Medium and small-sized firms are the core of the UK economy. They make up 99% of British companies and are more varied than you might expect. All companies face day-to-day challenges from the competition and changing circumstances, and while these hurdles can often be testing, they may also offer exciting opportunities.
So, what are the biggest challenges for UK businesses today, and how can you overcome them as a business owner?
- Retaining top talent
Year in, year out, talent and recruitment are listed as key industry issues in the United Kingdom and globally. In fact, about one-third of senior business executives expect that recruiting new employees will be their biggest problem in 2020.
Nervousness over retention of employees will be a concern as it becomes increasingly difficult to maintain employees, especially at the junior level, where these workers are most likely to be in touch with recruiters.
To counter this, companies need to put more focus on attracting and retaining employees. It is important to prove your company is a wonderful place to work by creating an appealing work environment and brand with excellent values and benefits.
- Cyberattacks on the rise
Cyberattacks occur every second, every minute, every hour, every day, and if you run a company, you are the ideal target. So, it is important that your employees are trained in cybersecurity.
According to the recent report from the Federation of Small Businesses (FSB), small companies in the United Kingdom are exposed to almost 10,000 cyberattacks per day, the expense of which is projected to be £4.5 billion a year.
UK companies have been exposed to 374,000 malware attacks, 530,000 phishing attacks, 301,000 fake payment demands and 260,000 ransomware attacks in the last year.
Small companies are especially vulnerable to cyber threats. So, it’s vital you put in place a robust and competent IT and cybersecurity team that is able to detect any potential threat from a mile and stop or neutralise it before any damage is done. In addition, ensure you get good business insurance to provide adequate cover for your enterprise in the event of any emergencies. This way if any threats do break through your protection, you will be covered for any eventuality.
- Money management
Getting enough cash to pay the bills is a must for businesses, as it is for individuals. Whether it’s your business or your life, one is likely to surface as a capital drain that places pressure on the other.
To escape this dilemma, business owners need to be well capitalised or source extra funds to protect cash reserves as required. Although this divided emphasis can make it difficult for a business to grow, running out of cash makes it impossible for a business to develop.
The bottom line
The issues faced by small businesses are significant, and one of the toughest things a future owner can do is dive into business without thinking of the obstacles ahead.
We’ve taken a close look at some of the toughest common challenges business in the UK today have to grapple with and analysed how these issues can be properly managed. This is crucial, so they don’t snowball into major hurdles that could collapse the business.
As long as you are taking the proper care for your business and making sure you have all your bases covered, your business should be able to weather any storm.
