Starting a Business For Dummies, 5th UK Edition

Chapter 19

Ten Pitfalls to Avoid

IN THIS CHAPTER

Making sure that you have the right skills base

Keeping track of key financial data

Staying out of the failure statistics

Difficult times can cause even the biggest and most-established firms to hit the buffers. For example, the merchandiser Debenhams (started in London 1778 and acquiring its present name in 1813 when William Debenham became a partner) at one point had more than 200 retail stores in 18 countries. It survived the upheavals caused by the French and Russian revolutions, two world wars and the 1929 depression. Yet Debenhams was, in the end, beaten by market competition and the global Covid-19 pandemic shutdowns, and vanished from the high street in May 2021. However the brand continues to live online having been purchased by fashion retailer Boohoo.

Around half a million small businesses close down each year in the UK, and over half of those closures occur in the first year of trading. Although not all the closures come under the heading of home-busting events, no business owners like to have a personal failure on their hands, even if it doesn’t wipe them out financially.

This chapter lists the main problems to avoid ...