The recent past has taught Irish business owners one thing above all else: the environment you’re operating in can change faster than you expect. We’re currently navigating a combination of sustained cost pressures, global trade uncertainty, rising employment costs, and squeezed discretionary spending. Any one of those on its own is manageable. Together, they require some clear-headed thinking.
Here’s what businesses can do right now to make sure they are in solid financial shape and can withstand external shocks.
Take a hard look at your numbers
This advice never gets old: starting with the numbers. When did you last sit down and really interrogate your outgoings? I advise actually going through them line by line and asking whether each one is earning its keep.
If your revenues are under pressure, your costs need to come down too. That sounds obvious, but I see plenty of businesses where the cost base has grown in good times and nobody has gone back to question it since. Stop non-essential spending, redirect budgets that aren’t contributing to the long-term health of the business, and consider outsourcing some of your non-core activities rather than carrying the burden internally.
The real measure of your company’s health is profitability, not turnover. A business model that can scale down when revenues fall – and still make a profit at a lower level of activity – is a resilient one. Success isn’t always about being bigger; it’s about staying profitable at whatever size makes sense right now.
Your people are still your biggest asset
The cost of employing someone in Ireland has risen in recent years, and not just because of wage inflation. My Future Fund, the auto-enrolment pension scheme, means many employers are contributing to staff retirement savings whether they previously offered a pension scheme or not. There are also pressures such as the new statutory sick pay entitlements (5 days per year), increased PRSI, and the latest minimum wage increase (in January 2026).
All of that sits on top of a labour market that remains competitive for skilled people. Losing someone central to your operation is expensive once you account for recruitment, onboarding, and lost productivity, so the maths on retention still favours investment in your key people over the cost of replacing them.
Think about what you can offer beyond base salary. Growth shares and share options are an underused tool for aligning key people with the long-term success of the business. Flexible working arrangements – now an expectation for many employees rather than a perk – can also strengthen your position as an employer without adding to your direct cost base.
Have a realistic plan and stick to it
I talk to a lot of business owners who are working flat out but don’t have a roadmap for where they’re going. If that’s you, now is the time to fix it. Not the start of a new financial year, not next quarter, not after the busy season. A plan you write today is infinitely more useful than the perfect one you never get around to.
A solid business plan should set out how your business will make a profit under a range of scenarios – not just the most optimistic one. What happens if a major client pulls back? What happens if your input costs rise by another 10%? What if tariff changes affect your supply chain or your export markets? Having thought through these business scenarios in advance means you’re not making panicked decisions when they arise.
Banks and investors won’t back a business without a credible plan, so having one in place also keeps your financing options open, too.
What to do if you need cash
Don’t borrow just because cash is tight. Taking on debt to fund losses isn’t a strategy; it’s a delay. Plus, you are creating a liability for the business, and repayments will start as soon as the loan arrives. Your first priority should be cutting costs and building your cash reserves, not creating new obligations.
That said, having access to liquidity is different from using it. If you don’t already have an overdraft facility, apply for one as soon as you can. Even if you end up not using it, it’s better to put one in place while there’s no pressure to do so, as the process can take a while. You can typically get an overdraft equivalent to one month’s revenue.
If you do need growth capital, the supports available in Ireland are worth exploring. The Strategic Banking Corporation of Ireland (SBCI) continues to offer competitively priced lending through its various schemes. Enterprise Ireland has funding available for businesses looking to grow, innovate, or expand into new markets. Your Local Enterprise Office is also worth a call – the range of grants and supports on offer varies, but there’s often something relevant, particularly for smaller businesses or those investing in training and productivity.
If you’re considering alternatives to traditional bank lending, there are a range of options active in the Irish market.
Stay on top of your tax position
Keep your returns filed on time, even in difficult periods. Revenue’s relationship with businesses that engage proactively is a very different one from its relationship with businesses that go quiet. If you’re feeling the squeeze, talk to them – or have your accountant talk to them on your behalf. Payment arrangements could be available and are far preferable to letting arrears accumulate.
If you’re working to build up cash reserves right now, weigh the cost of any deferred liabilities carefully against your need for liquidity. The key is always to know exactly where you stand.
There are opportunities in change too
It’s not all pressure and difficulty. Periods of uncertainty tend to reshuffle the pack, and that creates openings for businesses that are well-positioned:
AI-assisted working is an opportunity worth paying attention to. Businesses that can use AI tools to automate routine tasks and improve output are reducing their cost per unit of work meaningfully. If you haven’t looked at what’s available and what applies to your business, you might be paying for work that could be done faster and cheaper. That’s not an argument for losing good people; it’s an argument for thinking carefully about what you’re hiring for, how your team spends its time, and where technology can take the load.
Hybrid working patterns and headcount changes in recent years mean some businesses occupy more space than they need. If you are paying for space that no longer reflects how your business actually operates, it’s worth approaching your landlord about reducing your footprint or renegotiating your lease terms.
Public sector spending remains robust, with money flowing through semi-states, agencies, and departments. Set up category alerts on eTenders so you’re notified of relevant tenders rather than having to monitor them manually. Competition for public contracts is real but tends to be less ferocious than in the private sector. Also, public bodies are legally required to pay promptly, which makes them more predictable from a cash flow perspective than most.
Businesses that function using last year’s – even last quarter’s – figures are always on the back foot. Your business can survive external shocks if you’ve been using all the tactics I talk about, such as using real-time data, being proactive, managing your overheads, outsourcing, and having a model that can expand and contract according to needs. Face your situation honestly, adapt where you need to, and stay focused on profitability rather than just staying busy!
