start-up costs

42% of Small Businesses in Financial Difficulty

Small firms still struggle with start-up costs with 52% admitting they may not be able to recover New research has revealed 42% of small businesses are having financial problems with only 33% stating their company is “going from strength to strength”. The study, which was conducted with 732 small and mid-sized firms, revealed the main cause for financial concerns was attributed to overspending during start-up years (52%), followed by renting or buying expensive property (48%), over hiring (39%), inefficient pricing (38%) and lack of business (33%). The research demonstrates that small and medium sized firms need to ensure they plan ahead with the majority of financial difficulties coming from entrepreneurs failing to forecast expenditure. In addition, whilst 25% of participants who indicat... »