Running your own business can be an immensely rewarding experience. Every year, approximately 400,000 new businesses start up in the UK. Decisions taken in the early years can be the most difficult as well as the most important, particularly for first-time entrepreneurs and those with no previous business knowledge or experience.
When you have an idea for a new product or service, the impulse is to start sharing it with the world as soon as possible. However, the fact is that in the UK one in three new businesses ceases to trade within three years and, after ten years, only one in five is still in business.
Preparation is the key. This particularly applies to researching the market and testing your product or service. Getting the pricing right is a significant factor. Research shows that being under-capitalised is the most common cause of business failure. So it pays to get a business plan together with robust cashflow and profit forecasts.
Read the complete article on the ICAEW website