Skip navigation

Gloucestershire Business News

Overcoming the pitfalls of start-up businesses – Adam Shearing of Hazlewoods

By Adam Shearing, senior manager at Hazlewoods 

As we begin to follow the nation's recovery roadmap out of lockdown, now is the time for start-ups to get ready and seize new opportunities.

For your small business venture to work successfully however, it is essential that you know exactly what is involved - as Adam Shearing, senior manager at Hazlewoods explains.

According to an article in The Telegraph, 20 per cent of new businesses will fail to make it past their first year, and a staggering 60 per cent of new businesses will go bust or cease trading within their first three years. Taking the time to get the set up right now can make the process seem less daunting in the long run.

Below are the basics of a start-up checklist:

  • Evaluate opportunity with a business plan
  • Formulate a marketing strategy
  • Draft a budget
  • Choose an accountant
  • Determine your business structure; sole trader, partnership, LLP or limited company, and get set up
  • Register your business
  • Set up your bank account and obtain funding
  • Choose accounting software for record keeping
  • Obtain insurance such as public and employer liability insurance
  • Start selling

The right business structure and strategy is vital for any start-up venture, which is why it is important to be aware of the main pitfalls that many new businesses face in the early stages of their journey, so that you can work to overcome them and prepare for long-term success.

One of the key areas to focus on from the get-go is effective cash management. The importance of cash flow forecasting and management cannot be understated; it enables you to identify potential shortfalls at an early stage and to adapt your initial operations to suit. Cash is, and will remain, king. No matter what your turnover is, if your cash flow is always negative, then you do not stand a chance.

Some of the main remits to get to grips with include:

  • Understanding the concept of working capital
  • The benefits of cash flow forecasting and how to identify gaps in cash resources
  • The importance of credit control

From effective cash management and decision making with data, through to business planning and appropriate KPIs, learning more about these areas now will help you to plan and prevent the difficulties you may have otherwise faced at a later date.

Hazlewoods Business Advisers and Chartered Accountants specialist Accounting Solutions team can help you navigate these tricky first steps to support you in becoming a business for tomorrow.

If you would like to find out more, sign up to the first session in our live webinar series 'Overcoming the pitfalls of start-up businesses: Effective cash management', Thursday 13 May 2021, 12.00pm, here: https://bit.ly/3n1C9ju.

For further advice, contact Adam Shearing, senior manager, at adam.shearing@hazlewoods.co.uk or call a member of the Accounting Solutions team on 01242 680000.

Related Articles

Not much new for business in Queen's Speech - Ian Mean, Business West Image

Not much new for business in Queen's Speech - Ian Mean, Business West

Business will not have heard much new in the Queen's Speech outlining the Government's programme. The key announcement surrounded the leaked plans for new skills and training legislation under the much heralded Lifetime Skills Guarantee.

The impact of Covid-19 on small business owners' mental health - Hayley Parker of OPS-BOX Image

The impact of Covid-19 on small business owners' mental health - Hayley Parker of OPS-BOX

It's been quite a year for everyone - running a business has been no easy task and the usual daily stresses of being a business owner have been exacerbated by the coronavirus pandemic.

VIDEO Punchline Talks: Phil Vickery Image

VIDEO Punchline Talks: Phil Vickery

Rugby World Cup winner, British & Irish Lion, Gloucester and England captain, Celebrity Masterchef, clothing retailer, restaurant owner - Phil Vickery's CV is long and varied. So he had plenty to talk about when he took his place in the hot seat for the latest Punchline Talks B!G Interview.

VIDEO Punchline Talks: Friday Briefing, May 7 Image

VIDEO Punchline Talks: Friday Briefing, May 7

Growth in the economy, the prospects for foreign travel, rate relief and giant doughnuts - this week's Punchline business briefing panel covered a wide range of news stories.

Copyright 2021 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.