Businesses display fears despite positive outlook

The majority of UK small businesses are displaying confidence for 2015, a new survey has revealed.

But despite the widespread positivity displayed in the OnePoll survey – commissioned by Liberis – nearly a third of businesses still have financial fears.

Some 68% of businesses believe they will experience growth in 2015 but it is those that are expecting a decline that give cause for concern.

The main fear factors relate to cash flow problems, higher business costs that impact on profit margins, and concerns over how to boost sales.

These are issues that could potentially lead to widespread problems for businesses, especially in instances where the cash flow is adversely affected.

In some cases business restructuring may help to streamline the everyday running of a business but such processes should be undertaken as soon as possible once issues are highlighted.

This aids the process of recovery and means the businesses can continue to trade in a way that is beneficial for all parties concerned.

According to the survey, 40% of businesses plan to search for external funding to drive growth in 2015, with 75% of those firms confident of successful applications.

Half of these firms plan to use their bank while 31% said they would seek alternative forms of finance, with crowd funding an option of particular prevalence.

A third of business owners suggested they would not apply for funding as they did not believe they would be successful.

Such funding could potentially be used to cover tax payments, the acquiring of new assets and stock or just on day-to-day business running costs.

This makes it an essential part of any growth plans although the research would suggest that some firms are not entirely sure about the current economic situation and what it may mean for them.

Knowing what options are available can make all the difference for many companies, especially those who believe the current market conditions are suitable for expansion.

By Phil Smith

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