No need for financial fear with a limited company
Many people wrongly believe that the majority of businesses fail within the first year or shortly thereafter. In fact if you search the internet, you can easily find statistics quoted repeatedly across the World Wide Web saying:
“…over 50% of small businesses fail in the first year and 95% fail within the first five years.”
As Benjamin Disraeli once said – “There are three kinds of lies: lies, damned lies, and statistics.” Often these kinds of figures are exaggerated. In fact research carried out by the Department For Business Innovation and Skills has shown that the figures are quite incorrect. The research shows that:
“… (an) overwhelming majority of small firms – around 80-90% – survive for at least a year…”
Fear of business failure
The rumours about the failure of business have naturally led to a fear among most people about getting started in business in the first place. The fear of failure when starting a new business also goes hand-in-hand with the financial risks of doing so. Thinking that a new business is almost certainly doomed to failure leads people to think that they will endanger their own money and perhaps their home when it all goes wrong. So is it worth the risk?
The truth of course is very different. Although many businesses do fail, many do not. Plenty of new businesses and limited companies are started each year and go on to thrive in the market and even stretch across international borders.
Financial worries
Those people worried about risking (and losing) their money by starting a new business are often wisely advised to carry out a company formation to start a limited company and take advantage of the limited liability offered by this business vessel. Using a limited company allows a business owner to alleviate any financial worries related to the potential failure of their business, but also gives them the chance to most the most of the advantages of a limited company and the tax efficient nature offered by it.
Get started today!
If you’re thinking about starting a new business, don’t listen to the failure figures, if you put in the effort and work hard, do your research and market your business properly, you’ll more than likely survive and do well. Join the thousands of businesses before you and get started today!
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