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Too many small businesses failing to seek financial advice
Research carried out by YouGov and R3, the trade body which represents the interests of insolvency professionals, has revealed that an alarming number of small businesses are failing to take control of financial problems before they become major issues, with most choosing not to seek debt advice tailored towards companies.
Approximately two thirds of businesses are following this potentially harmful trend. However, whilst this statistic is worrying in itself, the research also uncovered a rather more concerning trend: those businesses which do seek expert financial advice are being badly advised by unprofessional companies that often have ulterior motives and choose not to maintain impartiality.
The organisations responsible for the research have spoken out about their findings. R3 in particular was keen to advise small business owners to seek professional help as soon as they think they may be encountering problems. Ideally, financial assistance should be sought before problems even enter the frame. Sound financial advice can be an essential part of the planning stage of any economic programme for a small business and help can also be provided with regards to important issues such as insurance and tax.
Although the number of dodgy financial advice companies has decreased since the government introduced measures to crack down on them, it is still essential to seek professional financial advice for small businesses and stay away from any company which offers solutions that seem too good to be true. Furthermore, if you approach a company for help before debt issues (or any other financial difficulties) escalate, avoiding small business financial trouble will be far easier in the long-term.