Running a business is often romanticised as a path to freedom, but many founders admit the reality is far messier. From cash flow worries to staffing headaches, entrepreneurs face constant pressure. Yet despite the challenges, the UK is home to over 5.6 million small firms, most employing fewer than 50 people.
Colin Monton, head of client development at Quilter Cheviot, warns that founders often neglect their personal finances while focusing on the business. 'Entrepreneurs are very good at focusing on the business but often neglect their personal position; the two are completely linked,' he says. He advises treating personal finances with the same discipline as company finances, especially with an eventual exit in mind.
Kenny MacAulay, CEO of accountancy software firm Acting Office, stresses the importance of internal communication. His company holds a 45-minute all-hands meeting every fortnight to explain what is working, what is not, and what comes next. 'A fully-briefed workforce is a motivated one,' he says. 'Information shared is energy created.'
On technology, MacAulay cautions against rushing into AI adoption. 'Most SMEs aren’t ready for AI – not because of the technology, but because of their data,' he explains. Scattered systems and inconsistent records can cause problems. 'AI on a single, well-structured record is powerful. AI on 12 messy ones is dangerous.'
He also advises businesses to 'grow with clients, not ahead of them,' building pricing structures that scale with the value provided. In a tough economic climate, firms that raise prices without demonstrating additional value risk damaging long-term relationships.
