New research by Hitachi Capital Business Finance has explored the challenges businesses led by single parents face. The research surveyed more than 300 single parent business owners asking about how they started their business, running their business day-to-day, and plans for the future.
Key findings:
· They invest roughly four fifths of the average business (£8,785 versus £10,836) out of their back pockets in the first two years.
· 50% started their business with less than £5,000 (vs. average of 44%)
· They started up for a better work-life balance rather than to make money (44% vs. 15%) while half wanted to do something they loved.
· 32% offer additional holidays to staff (vs average of 25%), and 30% offer flexible working arrangements (vs average of 27%), 18% offer job-shares (vs.12%).
· 63% of single parent business owners work more than the standard 35-hour week. One in 10 say they do a 50-hour week, while 4% say they do a 60-hour week.
· One in two (52%) say they will ‘never stop’ working, at least in a part time capacity, with over half (53%) saying it’s because they love their jobs.
Single-parent business owners share their top tips
1. It is not a weakness to ask for help: Don’t be afraid to ask friends and family for their help and support – It makes strong business sense. Whether that is for childcare or help around the house – if it gives you some breathing space to focus on the business, it will reap rewards in the longer term.
2. Be patient, it takes time to grow a business: The average small business takes at least 2-3 years to start being profitable and 7-10 years to grow significantly. Don’t be hard on yourself if it seems to be going slowly. Lean on friends and talk to people in your network.
3. Put your children first: Learn to accept that in order to get the right balance between work and family, you will have to work around their timetable, even if just for the short-term i.e. school hours, nap times etc.
4. Have a few contingency plans in place, just in case! When plan A doesn’t work, have a plan B, C and D.
5. Trust your gut instinct: Do the right thing. If anything feels wrong, it most probably is.
6. Don’t get caught up in the need to compete with other brands: There is always enough business for everybody, believe in yourself and set your own goals – that confidence will carry you through.
7. Stick to a work life balance: Whilst single mum business owners are adept at managing to work these hours around their children, it is important to recognise when to switch off. Time management is key for productivity, as is a good night’s sleep!
8. Use resources where available: Join a network and make use of the resource centre at Hitachi Capital https://www.hitachicapital.co.uk/business-finance/asset-finance/business-resource-centre/. The majority of online resources are free, and they provide invaluable support via workshops and networking events around the country.
Case studies
Lauren Callaghan, HR consultancy owner – since the outbreak of coronavirus she has never been so busy with a business that is growing and growing. At the same time she is looking after two kids aged six and four. She gets up at 6 AM to do some work before the children wake up for breakfast, and organises meetings with agencies around her children – often at 8 PM or later.
Julie Hawkins, business network owner – works a 56 hour week, and has campaigned for many years for rights and recognition for working single-parents. Lockdown has presented major challenges for her business however she is still managing to persevere whilst fitting work around her two small children.
Lisa Berry, founder of a personalised print company – previously a highly qualified research scientist who decided to go it alone to enable her to be around more for her 10-month-old son. She says it was the best decision she made.