How can I calculate the turnover of an SME business?
One of the most commonly used metrics to refine searches for companies is by either their size or by their turnover. However, currently, only companies with an average revenue of £10.2 million or over or more than 50 employees actually publish turnover.
This can prove to be a problem, especially if your company wants to target mid-sized or smaller companies in the £2 million to £5 million turnover range. There are many good reasons to do this, especially if you’re a new company that needs to make a name for itself before going after the big players in an industry.
This lack of turnover information can be a difficult challenge for lenders, especially in the wake of a pandemic. With business facing a more uncertain future than ever, money is being borrowed left, right and centre. How can lenders decide whether to do business with a company in the £2 million to £5 million turnover range when there is no published estimated revenue?
Of course, you could manually estimate your own revenue prediction for companies based on past performance and current market trends. However, although calculating previous turnover is a simple matter of adding up a company’s total sales, this is much harder to estimate in an unprecedented climate such as the current COVID-19 pandemic.
In your calculations, you could even factor in local issues such as current local COVID restrictions, but, even then, these would be mere guesses. In addition to this, predicting the estimated turnover from every company you may or may not want to do business with is costly and incredibly time-consuming.
So, why not use a service that already provides this information for you?
DataGardener has implemented a new feature in their advanced financial filters to solve this problem. Under their premium financial filters service, there is a new option to search by estimated company turnover for companies who have an estimation of less than £10.2 million per year or fewer than 50 employees. So, for example, if you’re in the business of lead generation for other companies, you use this service to quickly search for smaller companies who may have a reduced estimated turnover below £10.2 million per year.
Even prospective investors could benefit hugely from services such as this. Before deciding to investigate a company further for possible investment opportunities, being able to see a quick rundown of their estimated turnover will help you filter out any companies below and above a certain level.
For example, suppose you were looking to invest in a small company as an independent or chartered investor. In that case, it’s highly unlikely that this company will have an estimated revenue of more than £10.2 million per year. With DataGardener, you can use the premium financials functionality to apply fine-grain filters for companies with a turnover of less than the required £10.2 million, making the process of due diligence easier than ever.
With constant improvements being made to search functionality and access to extensive business information on any UK based company, DataGardener should be the first choice for any UK business. Searching for companies purely by financial data allows businesses and investors to take full control of their search functionality, saving them time and money in the process. This data empowers you to filter out companies that are too small and risky to invest in as well as companies that may be too large for your current operations.
With DataGardener, you can be sure that the information you’re provided with is as up to date and relevant as possible, even down to the predicted turnover of small companies.
To learn more about this functionality, book a demo of DataGardener today