Small Business Owners Ask: Should I Give Up, Or Should I Just Keep Chasing Payments?

 

Recently, a group of UK-based small business owners drew inspiration from Adele’s recent hit, ‘Someone Like You,’ in order to shed light on the late payments problem that continues to plague small companies up and down the country.

Major problem

New research illustrates just how big a problem late payments are for the UK’s 5.4m small businesses. On average, they are forced to devote 10% (an hour) of their working days dealing with unpaid invoices. Three out of every five (60%) invoices issued by UK-based small enterprises are not paid on time.

Chasing payments

In order to increase awareness of this issue, the Daily Mail writes, the chasingpayments.com website has created a parody of Adele’s 2008 single ‘Chasing Pavements,’ called ‘Chasing Payments.’ The clip sees a group of British small business owners ask themselves, “Should I give up or should I just keep chasing payments,” illustrating the frustration that often comes with handling this task.

Throughout the song’s accompanying video, the small company heads act out the daily struggles that come with hunting down unpaid client invoices. While doing so, they croon lyrical gems such as “I pick up the phone, “To hear the same excuses, “Sorry, Dave’s not answering his phone,” I’m not surprised he’s chuffing useless.”

Has to change

Speaking out, Gary Turner, the Co-Founder of Xero, which runs chasingpayments.com, noted: “The late payment epidemic has to change so small business founders do not spend so many hours chasing debt and worrying about cash flow on the back. With small businesses making up a staggering 99.8% of the British economic engine, this is a critical issue to sort for the UK economy as a whole.”

Funding operations

This parody has drawn attention to a very real problem for UK small business owners. In early 2016, research conducted by Zurich indicated that 41% of British small to medium-sized enterprise (SME) owner managers believe that late payments had a significant impact on their company’s cash flow. Meanwhile, 67% of SME heads suggested that unpaid invoices are leading some UK small businesses to close down.

It is essential that small businesses maintain a steady cash flow. This allows them to meet regular operating costs such as paying staff wages and buying supplies, so when clients pay late, these businesses find it harder to operate effectively. At best, this limits their ability to grow, at worst it can force them to cease trading. By harnessing the cultural power of music, chasingpayments.com has reminded the UK’s small business leaders that they should never stop chasing payments.

SMEs could deliver more apprentices

 

In a new report, business lobbying Group the Federation of Small Businesses (FSB) has indicated that with appropriate governmental support, the UK’s small to medium-sized enterprises (SMEs), could take on over two million more apprentices. Unicom comments.

Getting reform right

The FSB recently released a new report called Make or Break: Getting Apprenticeship Reform Right for Small Businesses. Within the paper, the lobbying organisation noted that 24% of its members already have an apprentice. The same number, FSB argued, have the means to take on as many as two million more apprentices, if they are provided with the appropriate incentives by the UK government.

Overcoming barriers

The report also revealed the key barriers preventing British SMEs from hiring more apprentices. This includes the expenses involved in training a new apprentice, which the FSB expects to cause a decline in the number of companies taking on apprentices in future. In order to reduce the costs of training new apprentices, FSB suggests, Whitehall should supply SMEs with a more generous incentive to take on more apprentices than those which are currently being considering.

Make-or-break moment

Commenting on the report’s findings, FSB Chairman Mike Cherry noted: “Smaller businesses are taking on more apprentices than ever before. What’s more, a quarter of our members say they are considering employing an apprentice in the future. This presents a huge opportunity and is great news for vocational training, which has become an increasingly attractive option for young people put off by the rising cost and uncertain returns of a university degree.”Going on, Cherry was quoted by SME Insider, a business news and advice publication, saying: “We are at a make-or-break moment. We need the Government to hit the right balance between incentives and support. While many small firms are committed to apprenticeships, many more continue to be worried about the time and personal commitment required.”

Cherry’s advice

Offering further advice for Whitehall, Cherry indicated that there are three areas ministers should focus on. He suggested that first, ministers supply high growth potential-SMEs with more targeted and localised information. Second, he argued that UK-based small companies require specific and practical guidance on hiring apprentices. Finally, Cherry said that it is vital the Whitehall provides a more generous support package to SMEs which hire apprentices.

Bridging skills gaps

It is becoming clear that UK small businesses are facing skills shortages. Last year, a poll of 893 UK SMEs found that 31% believe that their employees lack the required skills. However, the Guardian points out, despite these skills gaps, many SMEs are still not taking on apprentices.The biggest ‘disincentives’ to taking on apprentices named by the poll’s respondents included cost (49%), regulation (19%) and training (14%). Within this context, Cherry makes a valid point; Whitehall may wish to provide SMEs with more support in order to boost British apprenticeship figures.

How often do employees speak to their bosses in one day?

 

New research from Unicom has shown has shown that the average UK employee speaks to their boss 21 times every day.

Bosses need to communicate with their employees

Unicom is an energy and telecoms provider that is dedicated to providing first-rate service to over 100,000 SMEs across the UK.

As such we understand the importance of communication between employees and their bosses. Recently we surveyed the opinions of 1,000 SME decision makers and owners to determine the role telecommunications played in facilitating this vital communication.

Unicom survey reveals how often employees talk to their bosses

Our research found that on average, employees in the UK speak to their bosses on the phone 21 times every day. Meanwhile 20% of employees speak to their bosses 30 times in one day whilst 10% communicate with their superiors a staggering 60 times per day.

The research also showed when employees take calls. It showed that 31% of people are expected to take calls outside of working hours and after 7pm, 17% check their work phones whilst in the bathroom, almost 20% take a call from the boss whilst having dinner, 27% will accept a call during a film yet only 18% feel like they’re able to refuse a call from their superior outside of the office.

“Mobile communications have revolutionised the way we live and work.”

The Unicom research also showed that people expect to take calls from their boss outside of working hours. 29% said they are OK with this alteration to their work/life balance whilst 19% hate this change but accept it as a part of modern working life.

Unicom CEO Chris Earle commented on the research. Earle said: “Mobile communications have revolutionised the way we live and work and for many of us, striking the right balance is tricky.

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