Why Most NZ Businesses Struggle with Profit and How to Fix It

Why NZ SMEs Struggle & What to Do

96% of NZ businesses earn less than $500k annually
Most business owners are stuck working in the business
Profitability requires systems and the ability to delegate
Take our 2-minute quiz to assess your current business model

The Profitability Challenge for NZ SMEs

In New Zealand, less than 4.7% of businesses make over $500k in profit annually. On top of that, 90% of all new businesses fail within the first five years. This is not just a statistic – it’s a wake-up call. Most SME owners are overwhelmed, underpaid, and overworked. So what’s going wrong?

Why Do Most NZ SMEs Struggle to Make a Profit?

There’s a reason many businesses never grow beyond survival mode. As Michael Gerber’s The E-Myth points out, most owners are technicians who start a business based on a skill – not a system.

Key challenges include:

The owner working in the business instead of on it
No systems or delegation models
Business structured around the owner’s time
Constant stress and decision fatigue

This model is unsustainable and unscalable. Profit, freedom, and growth require something different.

So Where Is Your Business At?

Where would you place yourself on this pyramid?

Ideal: Business generates profit and dividends. You work on the business.
Living: You take a salary and some profit, but still heavily involved.
Working: Low pay, long hours, constant firefighting.
Failing: Business is losing money, barely surviving, or draining your life.

The goal is to move your business upward – and we can help.

Client Success: Just Hardwood Floors

“Oxygen8 gave us direction, belief, and a plan. We’ve gone from floundering to focused, and it’s changed everything – for the business and our lives.”
— Steve & Nicole, Just Hardwood Floors

This client story perfectly illustrates what can happen when a business owner stops working in the weeds and starts building systems for scale.

What Can You Do About It?

Start by understanding where your business is today.
Take our 2-minute quiz to assess your current business setup and uncover the next best steps.

Meet the Team: Christine Abela

If you’re feeling stuck in day-to-day operations, Christine Abela can help you make the shift. Christine specialises in helping NZ business owners move from operator to strategic director through systems, accountability, and clarity.

More Business Owners Who Made the Shift

Portrush Construction – from busy contractor to scalable team-based model
Treetops Early Learning Centre – transformed staff structure and management systems
Buckton Consulting – from freelance overwhelm to confident, systemised delivery

These clients now enjoy better profits, more time, and improved business value.

Ready to Build a Business That Works Without You?

If your business depends on you to survive, it’s not truly a business – it’s a job.
Let’s change that.

Book your free consultation today to learn how Oxygen8 can help you build a more profitable, systemised, and scalable business.