A lack of communication between management and staff is leading to poor decision-making and affecting small business performance. How can firms afford to invest in better communication? Alternative finance can help.

According to a new YouGov poll of SME leaders and non-managerial employees, a third of SME employees listed poor communication as the leading cause of stress at work. The report also revealed that poor communication between employees and management at SMEs is causing almost half of employees to make decisions at work without the information they need.

Poorly informed decision-making negatively impacts efficiency and runs the risk of causing costly mistakes that affect performance and profit margins. At a time when small businesses must manage a raft of policy and non-policy costs, and weakened trading conditions, they can ill afford the damage caused by a poor communication strategy.

Naturally, to improve communication strategies and to get managers and staff talking in a way that benefits their companies, SMEs need to invest in planning and resources, including personnel, training, incentives and technology. However, this has a significant price tag and for already under-pressure small businesses, finding the necessary capital is far from easy.

How can small business find the money to invest in better communication?

Alternative finance has a role to play.

In the wake of prolonged caution from traditional lenders, a position that Brexit is helping to entrench, alternative finance facilities such as invoice finance, asset finance, peer-to-peer lending and crowdfunding are proving a vital source of capital for small businesses, both for safeguarding cashflow and for essential investment, including in communication strategies and the resources that they require.

This is how a small business in Sussex used peer-to-peer lending, through a commercial finance broker that specialises in alternative finance, to raise the capital to invest in new resources.

Communication has always been a vital component of business success and now, more than ever, it is essential that small businesses have a proper strategy in place. In order to afford to do so, it is important that business owners are aware of all the funding options available to them, including alternative finance.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.