Build Business Confidence When Costs Keep Rising

A sobering number to start 2026: 59% of small business members surveyed by the Housing Industry Association (HIA) don’t expect to increase profits this financial year. That’s not “sentiment” in the abstract—it's a warning light for anyone running a small business where input costs, approvals, and staffing are outside your control.

The building sector is feeling it sharply: insurance premiums climbing, labour shortages dragging timelines out, planning delays piling up, and financing constraints slowing projects. But this story isn’t only for builders. It’s a useful mirror for startups and SMEs across Australia.

When conditions are uncertain, most businesses react by cutting marketing first. I think that’s usually the wrong move. Confidence isn’t just an economic measure—it’s something you can actively build through smarter positioning, tighter offers, and more visible proof that you’re a safe bet.

“If businesses aren’t making reasonable returns, they lack the capital to take on new projects and reinvest in operations… creating a cycle that’s hard to break.” — Simon Croft, HIA CEO of industry and policy

This post is part of our Australian Small Business Marketing series. The goal: practical marketing strategies for Australian SMEs that need leads, not theory.

What “shaky confidence” really means (and why marketing is part of the fix)

Shaky confidence shows up first in decisions: quoting conservatively, delaying hiring, postponing investment, and avoiding risk. The HIA research highlights exactly that—SMEs staying cautious despite underlying housing demand.

Here’s the uncomfortable truth: demand doesn’t pay your bills if buyers don’t choose you.

In the building sector, the “buyer” might be a homeowner, developer, architect, or even a council-approved pipeline. In other industries, it’s procurement, operations teams, or consumers delaying purchases. Either way, uncertain markets create the same pattern:

• Customers become slower and more risk-averse
• They ask for more proof
• They compare more options
• They push harder on price

Marketing doesn’t remove labour shortages or approval timeframes. But it does change what happens at the moment of choice.

Confidence is a commercial asset

A memorable line I repeat to founders: If you’re not clearly credible online, you’re treated as risky—even if your work is excellent.

In 2026, credibility is built in public:

• Clear messaging on your site and socials
• Consistent proof (projects, outcomes, testimonials)
• Fast response times and professional quoting
• Content that answers “how will this go wrong?” before a customer asks

That’s brand-building, but it’s also lead generation.

The builders’ pressure points map directly to startup marketing problems

The HIA findings call out rising costs, labour shortages, planning delays, and policy uncertainty. Translate those into “startup language” and it’s the same beast:

• Rising costs → CAC (customer acquisition cost) rises; ad performance gets volatile
• Labour shortages → fulfilment risk; slower delivery; customer anxiety
• Planning delays → longer sales cycles; more stakeholders; more friction
• Policy uncertainty → customers hesitate; budgets freeze; procurement slows

So what do you do? You stop relying on “hope marketing” (post and pray) and build a system that creates leads while reducing perceived risk.

A stance worth taking: don’t compete on price in a cost-crunch

When margins are tight—as builders are reporting—discounting is the fastest way to dig the hole deeper. Your marketing should make price less central by increasing:

• perceived certainty (process, timelines, communication)
• perceived quality (proof and standards)
• perceived fit (you’re for people like them)

That’s how you protect margin.

5 marketing moves that increase confidence (and generate leads)

These are the plays I’d prioritise for Australian SMEs right now—especially if your industry is being squeezed.

1) Rebuild your offer around “certainty,” not features

Answer first: Customers buy certainty in uncertain times.

If you sell services (building, trades, agencies, B2B services), your offer should clearly state how you reduce risk.

Practical ways to do that:

• Publish your process as a simple 5–7 step timeline
• Set communication standards (e.g., “same-day response on weekdays”)
• Use scoped tiers (Good/Better/Best) to avoid endless custom quoting
• Add pre-qualifying rules (“We don’t start projects without X”)

Example positioning shift:

• Old: “High-quality renovations and extensions.”
• Better: “Renovations delivered with fixed-scope quoting, weekly progress updates, and a documented variation process—so budgets don’t drift.”

That’s marketing that speaks to the real fear.

2) Turn approvals, delays, and constraints into content people search for

Answer first: Content that reduces confusion wins leads.

The original article points to approval timeframes and red tape slowing down projects. That frustration shows up as Google searches.

Content ideas that work in Australia (and keep working):

• “How long do council approvals take in [state/suburb]?”
• “What a building variation really costs (and how to avoid surprises)”
• “Insurance and warranty basics homeowners should know”
• “Checklist: what to prepare before requesting a quote”

This is classic content marketing for SMEs: one strong article can drive enquiries for months, sometimes years.

If you want leads, include a clear next step at the end of each piece:

• “Request a quote” is often too early.
• Offer a low-friction CTA like “Get a feasibility call” or “Book a 15-minute scope check.”

3) Build a proof library (not a gallery)

Answer first: Proof beats promises—especially when budgets are tight.

Most small businesses show photos and call it a day. A proof library is different: it’s structured evidence that you deliver.

What to include:

• Before/after visuals with context (budget range, timeframe, constraints)
• One-paragraph mini case studies: problem → approach → outcome
• Testimonials that mention specifics (speed, communication, quality control)
• FAQs addressing risks (variations, timelines, warranties, subcontractors)

For building-adjacent businesses, add “risk reducers” that clients can skim:

• “How we quote”
• “How we handle variations”
• “How progress payments work”
• “What causes delays (and what we control vs. can’t control)”

This is also strong small business branding in Australia: it makes you feel established, even if you’re a newer operator.

4) Use local SEO to win the “ready-to-buy” searches

Answer first: Local SEO is the highest-intent channel most SMEs underinvest in.

When markets are shaky, you want demand that already exists—people actively searching for a provider.

Local SEO basics that move the needle:

• Tight service + suburb pages (not spammy duplicates)
• Google Business Profile kept current (services, photos, Q&A, posts)
• Reviews strategy: ask every project, every time (with prompts)
• Consistent NAP details (name/address/phone) across directories

A good rule: if you can’t explain what you do + where you do it in 8 words, your local SEO will be messy.

Example:

• “Residential extensions in Geelong”
• “Commercial fit-outs in Inner West Sydney”

This is how you connect marketing to leads without inflating ad spend.

5) Protect margin with qualification and follow-up systems

Answer first: Better leads beat more leads.

Builders are being squeezed by labour and materials. Startups get squeezed by time and cashflow. Either way, you can’t afford long back-and-forth with poor-fit prospects.

Put two systems in place:

1. Pre-qualification (short form or call)

   • Budget range
   • Desired timeframe
   • Location
   • Decision-maker status
   • Key constraints

2. Follow-up (simple, consistent)

   • Day 1: confirmation + next steps
   • Day 3: answer common questions + one proof asset
   • Day 7: “still planning?” prompt + option for quick call
   • Day 14: final check-in

Most SMEs lose business because they’re busy—not because they’re bad. A follow-up system fixes that.

Where policy and marketing meet: don’t wait for conditions to improve

The HIA’s CEO called out practical government support: accelerate approvals, reduce unnecessary red tape, support workforce growth. Those matter. If confidence stays weak, fewer homes get built—simple cause and effect.

But as a business owner, you can’t run your lead pipeline on policy hopes.

Here’s the stance I take with clients: build your marketing like uncertainty is normal. That means:

• owning a niche (so you’re compared with fewer competitors)
• publishing proof (so you feel lower-risk)
• earning attention consistently (so you’re not reliant on one channel)

This matters even more in January. Many Australian SMEs start the year trying to “get back into it,” but buyers are already planning Q1 spending. If your visibility is low now, you’ll feel it in 6–10 weeks.

A practical 14-day plan to lift confidence (and enquiries)

If you’re reading this thinking “sounds right, but where do I start?”, do this:

1. Day 1–2: Rewrite your homepage hero section to lead with certainty (who, where, outcome, proof)
2. Day 3: Add a “How we work” page (process + communication standards)
3. Day 4–5: Publish one case study (even if it’s short)
4. Day 6: Create a review request template and ask your last 10 customers
5. Day 7–10: Write one SEO article answering a high-intent question in your area
6. Day 11: Update Google Business Profile photos + services
7. Day 12–14: Build a follow-up email sequence for new enquiries

None of that requires a big budget. It does require focus.

What you should take from the building sector’s confidence wobble

The building SMEs in the HIA research are dealing with real constraints—costs, labour, regulation, and delays—while demand exists underneath. That combination is exactly where marketing earns its keep.

If you want more stable revenue in 2026, treat business confidence as something you produce:

• by making your offer clearer
• by showing proof that reduces risk
• by being easier to choose (and easier to trust)

If you could make one part of your marketing feel more “certain” to a buyer this month—your quoting process, your proof, your response time—which one would you fix first?