March 5, 2019
New knowledge from Kabbage reveals the influence of money circulation on the workload, private life and take-home pay of small enterprise homeowners. Polling 500 profitable entrepreneurs, the survey reveals the vast majority of small enterprise homeowners don’t pay themselves for a number of consecutive months to regulate the money circulation of their enterprise. In end result, 26 p.c have gone two to 6 months with out paying themselves, with one other 25 p.c forgoing greater than six months and not using a paycheck.
“Having owned multiple small businesses before founding Kabbage, I am intimately familiar with cash flow challenges,” mentioned Kabbage CEO Rob Frohwein. “Sleepless nights were my reality when waiting on customer checks and thinking through needed expenditures. These experiences drive Kabbage’s mission to help small businesses easily manage cash flow so they can focus on the skill or craft that allowed them to start their business in the first place.”
Of the respondents surveyed, 63 p.c mentioned they’re repeatedly confused or have anxiousness resulting from money circulation issues; 35 p.c usually lose sleep or have problem sleeping; 42 p.c sacrifice a lot of their social life and private hobbies; and 32 p.c say their household life suffers. Yet, respondents have run profitable firms for a median of 10.5 years.
Small enterprise homeowners have aspirations to construct and enhance their enterprise, however their time is usually overtaken by money circulation duties. The survey additionally discovered 91 p.c of small enterprise homeowners spend as a lot as 20 hours per week on money circulation administration from dealing with payroll to invoicing and buying stock. If all cash-flow duties had been eradicated, respondents mentioned they might repurpose their time to do the next:
- 51 p.c would make investments extra time in gross sales and advertising to drive new enterprise.
- 35 p.c would additional develop their services and products, saying they’ve new concepts however no time to deal with them.
- 32 p.c would spend extra time with household, mates and group.
- 30 p.c would focus extra time on customer support.
- 22 p.c would use the time on hiring and mentoring their staff.
- 22 p.c would examine new applied sciences and enterprise methods to make their firm extra environment friendly.
“I’ve tried different small enterprise lending choices previously, however nothing has allowed my firm as a lot flexibility and assurance to entry funds as Kabbage,” mentioned Mark Van Duyne, president of Quality Home Products, a home-furnishings wholesaler in Rancho Cucamonga, Calif. “Kabbage is solely dependable. I do know I don’t must reapply to banks or different funding sources. Kabbage is there once we want it, and it has frankly helped remove a lot of the money circulation concern I used to have.”