The ScaleUp Challenge

Why do only 4% of businesses scale beyond 9 people and less than 1% beyond 50?

We are exploring the reasons behind why so few businesses scale particularly beyond the 9 employee level and would appreciate your help by completing this survey. We explore a wide range of aspects including personality type and key challenges at different stages of the 'ScaleUp Journey'. It should only take around 15 minutes. We will produce a 'White Paper' report and share it with all contributors (if you supply your name and email address). No individuals will be identified in the report. One lucky winner chosen at random will receive a reMarkable 2 tablet.

We thank you in advance for your time and input.

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* 1. Your name and email address if you would like to receive a copy of the report

Name

Company

City/Town

Country

Email Address

Phone Number

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* 2. When was your business founded?

Date / Time

Date

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* 3. What sector does your business operate in?

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* 4. How many full-time equivalent staff members do you currently employ? To the nearest whole number

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* 5. How many full-time staff members did you employ during your previous financial year? To the nearest whole number

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* 6. Which of the following best describes your business ‘phase’:

We are an early startup

We are still establishing our scalable business model (we have some work to do on proving our ‘product/ market fit’)

We have established our model but are not yet in rapid expansion mode

We are in rapid expansion mode – focusing on growing turnover/ market share

Our primary focus is on maximising profits/ efficiencies rather than growing turnover?

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* 7. What was your annual turnover for your last financial year?

Less than £100k

£100k-£500k

£500k-£1m

£1-3m

£3-5m

£5-10m

£10m-20m

More than £20m?

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* 8. How much bigger is your business today compared with 3 years ago?

It didn’t exist 3 years ago!

It has got smaller

The business has remained about the same level

It has grown by around 25%

It has grown by around 50%

It is twice as big

It is three times the size

It has grown more than four-fold

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* 9. What is your forecast turnover growth for this financial year compared with last?

Decrease more than 10%

Decrease less than 10%

Remain static

Increase by up to 10%

Increase 10% to 20%

Increase 20% to 30%

Increase 30% to 50%

Increase greater than 50%

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* 10. What was your net profit (before taxes) for your most recent financial year?

We made a loss

0-10%

11-20%

More than 20%

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* 11. What was your net profit (before taxes) 3 years ago?

We made a loss

0-10%

11-20%

More than 20%

The business didn't exist 3 years ago!

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* 12. What level of growth in turnover are you hoping to achieve over the next 3 years?

We don’t expect to grow turnover

We expect to grow on average about 10% year on year (About a third bigger in 3 years)

We expect to grow about 20% year on year (over two thirds bigger/ nearly double the size in 3 years)

We expect to grow about 30% year on year (Just over twice the size in 3 years)

We expect to grow about 50% year on year (Just over three times the size in 3 years

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* 13. What do you find most challenging about running a business? Choose up to 5 from the following:

Generating sufficient quality leads

Converting leads into sales

Staff Management – getting your staff to do the right things consistently well

Getting your staff to work as a truly cohesive team

Attracting and hiring enough of the right people

Retaining good people

Financial Planning – knowing how to use the numbers to make decisions

Managing Cashflow

Getting access to funding

Operations – delivering the work consistently well to the client

Setting out a strong vision and a plan to achieve it

Getting buy-in from your team to the plan

Keeping on track to the plan

Developing a strong value based culture

Getting staff to think and act for themselves and take responsibility in the way that you would

Something else

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* 14. If you chose 'something else' in the last question, what is that 'something else'?

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* 15. How many hours do you work per week?

Less than 35

37.5 – 40

41 – 45

46 – 50

51 – 60

60 Plus

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* 16. Are you happy with the number of hours that you do work?

Yes

Don't know

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* 17. How many people do you directly manage?

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* 18. What percentage of your sales/revenue (i.e., turnover) is “recurring”? Recurring is defined as subscriptions, maintenance contracts, or annuity streams that your customer must proactively turn off or cancel in order to stop receiving the product or service. (i.e. not simply "repeat" or "regular" customers)?

None

Less than a quarter

Between a quarter and a half

Between a half and three quarters

More than three quarters

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* 19. If customers were queuing at your door to buy, would you find delivering FIVE times the current volume of what you sell:

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* 20. How would your business perform if you were incapacitated for 3 months and unable to work? Would it:

Hardly suffer at all, and survive

Suffer a little but survive

Suffer a lot but survive

Suffer a lot and not survive

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* 21. Which of the following best describes your management team?

We don’t have one

I have a ‘second in command’ who can run the business in my absence

We have a handful of people who act as informal leaders, but their leadership roles are not clearly defined

We have manager in charge of sales/ marketing and production of our services/goods

We have a senior leadership team and management teams in place, with clearly defined roles

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* 22. Looking back, what do you consider have been the greatest challenges to getting to where you are now?

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* 23. What do you consider your greatest business challenge for the next 12 months?

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* 24. What do you consider your greatest business challenge for the next 3 years?

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* 25. Which of these two groups of words most accurately describe you?

Assertive, speak loudly, dynamic, bold or

Calm, methodical, careful, softer speech, thoughtful

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* 26. Which of these two groups of words most accurately describe you?

Logic focused, objective, skeptical, challenging or

People focused, empathising, receptive or agreeable

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* 27. Do you charge above average prices compared with your average competitor?

Yes

No - about average

No - we are lower

Don't know

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* 28. At the prices we charge, we:

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* 29. There is something about the way we do business that means at the prices we charge:

We are able to make higher profits than our average competitor

We think we make profits typical of our sector

We still struggle to make consistent profits at the level we would like/ think we make lower profits that most of our sector

Don’t know

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* 30. How do you extract income from your business?

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* 31. How would your net profit margin change/ what would it be if you were to pay yourself a market rate Director’s salary through PAYE?:

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* 32. Select any that apply from below:

Are you finding that things that used to work well/ created success in the business are no longer seeming to?

Are you finding yourself dragged back into day-to-day operations?

Are you finding you are working longer hours?

Is the amount of business/ turnover increasing but seemingly not generating the same increase in cashflow?

Is the business ‘dropping the ball’ more frequently?

Have profits dropped despite turnover increasing or remaining strong?

Does every employee hired and customer acquired actually tire you out?

As your team grows, does it feel like you are the only one pulling your weight?

None of the above

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* 33. How many months of operational expenditure do you have in reserve – or if you had no sales come in, how long would it take to run out of cash?

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* 34. Do you think you have a clear strategy that works towards scalability and growth?

Yes

Partially

I don't know

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* 35. Do you think you have the cashflow to support scalability and growth?

Yes

Partially

I don't know

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* 36. What do you think is preventing you from scaling your business?

We don’t have the right staff in place in support growth

We don’t have a growth strategy, with clear objectives

We don’t have sales and marketing resource

Our cashflow is unstable

There isn’t a high enough demand for our existing product and/or service offering

We are comfortable at our current size/ do not wish to scale further

Something else

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* 37. If you answered 'something else' to the previous question, what else is it that is preventing you from scaling your business?

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* 38. Please select which of the following statements best describes your cashflow:

We need more cash than we generate, so we are regularly trying to raise or borrow money

We need more cash than we generate so we’re occasionally trying to raise or borrow money

Our business generates excess cash which we reinvest or keep in reserve

Our business generates excess cash which we distribute to shareholders regularly

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* 39. What are the 5 main business metrics that you review regularly?

KPI 1

KPI 2

KPI 3

KPI 4

KPI 5

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* 40. Do you believe your business has a clearly defined USP (unique selling proposition)?

Yes

I don't know

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* 41. Do you work towards consistent short, medium and long term goals and business objectives?

Yes

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* 42. Have you identified new opportunities for growth over the last 12 months?

Yes

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* 43. Do you believe you have a strong leadership team?

Yes

We are actively working on it

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* 44. Do your team have clearly defined roles and accountabilities?

Yes

We are working on it!

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* 45. Have you ever struggled with cashflow?

Yes

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* 46. Does your current cashflow concern you?

Yes

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* 47. Do you have a cashflow forecast in place?

Yes

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* 48. Do you use monthly management accounts to evaluate business performance?

Yes

The ScaleUp Challenge

Why do only 4% of businesses scale beyond 9 people and less than 1% beyond 50?

Question Title

* 1. Your name and email address if you would like to receive a copy of the report

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* 2. When was your business founded?

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* 3. What sector does your business operate in?

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* 4. How many full-time equivalent staff members do you currently employ? To the nearest whole number

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* 5. How many full-time staff members did you employ during your previous financial year? To the nearest whole number

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* 6. Which of the following best describes your business ‘phase’:

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* 7. What was your annual turnover for your last financial year?

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* 8. How much bigger is your business today compared with 3 years ago?

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* 9. What is your forecast turnover growth for this financial year compared with last?

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* 10. What was your net profit (before taxes) for your most recent financial year?

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* 11. What was your net profit (before taxes) 3 years ago?

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* 12. What level of growth in turnover are you hoping to achieve over the next 3 years?

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* 13. What do you find most challenging about running a business? Choose up to 5 from the following:

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* 14. If you chose 'something else' in the last question, what is that 'something else'?

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* 15. How many hours do you work per week?﻿

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* 16. Are you happy with the number of hours that you do work?

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* 17. How many people do you directly manage?

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* 19. If customers were queuing at your door to buy, would you find delivering FIVE times the current volume of what you sell:

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* 20. How would your business perform if you were incapacitated for 3 months and unable to work? Would it:

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* 21. Which of the following best describes your management team?

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* 22. Looking back, what do you consider have been the greatest challenges to getting to where you are now?

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* 23. What do you consider your greatest business challenge for the next 12 months?

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* 24. What do you consider your greatest business challenge for the next 3 years?

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* 25. Which of these two groups of words most accurately describe you?

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* 26. Which of these two groups of words most accurately describe you?

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* 27. Do you charge above average prices compared with your average competitor?

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* 28. At the prices we charge, we:

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* 29. There is something about the way we do business that means at the prices we charge:

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* 30. How do you extract income from your business?

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* 31. How would your net profit margin change/ what would it be if you were to pay yourself a market rate Director’s salary through PAYE?:

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* 32. Select any that apply from below:

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* 33. How many months of operational expenditure do you have in reserve – or if you had no sales come in, how long would it take to run out of cash?

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* 34. Do you think you have a clear strategy that works towards scalability and growth?

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* 35. Do you think you have the cashflow to support scalability and growth?

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* 36. What do you think is preventing you from scaling your business?

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* 37. If you answered 'something else' to the previous question, what else is it that is preventing you from scaling your business?

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* 38. Please select which of the following statements best describes your cashflow:

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* 39. What are the 5 main business metrics that you review regularly?

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* 15. How many hours do you work per week?

* 41. Do you work towards consistent short, medium and long term goals and business objectives?