How SMEs can tackle sluggish trading periods

Cost control

Tabone highlighted how cost control can help to manage seasonal volatility.

“Avoiding over-stocking during slower periods and ensuring trade debtors are paid on time can provide essential liquidity when revenue softens.”

“Maximising margins during peak trading periods creates a safety net that can carry the business through inevitable slowdowns. Profitability in good months underpins stability in the tougher ones,” she said.

For businesses feeling the brunt of seasonal cash flow swings, Tabone suggested marketing initiatives such as specials, limited offers and social media promotions to drive demand during periods with lower foot traffic.

“Renting out under-used space, hosting joint events, or participating in seasonal markets can open new revenue channels. Export and government support programs are also making it more realistic for small businesses to look beyond their immediate geographic markets,” Tabone said.

“When seasonal planning, diversified income streams and active cash flow management come together, businesses can reduce risk, smooth earnings and protect long-term profitability. It’s not just an accounting exercise, it’s a critical management tool.”

Data from small business lender OnDeck revealed that small business loan applications rose 42 per cent year-on-year in the December quarter 2025.

“We see particularly strong demand from trades, retail and hospitality sectors, which are among the most exposed to consumer spending and seasonal trading cycles. These businesses often don’t have time to wait weeks for funding, which is part of the reason they seek out non-bank lenders,” said OnDeck chief executive Cameron Poolman.

Stalled productivity

CPA Australia business investment and international lead, Gavan Ord, added: “Australia’s productivity growth has stalled, the regulatory burden has increased and inflation remains problematic.”

“We’re drowning businesses in red tape and then wondering why productivity is flat. Australia has a productivity problem, not a motivation problem. Business is willing – it is the system that is getting in the way,” he said. 

"If the rules are too complex, business owners spend more time complying than growing. Businesses need certainty and simplicity. These reforms would free up time and resources for investment, growth and job creation.”

Ord pointed to the 2026–27 budget as an opportunity to lift productivity and restore confidence, stating the importance of “leadership, coordination and a commitment to reform that looks beyond the next electoral cycle”.

“Business confidence and simplicity are critical to economic renewal, so any reform must reduce barriers to investment, not create new ones.”