Running a small business is not a breeze, considering that the failure rate is alarmingly high. The US Chamber of Commerce cites data showing that nearly half of startups do not make it beyond five years. Cash flow issues, such as poor budgeting, lack of funding, and incompetent inventory management, are a top cause of failure.

As the business landscape becomes complex and competitive, organizations face mounting pressure to optimize resources while driving growth. Maximizing financial efficiency can make a difference between success and failure. You need to think beyond lowering costs and increasing revenues. It involves strategic planning to ensure every dollar works harder.

In this article, we will discuss a few practical steps to help organizations achieve sustainable financial health.

Budget for Everything

A ResearchGate study highlights the importance of budgeting for small and medium enterprises. Effective budget management drives successful resource allocation, while ineffective budgeting can be a significant contributor to failure. Budgets are, in fact, a reflection of a firm’s strategy. They build the foundation of financial efficiency by aligning resources with organizational goals.

Organizations should adopt zero-based budgeting, where every expense is justified from scratch rather than carried over from prior periods. This approach addresses budget creep and ensures funds support only high-impact activities.​ A combination of rolling forecasts and traditional budgets can help adapt to market changes dynamically.

Budgeting may differ for different niches. For example, a condominium association will not do it the same way as a commercial business. The question here is, “How to plan a condo association budget”? Besides the regular elements like income and expenditure, the anatomy of a condo association budget includes reserve contributions.

Ledgerly notes that the reserve fund works like the community’s future-proofing tool. Consider it a long-term savings account that grows steadily over time and covers key replacement projects, such as elevator or roofing overhauls. Without budgeting for reserves, the association may run into financial trouble later on. 

Control Operational Expenses

Operational expenses often erode profits if left unchecked, so rigorous monitoring is essential. Start by categorizing expenses into fixed and variable, then negotiate supplier contracts for better terms like early payment discounts or bulk pricing. Renegotiating can free up working capital without sacrificing quality.​

You can use spend management software to track expenditures in real-time and set approval workflows for non-essential purchases. Regularly audit vendor performance to eliminate unreliable suppliers.​

Outsourcing non-core functions, such as payroll or IT support, is a smart way to shift fixed costs to variable ones. The best part about outsourcing is that it offers scalability rather than saddling a business with a team it may not always need. However, you must evaluate outsourcing quarterly to ensure it delivers ROI, balancing cost savings with control.

Identify and Eliminate Bottlenecks

Bottlenecks drain efficiency and inflate costs. Imagine how delays in processes like manual invoicing or incompatible systems can affect your business finances. According to Fintech Weekly, with automation becoming a norm, the real financial bottleneck for businesses is not payments but settlement. For things to function safely, execution and settlement should be the same event.

Organizations need to stay one step ahead of financial bottlenecks so that they can eliminate them before things get out of hand. Monitor KPIs such as days sales outstanding (DSO) and inventory turnover to pinpoint issues. Assemble cross-functional teams to map workflows and identify friction points.​

Prioritize fixes based on impact. This means addressing high-cost bottlenecks first, like slow payment collections that tie up cash flow.​ Similarly, continuous improvement via Lean methodologies ensures bottlenecks don’t recur. Regular process audits, supported by analytics tools, turn raw data into actionable insights for streamlined operations.

Train Employees on Financial Literacy

According to a Forbes article, nearly half of Americans fall short when it comes to financial literacy skills. Employees lacking these skills can hold your business back. Conversely, a financially fluent workforce can help a business drive growth and build resilience. They can view all decisions through the lenses of revenue preservation, risk reduction, and value creation.

Well-trained staff reduces errors that lead to rework and waste.​ Offer workshops on budgeting, cash flow basics, and expense tracking, tailored to roles. For example, sales teams can be educated about commission impacts on margins. Gamified training platforms boost engagement, with certifications rewarding participation.

Measure the ROI of these programs through pre- and post-training quizzes and metrics like reduced departmental overspending. Ongoing education keeps pace with regulations and tools, ensuring adaptability.​ Leadership buy-in is crucial to set the tone. Integrate financial literacy into onboarding so new hires adopt efficient habits from day one.

FAQs

Why do organizations struggle financially?

Common financial pitfalls that organizations struggle with include poor cash flow visibility, unchecked expenses, and reactive budgeting. Inefficient processes and a lack of real-time data exacerbate issues, leading to liquidity crunches. Eventually, businesses that fail to pay attention to these issues may suffer from major setbacks.

Why is it hard to achieve financial success?

Achieving financial success can be challenging for businesses due to diverse reasons, which are sometimes unavoidable. Market volatility, siloed departments, and resistance to change hinder progress. Without metrics-driven decisions, organizations may miss optimization opportunities and sustain losses.

How can organizations drive sustainable financial growth?

Financial growth goes beyond making high sales and profits. For growth to be sustainable, businesses need to have a strategic plan. They must focus on automation, employee training, and continuous monitoring. Balancing cost cuts with smart investments in efficiency ensures long-term resilience for an organization.

Maximizing financial efficiency empowers organizations to thrive amid uncertainty. These strategies, proven through real-world applications, can slash waste, boost cash flow, and sharpen competitiveness. Commit to ongoing monitoring and adaptability to make the rewards compound over time. Financial discipline isn’t mere survival. It is the catalyst for innovation and prosperity, ensuring that every resource drives long-term success. 

CANBERRA, Australia — Petrol thefts, commonly known as “drive-offs,” are surging across Australia as fuel prices climb toward A$3 per litre, fueled by global oil supply disruptions from the ongoing Middle East conflict. Police in multiple states are bracing for further increases and urging service stations to adopt preventive measures like prepaid payment systems and enhanced CCTV to curb the opportunistic crime.

In South Australia, where the spike has been most pronounced, authorities recorded 221 fuel theft offences in the week ending March 15, 2026 — a 37% jump from 162 the previous week. Police Commissioner Grant Stevens highlighted that nearly half of the offenders — 97 individuals — were first-time culprits, suggesting economic pressures rather than organized crime were driving the trend.

“The cost-of-living pressures that people are dealing with, the significant increases in fuel costs — we will see more petrol drive-offs in the weeks to come,” Stevens told ABC Adelaide on March 18. He warned that police resources are stretched thin and could no longer prioritize investigations into preventable drive-offs unless retailers take decisive action.

Stevens specifically called for widespread adoption of prepaid pumps, noting that one South Australian service station already using the system reported zero incidents. “This takes police away from other responsibilities that we could be attending to,” he said, adding that while CCTV, number plate recognition and other identification tools help catch offenders after the fact, they do little to prevent the crime.

The Australian Federal Police and state forces in New South Wales, Victoria and Queensland reported vigilance but did not provide specific recent statistics. In regional Victoria, police launched investigations into multiple thefts from parked vehicles in Kyneton between mid-March and March 22. Queensland trucking operators warned of overnight siphoning from heavy vehicles at rest stops, with thieves targeting hundreds of litres from diesel tanks while drivers slept.

Tasmanian police noted no clear pattern of increase, reporting 44 cases in the past six weeks, though the highest weekly tally — 11 — occurred before the latest fuel price surge. ACT Policing recorded only six incidents this year, with no siphoning reported, though officials acknowledged such offences are often under-reported.

The theft wave coincides with petrol prices nearing record highs, driven by supply fears from the escalating US-Iran conflict disrupting global oil flows through the Strait of Hormuz. Unleaded fuel has approached A$3 per litre in some areas, prompting panic buying, calls for conservation and even discussions of potential rationing. The Prime Minister urged Australians to be “sensible” with fuel use, suggesting remote work or public transport to ease demand.

Service station operators face mounting pressure. The Australian Association of Convenience Stores acknowledged the issue but noted that implementing prepaid systems nationwide would require significant investment and could inconvenience legitimate customers. Many stations already use CCTV and automatic number plate recognition (ANPR) to deter theft and aid prosecutions, but critics argue these reactive measures fall short.

In South Australia, Stevens emphasized that drive-offs represent a preventable crime that diverts police from higher-priority matters. “While I acknowledge they’ve put in measures such as CCTV, number plate recognition and other measures that help us identify the offenders, it doesn’t actually assist us in mitigating this from a crime point of view,” he said.

Broader impacts include risks to small businesses. Service stations absorb losses from unpaid fuel, which can strain margins amid already tight retail conditions. Truck drivers, particularly in rural and regional areas, report heightened vulnerability to siphoning, prompting advice to lock fuel caps and park in well-lit, secure locations.

Authorities across states urged retailers to consider prepaid options, especially at high-risk sites or during peak price periods. Some stations have already trialed prepaid for certain pumps or after dark, with positive results in reducing incidents.

The surge has sparked public debate over responsibility. Motorists facing financial strain argue that extreme prices push desperate people to desperate acts, while police and retailers stress personal accountability and the need for deterrence.

As fuel volatility persists, experts predict thefts could continue rising if prices remain elevated or shortages materialize. Police in multiple jurisdictions reiterated calls for industry cooperation on preventive tech, warning that without change, drive-offs could overwhelm limited investigative capacity.

For now, the message from law enforcement is clear: proactive steps at the pump — from prepaid systems to better lighting and surveillance — offer the most effective defense against a crime tied directly to economic hardship and global events.

ET Intelligence Group: Amid rising uncertainty of capital gains on equities in a volatile market, dividend-paying stocks are back in the limelight. Select companies, especially those with a mature business model and, therefore, having steady cash flows tend to pay dividends regularly in a bid to return the excess cash generated from the operations to shareholders. However, merely considering the absolute dividend payout per share will not reveal whether a stock looks attractive at its current price. For that, dividend yield comes in handy. It is calculated as the annual dividend per share divided by the stock price. The ratio makes it easier to compare stocks across sectors to arrive at an investment decision.

ETIG has identified 10 stocks offering dividend yields of 4% or more based on FY25 payouts: Vedanta (6.3% yield), Coal India (5.7%), REC (5.4%), Hindustan Zinc (5.3%), GAIL (5.1%), ITC (4.8%), ONGC (4.6%), RITES (4.5%), NMDC (4.2%), and Oracle Financial Services Software (4.1%).

A caveat for investors looking at dividend yields – the current yields are based on the past year’s dividend payouts. While companies do strive to maintain a stable dividend payout relative to net profit on a longer horizon, fluctuations due to government policies, economic and geopolitical uncertainties cannot be ruled out especially when such aberrations tend to affect profitability. For instance, ITC’s stock currently trades near the 52-week low amid a sharp rise in tobacco excise duties since February 1, which has affected investor sentiment. While the company continued to declare an interim dividend of ₹6.5 on January 29, same as in the previous year, future payout will depend upon how well it can protect profitability amid a higher excise duty regime.

In addition, effective yields will vary depending on investors’ marginal tax rates, as dividends are taxed in shareholders’ hands. For instance, a taxpayer facing a marginal tax rate of 30% and 4% educational cess will receive an effective dividend yield which will be over two-third of the calculated yield. For such a taxpayer, Vedanta’s effective dividend yield will be around 4.3%.

Also, the list does not include companies such as TCS, HCL Technologies, and UTI AMC, where yields are high due to special dividends. To be sure, companies operating in the sectors with high cash generation such as the IT sector tend to distribute special dividends more often than others.

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Mumbai: Kotak Mahindra Bank is one step closer to acquiring the India retail business of Deutsche Bank in a deal valued at about Rs 4,500 crore after being selected as the preferred buyer, multiple people familiar with the matter told ET.

A deal is expected to be signed and announced as early as next week, they said, requesting anonymity as the discussions are private.

The proposed acquisition comprises a retail loan and deposit book of about Rs 27,000 crore. This includes personal and home loans, MSME lending, retail deposits and wealth management assets.

The wealth management business is estimated at around Rs 7,000 crore, while the bulk of the portfolio is driven by retail and MSME loans. Emails sent to both Kotak Bank and Deutsche Bank remained unanswered until press time Sunday. The net value of assets over liabilities in the portfolio of Deutsche Bank’s India unit is around Rs 4,300 crore.

A Niche Presence

Kotak is expected to pay a slight premium to this, translating into a consideration of about Rs 4,500 crore, after outbidding Federal Bank, which had also been in contention, people cited above said. Final numbers for the deal may be subject to adjustments at closing, they added. Deutsche Bank’s India unit, with a network of about 17 branches, has built a niche presence among affluent clients.
Its retail segment generated a revenue of Rs 2,455 crore in the year ended March 2025, up 4% from Rs 2,362 crore in FY24. Its retail banking business held total assets of Rs 25,038 crore as of March 2025, according to latest disclosures.For Kotak, the acquisition would deepen its retail franchise, adding scale in loans and deposits while strengthening its presence in the MSME segment and wealth management. The deal would help Kotak accelerate growth in the high-net-worth segment while increasing its share in prime urban retail lending.

Global Overhaul

For Deutsche Bank, the divestment aligns with its strategy to wind down retail operations in India as part of a global overhaul under CEO Christian Sewing focused on boosting profitability and prioritising core businesses. Kotak recently clarified that it did not submit a financial bid for IDBI Bank, despite market speculation. The lender’s approach to acquisitions has been focused on strategic fit, valuation and integration feasibility.

“We evaluate every transaction in the market through three clear lenses,” Ashok Vaswani, managing director and CEO of Kotak Mahindra Bank, had said in an investor call in January. “First is strategic fit — does the opportunity add to our franchise? If it doesn’t, we don’t pursue it further. Second is valuation — whether the deal is value-accretive for the firm? For us, scale is about relevance, not just size. The question is whether it strengthens us strategically and financially. If it meets both criteria, we get interested.”

Integration

The third lens is integration and what it will take to successfully absorb and execute on the acquisition, he had said. India’s banking sector has witnessed a wave of strategic deals and consolidation since Axis Bank’s acquisition of Citibank’s consumer business in 2022 for around Rs 11,600 crore, which included credit cards, retail banking, wealth management and consumer loans, along with the transfer of about 3,200 employees. Kotak Mahindra had earlier acquired Rs 3,330-crore personal loan portfolio from Standard Chartered. Deutsche Bank sold its credit card book to IndusInd in 2011.

More recently, global investors have increased their exposure to India with Japan’s MUFG acquiring a 20% stake in Shriram Finance for $4.4 billion in the largest cross-border financial sector investment, while Emirates NBD agreed to buy a 60% stake in RBL Bank for $3 billion and SMBC picked up a 20% stake in Yes Bank for $1.6 billion and later increased it by another 4.99% stake.

Aparna Shanker, CIO – Equity at The Wealth Company Mutual Fund, recommends a balanced and diversified approach for FY27, with a clear tilt towards equities while maintaining exposure to debt and gold. She outlines an ideal asset allocation strategy for moderate-risk investors, while highlighting opportunities across manufacturing, financials and select small- and mid-cap stocks.

Edited excerpts from a chat:

After 1.5 years of no returns, how attractive is the market looking now?
Over the last 18 months, the market has largely gone through a phase of consolidation rather than wealth destruction. This period has helped correct some of the excess valuations that had built up earlier, particularly in pockets of the broader market. From a long-term perspective, such phases are healthy because they allow earnings to catch up with prices. As we look ahead, corporate earnings in India remain structurally strong, supported by improving balance sheets, a revival in capex, and domestic consumption. Therefore, while near-term volatility may continue, the market today appears far more balanced than it did a year ago, which improves the risk-reward for long-term investors.As per Bloomberg data, Nifty 50 earnings over the last five quarters demonstrate significant volatility rather than a consistent trend. After steady growth through Q4 FY25 and Q1 FY26, earnings experienced sharp swings—a dramatic +27.6% surge in Q3 FY26 followed by an equally severe -24.8% decline in Q4 FY26. This volatility reflects sectoral divergence: commodity sectors (oil & gas, metals) drove growth, while financials remained weak with compressed margins. The underlying earnings quality appears fragile, with consensus expectations being downgraded amid strained topline growth and narrowing margins across India Inc.

Amid global macro uncertainty, how is The Wealth Company Mutual Fund positioning its equity portfolios to navigate this environment while maintaining long-term return potential?
At The Wealth Company Mutual Fund, our investment philosophy is anchored in a combination of top-down and bottom-up stock selection, with a strong emphasis on earnings visibility, balance sheet quality, and good governance. Given global uncertainties ranging from geopolitical developments to interest rate cycles we are focusing on businesses that demonstrate resilient cash flows, scalable growth models, and prudent capital allocation. Our portfolios maintain a diversified approach across sectors and market capitalisations that are likely to benefit from India’s structural growth story, along with some tactical investment opportunities during these volatile times. The idea is to remain invested in companies that can compound earnings over multiple years rather than attempting to time short-term macro cycles.
What is your take on small cap stocks? Are they attractive now? Is valuation still a concern?
Small caps have witnessed significant interest over the past few years, and as seen many times before, valuations in certain pockets had moved ahead of fundamentals. However, the recent correction and consolidation have helped bring valuations closer to long-term averages in several segments. It is important to remember that the small-cap universe is extremely diverse. The decline has not been uniform across stocks, as they have varied strengths and growth potential, many of which are now available at better valuations. For long-term investors, small caps continue to offer an opportunity to participate early in the growth journey of emerging companies, provided investments are made with a disciplined, research-driven approach and a sufficiently long-term horizon.Which sectors of the market do you think are in a sweet spot of reasonable valuations and high growth as we step into FY27?
As we move into FY27, we see interesting opportunities across sectors aligned with India’s structural economic drivers. Areas such as manufacturing and industrials particularly those benefiting from the capex cycle and supply chain diversification remain attractive. We also see opportunities in select financial services, capital markets, tech-enabled businesses, niche consumption themes, and export-oriented businesses gaining global market share. Within the broader market, several emerging companies in these segments fall within the small- and mid-cap space, reinforcing our belief that bottom-up stock picking can generate meaningful long-term alpha.

If you had to prepare a portfolio afresh at this stage for an investor with moderate risk appetite and risk horizon of 4–5 years, how would you split it between gold and silver, equity and debt?
For an investor with a moderate risk appetite and a 4–5-year horizon, diversification remains essential. A balanced allocation could look something like 65–70% in equities, 15–20% in debt, and 10–15% in precious metals dominated by gold as a hedge against macro uncertainty. Within the equity allocation, investors should ideally have exposure across large caps for stability and small and midcaps for growth potential. This combination helps balance volatility while still allowing participation in India’s long-term growth opportunity.

What would be your advice to investors who entered small cap funds recently but are either sitting with no returns or at a loss?
We understand the concerns investors are experiencing. Small caps are inherently more volatile in the short term but have historically been rewarding over longer horizons. Periods of muted returns or temporary drawdowns are not unusual. If the investment horizon remains long term, it is generally advisable to stay invested rather than react to short-term market movements. In fact, systematic investing during corrections often improves long-term outcomes. The key is patience and allowing underlying business earnings to play out over time.

What is your take on IT stocks? Are the valuations too attractive now or the AI doomsday scenario is for real?
The IT sector has been undergoing a period of recalibration due to global economic uncertainties and prolonged decision-making cycles for discretionary spending. As a result, valuations in several companies have corrected from earlier highs. While the near-term outlook depends on global demand conditions, the long-term structural drivers remain intact. Technologies such as AI, cloud, and digital transformation are likely to expand the opportunity set rather than diminish it. Selective opportunities exist, and many companies are adapting their business models to capture emerging trends.

Broadly, what is your outlook of the market for FY27?
India continues to stand out as one of the most compelling long-term growth stories globally, supported by favourable demographics, policy continuity, and an ongoing investment cycle. While markets may see intermittent volatility due to global developments, the underlying earnings trajectory of Indian corporates remains encouraging. From a medium- to long-term perspective, we remain constructive on equities especially within the broader market, where emerging companies are well-positioned to benefit from India’s economic expansion. For disciplined, patient investors, FY27 could present meaningful opportunities to build long-term wealth.