1 in 3 small businesses haven’t grown in the last 5 years, according to research by Association of Accounting Technicians (AAT).
In a study of 1,000 small businesses, 33% hadn’t experienced revenue growth, and 31% hadn’t seen profits increase since 2010.
56% identified clear factors that have held their businesses back from expanding.
- lack of capital to expand
- too much red tape
- lack of support from banks
- uncertain global economic conditions.
Future forecasts were more optimistic with 76% of businesses expecting an increase in revenue and 78% predicting profits to rise over the next 5 years.
However, 58% admitted to not having a business plan to help them grow, with 10% unsure on how to put one together.
Nigel Holland from Holland & Co Chartered Accountants said:
“All businesses should plan to expand. The reason why this is important is because if they do not do so their business is likely to go backwards. To ensure that a firm has a reasonable chance of growth there are a number of factors which need to be in place. These factors include:
- a reasonable level of working capital
- spare capacity to take on the extra work, including labour, space, equipment etc
- a decent marketing plan
- a good management team
At my firm we are very keen to help clients expand their businesses and we offer full support to enable them to do so.
Ian Lowe, on the picture above is employed at Holland & Co Chartered Accountants and is actively involved in helping businesses expand their operations. ”
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