Small Firms In Buoyant Mood

Running a small company is not easy. Bosses have a whole range of issues to consider. For example, as well as making sure they offer competitive and appealing goods or services, entrepreneurs need to tow the line when it comes to insurance.

If they lack suitable liability insurance, for instance, they may find themselves in both legal and financial hot water. Luckily, it is now easy for managers to access all the cover they need. Whether they are after employers’ liability insurance or any other type of cover, they can find it over the web.

Many bosses may need to reassess their insurance needs over coming weeks and months. According to research conducted by the Federation of Small Businesses (FSB), enterprises are in buoyant mood and a considerable number are planning to take on more workers. This might have a knock-on effect on their financial cover requirements.

The organisation’s latest Voice of Small Business Index revealed that 15 per cent of small companies have increased their staff numbers during the third-quarter of this year. This was the highest figure reported since the index began in 2010.

Meanwhile, the FSB also pointed out that all small enterprises will be eligible for a cut of up to £2,000 in their National Insurance contributions from April next year. The federation suggested this should provide additional encouragement to take on extra personnel.

Of the firms it polled, 28 per cent revealed they will use the extra money to employ more workers. A similar proportion (29 per cent) stated they will increase wages, while 24 per cent noted they will invest in resources.

Commenting on the findings, FSB national chairman John Allan said: “Compared with a year ago, small businesses are employing more staff and are looking to expand in the near future. This points to growing confidence from the UK’s small businesses.

“Our findings show that the Employment Allowance due to kick in next spring will have the desired effect. Through the measure, small firms are looking forward to taking on more staff, expanding their businesses and rewarding existing employees for their efforts.”

However, adding a note of caution, he remarked: “That said, the most recent unemployment figures show that long term unemployment, particularly among young people remains a concern.”

Periods of expansion can be exciting for small companies. They may be preparing to enter a new phase of their development and they stand to boost their market share and potentially their profits. However, it is crucial that managers are level headed during these phases. It is only by paying attention to detail that bosses can achieve the results they are after.

For example, they must meet their obligations when it comes to insurance. If they do not secure the correct employers’ or public liability insurance policies, for example, they may suffer serious ill-effects. Anyone who is unsure of their responsibilities can seek out the relevant information online. By being proactive, managers can save themselves a lot of stress and potentially money further down the line.

About the Author – Anna Longdin is a freelance blogger who has written extensively on the topic of insurance for a number of websites, including Insured Risks.