British businesses reveal concerns over attracting new custom
British firms have revealed that attracting new customers at a time when the market is extremely competitive is currently their biggest concern.
The majority of 1,300 small businesses surveyed by Company Formations Made Simple said that it was a concern that causes them to lose sleep on a regular basis.
Just under half of those polled said that keeping on top of finances and cash flow was their second major concern.
Increased competition comes as the number of new firms being registered with Companies House has risen by 50% in five years, while online marketplaces have also expanded.
Some 44% of business owners said that time management was also an issue, particularly among those looking to launch new businesses, divisions or products.
A lack of new sales that results from new custom can cause financial pressure on a business and may ultimately impact on its bottom line.
It is understandable why these factors are influencing business owners, although a range of alternative finance options do exist for those unsure of how to overcome financial problems.
Failing to tackle those issues could ultimately cause a business to face administration or even insolvency, which is why any concerns should be addressed at the earliest possible opportunity.
The vast majority of those surveyed were deemed to be microbusinesses that employ 10 people or less – these account for around 95% of UK businesses and around 33% of total employment.
Not all factors were major concerns for business owners, as managing employees was a worry for just one in ten, and company administration bother only 15% of those polled.
Making a business stand out from the crowd is key, as it will ultimately sway the decision of the consumer when deciding whether to pick one item or service over another.
Customer retention is therefore just as important as attracting custom in the first place and those that prioritise it are likely to reap the benefits.
By Phil Smith