Buckle up, as the next three months could be challenging for businesses.

The next quarter may present a major challenge for a lot of business owners and compared to last year, there are no government support packages in place.

A survey conducted by the state’s peak business organisation, Business NSW in the second week of January shows that business confidence in NSW has plummeted in the wake of the Omicron surge.

The full business confidence survey results will be released in the coming days. Initial results show that business confidence and perceptions are ‘not good’ to say the least, with business owners expecting very little improvement over the coming months. What is of major concern is that 40% of businesses say they do not have enough cashflow for the next three months. The lack of consumer confidence is having a devastating effect, alongside non-availability of vital staff.

‘For many businesses the next three months will determine their capacity to survive and thrive alongside Covid in the longer-term’, according to Business NSW Chief Executive Daniel Hunter.

But it may not be all doom and gloom. Strong businesses that remain open, will continue to grow their customer base which will allow them to expand their market share when confidence returns.

There are signs that indicate we will see further consolidation as well as business closures over the coming 12 months. This will create opportunities to further strengthen the businesses that trade through and place the customer at the core proposition of their offering

It is not about continual growth but about sustainable growth over the longer term, and businesses that can survive this downturn will be well positioned to thrive in the new world.

2022 is expected to be a very busy year with record levels of merger and acquisition activity set to continue. This will provide another channel of opportunity for well run businesses.

There are many challenges today for you all. Remember that you have built a great business. Keep a close eye on your cash and continue to work on delivering your strategic plan which will ensure your objectives are met in the long run.