A recent survey has revealed that almost half of all small and medium-sized enterprises in the UK are planning to expand in the next 12 months. The report, released by the British Business Bank, also discovered that although most of the respondents had sought funding, many of them were unaware of alternative sources available for finance.
The study surveyed 1,000 small businesses in the UK for ‘Small Business Finance Markets 2014′, with 33 per cent of them not knowing that they could access finance through grants from local authorities or the Government, possibly due to inadequate promotion of the schemes. Although 68 per cent of those surveyed said they were confident of being able to obtain finance from external sources, 65 per cent of small business owners had never heard of mezzanine finance, export and import finance, crowd funding or peer to peer lending.
Credit cards, leasing and hire purchase were the most commonly used sources of funding for small businesses. The most common reasons for raising finance included the purchase of fixed assets and to aid cash flow. According to Business Secretary Vince Cable, the study will provide a starting point for the Government to use when raising awareness of alternative funding for small companies. Cable added that the Government would use the study to help overcome the challenges of making business owners aware of funding sources. Speaking further, Cable said he was confident the new funding options would help support those SMEs that had long-term plans for expansion.
Boosting business growth
There are many ways to boost the growth of a small business, although professional advice should be sought where appropriate to avoid unnecessary risks. Here are a few suggestions:
• Once you have a successful business, consider opening another branch in a different location. Before you put this into action, consider whether or not your existing company could run without you while you spend time setting up the other business.
• Enter into a new market, either selling your existing products to different types of customer or perhaps selling overseas. Carry out extensive research to discover what your new clients want and whether your products and services are what they are looking for.
• If you have a bricks and mortar business, consider trading online. You will reach customers worldwide and can be available 24/7.
• Improve cash flow by managing income and expenditure, cutting costs where possible and maximising the tax relief and grants available to SMEs
If you want to know more about tax relief, grants and alternative funding, contact us today for more information.