// FEATURE //
HOW TO FORTIFY YOUR FINANCES
Funding . The thorn in many an SME ’ s side . Accessing finance , whether it ’ s for tech investment , working capital or growth , has certainly become more challenging for SMEs over the past three years . Todd Davison , MD of Purbeck Personal Guarantee Insurance , outlines how SMEs can build financial resilience to ensure sustainable growth .
MALL BUSINESSES THAT
S leverage technology effectively can outpace their competitors by automating processes , which enhances productivity . Yet , historically , the government has not supported small business tech adoption and innovation . A study by the Federation of Small Businesses in 2023 , for example , found that 69 % of small firms had introduced a new form of innovation in the last three years . This cost , on average , £ 27,000 for a small firm but increased revenue , on average , by 14.8 %. But barriers , including time and affordability remain .
Accessing finance , whether it ’ s for tech investment , working capital or growth has certainly become more challenging for SMEs over the past three years . So , what can SMEs do ? The answer lies in building financial resilience , whether that ’ s keeping close to the numbers , knowing what your loan options are or preparing to sign a personal guarantee , the cornerstone of sustainable growth is being in the know and if you don ’ t know – getting expert support .
The building blocks of financial resilience
There are plenty of distractions when running an SME , but establishing financial strength requires attention :
Actuals vs . budgets – Keep a check on financial performance to determine how it is tracking and trending . This will help forewarn of potential trading difficulties and allow time for mitigations .
Ask an expert – Outsourcing to a qualified CFO can help add credibility in supply chains , market reputation and future economic value ( i . e ., exit ) with strong internal controls and accounting standards . They can also help provide a greater level of certainty of a business and provide data insights on nonperforming products or services in a business .
Todd Davison , MD , Purbeck Personal Guarantee Insurance
Intelligent SME . tech
41