UK business owners have revealed that their biggest regret is the way they financed their business during the start-up period.
Significantly, nearly one in four (23%) admitted that in hindsight they would have funded their business differently and this decision seriously held back the business.
The study, conducted by Hitachi Capital Invoice Finance, gathered data on 1,000 business owners to identify what UK SME’s view to be their biggest mistakes.
The UK’s second-biggest regret was their pricing strategy, with 21% of business owners claiming this was a ‘major’ regret. More than half (57%) of those who claimed they made this mistake changed their pricing within the first year of operating. Of those that feared they incorrectly priced their product or service 78% claimed it was due to overpricing and just 22% felt they undervalued their offerings.
Taking advice from friends or business gurus was also a major regret for business owners, with 17% claiming they took wrong advice and in hindsight would have made alternative decisions. Interestingly, nearly one in three (31%) male owners regretted the advice they took in comparison to only one in 10 (10%) females.
Andy Dodd, managing director at Hitachi Capital Invoice Finance, said: “It’s fascinating to find out just what regrets business owners have and how they feel they’ve potentially hampered their business.
“We are really passionate about helping people start their own businesses and try and support wherever we can, I hope this survey allows new business owners to look at their business plans and re-consider those critical decisions they need to make.”
TOP 10 BUSINESS REGRETS:
1. How I financed the business – 23%
2. The pricing strategy during start-up – 21%
3. Taking advice from friends or business gurus – 17%
4. The time I started my business – 16%
5. Lack of planning before start-up – 14%
6. The location I started my business – 11%
7. The products I sold – 10%
8. Hiring the wrong staff – 8%
9. Starting a business in the wrong sector – 6%
10. Not putting my all into the business during start-up – 4%.
