Running a small business can be scary at any time but as Halloween approaches it seems timely to have a look at some of the scariest statistics that start-ups and SMEs should be aware of.
At Zodeq we work with a wide range of incredibly successful start-ups and SMEs, but we are aware that we are in challenging economic times. For many businesses there are hurdles to overcome, it isn’t all doom and gloom out there but by being aware of the frightening statistics that often signal the end for some businesses, it is easier to put strategies in place to avoid being affected.
69% of UK businesses have been affected by bad debt. This is a sad inditement of payment culture in the UK. However, businesses can guard against this by putting certain processes in place. Using a credit control service can make a huge difference.
Last year 43% of SMEs experienced late payments. That’s almost half and for SMEs overdue invoices can have a detrimental impact on cashflow within the business. As with bad debts using a credit control service can help. Invoice financing can also be a great approach to managing cashflow.
Fraud and cyber crime
37% of businesses have fallen victim to fraud in one form or another. This is something which can affect businesses of all sizes and new businesses often don’t get around to ensuring they have the correct systems and checks in place. Investing in the right software and ensuring you and your employees are aware of the risks is crucial to protecting your business from this threat.
According to the Guardian, 660,000 new companies are registered in the UK every year. That’s a staggering 70 new businesses every hour! This is great news in many respects but it also means that competition is incredibly fierce.
New business failure rate
Unfortunately, the rate of failure amongst new businesses is high. A fifth of all new businesses in the UK close within their first year and 60% close within the first three years of trading. The reasons for this are varied but ensuring cashflow can be key to survival as can having the right trusted business partners in place. Outsourcing can help with different aspects of a new business, too many new business owners try and cover all aspects from accounts to HR without the necessary expertise. Outsourcing can help a business to grow and provide expertise and stability during the crucial early years.
At Zodeq we offer a range of services to help combat these challenges which are faced by businesses everywhere. If you would like to discuss how we can help get in touch, we’ll be happy to talk about our services and the benefits they bring.