American Express Reveals: 'The Best Money I Ever Spent on My Small Business'

LONDON, September 21, 2017 /PRNewswire/ --

Just under three quarters (71%) of small business owners say that investing in their company is the key to long term success according to research from American Express. However, concerns about cash flow (30%) to help fund future growth are considered to be the biggest challenge currently facing small businesses, ahead of forecasting the impact of external factors such as Brexit (21%) and prioritising the multiple needs of their business (14%).

Video: http://mma.prnewswire.com/media/558815/AMEX_Compilation.mp4

With small businesses owners ranking branding and marketing (25%), new hires (19%) and specialist equipment (15%) as the most important areas of investment, American Express asked five small business owners to share their stories of the best money they ever spent to help secure future success.

  
    Smarter:                 A pioneer in the Internet of Things, Smarter launched the
                                  world's first wi-fi kettle in 2013.
    Money well spent:    A £100 prototype
                                  Starting Smarter with a vision for an affordable connected home,
                                  Christian Lane invested £100 in creating a working prototype
                                  iKettle.  A £1 million contract followed that enabled the
                                  business not only to go into production, but grow and diversify
                                  with fridge cams and a wi-fi coffee maker now in its connected 
                                  home offer.
  
    Uniform2Go             Bridgend based manufacturer and wholesaler of school uniforms
    Money well spent:    Branding
                                  As a start-up competing for business with established uniform
                                  suppliers, Emma Rees invested early in creating a strong brand
                                  identify for Uniforms2Go.  Leveraging the identity online, in
                                  marketing and in-store, Emma credits the branding as helping
                                  establish Uniforms2 Go as a credible business that now supplies
                                  The Prince's Trust and more than 250 schools in the UK as well as
                                  some overseas.
  
    Server Density         SaaS (Software as a Service) business providing server and website
                                  monitoring to customers all over the world    
    Money well spent:    Technology and Services:
                                  Founded by David Mytton in 2009, Server Density was borne out of a
                                  business problem David encountered while running another business.
                                  The software solution that was needed didn't exist, so David and a
                                  friend, Harry Wincup created it. Continuously checking websites
                                  and systems globally to see if they are online and how quickly
                                  their pages are loading, the software triggers alerts to the team
                                  whenever there is a delay or an error.  David describes the
                                  ongoing investment in essential technology required to run Server
                                  Density effectively 24/7 as the best money spent on the business.
  
   Each Peach              Childcare and education service for babies through to five year
   Childcare                 olds
    Money well spent:   Recruitment agency fees
                                 Founder Kate Peach is passionate about childcare and cites a
                                 significant agency fee to find a new nursery manager in 2015 with
                                 enabling her to both grow Each Peach and diversify her portfolio.
                                 Kate has since created Peacharno a childcare training and
                                 consultancy service and has ambitions to add five more nurseries
                                 to the Each Peach brand.
  
    Catalyst 2              Web hosting company managing around 20,000 domains including those
                                of international brands and charities   
    Money well spent:  Office environment
                                Paul Redpath set up his first business at the age of 15 alongside
                                studying and by the time he graduated, Catalyst 2 was up and
                                running.  Paul believes his best investment was his first member
                                of staff as well as the expense of the office space and equipment
                                needed to facilitate his first new joiner. He says the impact on
                                the business and his own work life balance was immediate.

42% of small business owners said lack of readily available cash is preventing them from spending money on their business and nearly three quarters (73%) agreed that they are more likely to invest if they have good cash flow.

Karen Penney, Head of Small Business Services at American Express said: "What these inspiring case studies highlight is that while investment can be critical to small business success there's no one size fits all approach.  As the definition of success is personal to every small business so is the journey to making the right investment at the right time.  For those planning investments large or small, one of the benefits we offer on our Business cards is extended payment terms and flexible spending limits to help businesses address the challenges of cash flow management."

The five businesses each describe their personal story here http://www.americanexpress.com/uk/moneywellspent

About American Express Small Business cards 

American Express small business Cards are designed to help small business owners manage finances, improve cash flow and stay in control of everyday expenses, while earning rewards at the same time. The Cards offer up to 54 days of deferred payment on purchases and Small business Cardmembers earn one Membership Rewards point for virtually every full £1 spent on the Card.  These Membership Reward points can be used for a statement credit or redeemed and spent on hotel bookings, gifts and experiences and to offset everyday expenses.

Visit http://www.americanexpress.co.uk/goldbusinesscard  

Survey results from UK study of 1,000 Small Business Owners in the UK, conducted by OnePoll in May 2017.

About American Express 

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

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