More than 600,000 new businesses are set to launch this year, as the Government’s Startup Britain campaign takes to the road. There were 581,000 new companies created last year and 2015 is expected to be another record-breaking year.
At a time of continued public spending cuts, the government has championed entrepreneurs as crucial to rebalancing the jobs market and to contributing to much-needed economic growth.
Since 2011, annual startup rates have increased from 440,600 in 2011 to a record-breaking 581,173 in 2014. And, when you’re starting a new business, the last thing you want to focus on is a failure. But if you address the common reasons for failure up front, you’ll be much less likely to fall victim to them yourself.
According to statistics, about half of all employer establishments survive at least five years and a third survive ten years or more. This is a far cry from the previously long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.
Better success rates notwithstanding, a significant percentage of new businesses do fail. Expert opinions abound about what a business owner should and shouldn’t do to keep a new business afloat in the perilous waters of the entrepreneurial sea. There are, however, key factors that, if not avoided, will be certain to weigh down a business and possibly sink it forevermore.
- You start your business for the wrong reasons.
- Poor Management
- Insufficient Capital
- Location, Location, Location
- Lack of Planning
- Overexpansion
- No Website
When it comes to the success of any new business, you, the business owner, are ultimately the “secret” to your success. For many successful business owners, failure was never an option at the onset, however, on occasion, it does happen and business does not become the proposition that was envisaged at the beginning. If you have any financial concerns about the viability of your business or wish to discuss any of the key factors above, please do not hesitate to contact one of our business advisory professionals for a free confidential discussion. Contact us.