This week, Axis for Business explores new research that suggests that unforeseen circumstances could permanently damage the operations of small businesses across the UK.
Small Businesses Just Aren’t Ready for Unforeseen Circumstances
Here at Axis for Business, a low cost supplier of energy and utilities for small businesses, we pride ourselves on the quality of our service. This is why we always strive to bring you the latest small business news and research that you need to know.
In light of the damage that the remnants of Hurricane Bertha are inflicting across Britain this week, we stumbled on a new survey you need to know about. This survey suggests that small businesses in this country just aren’t ready for the type of damage unforeseen disasters such as Hurricane Bertha can bring.
Over Half of Small Businesses Have Cash Reserves of £10,000 or Less
This week SMEWeb revealed that a new YouGov poll, commissioned by Simply Business, has revealed that a natural disaster could stop most small businesses in this country from trading. This is because in the case of unforeseen circumstances, they only have enough cash savings to last two weeks, which is not nearly enough to sustain a business whilst it is repairing the damage wrought by events such as Hurricane Bertha.
Specifically, the YouGov poll found that 52% of UK small businesses have cash reserves of £10,000 or less. An astonishing 30% have £500 or less. 20% of those surveyed indicated they had no cash reserves at all. Despite this, data suggests that the monthly fixed costs for a company that has stopped trading is £20,000. Per month!
Small Businesses are Woefully Unprepared
However 22% believe that their business could survive if it was forced to halt operations for six months in case of a natural disaster. A further 16% do not know how much money they would need to survive in such circumstances. Meanwhile 17% admitted to having no clue as to what their fixed monthly costs are.
Simply Business CEO Jason Stockwood commented on the figures. Stockwood said: “Even after last year’s storms and flooding, which cost over £830 million of damage to firms nationwide, small businesses are still woefully underprepared for unforeseen circumstances which will prevent trading. With weather warnings and expected floods this week across the UK, small business owners must ensure they are not existing so close to the brink.”
Axis for Business Hopes This Survey is a Wakeup Call
Axis for Business hopes this is a wakeup call. A small business needs to have a significant amount of cash to weather the damage that unforeseen circumstances, such as Hurricane Bertha, can bring. That way, they can stay operational whilst that damage is being repaired.