5 Statistics every business owner needs to know

Read this blog to discover five important statistics that every business should know.

Over the last 15 years, running a business has been tough. There have been a number of challenges that have disturbed the business landscape including Brexit, the cost-of-living crisis, the Coronavirus pandemic, and the great recession.

Despite this, businesses continue to fight and strive for success. This blog mentions five interesting business statistics that every business owner needs to know.

How are statistics used in business?

 Businesses of all shapes and sizes rely on statistics for lots of different reasons. From understanding stock levels and performance indicators through to gaining an insight into current market trends, it’s fair to say that statistics are fundamental to driving business intelligence.

At the same time, businesses can also act upon insights, pinpoint patterns and gain a better understanding of their product, customers and services.

Here are 5 statistics every business owner needs to know.

99.9 per cent of UK businesses are SME-sized enterprises

In 2023, there are 5.5 million SME-sized businesses in the UK. One-third of these businesses are based in London and the South East. It is expected that 62 per cent of new businesses with cease trading within the first five years. Over the last few years, this number has further increased due to the increased challenges for businesses during the Covid-19 pandemic and the UK cost of living crisis.

Less than half of UK businesses survive the first five years

The failure rate for UK start-up businesses is around 60 per cent. However, businesses that do survive the initial trading period are surrounded by a supportive business culture and have great potential to scale up. This can be enabled further by seeking expert financial advice and bespoke insights from professional and experienced accountants such as those at React Accountancy.

Businesses with a business plan grow 30 per cent faster

Businesses with a business plan grow, on average, 30 per cent faster than those without. A good business plan guides you through each stage of managing your business. With a business plan, you will know how to structure, run, and grow your business to achieve success.

70 per cent of small businesses don’t have an accountant

Currently, 70 per cent of small businesses don’t have an accountant which means they do not have access to expert advice, the latest software, unique growth opportunities, and the peace of mind that comes with outsourcing your accounts.

When you outsource to an accountant, you can trust that your accounts and business finances will always be handled with care and settled on time.

Around 80 per cent of businesses fail due to poor cash flow management

82 per cent of businesses that fail say it was due to poor cash flow management and a poor understanding of the importance of cash flow. Cash flow management not only allows you to forecast for the future, but also allows you to make better and informed decisions, understand your business spending, and protect your business relationships.

A negative cash flow can have serious repercussions for a business and is often a contributing cause of business failure. However, when you seek advice from an experienced accountant, you get access to business management information and financial performance analysis to help transform your accounts and streamline success.

Do you need statistics for business?

Although some businesses do not deem business statistics as being essential, they do help businesses to understand where their present position is in the world of business, as well as what their future looks like. For example, statistics cannot only help companies of all sizes to identify new and exciting opportunities but they can also help businesses to maximise profitability and efficiency too!

What is the best use of statistics in business?

The vast majority of businesses utilise statistics to assess performance and improve their market strategies.

 Why choose React Accountancy?

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business. That’s a promise.

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

Get in touch today for further information about any of our services.

You can reach us on 01914324110 or contact us via email using info@reactaccountancy.co.uk

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