New research by the Federation of Small Businesses (FSB) shows the average small business owner spends over 33 hours a month dealing with internal administration.
The FSB surveyed over 1,600 small business owners and found that the majority feel their business is being held back because of the amount of time they spend on business admin.
Two-thirds of those surveyed (67%) say the administrative burden is preventing them from focusing on their business’ primary purpose. The study reveals that three-quarters of business owners (76%) spend more time than they would like on business compliance, tackling issues ranging from tax, employment law issues and insurance to dealing with workplace pensions, accounting tasks or health and safety issues.
Business owners say they could use the time spent on business administration more productively, with 61% claiming they would spend more time on sales or sales development.
Indeed, the average smaller business owner claims to only spend 8 hours 50 minutes per month on new business development, which is just a quarter (25%) of the time they spend on business administration.
Dave Stallon, commercial director at FSB said:
Most business support services, such as accounting or HR, come with a price tag which is why many small businesses try to keep their costs down by keeping it in-house (perhaps a false economy if time is better spent working on developing their business). But when it comes to insurance, small businesses can have expert support at no extra cost by using a small business insurance broker.
A good broker will take the administrative burden away from small businesses. They assess the risks the businesses face, search the market for the most suitable cover and advise small businesses on steps they can take to reduce their risk. It’s their job every year at renewal to:
- check the cover is still suitable,
- make sure any changes to the business are reflected in the insurance requirements
- research the market again for the best insurance products.
Why take on more work than necessary by trying to arrange all your own business insurance when a broker will do it far more effectively and without any cost to your business? And most importantly that’s once less piece of red tape that might free you up to work on developing your business.