3 survival tips for small business leaders in challenging times

We’re in a tricky economic cycle, with mixed data points overseas pointing to uncertain times ahead. US jobs data is down amid fears of recession, and bond yields are dropping. So, how can business owners deal with the rising pressures? Ryan Williams, Director of the Australian Centre for Business Growth, shares his top survival strategies.

Australian business failures are at a record high, with the insolvency rate rising 38 per cent on average across all industries and expected to rise higher for certain sectors.

The pressure can be immense for the owners, founders and CEOs of small companies when they’re facing difficult business conditions. As holders of an organisation’s strategic capability, the leadership team, and in many cases, just the owner or CEO, are required to absorb this burden and respond accordingly. When economic circumstances become even tougher, there’s extra demand to be mindful of staff whose families and livelihoods depend on the leadership’s capability to steer the company around or through stormy waters.

How can small business owners deal with this stress to put their company in the strongest position?

Look after yourself as a person

When times are difficult or when there’s high pressure, leaders tend to want to be busy or to be doing something constantly. Even something simple like taking time out for a walk can feel like an unnecessary and guilty luxury. This “culture of relentless business” is escalating burnout and we’re starting to see a shift towards doing less.

Leaders should be intentional about doing things to help them calibrate—whether that’s sports, music, reading, or anything that gives them some respite and gets them out of the day-to-day. Taking time to mull over challenges, collect ideas, and be mindful can lead to better decision-making and an enhanced ability to generate and execute strategy.

It’s vital to always devote time for relationships and family. Entrepreneurs have one of the highest divorce rates of any profession – so fulfilling their duty of care to life beyond the business is non-negotiable.

Build peer support

 Beyond taking care of themselves as a leader, thriving during uncertainty means learning to rely on others. A peer group or a network to connect can become vital support when facing adversity, or indeed help when times are good. A safe space, external to the company, to share concerns and thoughts or collaboratively find solutions can strengthen a leader.

Trusted mentors or an advisory board are another crucial source of support. It provides wise minds to brainstorm business problems and share the burden of responsibility for ongoing success. Reinforce this support by making sure the right partners are in place, whether that’s an external accountant or lawyer or a key supplier, to help keep the company on track.

Master delegation

In challenging times, many CEOs choose to dive in and do everything themselves because “no one can do it as well as I can”. This refusal to delegate is a costly mindset. Falling into this ‘delegation trap’ will steal time that a CEO should be using to set strategy and lead the company.

To know what tasks to delegate, I draw up a chart with three columns:

1. Tasks that can be delegated immediately.
2. Activities that should be delegated but will need someone to be trained or hired to do.
3. Work that only the CEO can do.

Maintain these three buckets to be prepared for difficult or busy times.

Use technology to lighten the load

The AI tsunami can feel overwhelming! Yet leaders don’t need endless AI training nor to develop tools in-house to use it effectively. Start by focusing on a smaller bunch of tasks and figure out where AI could increase efficiency. Then opt for the best tools to boost productivity for yourself and your team.

For example, an events company owner I spoke to recently used a GenAI app to analyse hours of conference video footage to splice out the most appealing segments. Using very little time, she produced a year’s worth of video snippets for use as social media content.

Just having a casual brainstorm with colleagues is a great way to learn about the AI hacks they have discovered. And applying what they’ve learnt more broadly, while also setting up an AI usage policy to guide their efforts, can streamline an SME’s workflow. The more time that a leader can save by using technology, the more space they have for leading, rather than doing ‘busy’ work.

It may seem counter-intuitive, but by focusing on themselves and working smarter, not harder, SME leaders can navigate their company through economic turbulence and towards sustainable business growth. It may be as simply as blocking out diary time to think or letting themselves recalibrate via a hobby or spending time with family. They can ease the leadership burden further by delegating tasks, seeking peer support and using technology to be more productive.

Rising above business-as-usual can not only transform a leader, but help their company more easily adapt, and even thrive, in difficult circumstances.

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