Closing a Chapter: Tips from the Outgoing Victorian Small Business Commissioner
Written by Lynda McAlary-Smith, Victorian Small Business Commissioner
As I conclude my time as Victorian Small Business Commissioner in order to become Australia’s Small Business and Family Enterprise Ombudsman, I wanted to share some of the lessons I’ve reflected on from my four and a half years serving Victoria’s small businesses.
I’ve had the privilege of meeting many inspiring and innovative entrepreneurs, who’ve shared some great insights into their business practice. I’ve also observed countless small business disputes where I’ve observed some recurring lessons that I hope others will find helpful in their own businesses.
Victorian Small Business Commissioner Lynda McAlary-Smith
1 – Respond to conflict with curiosity
When a dispute arises, it is perfectly natural for emotions to run high… after all, your business is your livelihood. However, reacting purely on emotion is rarely productive.
When faced with conflict, take a breath and try to approach the situation with curiosity. Asking questions to understand the other party’s reality, whether it’s a supplier grappling with staff shortages or a landlord facing their own financial pressures. That perspective can instantly de-escalate tension and open the door to a commercial solution.
2 – Forecast your cashflow and manage it carefully
I’ve observed that successful small business owners are consistently diligent cashflow managers. I recall visiting TransSpace, an innovative health clinic that established its suites with furniture from the local op-shop. If they didn’t have cash for something, they waited.
Cashflow is an evergreen concern among small businesses and in the context of persistent inflation and new obligations such as PayDay Super from 1 July 2026, it’ll continue to be the case.
Business Victoria has free cash flow forecasting templates which I encourage you to utilise.
3 – Enforce your payment terms and conditions
Unfortunately small businesses are three times as likely to go unpaid as big businesses in Australia (according to CreditorWatch), and my observation is that small businesses often feel unable to follow-up payment for their goods and services.
I encourage you to follow-up the payments, as you’re entitled to.
When entering into agreements with other organisations, I also encourage you to set payment terms that favour your operations. In a recent example, a small business insisted on 30-day payments terms from a customer who was previously paying them in 90-days. Fortunately, the customer agreed to those terms. It never hurts to ask, and you should always follow-up what you’re entitled to.
4 – Treat legal advice as an investment
Legal advice is like travel insurance. If you can’t insure yourself, should you travel?
When looking to make significant financial decisions, such as entering into a retail lease, you should invest in a lawyer to review the contracts and to answer any questions you may have, or to test your assumptions.
It’s possible to engage lawyers for a set fee for a task, such as a contract review. Don’t shy from asking what fees you can expect to pay in order to assess if they’re within your budget.
The Law Institute of Victoria has a free referral service that you can access at liv.asn.au/referral
5 – Keep records, ideally digital records
In the VSBC’s dispute resolution work, we frequently see verbal agreements come into question when matters fall into dispute. Records are evidence.
Examples include written agreements on the scope of a service you’ll undertake for a client, to a photograph of goods that you’ve delivered to a client’s p remises.
The best form of record is digital. E-invoicing is an example of why. It allows small businesses to securely send invoices directly within the system to clients, rather than via email or physical mail, removing the possibility of invoices ‘getting lost’.
Commissioner McAlary-Smith speaking at the Mount Alexander Shire Small Business Expo in Castlemaine in 2025
6 – Prepare yourself for difficult conversations
Difficult discussions are inevitable. Give yourself the best chance of a positive outcome by preparing. Block out time and ensure you’re in the right environment, such as a quiet room without distraction.
It may sound silly, but ensure you aren’t hungry.
Prepare yourself speaking notes, which can be as simple as key points you’d like to make.
7 – When investing in a shop fit-out, budget for its removal
A truly heartbreaking problem I’ve observed among retail tenants is when they’ve invested significant sums into fitting-out a retail space but haven’t budgeted to later remove it. This is very standard at the end of a retail lease and is called a make-good obligation, where the tenant must return the property to its original state for the landlord and their future tenants.
It’s not unusual for a tenant to believe they’ve enriched the property with their additions, but unfortunately that fit out may not align with the vision of a future tenant.
8 – Don’t be afraid to negotiate
In business, everything is up for negotiation, including a lease: the asking price, its duration, outgoings and other terms. If negotiating isn’t for you, I encourage you to engage a trusted mentor or adviser who can support you or act on your behalf.
I also encourage you to be creative when negotiating. If the landlord isn’t interested in negotiating the rent (it can impact the property’s valuation), you could instead request a contribution to your fit-out.
Think creatively about securing a long lease, with flexibility to move if the space isn’t right for you. For example, a 9 year lease structured as a three year lease with two further options (3 + 3 + 3) would give you the best of both.
9 – Don’t hesitate to ask for help
Small business owners who ask for help get ahead, and there’s plenty of assistance available. You may not realise it, but many government authorities are in fact ready and willing to share information or provide guidance.
From the tax office to your local council. If you’re facing a challenge, or are unsure about something, pick up the phone and ask.