Some quite shocking numbers were released recently which point to a very glum overview of how businesses are suffering on the high-street. It's quite apparent If you've been following Forbes Posts or Tweets or Social Media, we speak a lot about closures. Closure of businesses is our business so we keep our ear to the ground to phrase a metaphor.
"store survival rate so far this year is 32%, down from 67% at the end of 2011."Quote from: Accountancy Live
Business likelihood of survival has swung from a rate of around 1 failure for every 4 businesses to 2 failures for every three! That is quite some shocking news. Fear not however, if you are a small or sole trader, likelyhood is that you are by comparison quite safe; this small confidence booster from The Indipendant.
"The UK smaller companies sector was the most profitable IMA (Investment Managers Association) sector, bar none in 2012," he points out. The sector climbed 22.6 per cent over the year."Quote from: The Indipendant
To prove Just how much effect the fall of the giant retailers has had if HMV had closed completely rather than entering into a recovery, then the rate of store survival would have fallen to 4 failures for every 5, close to just a 20 percent chance of retail store survival.
In closing, It's probably worth keeping the hatches battened down for now, even though small businesses are enjoying a relatively good market, and probably enjoyig the trade which would otherwise have gone to the 'big names' the hard tiems aren't over just yet.
If you are in business and you are faced with the tough descision to close, find out how we can help you. Business closure doesnt have to mean the end of doing business. Call us to learn more about how we can help you: 0845 409 4471