Why Getting Paid on Time is Fundamental to Start-up Growth
What is your first thought when you hear the word ‘Start-Up’?
For some, the word ‘start-up’ may bring a feeling of uncertainty and lack of control. So why exactly is this the case? Well, unlike larger and more established businesses, start-ups are much more likely to be subject to the emotional rollercoaster that is unpaid invoices. This vulnerability ultimately leaves start-ups susceptible to cashflow issues, issues that can overtime lead to their eventual demise in turn.
This blog will outline the importance of start-ups within our society as well as highlighting the various reasons why getting paid on time is fundamental to their subsequent growth.
Start-ups – A Risk Worth Taking?
Business creation is at its highest level in the last five years than ever before (NatWest, 2024). With 2024 on track to be the strongest year of any with a total of 468,000 start-ups in the first half of the year, it raises the question as to how much of a risk it is to create a business in the first place.
Did you know?
Approximately 20% of startups fail in their first year (Startups, 2024)
What are some factors influencing start-up success?
Start-up success is never guaranteed. But understanding the various factors that can influence this success can be the difference between business growth and failure. Some of these factors include:
- Funding – A must when it comes to scaling a start-up. Without it, the development of any product or service will not be maximised to its full potential. Simply put, without the financial backing of different sources such as savings, friends and family and small business loans, a start-up’s growth will be limited.
- Effective Leadership – The CEO/founder of any business must be able to make the right strategic decisions at the right time. They typically possess qualities such as resilience, adaptability, and creativity and are able to promote a good working environment in turn.
- The Idea – Regarded as the most important predictor of startup success, it is essential that a strong value proposition is present when starting up a business. Serving as the basic foundation of any successful business, startups should acknowledge the fact that their idea must be strong enough to not only stand out amongst their competitors but also be able to solve a real customer issue too.
Approximately every 1 in 5 startups fail within the first year of operation. Whilst this can be due to a variety of factors, the most commonly known reasons include poor funding, lack of leadership and weak ideas. Therefore, before choosing to start up your own business, it is essential that you consider these factors.
Why are Start-ups important within our society?
Start-ups are the catalyst to economic growth. They not only help provide the marketplace with new innovations and ideas, but they also help in providing an economy with additional job opportunities and increase productivity overall.
Did you know?
The value that start-ups create is nearly on par with the GDP of a G7 economy (Jurgens, 2022)
How does late payment impact startup success?
As of 2024, nearly half of all invoices being sent to small businesses are being paid late (FreeAgent, 2024). Whilst late payments may not be an issue for larger, more established businesses, the detrimental impact that unpaid invoices can have on start-ups can be the difference between business success or failure. To ensure financial stability, cash flow management is essential.
This is where Darcey Quigley & Co can help. At Darcey Quigley & Co, we focus on maintaining a working relationship with both client and debtor through telephone recovery. As a priority for many Darcey Quigley & Co’s clients, we tailor our approach to ensure brand protection, ultimately allowing you to remain impartial and keep your professional relationship intact as a result. Overall, outsourcing has been proven to be the most powerful solution to recovering aged debt because it removes the familiarity between client and debt, allowing you to benefit from the expertise of our Credit Management Consultants. Check out our 5-Star Trustpilot page for all our success stories!
If late payments have been affecting your business, why not book a call with one of our friendly debt recovery specialists or phone 01698 821 468.
Lynne is the Founder and CEO of Darcey Quigley & Co.
She is passionate and determined to help businesses get overdue invoices paid quickly.
Having worked within the credit management industry for over 27 years and ran UK leading commercial debt recovery specialists Darcey Quigley & Co for over 17 years, Lynne has helped businesses recover commercial debts from every continent across the globe.
Connect with me on LinkedIn!
