Small businesses working harder to break even
12/12/11 | 11:39
Up to 69% of Britain’s small businesses are concerned by this year’s difficult trading conditions – with many working flat-out to break even before Christmas.
That is according to a study by American Express and Cosco, which revealed that small businesses are feeling the squeeze from rising costs; including raw materials, energy and transport.
More than 50% of small business owners said their businesses have struggled after having to pay for stock up-front this year. They also reported significant year-on-year increases in the cost of buying stock.
However, according to Michael Ogilvie, chartered accountant for OBC, small firms can profit from the festive season. He said:
“Too many firms discount unnecessarily at Christmas, thinking that this is what customers want.
“The goal should be to encourage customers to buy more – look at what makes an attractive bundle of goods or services, or offer a special price for multi-buys.”
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