Relay report busts the Main Street monolith myth revealing the uneven financial realities facing U.S. small businesses

• Small businesses are split on the current economic climate: 52% say it's volatile or stressful, and 48% say it's prosperous or bouncing back. Business owners point to inflation, and trade & tariff actions as the top two economic factors impacting small businesses.
• Sector-specific realities reveal an uneven playing field: 62% of real estate professionals feel a sense of economic optimism, 47% of blue collar trades are less certain as they grapple with the rising cost of materials, and 36% of retail businesses feel the pain of supply chain disruptions.
• Main Street wants AI tooling in order to level up their cash management: Business owners are ready for an AI-powered cash flow upgrade. 64% would trust AI tools to manage their money and can already point to specific applications for it.

NEW YORK, June 26, 2025 /PRNewswire/ -- Relay ("Relay Financial Technologies, Inc.")—the small business banking and money management platform for cash flow clarity—released new data showing 88% of American small businesses are currently facing cash flow disruptions. The data comes from the second and latest edition of Relay's Cash Flow Compass report. It surveyed over 1,000 U.S. small business owners to unpack their money management trends and highlight the challenges and opportunities facing specific industries.

The report reveals significant differences in cash flow management and business preparedness among small businesses across various industries. While conversations about the challenges facing American small businesses often treat them as a monolith, the reality is much more complex—a patchwork of concerns addressed with different strategies across sectors.

The Cash Flow Compass enables business owners to navigate current economic conditions by combining powerful findings with expert commentary. It features insights from small business advisors, fellow owner-operators, and Mike Michalowicz—Creator & Author of Wall Street Journal bestseller, Profit First. Relay is the official banking platform of the Profit First money management method. Michalowicz chose Relay as the official banking partner of Profit First for its ability to create multiple, individual no-hidden-fee accounts.

Here are some key report findings on small business cash flow management across the board:

Main Street has a cash flow problem. Most small businesses admit to money management challenges. They expect growth this year, but their cash flow is clunky and many are unprepared for curveballs.

• 88% face regular cash flow disruptions.
• 94% expect growth this year, but only 31% are optimizing their cash flow (e.g. tightening spend-tracking, streamlining payroll, etc.) to prepare for it.
• 33% are unprepared to handle a financial or economic downturn, with inflation, and trade & tariff actions cited as the top two economic factors impacting businesses today.

Here is a deeper look at the sector-specific small business cash flow data:

Real estate businesses lead the pack. Today, real estate entrepreneurs—e.g. realtors, real estate investors, and short term rental owners—are more optimistic and financially stable than most small business owners.

• 62% describe the current economic climate positively, as strong or bouncing back.
• 55 days is their average cash runway, compared to 43 days for small businesses overall.
• 53% say that new professional partnerships (e.g. with home inspectors, mortgage brokers/lenders, marketing consultants, etc.) will be a growth driver for their businesses.

Skilled trades have the tools in-hand but cash on hold. Blue collar trades (e.g. construction, HVAC, electrical, plumbing, etc.) are feeling the squeeze of rising costs and it's impacting their hiring.

• 53% describe the current economic climate negatively, as uncertain or challenging.
• 40% want to hire new employees to prepare for growth in the coming year, and yet 47% say rising costs (i.e. materials) have made it challenging to achieve consistent profitability.
• 1 in 4 owners don't have someone ready to take over if they had to stop working today.

Retail and ecommerce are looking to the future. Supply chain issues are a present reality, but retail businesses owners are already thinking about their business' financial future.

• 36% are hitting disruptions in their retail supply chains.
• 66% would trust AI to manage their business cash flow, above the average reported by small business owners overall.
• Specifically, they can already point to their top 3 AI use cases: 1) expense and income-tracking, 2) automating bill payments, and 3) predictive cash flow modeling.

"Cash flow chaos is real and it's wrecking good businesses. The Compass report is proof of that. But here's the truth: it's avoidable. When you ditch the 'wing it' approach and plug into Profit First with Relay, the game changes. You're not guessing anymore. You're making smart moves with your money, every time," said Mike Michalowicz, Creator and Author of Profit First.

Small business owners and their advisors can access the complete Cash Flow Compass report here, featuring the full findings and practical tips to unlock cash flow clarity for their own businesses, or for their small business clients.

Report Methodology:
The survey was conducted in April/May 2025 by Research+Knowledge=Insight, an independent research company, in partnership with Relay. It surveyed 1,004 small and medium businesses owners across the U.S., from a wide range of sectors. All companies participating reported revenues of at least $240,000/year. All companies reported having at least 2 employees or contractors.

About Relay:
Relay is an online banking platform that puts business owners in complete control of their cash flow. By helping them clearly understand what they're earning, spending, and saving, Relay empowers entrepreneurs to make smarter decisions about their business and reach peak profitability. Disclaimer: Relay is a financial technology company, not a bank. Banking services are provided by Thread Bank; Member FDIC.

For more information, please visit www.relayfi.com

SOURCE Relay Financial Inc.