New report reveals British business owners are craving financial control

by Startacus Admin

 

The lowdown on Cash Flow Revolution, the new report from Asto, outlining the key issues currently being faced by small businss owners in the UK

Cash Flow Revolution is a new report that has just been published by Asto, the small business finance and bookkeeping fintech by Santander, containing qualitative and quantitative research into the issues affecting British business owners.

Created with author and finance guru Alex Holder, the report is designed to change the conversation around business finances and empower business owners, freelancers and sole traders to take control of their finances. 

The report reveals that 53% of business owners define good financial health as feeling in control of their finances and more important than turning a profit, their worries about paying themselves or employees a salary. Despite this, only 31% of business owners, freelancers and sole traders feel like they’re in control of their money. Further findings reveal that business owners find digital tools and platforms useful for managing their money, with only 21% say they prefer not to use digital tools.

Money Mindsets

When creating The Cash Flow Revolution report, Asto analysed data from over 1,000 business owners to map out six distinct Money Mindsets - rough guides to help business owners identify themselves and address the specific challenges they face when it comes to money. These mindsets also help business owners find the tools that are right for them.

The Digital Collaborator – aspirational entrepreneurs who find talking about money and technology essential to running their businesses

The Conscious Grafter – confident, optimistic entrepreneurs who prioritise giving back to their community over growing profit margins

The Enterprising Rationalist – adaptive and independent thinkers motivated to run businesses to secure their financial futures

The Canny Pragmatist – calm and focused business owners who are prepared for the financial challenges ahead and have the tools to take them on

The Headstrong Traditionalist – resilient entrepreneurs who tackle financial challenges in return for an independent working life

The Bold Risk Taker – risk takers who are focused on business growth and making money, despite being burned by bad decisions

Business headaches

The report also identifies the biggest headaches and pressures facing business owners at the moment:

• Keeping a steady flow of work - 23%
• Maintaining a work/life balance - 11%
• Chasing late payments - 10%
• Keeping up to date with legislation and regulations - 8%
• Paperwork & admin - 9%
• Managing business cash flow and accounts - 7%

Nicolette Maury, CEO of Asto UK, commented: “Business owners, freelancers and sole traders are the backbone of British industry, and they need help now more than ever. This report highlights a real gap in support for those who need it the most. We hope these money mindsets can help business owners make informed choices about their finances as they face significant disruption and challenges in an uncertain economic climate. At Asto, we’ve always known that different people need different support, which is why we maintain a flexible approach to our products. This report has highlighted exactly how vast these differences can be, and it’s fascinating to see the different Money Mindsets brought to life through the brilliant contributor businesses we’ve worked with.”

Alex Holder, Author of Open Up: Why Talking About Money Will Change Your Life, commented: ”I’m a big advocate for talking about money – and the most important conversation you can have is with yourself. We need to support business owners more than ever, and it's been brilliant to work with Asto to design this report to enable business owners to recognise their strengths and weaknesses when it comes to money. Helping them find tools and solutions that suit them to help them achieve their goals as a business owner – whether that’s providing for their family, becoming the next big thing or simply staying afloat.”

 

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Published on: 19th November 2020