Research by a leading accounting-software company has discovered the factors that contribute to small business owners feeling like they have made it into medium to large business owners.
An accounting software company has carried out research within the small to medium sized enterprise market and found that the most common factor that makes small business owners consider their business to have “made it” is when they have made over £250k-£500k profit cleared and in their business bank account.
The research from KashFlow.co.uk found that the Top 5 business milestones that small business owners considered that they had to reach before considering their business to have made it were as follows;
1. £250k-£500k cleared profit in the business bank account
2. Won a business award
3. Product or service having featured in national media editorial
4. Purchased their own offices
5. Large team of employees – (50 or above)
It is worth noting that the number of employees small business owners consider they need to become a medium to large sized business is considerably lower than the European Union’s definition which states that 0-50 employees is classed as a small business and 250+ employees is classed as a medium sized business.
As individuals, small business owners said that the Top 5 personal circumstances that would make them consider that they had created a successful business would be as follows;
1. When they don’t have to work but choose to
2. When they have a large cash amount in the bank (£1m+)
3. When their mortgage is paid off
4. When they can afford to own and run two homes
5. When they can whisk friends and family off for all expenses paid holidays
Speaking about the research findings the Managing Director of KashFlow, Duane Jackson said,
“We commissioned the research in order to get a better understanding of our users goals and targets to help with our marketing and it is interesting to see the difference between what has historically been considered the benchmark for becoming a medium to large size business and what existing small business owners consider to be the parameters”.
He continued, “I believe that the growth in the take up of online accounting software packages has meant that small business owners can now keep a much better track of their company’s real-time financial information which is obviously making them more confident that they can grow not only their business, but also their own personal wealth”.
884 small business owners took part in the research which was commissioned by account software company KashFlow.