4 Key Risks you ought to consider if you are starting a business

by Startacus Admin
Go for it! What have you got to lose? Well, potentially quite a lot! Not that this is a pessimistic outlook on starting a business, but here at Startacus we do like to give a fair overview of the possible benefits, disadvantages and risks in starting said business.
A good place to look to see the growing volume of startup / registered startup businesses in the UK is the Startup Britain Startup Tracker which is a good barometer of how many businesses are being set up each day in the UK.
But what of the ones that fail? What of the startups that don’t make it past the first year of trading? We’ve already highlighted some of the key reasons why starting a business might not be for you, but, that aside, what are some of the key risks that you might face, if you do develop that business idea and start trading?
Here are 4 key risks you might want to consider:
Security
The obvious place to start when highlighting some of the ‘key risk of starting a business’ is the place it can hit a self starter the hardest - their pocket! When you work for ‘The Man’ you might have less creative input, but you will most probably have a healthy bank balance! The risk of not have a regular wage, can be for some of us, a massive aspect to consider, and depending on your financial outgoings (if and when you have a mortgage, a family and debts) may be too big a risk to consider at all.
Also, if you are a family man or lady and like the benefits that full-time employment can give - i.e. paid holidays / sick pay / pension schemes and so on, don’t expect to have all of these benefits in place when you start a business - these are potential luxuries that can come much later than your first trading year!
Cashflow
Following on from the personal financial security you may lose when starting a business, the financial pressure of not having enough (or any) cashflow is another rather large risk you will need to consider. Not being able to pay for your outgoings / costs / expenses and general operational costs may mean you go out of business, even before you have really even started.
World Events
Events outside of your control basically! No one can predict the global markets - well, that’s a lie, some can do it really rather well, but for the average startup / or self employed business person, predicting where the next pound or even latte comes from can be their biggest daily concern.
However there are world events - recessions, financial crashes / meltdowns / acts of God that can impact on your business startup and spell the end for it- a rather large risk one might say. The Lloyds of London News and Insight section is a good place to keep an eye on Global Events and Trends that might affect your business.
Competency
When you work for a large or even small company, the chances are that the core functionalities of that business are covered by the workforce themselves. When you start your own business, unless you have an endless pot of money to employ a load of specialist and qualified staff, you will most certainly need to multitask and cover many differing job responsibilities and roles - and all at one time.
Your own competency in doing this, and doing this well, can be a massive risk in determining whether your business will be a success or not. Failing to consider your own talents and weaknesses can be a massive risk to your business success - so think wisely and consider, if you don’t have all the skills and experiences, how will you cover each and every business base and startup skillset needed to make sure your business performs?
Join Startacus - the Self Start Society!
If you like what you see here on Startacus, why not become a member of our growing community? It's free! And you'll get all this - exclusive access to our Business Toolkit, discounts and offers galore for your business via our member only business deals, the chance to network and connect with loads of fellow self-starters, and maybe even become our celebrated 'Self-Starter of the Week' and tell the world your startup tale! Join right here for free
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Got a business in the manufacturing sector? These tips on how you can reduce energy costs while being more sustainable are well worth a read...

Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.

Nassia Skoulikariti, Director of IoT Programmes, Mobile Ecosystem Forum shares some insights on how IoT is having a significant impact on all our lives.

Roger James Hamilton, Founder and CEO of Genius Group, a world-leading entrepreneur Edtech and education group, discusses how introducing a globalized curriculum will help better prepare students.

SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.

41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.

Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.

Thingtrax Secures £4.3M to Empower Manufacturers to Build the Factories of the Future

A measure of inflation relief for small firms sees transport costs fall but service price increases remain elevated

Bedfordshire-based HR tech startup HR DataHub has built a range of tools for HR departments
Published on: 20th February 2014
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- SureIn Secures €4M to Close the SMB Insurance Gap 15th Aug 2023 Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.
- SuperFi raises $1M pre-seed funding round 28th Jul 2023 SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.
- Startups rely on AI & sustainability for new partnerships 27th Jul 2023 41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.
- Another Round closes £300k Seed round to revolutionise personal training 21st Jul 2023 Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.