Growth opportunities leave SME owners upbeat

The next five years should provide plenty of optimism for the UK’s small businesses, if the outcomes of research from AXA PPP Healthcare are to be believed.

Two thirds of small and medium sized businesses revealed they are optimistic about what the future holds and are confident of growth as a result.

Some 62% of business owners also believe that they are thriving as individuals thanks to the fact they have control over their firm.

In the main, owners recognised that having a business provided them with greater flexibility and freedom, factors named by 58% and 37% of those questioned respectively.

Seven in ten business owners added that they are proud, inspired or contented as a result of setting up their firm, suggesting that having a business can bring with it many positive impacts.

The good feelings surrounding these businesses should also encourage productivity and creativity, providing a bright future as these factors should then drive greater sales and overall growth.

The need for delegating tasks

One issue for owners to be watchful off however, is to ensure that they are not tied up in too many different aspects of their company.

For instance, 81% bosses said they took an active role in deciding business strategy yet 61% said they were also involved in the day to day operations and production of new business.

Some 59% of owners said they were heavily involved in sales and marketing activity too, as well as 55% who said they dealt with customer service.

Striking a balance is key as 35% of business owners suggested that they could improve their work-life balance by delegating certain activities to others.

Financial management specifically is one area where advice should be sought, as mistakes relating to invoices or regulations can be very costly for companies.

Overspending can also be common in instances where a close eye is not kept on finances, especially among smaller firms with lower operating budgets.

This can threaten insolvency in extreme cases although advice from insolvency practitioners could provide potential solutions.

By Phil Smith

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