GOING DIGITAL CAN CREATE PROFIT BOOST
Deidre McGettrick Small businesses could be missing out on £35,000 worth of revenue each month, research reveals.
Two in five businesses still don’t have an online presence, while one in three that do have a website are not fully digital.
A study by website platform Wix looked at productivity, efficiency and general sentiment of UK small business. Nine out of 10 of those that don’t have a website said they don’t see the benefit of digitalising their business.
However, nine in 10 businesses that are completely digital – using tools for tasks such as invoicing and payments, customer service, chat and other automations – revealed their revenue had increased by an average of £35,000 a month.
For ventures with one to 49 members of staff the figure was an average of £23,000. Small firms surveyed told Wix this extra income was predominantly down to saving time and resources.
Tasks which small businesses are most likely to pursue with traditional methods are service, administration, bookkeeping, payments, invoices and marketing.
The survey found they were shelling out an average of £28 an hour for administration skills, £29 an hour for payments and invoicing, £29 an hour on bookkeeping and £27 an hour for social media management.
Matt Rosenberg, director at Wix, said: “The results of the survey are not surprising. For a small business owner, moving business online for marketing and management is good for exposure, productivity and efficiency, and the results will be evident on the business’s bottom line.”
The biggest issues small businesses currently face are the fear of and continued uncertainty around Brexit, along with managing cashflow and struggling with time management.
One in five smaller firms said they struggle to keep up with technology and innovations in their market.
Fear over Brexit is leading almost a third to try and improve efficiency and reduce their costs.
More than a quarter were reviewing and making cutbacks with their suppliers, a quarter have chopped their overheads, and two fifths have encouraged staff to work from home.
Some had even closed their premises to reduce overheads. FORMER star stockpicker Neil Woodford’s £3.5billion flagship fund is to be shut down.
Woodford’s name will also be dropped as its investment manager, in a further blow to his already battered reputation.
Withdrawals from the Woodford Equity Income Fund were suspended in June this year after a flood of investors took their money out.
The plan had been reopen it in December.
But Link Fund Solutions, which runs the fund on Woodford’s behalf, said: “After careful consideration, the decision has now been taken not to reopen the fund and instead to wind it up as soon as practicable. This is with a view of returning cash to investors at the earliest opportunity.”
The size of the fund has crashed from about £10bn at its peak due to withdrawals and poor returns. Its remaining to assets will now be sold, but Link warned customers the money raised “may be less than you originally invested”.
A fund manager, or stockpicker, analyses different stocks to decide which to invest others’ money in. Woodford’s star status was earned during his time at Invesco Perpetual, but many of his more recent investments, including online estate agents Purplebricks and doorstep lender Provident Financial, have done badly. Lee Wild, head of equity strategy at Interactive Investor, says: “Neil Woodford and his team built a funds empire based on their performance at Invesco.
“This is a brutal warning that, much like in football management, if you don’t perform, you lose your job.
“It happens in the City every day of the week, but Woodford is easily the most high-profile victim in years.” FALLEN STAR Woodford