What are the risks to your business?

Written by Nigel Simpkins

According to data from the Office for National Statistics, 381,000 new businesses started up in the UK in 2018 – a figure largely in line with the previous 12 months. However, that same research shows that 336,000 companies went bust in 2018.

That number was significantly lower than the 362,000 in 2017, but still acts as a stark reminder that there are no guarantees for anyone starting out with a new venture. So, with that in mind, what are the risks to your business and, perhaps more importantly, how can you guard against them?


It is estimated that 20% of new businesses will go under within their first 12 months, and a whopping 60% will cease to exist after three years. Such statistics serve as a warning to those who may not have a robust strategy in place.

By taking the time to carefully and meticulously create a solid plan, you’ll give yourself a greater chance of building a business that will last long into the future. Come up with a number of contingencies to cover any unforeseen circumstances, and you’ll be better placed if your company does encounter any difficulties, which can be a common occurrence, especially for start-ups.


Of course, a huge part of remaining sustainable is securing adequate funding. Many start-ups will rely on traditional bank loans to help them with a number of elements, whether that be covering overheads; buying new stock and equipment or branching out to expand their reach, perhaps in the form of a second location or an enhanced marketing campaign.

A lack of funding can quickly spell the end for any start-up organisation, but conventional bank loans don’t have to be the only answer. According to the British Business Bank, 36% of smaller businesses sought external finance in 2018-19, while awareness of alternatives to traditional funding continues to grow. One of those options is the Liberis Business Cash Advance, which allows you to pay back what you owe as a pre-agreed percentage of your card takings. Solutions such as these can help start-ups mitigate against the risks attached to experiencing quieter periods with reduced cashflow.


For any businesses who deal regularly with customers on a face-to-face basis, taking out liability insurance is a must. Without it, you leave yourself open to potentially crippling legal action, should a consumer be injured or hurt on your premises or as a result of your product. Although paying for a premium will mean an extra upfront cost, the benefits of taking out a liability policy means you’ll be better safeguarded against the risk of financial and reputational damage in the long term.