Attracting New Customers is the Single Biggest Worry for Small Business Owners

Attracting new customers in an increasingly competitive environment is now the single biggest worry for today’s small business owners, according to research from Company Formations Made Simple.

In a survey of over 1,300 small businesses, more than half (54%) stated that attracting more business and pulling in more customers was one of the main factors keeping them up at night, causing major concern. The second most common concern among small business owners was keeping track of the finance of the business, with 49% agreeing that the cash-flow of the business is a major worry.

In 2010, around 389,000 new companies were formed in the UK through Companies House, but this statistic prevailed to 598,000 in 2015. With the number of new companies forming annually rising by more than 50% in just five years, the battle to attract customers has never been so intense.

Another common concern among small business leaders was finding the spare time to do everything, causing 44% of the surveyed business owners listing this amongst their biggest worries. The issue of time-management also repeatedly came up in the study. When asked what single challenge of running a business they wish they had knowledge of before launching, most stated ‘time’. On the other hand, some factors were far less of a concern, such as managing employees and company administration, which hampered just 15% of respondents.

Nearly all survey participants (98%) were from ‘micro-businesses’ employing ten people or less, and these enterprises make up 95% of all businesses in the UK, accounting for 33% of employment and 18% of turnover.

CEO of Made Simple Group, Howard Graham commented: “Consumers have more choice than ever before, thanks to the growth of online business, social media and general connectivity and accessibility. As such, consumers may be less inclined to show loyalty to one brand or service. That’s why it’s crucial for business owners to put customer attraction and retention at the forefront of any strategy.”