The scaleup trap: how financial blind spots stall the UK’s most promising SMBs
When it’s time to scale, many businesses grind to a halt – not because of market conditions, but because their internal systems aren’t built for growth. These businesses often have the demand, the talent, and the ambition, but their outdated financial systems hold them back. This is the scale-up trap: when growing businesses stall not for lack of opportunity, but because they’re not operationally ready.
Take Journeys by Design. Founded in 1999 by Will Jones, the company has grown from a one-man operation into a multinational team across three countries. As they scaled, financial complexity increased and like many growing businesses, they realised their tools hadn’t kept up. Managing Director Paul Herbertson noted they needed access to the right data, not just for internal decisions, but to provide board-level visibility.
Intuit QuickBooks recent report, Growing Pains: Typical Mistakes That Hold Growing SMEs Back, revealed that nearly 40% of UK SMBs with 10 to 99 employees say financial issues are negatively impacting their operations. Many founders lose 10 to 15 hours each week to financial admin – time that should be spent on growth, not paperwork. One in three decision-makers even say financial stress is keeping them up at night.
It’s not a lack of ambition – UK entrepreneurs are ready to expand. But too many are still relying on systems built for smaller, simpler operations. The result is a dangerous disconnect: leaders making big decisions with small-picture data. When cash flow is unclear and forecasting is reactive, strategy turns into guesswork.
While most SMBs can track their daily cash position, the report found that few have real-time visibility into profitability, trends, or forecasts. Just 27% of businesses with 10 to 49 employees, and 33% of those with 50 to 99 employees, use financial reports to guide decision-making. Without that clarity, they can’t hire strategically, allocate resources effectively, or respond confidently to market shifts.
Unlike many businesses that leave these challenges unresolved, Journeys by Design adapted early by adopting the right tools and strategies. Today, they operate with a five-year business plan, supported by systems that provide a solid foundation for sustainable growth and ensure the entire team feels part of the journey.
Strategic finance as a leadership tool
For startup founders and growth-stage entrepreneurs, financial capability is a core leadership skill. Strategic finance tools give leaders the clarity to plan, decide, and execute with confidence.
That doesn’t mean hiring a full finance team on day one. It means investing in tools that offer real-time visibility into performance and automate some of the financial admin, and gaining access to advisors who can turn financial data into strategies for growth. As Will Jones put it, “It wasn’t about hiring more people – it was about giving myself better tools so I could lead smarter, not harder.”
When financial professionals become true growth partners, they empower SMBs to shift from reactive decision making to proactive leadership. By supporting scenario planning, identifying emerging trends, and advising on strategic resource deployment, they help businesses stay ahead of risk and be ready for opportunity.
Technology as a growth multiplier
Technology isn’t just a time-saver – it’s a growth catalyst. For SMBs, the right digital tools can unlock new revenue streams, improve operations, and ease the burden on overstretched teams. In fact, 77% of SMEs using AI report higher productivity, with many identifying clearer routes to profitability. Automation replaces manual tasks prone to human error, while modern platforms manage complexity without overwhelming your team. These tools can help founders reclaim 6 to 10 hours per week – time that can be re-invested into the business.
Scaling up shouldn’t feel like hitting a ceiling. With the right support, SMBs can move from reacting to leading. Real-time insights empower business owners to pinpoint issues early, measure what’s working, and make faster, better decisions. The result? Fewer surprises, greater control, and more focus on customers, growth, and team building.
We also need to stop viewing finance as a back-office burden, it’s the control room of the business.
To every startup founder reading this: don’t wait. Review your finance systems now. Automate what you can. Ask your accountant more questions. Get the tools that give you real-time control.
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