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Almost one in 10 (9%) small or medium-sized business (SME) owners are at risk of burnout as they haven’t had a holiday for more than five years, findings from Simply Business reveal.
The main reason that prevents SME owners from taking holidays is money concerns, with three in five (62%) revealing that that potential loss of earnings is the primary issue that prevents them from taking time off work. As well as this, more than a third (35%) estimate that taking a holiday costs them at least £2,500 in lost earnings, while almost one in 10 (8%) estimate they’re losing out on double that figure at £5,000 or more for every holiday they take. One in five (19%) also admit to finding holidays stressful because they’re not bringing in any money.
While taking a holiday can clearly have a financial impact on SME owners, having a break from work provides an opportunity to refresh and energise ready for new work challenges. One way business owners can take a holiday without it having a huge impact on their finances is to save a small amount each month to make up for the potential loss of earnings during the holiday.
A good option is to consider opening a personal regular savings account as this will ensure that a minimum amount has to be paid into the account on a monthly basis, the funds can then be withdrawn at the end of the account term – although some allow withdrawal before maturity, you are likely to incur an interest penalty for doing so. The best rate currently available for a regular savings account on a one-year term that does not require a linked product is Regular Saver from HSBC, which offers a rate of 3.00% on a minimum £25 deposit. This account requires a monthly deposit of £25 to £250 to be made, up to a maximum investment of £3,000.
As well as this, business owners can consider using business services to help ensure everything continues to run smoothly even while away. Invoice factoring, for example, is a service that chases unpaid invoices for business owners, leaving them free to focus on running their business (or their holiday in this case). Alternatively, a virtual assistant could provide a solution that allows the basic administrative tasks continue to be completed while the owner is away.
Bea Montoya, chief operating officer at Simply Business, said: “SMEs are the backbone of Britain – accounting for 99% of all UK business, and contributing a combined £2tn in annual turnover. This makes the findings of our recent research all the more concerning. If self-employed people reach burnout, it has the potential to have a real impact on the wider UK economy.
“Taking a break from time to time to recharge the batteries is vital, and can be the catalyst for future growth. But, as our survey results show, this isn’t always easy for small business owners – with finances often a major blocker.”
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