Start-up business owners reveal financial concerns
The economy might be recovering at a good pace but that will represent little joy to some small business owners if the latest results of a new poll are anything to go by.
Two fifths of small business owners said they were in financial trouble when questioned by Vouchercodespro.co.uk – equating to more than 700 people.
All of these businesses have launched their business in the past three years and half of those who reported difficulties revealed they did not see a way back for their struggling business.
While 42% said they were in difficulty, 33% said their businesses were ‘going from strength to strength,’ suggesting success is still possible.
Business owners who said they faced financial trouble were asked why they thought it was, with a multitude of responses and reasons given.
Some 52% said they got carried away and overspent on items such as equipment and suppliers, while 48% said they felt it was as a result of renting or purchasing a building that was too expensive.
Hiring too many staff or hiring too soon was listed by 39% of respondents while slightly less believed they had not charged enough for their products and services.
A third of businesses said they were unable to attract enough custom and were made to face low sales as a result.
For businesses facing financial trouble, there are still solutions that could improve the situation but they often require a quick response.
Considering corporate insolvency or business rescue could help to protect or recover assets and could enable struggling businesses to keep trading.
Perhaps the most concerning piece of information to come from the poll was that only 25% of those questioned were optimistic that they could learn from their mistakes.
Belief plays an important role when starting up a business, while learning from mistakes also goes a long way to ensuring similar errors are not made again.
The business world is unpredictable but knowing if something will be a success or not only comes by trying it out.
By Phil Smith