Prepare thoroughly to avoid need for start-up insolvency advice

Brits planning to start a business should thoroughly prepare themselves in order to ensure they do not end up requiring insolvency advice.

According to Business Link, it is essential that would-be tradespeople brush up on their business skills prior to the launch of their start-up company.

The self-help portal of action-focused information for small and medium-sized enterprises (SMEs) claimed it is never too early to get the proper knowledge and put the right procedures in place.

Director Ray Lambe explained that knowing your trade and understanding how to run a business can be two different things entirely.

"Very often people are motivated by something they are very interested in or by a trade skill that they have to set up for themselves, but it is a big step and it's very different to working for somebody else," he said.

The expert recommended that new entrepreneurs educate themselves on the business side of things in order to avoid the need for bankruptcy advice further down the line.

"It's a good idea to access resources as part of making the decision to start off in business on your own, and understand the importance of cashflow and the importance of winning new customers," Mr Lambe suggested.
The comments follow the recent Wickes Tradebuilder Report, released earlier this week (September 7th), which details the main issues encountered by newly formed SMEs.

It noted that poor marketing is a common downfall, with two-thirds of those questioned admitting they would not even know where to start when it came to promoting their products or services.

Meanwhile, almost a fifth of those who have lost money through a customer not paying them claimed they had been talked down on price once the job was completed, which could lead to insolvency if it happens regularly.

Managing cashflow was a real concern for the majority of respondents, with well over half having lost cash through customers not paying them and three-quarters of those having failed to pursue the issue.