Content Starts Here
Seven out of ten home-based businesses say they can beat the crunch
- 71% believe they will be able to grow or maintain their level of business during this time of economic downturn
- 29% of self-employed home-based professionals say general trading conditions for their business are positive, with an additional 38% saying conditions are average or no different to normal
- Only 8% believe they will definitely not be able to grow or maintain their level of business
Despite recent gloomy news regarding the UK's 0% economic growth, there is one important part of the economy that remains positive. New survey* figures, released by insurer RSA today, show that self-employed home-based professionals are optimistic regarding the performance of their businesses.
RSA's survey, undertaken in August, interviewed 450 self-employed home-based professionals and found that 29% of respondents described current trading conditions as positive and an additional 38% described conditions as average or no different to normal.
When asked about the prospects for their businesses during this economic downturn, one third (34%) of respondents thought they would definitely be able to grow or maintain their level of business. Only 8% of businesses thought they would definitely not be able to grow their business.
Aaron Devitt, Director of Professional and Financial Risks at RSA, said: "Given the current economic uncertainty we're experiencing, these survey results are a welcome surprise. They suggest that the present and future do not need to be as bleak as some are predicting. With all this talk about an impending recession, we are in danger of talking ourselves into a situation that is worse than reality. Clearly, in at least one area of the economy, there are reasons for remaining optimistic about future growth."
Home-based professionals are not only optimistic about the future of their businesses; when asked whether they would start-up their business again, over three quarter (76%) of respondents said that they definitely would, with only 3% saying that knowing what they know now, they would never start up a business again.
The top three benefits of setting up your own business from home were being your own boss (92%), having the freedom and flexibility to decide where you work (84%) and not having to commute, which saves time, cost and stress (83%).
Contrary to popular belief having the opportunity to earn more money (51%) and getting to spend more time with the family (59%) came significantly further down the list of benefits.
A possible reason for self-employed home workers not feeling the effects of the current financial climate might be the advantages they have over larger corporations. Respondents felt the top two advantages are being able to provide a more flexible service to accommodate client needs and clients knowing that the owner-manager is the single point of contact.
Respondents were asked what advice they would give to individuals that are either currently starting or considering starting their own business. The top five tips were:
- Establish clear payment terms for clients and suppliers to manage cashflow
- Don't underestimate the value of networking and building contacts
- Seeking out and taking advice from others
- Stick to what you know
- Protect yourself by getting adequate insurance cover such as professional indemnity
"As statistics show that many start-ups fail within the first three years, it is vital that self-employed home-based professionals are aware of all the risks involved and are fully prepared before they start their venture," commented Aaron Devitt. "We are pleased to see that such a high percentage of respondents recognised that adequate insurance cover, such as professional indemnity, is a vital part of ensuring your business and your income is protected."
Print now
Send to a friend
Related products
