A new study, commissioned by T-Mobile reveals the results of research into a new type of UK business. TOTs is an acronym created specifically for the study which describes the new business breed. The acronym describes companies that are Twelve months old, are Optimistic regarding their business, and use Technology to build and manage their business. It is believed that this new business type could create £360 million and more than 70,000 new jobs for the UK economy in the next year.
TOTs are centred around mobile technology, according to the study, with 98 percent reliant on a smartphone for their emails, business organisation and using business applications. The new breed of business promotes products and services, networks with customers and receives feedback in real time by incorporating social networking sites. Accenture welcomes this approach to marketing, saying that utilising social media early in a developing business will maximise return on investment by as much as 20 to 1.
The study indicates that TOTs achieve faster growth rates than a typical start up. More than half predicted growth in excess of 30 percent over the next year. TOTs have also been found to generate revenue between £100,000 and £250,000 in the first 12 months, recruiting an average of four permanent employees to service the growth.
Despite starting a business during an economic downturn, TOTs have overcome difficulties by focusing on boosting exportation, being flexible and improving financial strategy. However, 77 percent have stated that they won’t make a long term commitment with leases or contracts.
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