Trading conditions for Aussie small businesses have been challenging for the past few years. But there are signs that business confidence is increasing.

National Australia Bank’s index of business confidence climbed to +7 in July 2025, up from +5 in June, the highest reading since August 2022.

NAB’s latest SME Business Insights report does show a small dip in business confidence for August 2025, with a decrease of 3 points. But the report also shows that small and medium-sized businesses (SMBs) across Australia are making bold moves to tackle the challenges that are keeping them awake at night.

What Aussie SMBs are doing to tackle uncertainty

Data from the Q2 2025 edition of NAB’s SME Business Insights reveals that there are three key areas that are currently worrying Aussie small business owners:

• Cashflow pressures (44%)
• Profitability issues (38%)
• Government policies and regulations (37%)

According to NAB’s survey, business owners are responding with ‘grit and innovation’. Half of those surveyed are actively cutting costs and renegotiating supplier terms, while others are ramping up marketing efforts (37%), investing in talent (29%), and reimagining pricing strategies (29%) to stay competitive.

But what can your business do to tackle the top three SMB worries?

Ways to boost your own confidence as a small business

Cashflow, profitability and regulatory worries are major concerns for your small business. But with some strategic and tactical thinking, there are ways to overcome the challenges.

Here are three fundamental ways to tackle these concerns:

1. Cashflow pressures:

• There are a number of tactics you can use to combat any cashflow pressures.
• Switching to e-invoicing will speed up payments and improve your liquidity. Reviewing your pricing can also help, by extending your margins and bringing in greater revenues. Cashflow forecasting is another area to explore, giving you prior warning of any upcoming cashflow gaps.

2. Profitability issues:

• To improve profitability, you should regularly review and manage your costs.
• A company-wide review of your operational spending helps you find the key areas where expenses can be cut. Reduced operational expenditure means improved gross margins and a better bottom line at the end of the period. With better profits, you have the capital to invest in new equipment, talent and the future of the business.

3. Regulatory worries:

• It’s vital to be on top of changing tax legislation, legal requirements and necessary licenses.
• You can use free government resources, like the Australian Business Licence and Information Service (ABLIS), to stay compliant. This helps avoid potential penalties and ensures you meet all your legal requirements as a small business. The Australian Taxation Office (ATO) also offers a free Tax Time Toolkit for small businesses that helps you stay compliant with all the relevant business taxes, including new tax measures and digital requirements.

Want help with your strategy and tactics?

The fundamental challenges of trading are not going away any time soon. But by updating your strategy and tactics, you stabilise your financial foundations and remove some of the worries.

We’ll work with you to review your pricing strategy, operational spending and regulatory compliance, helping to reduce your concerns and boost your own business confidence.

t: +61 7 3177 4120
e: advisors@hksrussell.com

Posted on October 27, 2025 by Charisse Russell - Articles