With many successful entrepreneurs stumbling over their figures when facing the Dragon’s Den, new research from Nucleus Commercial Finance shows that SME leaders have been swotting up. The statistics show that 79% of SME leaders are able to recall at least one of the key financial statistics for their business.
Further key statistics on SME leaders:
- 50% were able recall their turnover for the last financial year
- 46% were able to recall the amount in their business bank account
- 42% were able to recall their profit for the last financial year
- 23% were able to recall their average sales margin
The research also outlines that SME leaders spend an average of four hours per week on their business’ finances, with younger business leaders aged 18 to 34-years-old dedicating more time, spending on average six hours a week on financial tasks.
Simon Willmett, Finance Director of Nucleus Commercial Finance, a leading provider of finance to SMEs, comments: “Having a strong grip on the financial health of your business is essential for driving growth in your business and fulfilling its potential. It’s heartening to see business leaders taking a proactive approach to managing their finances and having a good grasp of the important numbers. Time spent on understanding your business’ finances, is time well spent.”
Nucleus Commercial Finance has put together three top tips to help businesses boost their knowledge of their business’ finances:
- Make finance a priority by setting aside some time each week to look over your ‘books’. An hour a week doesn’t sound like much at all, but over time it adds up and will make a difference to the financial health of your business.
- Get the right help from experts if you need it: running your own business is challenging at the best of times, with so much to do it can be hard to dedicate as much energy as you would like to your finances. Getting advice from experts and advisers can make the difference between your business surviving and thriving.
- Think ahead: plan for the future to see potential problems and opportunities. You can’t know what the future holds for your business, but by having clear goals and forecasting for the year it makes it much easier to spot the strengths and weakness in your plan.