than 40 per cent of self-employed earned less than £1,000 a month in April compared with 27 per cent pre-Covid-19. For us, that is roughly, around $2,000 NZD. Are we that different?

Do you as an SME owner make enough of a financial return in your business?

There is no doubt that SME business in the majority, got hit pretty hard through Covid, and many are still suffering the fall-out. Sure, there were some that took the market by the horns and did very well during those tough days through 2020/2021, but the majority didn’t.

Across dozens of industries, we are seeing business owners struggling to keep their head above the water line; Rampant inflation, lack of staff, inconsistency of supply, lack of the right skill set, and of course, a cost-of-living crisis. These are collectively destroying many businesses’, whose incomes and bottom-line profits have either not fully recovered from the pandemic, or remain at levels below an acceptable financial return for the owner.

Recovery in many industries is stalling, strangled by numerous major issues, some seemingly insurmountable, and on top of all this, many having no viable plan for the future.

Every day we meet SME owners who through perhaps a lack of “business know how” are in terrible financial situations and the Covid after-shocks are exacerbating the challenges for SME’s and self-employed workers

As a national Business Advisory company, we see many business owners all over the country, struggling in business with very little return, yet still making the same decisions every day.

My point here being, “If we do not change, we do not change”.

As SME owners approach us for assistance, looking to become Prime Strategies Group clients, this is a common theme, with the feedback often being, “I do not know what to do to make things better”.

Whilst the noose of Covid restrictions may have loosened, the resulting impact remains prevalent across our country. Businesses have a need to make a return over and above a simple “wage” for the owner. If it does not, the situation can often result in huge stress, both mentally and physically.

If you are struggling to make the right return on your business, struggling to spend time with family and feeling the pressure, please call us for a chat. NO, is no longer the right answer in business.

If you are stuck and unable to find a way out, contact us, we will happily discuss how we can provide some guidance and help you get back on track.

Kia Kaha New Zealand

*UK Information according to the latest London School of Economics survey of self-employment.