Attracting new customers is biggest worry for small business owners

by Susie Hughes at 10:10 29/09/16 (News on Business)

Attracting new customers in an increasingly competitive environment is the single biggest worry for today’s small business owners, according to recent research.

In a survey of 1,300 small businesses, 54 per cent said attracting customers was a major concern In contrast, just one in ten worry about managing their employees Survey was conducted with ‘micro-businesses’, employing 10 people or less, which account for 95 per cent of all UK business. In 2010, around 389,000 new companies were formed in the UK through Companies House, and this figure increased to more than 598,000 in 2015. With the number of new companies forming annually rising by more than 50 per cent in just five years, and the vast choice available to consumers thanks to the growth of online business, the battle to attract customers has never been so intense. In a survey of over 1,300 small enterprises by start-up specialist Company Formations MadeSimple, more than half said pulling in new business was one of the main factors keeping them up at night. The second most common concern was keeping track of the finance and cash-flow of the business, with just under half citing this as a major worry. Time management Another common concern among small business owners was finding the time to do everything, with 44 per cent of those surveyed listing this among their biggest worries. The issue of time-management came up repeatedly in the study. When asked what single challenge of running a business they wish they had known before launching, most cited ‘time’. This refers both to the amount of time spent getting the business started and the time it took for the business to gain traction. Advertisement Some factors were of far less concern to business owners, for example managing employees, which just one in ten listed as a worry, and company administration which hampered just 15 per cent Nearly all (98 per cent) of the businesses surveyed were ‘micro-businesses’, employing 10 people or less. These enterprises make up 95 per cent of all businesses in the UK, accounting for 33 per cent of employment and 18 per cent of turnover. Howard Graham, CEO of Made Simple Group, said: “Consumers have more choice than ever before, thanks to the growth of online business, social media and general connectivity and accessibility. “As such, consumers may be less inclined to show loyalty to one brand or service. That’s why it’s crucial for business owners to put customer attraction and retention at the forefront of any strategy.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2016

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