Infographic: 42 per cent of new businesses in the UK fail within five years. Here’s what to avoid
Research into business longevity revealed that economic forces, competition, red tape, price sensitivity and regulations are the top five obstacles standing in the way of SME success.
This infographic from Tower Gate Insurance outlines what it takes to keep your business running for the long term, including the secret behind London’s longest running businesses.
Location, location, location
78 per cent of growing businesses understand the value of prime location. As a rule of thumb, locate your business in an appropriate place, close enough to your target consumers and suppliers. In terms of cities with the highest start-up success, Cambridge, Aberdeen and Brighton top the list.
Company culture matters
Engaged employees are 87 per cent less likely to leave your company, and they’re sick less often too, taking 2.62 days sick leave per year compared to the 6.19 days disengaged employees take.
The customer is king
Poor customer service costs UK businesses roughly £15.3 billion a year. Don’t be a statistic!
Build a bullet-proof business strategy
Four in five businesses fail due to poor cash flow. Remember to build a strong financial plan into your business plan to keep spending in check.
Strengthen your sales and marketing channels
Regardless of your business, consider an e-commerce strategy to capitalise on this key consumer trend. Online purchasing accounted for 15 per cent of total retail sales last year, up by 13.5 per cent from the year before.