UK SMEs spend on average £1 million a year on business expenditure, according to new research from American Express and the Centre for Economics and Business Research, with the biggest costs being:
• Hiring new staff (24 per cent)
• Paying suppliers (20 per cent), and
• Investing in technology (19 per cent).
Business expenditure varies across the UK, with the average cost of doing business in London being three times more expensive (£1.82 million) than in the North of the country (£526,882).
Jose Carvalho, Senior Vice-President at American Express, comments: “There are significant costs involved when building a business. However businesses that have the ambition and drive to grow shouldn’t be deterred. By having a robust cash flow management system in place SMEs will have an essential tool to manage costs efficiently without impacting the running of the business, its staff and customers.”
At Beavis Morgan, we specialise in working with SMEs and owner-managed businesses. Our team of SME advisers are on hand to provide guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth. We are also available to help with management accounts, enabling better control of your financial situation and awareness of the business in real time, enhancing planning for the peaks and troughs.
Our partner business, BM Structured Finance, is also available to help with sourcing and restructuring debt finance for SME businesses. We match the most suitable products to each individual circumstance and work together to ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth.
In turn, if you require a CFO but you are finding the prospect of hiring experienced financial staff overwhelming, or you are daunted by the cost of taking on extra permanent staff, you can outsource your finance, business advisory and payroll function to us. Our experienced experts in this sector are available to assist.
For further information, contact Steve Govey in the first instance, or your usual Beavis Morgan Partner.
