Date: 2008-05-19 Category: News

Expert: Research and financial capital necessary for a new business

Those planning on starting up a small business should ensure they are prepared financially, according to an expert.

Adam Wayland, editor of smallbusiness.co.uk, also warned that people who are thinking about developing their first business should do a large amount of research and make sure that there is "a gap in the market" for their product.

There is a need for a "sound business plan", arguing: "It's no use assuming that the idea that you've got, or the product that you have, is going to take off."

Mr Weyland said that the biggest hurdle that those starting a business are going to face will be financial, from gaining the capital to start the business in the first place, to ensuring that the cash flow continues.

He also noted that start-up business should have financial capital so they can "survive those quieter months".

According to research released by Barclays Bank in March this year, 2007 saw the start up of more businesses than any years since 1988 when their records began.


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