We’re delighted to have recently started working with Geniac, a disruptive startup taking the headache out of business growth for startups.
Geniac is a new “office as a service” platform which combines accounting, tax, legal, human relations and corporate administration in one service. Having raised £22 million from Grant Thornton UK in 2015, the business is now engaging with some of the UK’s most innovative businesses so they can grow faster by giving them their time back.
To launch the PR program, we wanted to demonstrate that because Geniac works with many early-stage businesses, they know exactly how critical that first year can be. We had a hunch that many entrepreneurs were paying over the odds in the first year of operation so we carried out some research to find out exactly where the funds were going.
We interviewed 146 people thinking of starting a business to understand what their expectations were for business administration costs in the first year. We also talked to 514 existing UK small business owners about the actual costs they incurred when starting and running their business. Then we compared the regional differences across the UK.
Our research found that the average small business actually spends £22,756 in its first year to cover essential business administration costs. This was £2,525 higher than the expected figure the budding entrepreneurs had forecast.
Underestimating these costs was having a real impact on these businesses. Unfortunately (but unsurprisingly), many suffered negative consequences as a result, experiencing profit losses, being forced to readjust growth targets, and having to let staff go to free up funds – all factors that increase the likelihood of business failure.
The campaign has gone down a storm amongst national business and trade media. We kicked off coverage with an exclusive with the Daily Telegraph who also interviewed startups about their own experiences. The business press including Small Business.co.uk, Fresh Business Thinking and SME insider featured the story and the implications for businesses. Next, the accountants got wind of it with Accountancy Age as well as the London School of Business and Finance picking up the story. We also issued region breakdowns showing the varying costs of starting a business across the UK, resulting in hits on Wales Online and a number of northern publications.
In collaboration with Geniac, we also produced a full report and infographic to accompany the research which can be found here. And you can check out the infographic detailing the regional breakdowns below.
The results were surprising and essential reading for any small business owner or would-be entrepreneur to help them plan for making their business a success.
We’re delighted to be working with such an exciting startup and can’t wait to get our next campaign started. So watch this space!