A recent report suggested that nearly 30,000 small businesses will go bust in 2024. This would mean that more SMEs will fail in 2024 than in any other year over the past two decades.
In this post we’ll explore the biggest problems that small businesses are facing in 2024 and discuss some ways you can overcome these challenges.
Small businesses face a unique set of risks, and we can help you get bespoke SME insurance cover to help you meet these risks at a price you can afford. For a friendly chat and a free quote, call us on 0208 290 9080, or email business@anthonyjones.com.
Rising Costs
A number of factors have contributed to an unstable economy and rising inflation rates. UK inflation hit a 41 year high in October 2022, and many businesses are still feeling the aftereffects.
Rising inflation can increase the costs of almost everything, from office supplies to building materials, to the price of business insurance and vehicle insurance.
Many businesses have been forced to conduct thorough audits of all of their necessary business costs, to see if there are any areas where they can make savings.
This is where working with an insurance broker can help. Through taking the time to understand the specific risks you’re facing; a broker can help you get exactly the cover you need at a truly competitive price. Learn more about how brokers can help you deal with rising costs in an uncertain economic climate.
Cyber Risks
A recent UK government report revealed that 32% of businesses had experienced data breaches and cyberattacks over the previous 12 months.
Cyberattacks are a major risk for all businesses, but small businesses are particularly vulnerable. Research suggests that cybercriminals are more likely to target smaller businesses than larger businesses.
Why? Largely because they know that most small businesses do not have the systems in place to properly defend against, or recover from, cyberattacks. So, in the event of a ransomware attack, while large businesses might be able to respond effectively, small businesses might have no choice but to pay.
AI is making cybercrime even more of a threat. With the help of generative AI systems, cybercriminals no longer need to be skilled coders in order to write malicious code. AI could also be used create increasingly convincing, and devastatingly effective, phishing attacks.
Because of the rising risk of cybercrime, dedicated cybersecurity policies are becoming a business essential for businesses of all sizes. Small businesses must also recognise the importance of specialist cyber insurance.
In the event of a cyberattack, cyber insurance will cover your business’s liability as well as your ability to manage your systems and finances. Learn more about how cyber insurance can be your best line of defence against the risk of cybercrime.
Flooding
Like cybercrime, flooding will always be a major risk for businesses of all sizes. Yet new research suggests that many businesses may not fully understand the risks they’re facing.
Traditionally, businesses and insurers have viewed the winter months as “flooding season”. Yet the latest figures show that we’re seeing an increase in summer floods, with almost a quarter of all flood-related claims occurring in July and August.
Any business located close to a body of water should already consider flooding as a perennial risk. Yet even if there are no lakes or rivers nearby, your business may still be vulnerable to flash floods and surface water.
So, no matter where your business is located, you should take steps to protect your premises and your assets from a flood. Read our full guide to protecting your business from the risks of flooding.
Specialist Support For Small Businesses
We know that times are tough for small businesses. That’s why we’re committed to helping you manage the risks you’re facing, so you can focus on thriving.
We can help you get bespoke SME insurance cover to help you manage the unique risks you’re facing a price you can afford. Our tailored risk management support can help you stay resilient, while also helping you make further savings on the cost of cover.
For a friendly chat and a free quote, call us on 0208 290 9080, or email business@anthonyjones.com.
