Alpha Gamma Solutions Reveal Once and For All Whether the Majority of Small Businesses Are Doomed

Outsourced sales and marketing firm Alpha Gamma Solutions investigate the realities of small business survival in the UK.

With 55% of small businesses reportedly failing before their 5th birthday, becoming an entrepreneur may be looking less appealing to today’s enterprising professionals. However, Alpha Gamma Solutions looks into recent findings to confirm that entrepreneurship is actually worth it.

Cash Flow Problems

Start-ups face many challenges, particularly in the early years. The main problem new businesses face is a lack of cash flow. Since the recession it has been much harder for companies to acquire the necessary capital to scale their businesses to their desired heights. According to research, typically around 80-90% of small businesses fail because of bad cash flow. Typically new businesses struggle to balance their outgoings with the cash that is coming in. More often than not expenses outweigh the inflows and this is what causes many small businesses to collapse. The lack of prompt payments contributes towards the problem. A study by the Asset Based Finance Association found the average wait for companies receiving payments is now 72 days, significantly contributing to cash flow problems.

Taxes and legislation

The Federation of Small Businesses (FSB) have stated that more than half of small firms believe the current tax system is bad for business. 60% of SME’s are shelling out £3,000 on average, per year to make the system easier to understand and to satisfy their responsibilities. Changes in legislation can also be a cause for concern, with evidence showing that recent changes to EU VAT and rules is causing chaos and is having a massive impact on profitability.

Entrepreneurship can be an extremely satisfying and exciting lifestyle. Alpha Gamma Solutions are huge supporters of entrepreneurship and believe that small businesses just need some backing and support to make it through the early years and go onto great things. While these findings are disappointing, the firm doesn’t believe that the majority of small businesses are doomed.

For small businesses to turn it around and buck the trend, Alpha Gamma Solutions urges them to start by creating a solid business plan. Having a good foundation to work from is key. Secondly outsource. Many businesses struggle to get off the ground because they try to do everything themselves. To get the best results Alpha Gamma Solutions promotes outsourcing to the experts. Having a tight grip on finances is most crucial for small business owners. It’s vital that businesses are clued up and know exactly what is going out and what’s coming in so they can balance the books and make informed decisions on what they are spending.

Alpha Gamma Solutions are an outsourced direct marketing and sales company based in Leicester. At Alpha Gamma Solutions they help prepare the business owners of the future by setting them up for success. The firm has a business development program, specifically aimed at those with ambition and an entrepreneurial spirit.   The 6 to 12 month program, essentially an accelerated learning program, teaches participants all aspects of the firm’s business fundamentals including: administration, brand protection, campaign management, motivational and public speaking and marketing and sales techniques. They provide a stress-free environment for participants in the program to practice the skills they have learned to ensure they are well set up to be able to run their own marketing and sales business in the future.

REFERENCE

http://www.simplybusiness.co.uk/knowledge/articles/2015/08/business-fail/