There are 5.3 independent contractors and small business owners in the UK, who collectively spend the equivalent of 2.5 million working days each month on finance management.
The means that the average entrepreneur is spending just 3.6 hours each month on managing their money, which suggests that they are either underestimating the task in hand or simply lacking the time to do a truly efficient job.
So, how can SMEs give a greater focus to their financial management efforts without compromising on the daily running of their business? Let’s take a look:
Why Small Business-Owners Should Reach Out for Help
The lack of time available for financial management, coupled with the importance of this task, accounts for the fact that 32% of SME-owners find the process stressful. So even though an estimated 87% believe that they have the skills and knowledge to effectively manage their capital, they are finding it increasingly difficult to apply these attributes in a practical manner.
The question is, what would entrepreneurs do in similar circumstances when they lack the time or expertise to complete a specific task effectively?
Essentially, they would delegate this to a specialist service provider, such as a reputable accountant or a trained wealth manager. In some instances, you may employ the services of both, as the former can help you to reduce operational costs and become tax compliant, the latter can enable you to leverage your business capital in the pursuit of significant gains.
It is wise to scale your financial management efforts so that you can work closely with your chosen (and certified) partners to achieve the best results. So, once you have established a viable working relationship with an accountant and begun to reduce overheads while accessing compliant tax breaks, you can boost your businesses levels of working capital and seek out new investment opportunities.
As we can see here, discretionary wealth management services offer excellent value to sole traders and SME-owners. These appoint an experienced investment manager to your capital, and one who will work alongside you to clarify, understand and implement your priorities. This type of structure can also offer you access to a host of investment options, from SIPPs and offshore bonds to ISAs and personal pension plans.
Not only this, but you will also build a close and personal relationship with your advisor, helping your businesses wealth to grow and evolve over time.
The Last Word: Why Now is the Ideal Time to Seek Out Help
There is a clear issue facing small business owners when it comes to successfully managing their finances. These challenges could become worse in the months ahead, with the specter of prolonged and potentially acrimonious Brexit negotiations creating uncertainty in the economy while also devaluing the pound, increasing the cost of exports and driving unsustainable levels of inflation.
With this economic climate set to persist indefinitely, it is crucial that businesses take a proactive approach to financial management and seek out reputable help to optimise their assets.