If you really want your start-up business to have a viable and sustainable long-term future, what’s the one piece of advice you should follow? Well, it’s to be frugal when you’re taking those first baby steps in business. That’s the considered view of the Institute of Chartered Accountants in England and Wales. The ICAEW’s best advice when you first set out in business is to budget carefully and spend wisely to avoid ‘burning through resources too quickly’.
So how did the Institute of Chartered Accountants in England and Wales come to this conclusion? Well, by canvassing the opinions of a cross-section of established businesses. The ICAEW asked entrepreneurs what their perceptions where when they first starting out in business, and whether those perceptions actually differed from reality. They also asked including what they would do differently if they could turn the clock back.
A third of the business owners polled admitted that failure to agree a common vision for their business was a major flaw in the infancy of their operations. 20 per cent attributed that a failure to manage cash flow has damaged their businesses and 15 per cent said that the failure to seek business advice quickly enough had had a detrimental effect on the viability of their business.
Three-quarters of the entrepreneurs polled felt running their business was more challenging than they initially anticipated, and 28 per cent thought that not getting enough customers and a failure to make enough money was most problematical.
Finance professionals, who work with start-ups, cited that using up existing resources too quickly was the biggest fear among 25 per cent of entrepreneurs. Small business advisors ranked cash flow management as the biggest hurdle for start-ups to overcome (23 per cent): however, entrepreneurs surprisingly placed this lower in their list of concerns (16 per cent) than even sales and marketing techniques.
Speaking about the findings of the survey, Stephen Ibbotson, director of business, ICAEW, said: “The desire to create a successful start-up in the UK is still very high and continues to grow.”
“Entrepreneurs’ perceptions of what they think will be the challenges they face as a start-up and the reality they actually encounter are very different.”
“These false assumptions can often lead to businesses not fulfilling their maximum potential and at worse, failing completely.”
In spite of the varied opinions of the entrepreneurs polled, one fact that the majority did agree on was that for long-term, sustainable success the input of an experienced and knowledgeable business advisor or accountant was vital.
How can Steven Glicher accountants help your start-up business? Well, by offering your enterprise a range of core business start-up services. We’re here to help you build your business and turn it into the success it deserves to be. Steven Glicher accountants can assist you with not only small business tax advice and general accounting issues: we can also be of assistance in all areas of general business advice. If you have any concerns over starting up or need advice on how to consolidate or develop your small business, call Steven Glicher accountants on 0161 485 8007 or email firstname.lastname@example.org.