This page is for intermediary use only. If you're not an intermediary, please
return to our customer website
This page is for intermediary use only. If you're not an intermediary, please
return to our customer website
Our latest piece of research* has shown that top priorities for UK SME leaders over the next 12 months are growing their business (46%) and expanding their customer base (39%).
Of course, growth doesn’t happen overnight, and there are several things that need to be considered. Growth isn’t just about making more money – it’s about scaling to tackle more ambitious projects and offer more diverse services.
This growth comes with cost, and often requires specialised business finance to make it achievable. Here, we breakdown the key areas that businesses are hoping to invest in over the next 12 months, to help you offer tailored advice to those that need it.
We firstly questioned what the upcoming priorities for businesses were over the coming year, leading to a few standout areas:
AI has really hit the business market by storm over the past two years. Spearheaded by the launch of generative AI tools like ChatGPT, businesses across the board have started making AI a bigger priority in their day-to-day. Smaller businesses are less likely to prioritise it than medium sized ones, though. 33% of medium businesses claimed AI was on their priority list for the next 12 months, compared to only 11% of micro businesses.
With an average response rate of 27%, staff retention is the fifth biggest priority for UK businesses over the next 12 months. The bulk of this derives from small and medium businesses, with 40% and 39% of them claiming to invest in it respectively.
The cost-of-living crisis continues to plague businesses, with micro businesses being impacted less than medium sized ones. 27% of medium sized businesses claimed that maintaining the cost of living crisis for their employees was a priority for the next 12 months, compared to 17% of micro businesses.
We asked businesses what their priorities were when it came to investing in business growth, and a few categories came out on top:
On average, our research* shows that on average, businesses plan to spend £232k on growth opportunities in the next 12 months. For the strategies that underpin those opportunities, businesses plan to invest an average of £25k-£50k.
Brokers have an important role to play when advising clients on investments related to business growth. Your words of wisdom are crucial in ensuring a client spends money in the right places, in the right way.
Based on each of the categories, here’s how you can help your client navigate the tricky subject of growth:
When investing in new equipment, there are two primary methods of procurement. Finance can have the benefit of lower upfront payments and your client has the option to not own the equipment. Buying ensures ownership but is often associated with higher upfront costs.
Making your client aware of these advantages and disadvantages can allow them to make a much more well-rounded decision on how they purchase equipment.
Another important thing to factor in when investing in equipment is the subject of depreciation. As it ages, equipment loses its value, making it impossible to sell for a profit later down the line.
If your client is only interested in using newer equipment for a short period of time, they may wish to explore other routes such as hiring or leasing.
Much like with training, investing in new technology doesn’t have to cost money. The Government’s website showcases over 100 schemes available that mention technology. These range from environmental technology from the likes of EnTRESS 2, to creative technologies backed by Hi3 Network.
At Aldermore, we’re passionate about growth. We love working with finance brokers who share our passion and we’re here to help you offer a bespoke service to your clients.
Browse through our business finance products today, and if you need more help, our team is always on hand.
Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.