British entrepreneurs reveal business targets in face of adversity
UK entrepreneurs focus on finances when listing their key business goals, a new study has found.
When quizzed about which milestones mean most to them, business owners spoke about landing contracts and making profit, according to Current Capital.
The outcomes reveal a great deal about what new business owners strive for in their early operations, especially given that figures from Ormsby Street show that four in ten start-ups fail to reach their fifth birthday.
The moment that meant most to 47% of business owners was when their business first generated profit – while more than half of men put profit first, just under 40% of females did likewise.
Securing big contracts and sales was named by 41% of business owners while 34% said they celebrated getting past their first birthday.
This is the period of time when firms are most likely to fail, face insolvency or require financial assistance to ensure their survival.
For Londoners especially, surpassing the first birthday of their business was a major achievement, named by 53% of respondents.
While 22% said hiring their first employee was a key moment for their business, the figure rose to nearly 75% of those in the North West of England.
Around a fifth of entrepreneurs also viewed moving into their first office as an important moment in the development of their business.
However, that figure more than doubled among the millennial generation with the majority of individuals placing an emphasis on sustainability and sales.
Despite the onus on profits, just 12% of business owners listed securing funding – whether through traditional or alternative finance options – as a key achievement.
Given the influence that funding can have on growth this is perhaps surprising, but it also highlights a desire not to borrow beyond their means in the early days of business.
This is an important consideration when such a high proportion of start-up businesses are facing administration and other recovery methods in order to survive.
By Phil Smith
If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1144.
View all Business Insights