In this week’s edition of Let’s Talk, our experts look at the difference between businesses that thrive and those that barely survive, which often comes down to fundamental financial habits.
Why this matters: Financial stability equips companies to handle unexpected expenses, economic fluctuations, and market uncertainties, whilst businesses lacking disciplined financial habits often struggle during challenging periods, making the difference between long-term success and failure increasingly apparent in volatile economic conditions.
Let’s Talk!
Angad Soin, Managing Director, Australia and New Zealand, and Global Chief Strategy Officer, Xero
“For small businesses working to achieve long term stability, consistency and a focus on a few important things are key. Understanding your current and future income, current and upcoming costs –including tax liabilities and therefore your potential cash flow– will help you stay focused on the right areas and build a resilient business that supports your personal financial goals, whatever they may be.
“Of course, at the heart of every business is its customers, and meeting their ever-evolving needs and expectations is crucial to longevity. For example, take the simple act of how your customers pay you. Recent research from Xero revealed card payments are consumers’ preferred way to pay (86%) and one in four said they would abandon a purchase if their preferred option was unavailable. By offering flexible payment options, businesses can improve the customer experience, increase sales, and reduce the time it takes to get paid.
“Digital tools can make the process of teaching these key metrics easy and efficient. Implementing accounting software, like Xero, means businesses can automate routine tasks such as invoicing, bank reconciliation, payment reminders and forecasting. This helps to manage cashflow and ultimately frees up time to focus on the bigger picture.
“Lastly, but perhaps most critically, is engaging the support of a trusted advisor. Recent Xero research found small businesses using an accountant felt more confident (67%) and experienced higher revenue growth (51%) than those who don’t. It proves that expert advice can be a game changer, keeping businesses on track and accomplishing their goals.”
Helen Baker, Licensed Financial Advisor, Author of Money for Life
“Stability is the result of firm Foundations. In my 15 years as an adviser, no one has ever passed my Five Foundations test. A business owner needs these foundations for both personal and the business. One affects the other. The areas that trip up businesses are:
- #1 & #2 Emergency fund, cashflow management for good times and bad times, including debt management.
- #3 Insurances – for yourself, key person, business partners, property, professional indemnity etc. Most are under-insured.
- #4 Superannuation – is the business part of the superannuation plan? Is there a property linked to the business? Is the sale of the business part of your or your business partner’s retirement plan?
- #5 Estate Planning – buy/sell agreements, key person knowledge, POA, Wills.
“The longer you have a business, and the further you are from retirement, the more risk there is. It is vital to get your foundations in place and keep them that way.”
Suzi Dafnis, CEO, HerBusiness and Host of the HerBusiness Podcast
“In working with thousands of women business owners, I’ve noticed something unexpected: the most financially stable businesses aren’t always those with the biggest turnover or the highest revenue… but those where the owner has a strong money mindset.
“Stable businesses are led by owners who see money as a tool, not a taboo. They’re curious about their numbers, not fearful. They believe they deserve to be profitable, and they build pricing and spending habits that reflect that belief. Their mindset is one of stewardship — they view financial visibility as a way of honouring their goals, their team, and their clients.
“But let’s be honest… most business owners have the opposite mindset. Shaky businesses get caught in cycles of avoidance and scarcity. The owner feels uncomfortable looking at the numbers, or resists paying themselves or raising prices, telling themselves that “one day” the business will provide.
“That mindset keeps them stuck.
“The truth is: financial stability is 80% mindset and 20% mechanics. Until you shift the way you think about money, new systems and spreadsheets won’t stick. When you start from the belief that you are worthy of profit, you create the habits that sustain long-term business growth.”
Ian Boyd, General Manager at GoCardless ANZ
“Business stability comes down to reliable cash flow, and reliable cash flow can ONLY exist if you are getting paid on time.
“Our new Pursuing Payments report revealed 17% of Australian SMBs estimate losing more than $2,500 per month on average due to late payments, compared to 11% in 2024. 57% of AU and NZ businesses say they’re waiting longer for payments than 12 months ago, and 20% of respondents are now wholly devoting 6 to 12 working days a year on average to chasing overdue payments.
“That’s vital time and money that should be spent on growing your business and ensuring that your providers are being paid on time.
“If your business invoices, ensure you are utilising eInvoicing with automated follow-ups, so you are not spending precious time prompting customers. Also consider adding a ‘Pay Now’ button to digital invoices to help customers pay instantly.”
Greg Wilkes, CEO of Develop Coaching
“Most construction companies don’t collapse because of lack of work. They collapse because of poor financial habits. Cashflow is the lifeblood of your business. Get it wrong and even a full order book won’t save you.
“I once worked with a builder who was turning over £1.5m a year. On the surface, he looked successful big projects, busy sites, new vans. But behind the scenes, there was no reserve account, no Profit & Loses (P&L) reviews, and no real margin control. When two clients delayed payments at the same time, he couldn’t cover wages or VAT. He came within days of shutting the doors. The work was there, but the money management wasn’t.
“Stable businesses share a few habits that keep them safe:
- They know their numbers: They review monthly P&Ls, cashflow forecasts, and job profitability reports.
- They price for profit: They never win work by undercutting; they protect 10–15% net margins.
- They build reserves: Tax, VAT, and downturn money is ringfenced.
- They separate personal and business money: Owners take a set wage, not ad-hoc withdrawals.
- They measure and adjust: Waste is cut quickly before it becomes fatal.
“Action Point Checklist:
- Review your P&L monthly.
- Forecast cashflow 3–6 months ahead.
- Protect a minimum profit margin.
- Keep reserves for tax and downturns.
- Pay yourself a fixed wage.
“Strong businesses don’t just build houses; they build financial stability.
Elise Balsillie, Head of Thryv Australia and New Zealand
“The challenges that unsettle businesses most often come from within, rather than from sudden external shocks. Financial discipline, or the absence of it, quietly shapes whether a business remains steady or drifts into uncertainty. The habits that underpin stability are simple, yet often neglected. Stable businesses make cashflow visible. They know in real time where money is coming from, what is outstanding, and how to allocate resources. Shaky ones rely on lagging reports and leaving decisions to guesswork.
“Design also matters. When finances are spread across disconnected systems, blind spots appear. Late invoices are missed, payments are delayed and problems escalate. By contrast, integrated processes create a single, accurate view of performance. Every transaction is accounted for, and that clarity transforms financial management into a tool for foresight rather than hindsight.
“Another defining habit is deliberate allocation. Strong businesses consistently distinguish between funds that maintain operations and funds that build future capacity. Even in challenging conditions, they preserve investment in people, technology and customer experience, knowing these are the levers of long-term resilience.
“I believe financial strength comes from clarity, consistency and connected systems. When those habits are in place, businesses move beyond keeping afloat and gain the confidence to grow with intent.”
Chris Hanna, Principal at Pitcher Partners
The steady beat of consistency is key when it comes to navigating business. Achieving business stability over volatility often comes down to fundamental financial habits. It might not be exciting but it’s the basic habits that matter most. Here are my top three:
- Business stability hinges on well thought-out decisions. Avoiding immediate, reactive responses to situations and instead taking the time to analyse next steps. It’s about weighing options, being proactive rather than reactive, and making informed decisions.
- Sustainable businesses have strategic thinking behind their actions. Rather than focusing solely on ‘the now’, a stable business will be habitually guided by a forward-looking and long-term view. They will build strategies that support sustainable growth and resilience, rather than short-term wins.
- Seek advice before it’s too late. A stable business should be proactive to ensure they are well-placed to handle issues or crises as and when they arise. A pre-emptive approach ensures businesses can anticipate challenges and make better informed decisions from the outset.”
Lynne Walton, Founder and CEO of Access Intell
“Proactively managing credit risk is a key sign of a stable business. Habits like completing credit checks on new customers, registering security on the PPSR, regularly reviewing credit limits, continuously monitoring customers for signs of financial distress, timely collection of payment and keeping terms & conditions of trade up to date separate these businesses from shaky ones. Leading businesses take this one step further and use automation tools like the Access Intell credit management software to create efficient processes that save valuable time and protect them from bad debts.”
Julie Lawrie, CEO / Co-Founder, Amplifyo
“There’s one significant finance-related issue we generally find when commencing growth-marketing & strategy-building with clients: the disconnect of marketing activities from business and financial goals.
“It might seem trivial, but when your primary spending to draw in new customers, and nurture existing relationships is used on vanity activities that lack a connection to growing your revenue, customer-base, or brand, you’re wasting extensive overhead costs (that impact net profit), but you’re also leaving money on the table.
“It’s one of the reasons we’ve automated our consultancy and created Amplifyo, to leverage AI to enhance productivity in marketing that bolts into actual business & financial goals…where true financial sustainability is found.
“So where do you start:
- Refocus your team around your short and medium-term goals
- Identify your leads and sales targets based on:
- your pure break-even figures (if you’re in a turn-around season)
- identifying your stretch goals relating to
- a specific net profit percentage or revenue figure
- new customer acquisition
- existing customer sales expansion (“would you like fries with that”:
- Commit to aligning every piece of marketing to your identified goals (yes, it’s possible)
Stable (and successful) businesses ensure marketing bolts into financial goals.”
Melissa Cavers, Mortage Broker and Founder at Maplefly Money, Certified Money Coach
“Many business owners avoid looking at their numbers because they feel disconnected from the bigger picture or what the business owner has deemed important to them. Revenue and expenses aren’t what gets most business owners excited or motivated. The key is to make the numbers more meaningful, it’s the shifting of mindset, to link the numbers to what really matters, knowing what results or trends mean to the business, personally and professionally, how it links into their life and overall goals. Stable businesses don’t wait until EOFY to look at their finances. They review the numbers on a set regular basis, whether this done on a high-level snapshot basis or reports provided from accountants or bookkeepers, it’s the habit that transforms money from something stressful or boring to empowering. This is compared to shaky businesses that often avoid the numbers or only glance at them when it’s too late to change course. But when you use your finances to stay aligned with what truly matters to you, every dollar becomes a decision and every decision becomes a step toward reaching what has been defined as success”.
Catarina Santini, Founder of CS Accounting and award-winning accountant
“Financial stability doesn’t come from complicated spreadsheets. It comes from the small, consistent habits you stick to every week. The first one? Talk to your accountant more often. Not just once a year at tax time. They are not only there to lodge your BAS. A good accountant can help you plan, budget, grow, manage cash flow, and stop little problems from turning into big ones. Get something in your diary, whether it is monthly, quarterly, or simply a quick call before you make a big decision. And if your accountant doesn’t understand you or your business, find one who does. Second, open more than one bank account. Have one for tax, one for expenses, one for savings. It takes away the guesswork and protects you from those “oh no” moments when the ATO comes knocking. And finally, look after yourself. Once you’ve booked that meeting with your accountant, step away from the desk. Walk the dog, see a friend, read a novel. A clear head makes for far better financial decisions than staring at spreadsheets until midnight.”
Cassie Day, Award-winning entrepreneur, speaker and facilitator, Cassie Day
“Interestingly, talking about money, revenue, profit, loss and everything in between has become a taboo subject – particularly for women and particularly in the care economy. Trust me, having your head firmly in the sand will get you nowhere and fast. The fact is we need to know our numbers intimately and less money means less impact, right? My advice? Don’t outsource your accounting, invoicing and finances to the point you don’t know what’s coming in, going out and why. If you don’t make it your business to be in the know regarding your finances, is likely going to lead to unsustainable debt to the ATO and other regulatory authorities. Develop a relationship with your accountant and/or bookkeeper to set a simple financial forecast and set then set regular financial health checks. During these meetings you will be able to identify progress, any patterns and early signs of change that will inform your decision making in the short and long term. Practically, when processing payroll, set aside your liabilities. That is the proportion of Superannuation, Tax, Return to Work (Workers Compensation) and Leave Liabilities to a different bank account. That money is accounted for and can give you a false sense of your financial position. Personally review your accounts, daily. The more you practice the better you get and the more intuitive it becomes. This practice is likely going to alter your money mindset and who knows, you might just enjoy tracking and talking about money!”
Tammie Rimon, Founder, 20/20 Finance Brokers
“While the news focuses on interest rates and economic forecasts, the truth is that a business’s stability is forged in a completely different fire. It’s about internal discipline, not external luck. Relying on market trends is a reactive approach that leaves a business vulnerable to the next downturn.
“From my decades in the industry, I’ve seen that the most enduring businesses are those whose founders adopt a holistic, long-term view of their financial health. It’s about more than just managing cash flow, it’s about seeing your business as a living entity that requires strategic planning and a clear vision.
“If you’re focused on daily transactions and turnover, and you don’t have a wealth mindset, you need to look beyond the immediate issues to plan for the future. The most successful operators are those who build a team of trusted advisors who can help them navigate the complexities of finance and leverage their business’s success into security and lasting wealth. It’s a habit of thought that allows you to confidently steer your business and your life toward a better future, with 20/20 vision.”
Gus Gilkeson, CEO at Grow Capital
“As a business finance broker with 25+ years’ experience, it’s clear that financially stable businesses share some core habits.
“These businesses use technology to their advantage, streamlining ordering, staff and financial processes such as automating invoices, which can free up time and reduce potential errors. Importantly they know their ‘financial why’ – what the business is aiming from a financial perspective, and the steps that need to be taken to achieve it. Financially stable businesses understand the value or planning and forecasting, but crucially, they also plan for the unexpected and ensure they have ‘dry powder’ available – funds set aside for unknown challenges and opportunities.
“Finally, these businesses also identify knowledge gaps and seek expert advice to fill any holes. Whether that’s external consultants, financial advisers, brokers or legal advice, for example, by recognising what they don’t know businesses reduce the potential for costly mistakes to be made.”
Lauren Evans, Chartered Accountant & CFO, Finance Mentor
“Many business owners are reactive with their finances. Bookkeepers and accountants focus on what has already happened – lodgments, reconciliations, year-end reporting. Useful (and necessary), but it does not create stability on its own.
“Stable businesses are proactive. They forecast cash flow at least 90 days ahead, set aside funds weekly for tax and super, and know exactly when large payments are due. They do not just send invoices – they put systems in place to make sure money is collected. They do not hire or invest on gut feel – they scenario plan and test affordability before committing.
“Shaky businesses wing it, reacting only when problems arrive. Stable businesses plan, review, and lead with strategy. The difference is not luck – it is discipline, foresight, and treating financial leadership as a core CEO skill.”
Steven Nicholson, Founder, GearChange Business Advisory
“The two finance habits that I encourage all business owners to adopt are ‘know your numbers’ and ‘follow a plan’.
“Know Your Numbers
Stable foundations are based on accurate and timely information on business performance. This varies depending on industry but should include:
- Daily – your critical KPIs that need immediate action if off target – sales activity, jobs completed, customer calls.
- Weekly – summaries of sales value and volume, new clients, staff activity levels, departmental performance.
- Monthly – reporting business profitability, working capital, cash flow.
- Quarterly – trends – product sales mix, prior period comparisons, retention rates, average job value.
“Follow a Plan
A financial plan is your roadmap to predictable and stable performance and should include:
- Annual budget – driver-based revenue targets and the costs required to get there.
- Cash flow forecast – 13 weeks or 12 months forecast depending on how critical managing cash flow is to business health.
- Rolling three-year plan – investing in key hires, new locations, products, and services all take time. A robust plan will allow you to plan and execute these key stages.
“Partner with an outsourced CFO to embed these finance habits into your business today and move your business from shaky to stable ground.”
Sean Dunne, Owner | Founder, Dominium Capital
“In my experiences as a Business Financial Adviser, stable businesses have owners who are seeking real wealth and financial freedom outside of their business. To achieve this, they start by asking: “How will I exit?”
“Many business owners focus entirely on growing the business – but never plan how they’ll step away from it.
“Even if they are not ready to sell today, this question matters right now, because if a business isn’t sale-ready, the chances are that it’s not financially ready either.
“What do I often see that “needs fixing”?
- Disorganised financials
- Owner-dependent operations
- No clear valuation or exit strategy
“These aren’t just sale blockers. They’re wealth blockers.
“So, what actions should be taken to create a stable, financially ready business?
- Building a business that’s sale-ready – even if you’re not selling yet
- Designing a plan for succession, sale or step back on the owner’s terms
- And most importantly: grow wealth outside of the business along the way
“Because relying solely on the business to deliver a financial future is a risk and building independent assets alongside it is the key to freedom.
“Exit clarity = financial freedom”.
Michael Russell, Managing Director at Finwave Finance
“Stable businesses don’t just manage cash, they manage clarity.
“The strongest SMEs we see at Finwave share one habit above all, they treat their finances as a leadership tool, not a year-end chore. They review cash flow weekly, not quarterly. They know their breakeven point. And they don’t wait until June to talk to their accountant.
“Shaky businesses, on the other hand, tend to fly blind. They make gut feel decisions, mix personal and business accounts, delay their BAS, and hope revenue solves everything. It rarely does.
“Stable operators build buffers into their cash flow, use asset finance to protect liquidity, and say no to work that looks busy but isn’t profitable. They forecast regularly, even roughly and update their assumptions when conditions change. This keeps them nimble.
“You don’t need a CFO or complex models. You need discipline. Financial stability is less about the numbers themselves and more about the habits that surround them.
“The difference between surviving and scaling often comes down to one habit, knowing your numbers before they force you to.”
Dale Dixon, General Manager – Practice & Partner Advisory, MYOB
“In more than 18 years of working with small businesses, I’ve seen the same pattern: stable businesses form strong financial habits, while shaky ones leave things to chance. The good news is that good habits can be learned and embedded.
“Stable businesses keep everything online, so data is always up to date and accessible, whether quoting a job on site or reconciling at the end of the week. This means they can keep an eye on real-time figures and make accurate, informed business decisions quickly. Moreover, cloud systems reduce manual tasks, minimise errors, and free up time to focus on customers.
“Another key habit is ensuring admin is managed ongoing rather than leaving it until it’s overwhelming. Unstable businesses tend to put off admin until it snowballs into stress at BAS time. The stable ones do it as they go: sending invoices immediately, taking payment quickly, and always knowing their true cashflow position. Tools such as Solo by MYOB and MYOB Assist apps help with this and alleviate daily admin burdens.
“Finally, successful businesses don’t shy away from support. They invest in building their own knowledge and lean on advisors, bookkeepers, and accountants to fill the gaps. While entrepreneurs don’t typically go into business to manage compliance, they do need a plan, clear goals, and people around them who keep them accountable.
“The difference between stable and shaky often comes down to these small, sustainable practices that are proactive, not reactive. When SMEs build strong finance habits, they don’t just protect their business; they give it the freedom to grow.”
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