Boosting small business productivity: the role of financial activity

12 February 2025

Written by the Innovation Lab

For small businesses, productivity isn’t just about working harder—it’s about working smarter. At Be the Business, our mission is to help small and medium-sized enterprises (SMEs) unlock their potential, and financial productivity is a key driver of that growth. From managing cash flow challenges to empowering teams with financial transparency, there are actionable strategies every business can implement to thrive.

Let’s explore how improving financial activity can enhance your business productivity and highlight tools and insights to get you started.

1. Tackle Cash Flow Challenges Head-On

Cash flow problems are one of the most common barriers to SME growth. Without adequate cash flow management, even profitable businesses can struggle to seize new opportunities or navigate unexpected disruptions.

Our guide, How to Deal with a Short-Term Business Cash Flow Problem, provides actionable advice on:

·       Prioritizing key expenses to maintain business continuity.

·       Negotiating payment terms with suppliers and customers.

·       Accessing alternative funding options in times of need.

By addressing cash flow proactively, you can create stability, reduce stress, and focus your energy on long-term planning.

2. Be Honest and Transparent About Financial Performance

Financial transparency can be a powerful productivity tool. When employees understand the financial health of your business, they’re more likely to be engaged, motivated, and aligned with your goals.

Read our article, Be Honest and Keep It Simple When Communicating Financial Performance to Staff, to discover:

• Why honesty builds trust and collaboration across teams.

• Simple ways to share financial updates that resonate with non-financial employees.

• How businesses like yours are seeing productivity gains from transparency.

3. Share the Right Financial Information with Your Team

Knowing what financial information to share—and what to keep private—can feel like a balancing act. Too much detail can overwhelm employees, while too little can leave them disconnected.

Our guide, How to Work Out What Financial Information to Share with Your Team, helps you:

• Identify the metrics that matter most to your employees.

• Build a culture of collaboration by empowering teams with key financial insights.

• Foster accountability and innovation by tying financial goals to individual contributions.

4. Leverage Technology for Financial Accuracy

Smart technology can transform how businesses manage their finances and getting a smart meter installed is something small businesses can do to help them manage their energy usage and costs. Accurate data means smarter decisions, which can directly impact both productivity and a business’s bottom line. One example of this is Smart  Energy GB’s recent  Accuracy Advantage campaign around the percentage increase in savings and/or business performance that a small business could get when they are in control of four factors to do with expenditure

Visit the Smart Energy GB website  to explore how smart meters:

• Can help small businesses better manage their energy usage and costs

• Provide accurate billing, which can help with managing cashflow and budgets

• Can help you identify where you can make cost savings, whilst supporting sustainability goals

• Integrating technologies like this into your operations can save timeand free up resources for growth-focused activities.

The Bottom Line: Financial Productivity Drives Business Success

Improving your financial activity isn’t just about managing numbers—it’s about creating a culture of transparency, stability, and smart decision-making. Whether it’s tackling cash flow, empowering your team with financial clarity, or leveraging the latest tools and data, the path to productivity starts with better financial management.

The Be the Business Productive Business Index (PBI) is a goldmine of insights into SME performance, including financial activity. Recent data highlights:

• Financial instability is one of the top factors affecting productivity for SMEs.

• Businesses that invest in better financial management tools and training see measurable improvements in efficiency and growth.

By focusing on financial productivity, your business can strengthen its foundations and position itself for long-term success.

Explore the guides and resources linked above to take actionable steps toward boosting your financial productivity. Together, we can help your business thrive.