The FT reported in October 2017 that the number of UK start-ups had risen to a new record level. Forbes went on to say in a article in April 2018 that the number of UK tech start-ups increased 60% 2016 vs 2017. In hard figures, there were some 197,000 more businesses registered with Companies House in 2017 than there were in 2016. It is also worth nothing that that figure is net of any businesses that closed during the year, so is lower than the total number of new businesses.
What makes for interesting reading, is to then note that by 2018, there were some 27,000 fewer businesses registered. It would seem likely that the staggering number of 2017 start-ups might explain this, as it’s generally accepted that around 90% of start-ups fail. Either way, with 96% of UK businesses being classed as micro entities (0-9 employees), and these businesses accounting for more than a fifth of total business turnover, it would be hard to overestimate the importance of start-ups to the UK economy.
Getting your start-up business right is never going to be easy, you have to find a product that people want, market it, grow fast, build a versatile team, and believe in yourself while you do it. This link gives a little more information on how to try and build a successful start-up, but it misses a key factor – finance!
The financing of a start-up will always be challenging. My previous blog “Why every small business should have an FD” outlines some of the benefits for those 96% of businesses (micro-entities) that are unlikely to have one. This includes start-ups, for whom it is arguably even more crucial. Yes, funds will be tight; yes, it’s another cost out itemise when you’re trying to fundraise; but yes, it is worth it! QuickBooks (Baird Consulting’s accounts software partner) have produced a short article on whether your business needs a bookkeeper or an accountant, and reach the conclusion that it is always best practice to have the strategic advice and support of an accountant available from day one.
At Baird Consulting, we are passionate about small businesses and start-ups. We can provide the advice and support that will help you start your business on the right foot, and keep it there as your business grows. You can read more about our range of services here, or get in touch with us to discuss your needs.