Setting up your own company is a very attractive prospect, and one that is frequently romanticized, portrayed as the quickest route to a life of independence where you are your own boss with complete control over your life and your business. Unfortunately, the reality of the situation is quite different. That’s not to say that you shouldn’t set up your own company at all, but you should do as much as you can beforehand to educate yourself as to the potential problems you might face.
For example, a lot of people don’t realise that as many as half of all new businesses will fail within the first five years of operation; after ten years, this number rises to two-thirds. The biggest challenges facing any new business are economic uncertainty, the cost of health insurance benefits for employees, and a decline in consumer spending which is showing no signs of abating.
The vast majority, 82%, of businesses that fail do so because of cashflow problems. It is no surprise then that an increasing number of businesses are turning to services like www.cbsgroup.com to help them efficiently expand in to new markets, in this case the EU, without risking their cashflow.
The below infographic highlights some of the other common misconceptions about starting a new business.