Partner Article

North East startups reveal teething problems

With half of UK startups still failing to get over the five year hurdle, Sandler Training (UK), a business development consultancy, has commissioned research to get insight into the key issues that held business founders back in first stage of their company.

According to a survey of 200 small business owners in the North East, who have successfully been in business for over five years, 29% revealed that IT issues were the biggest hindrance of the first year, followed by pricing (28%) and decisions on personnel (17%).

The timing of a business is also crucial, with nearly half (47%) stating that they wish they had started their business over a year earlier.

Startups in the North East are also spending a significant amount on outsourcing and external consultants – averaging £19,890 a year. Despite these high figures, 44% business founders state that, if they could turn back time, they would have outsourced more.

Andrew Pickersgill, of Sandler Training (UK) in the North East comments: “This insight on outsourcing is indicative of businesses that have what it takes to be successful and play to their strengths.

“Business skills are not innate. By trying to do it all you can stall the growth of your business and worse, make some very costly mistakes. It’s best that you focus on your strengths and outsource the areas of weakness – whether its IT, marketing, sales or accounting.”

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