8 Statistics for Small Businesses!
Whether you’re just about to take the plunge, or you’ve been treading this very changeable water called ‘running your own business’ for a while now, you need to know you’re not alone.
Honestly, knowing we’re not alone is one of the most important things in life!
Don’t believe me?
Okay, well, how often have you Googled anything like this…?
- Is it normal to …?
- How many people …?
- Is it okay if…?
From health problems, to relationship issues, to yes, you guessed it, running your business(!), whether we like it or not, we are always checking to see if what we’re doing or experiencing is ‘normal’ or ‘okay’, or whether we should actually start to panic!
So, after probably the most turbulent few years in history for small businesses, I wanted to share some stats with you, to show you’re not alone, what you’re going through is normal, and most importantly, not to panic!
Disclaimer: These are statistics from various sources, and cannot be completely verified. However, in our experience, these numbers seem reasonable to us!
1. 99% of UK businesses are SMALL BUSINESSES!
For this purpose, a small business is anything between a sole trader and 49 employees.
But look at that – 99%!! So if you’ve ever wondered if you’re alone the answer is a big fat HELL NO!
There are literally millions of people out there in the same boat as you, whether they’re a bit further along in the journey, or a bit behind, and so by making friends in the industry, attending networking events, and connecting on social media platforms, you can find others to help you keep going, and maybe you can be the person who helps someone else to keep going too!
2. 75% are one-man-bands!
If you read the above and thought ‘flipping heck, 49 employees? I can barely pay myself right now!’, then, again, you are most definitely not alone! You are amongst ¾ of small business owners, who are currently ‘alone’ in their business (but not alone in the community!)
3. 19% of small businesses that employ others are owned by women, and 20% of small businesses with no employees are owned by women.
Okay, those numbers may not seem like big percentages, but they represent huge growth from previously, and, we know this will keep on growing! We’re not saying that the pay gap, and other issues have been resolved completely by any means, but we are hugely optimistic for the future of women in business!
4. The total turnover, UK-wide, of micro, small & medium businesses combined is about 50%, with the other 50% being attributed to big businesses.
So, do you think you don’t have power? That people will run to the big boys to purchase? Well, yeah, maybe 50% of people will. But 50% of people WON’T! 1 in 2 people you are walking past in the street are likely to buy from a small business. That ain’t a bad statistic!
5. The average turnover for a small, owner-only business is £70k.
This is the average, so some will be far exceeding this, and for some, this may seem like a distant dream right now. But the average is the average, the ‘norm’ for a reason. The reason is that it is very possible!
Knowing what’s going on in other businesses around you will help you to set reasonable expectations, that you most definitely CAN meet.
6. Now here’s the biggie – profit (which can be VERY different to turnover!)
These figures are from 2020, so, depending on sector, we know that some businesses have been able to flourish, and other may have struggled since then, but this gives you an idea of what to expect;
- The average profit of a ‘one-man-band’ was £9000
- The average profit of a business with 1-9 employees was £22,000
- The average profit of a business with 10-49 employees was £67,000
So here’s a thought to hold onto – your profit WILL be very different from your turnover, and that’s just the same as everybody else!
Looking to grow your profits but need some guidance? Our Growth Strategy Sessions may be the thing you need – find out more about them here.
7. The average cost of ‘setting up’ a business is over £7000.
So, if, as a one-person business, your profit initially is expected to be around £9000, and you’re shelling out £7000 to even set up in the first year, is it reasonable to be disappointed that you’ve not made much profit, if any in the first year or 2? No! A business has to make a profit for you to be able to survive, we get that, but this will take time.
One way to help map out your plan, and to minimise the disappointment, would be making a business plan.
8. 100% of people who take the leap into running their own business show bravery, belief in themselves and contribute hugely to their communities!
We didn’t need to back this one up on various websites – we know it to be true! Regardless of where you find yourself on the scales discussed above, and regardless of how the life of your business goes, this stat is true of you!
So, yes, it’s all normal! Everything you’re facing – imposter syndrome, cash flow issues, increasing running costs, difficulty finding the right employees, not knowing when to invest and expand, or whether to stay as you are – they are issues that the other 99% of business owners in the UK are facing too!
Please reach out to us for a chat, because we’d love to help to see that you are not alone, and that building a community and a strong support network around you is the best way to keep your business moving forward. Who knows, maybe one day, you’ll reach that 1%? 😉
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