New research from Nucleus Commercial Finance shows that a fifth (21%) of SME leaders cannot recall any of the key financial statistics for their business – a phenomenon the company has called the ‘Dragons’ Den effect’.
The study found that 79% of SMEs were able to recall at least one of the key financial stats for their business.
It also found:
- 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, 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 offers three top tips for SME leaders dealing with finances:
- Make finance a priority by setting aside some time each week to look over your ‘books’
- Get the right help from experts if you need it
- Think ahead: plan for the future to see potential problems and opportunities