Existing customers key to small business survival

More than half of owner-managed businesses (OMBs) believe that looking after existing customers is key to survival during tough economic times, according to recent research.

The Owner Managed Business Barometer report conducted by Bank of Cyprus UK showed that 53% of respondents felt that taking care of customers was key to growth, as opposed to targeting new business.

The research, which surveyed more than 500 business owners with fewer than 50 employees, also found that 49% expected to see growth over the next year and 38% expect to see a growth in sales or revenue over the next three months.

Tom Leahy, spokesperson for Bank of Cyprus UK, said, “The fortunes of sole traders or owner-managed businesses are heavily influence by what happens in their local economy, so it is not surprising that a focus on customer retention rather than growth has been key to survival.”

Leahy also commented that it while it is heartening that so many businesses are anticipating growth in the coming year, it is now crucial for banks to support OMBs.