Page 106 - Spring Into Markets

What can go wrong — ‘common pitfalls’
It is a well known fact that almost half of new businesses fold during the all impor‐ tant first 12 months. One of the most common reasons is poor sales and it’s no surprise one of the primary purposes of this start‐up support programme is to pro‐ vide traders with actions and ideas to increase sales. In addition, other common pitfalls sourced from Bytestart are:
1: Lack of research — possibly the main reason why so many small businesses fail is due to a lack of planning and research
2: Funding — many business owners use their own funds during the start‐up pro‐ cess. Other businesses may need to source extra funding from angel investors, banks and other lenders
3: Dedication — it is very hard to set up a new business unless you are 100% committed
4: Cash flow — it is essential to keep on top of your business cash flow manage‐ ment. You must always keep funds aside to settle your tax bills, and don't be re‐ luctant to seek help if you are concerned about the financial health of your business
5: Staff — you need to have the right people doing the right jobs to succeed. Employees need to be managed properly and feel rewarded for their efforts
Below is our guide and top tips for success in your first 12 months in business: it’s as easy as ABC — and D.
A – Accounts and administration services and in
• Get an accountant — they can provide a rangelpofytoauxdecide the best some cases give business advice. They can h d advise on any other legal structure for your business, explain VAT an s and get quotes before financial obligations. Do it early on in the proces
appointing your chosen firm or individual of the
• Make your finances a priority from day one and keep on top paperwork
• Keep all paperwork obligations are
• Don’t ignore your legal obligations — find outlicwehnactesyoaunrd insurance you in terms of tax, national insurance and what nce prices are usually need and keep your premiums up to date. Insuraddition NMTF has competitive so don’t forget to shop around. In a options
created very competitive and bespoke insurance
106 Your First Year
Guide 15