Why finances don't have to be a barrier to starting a business

Thursday 4 August 2016

More than one million people in the UK dream of leaving their current job to set up their own limited company or small business venture, a new report reveals.

Research carried out by Direct Line for Business led to the discovery that 1.3 million workers would like to start their own business within the next 12 months, but over half (51 per cent) feel that a lack of understanding surrounding funding and finances would be a barrier holding them back.

However, this doesn't have to be the case if entrepreneurs employ the services of a specialist limited company accountancy service like Brookson, whose accountancy services for contractors, freelancers and SMEs, can take away some of the administrative work and financial paperwork associated with running a small business. This allows self-employed individuals to concentrate on developing their company, while knowing their finances and taxes are remaining compliant with HMRC.

Specialist funding companies are also available such as Boomerang Funding who offer funding assistance to start up recruitment businesses. Boomerang Funding Director, Paul Dewick said “clients come to us looking for help with funding so that they can kick start their business venture or grow their business in a risk-free way, leaving them free to focus on the day to day running of the business. It’s a real shame that many business fail to get off the ground because of a lack of funding and it’s great that we get to remove this barrier for many of the companies we work with”.

Brookson Outsourcing MD Andrew Fahey added “many people dream of turning a passion or skill they have into a successful business venture with many transitioning from a large corporate company to starting their own business. From copywriters and marketers to web developers and architects, I have seen many individuals make this move to being their own boss and with the right advice, support and funding, this does need to be too stressful’.

It wasn't just a lack of knowledge about potential funding sources that was putting people off from making the leap and establishing their own business though, with a third (32 per cent) citing a lack of direction and 30 per cent reporting a lack of confidence as the main barriers standing in their way.

Nick Breton, head of Direct Line for Business, commented: "Our research highlights the underlying desire amongst people to start up their own business ventures and its clear Brits are looking to turn their passions into professions.”

"Funding is key to starting a business, but good advice and support is just as crucial to help new start-ups launch their business and build for the future."


By Victoria McDonnell

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