In the current economic climate in Britain,the risks of starting up a Essay

In the current economic climate in Britain,the risks of starting up a new business outweight the benefits.DIscuss - Essay Example Another thing is about financing, the business may require continuous financing that may be unavailable. Finally, the management of a new business can either be a catalyst to failure or success. However, there a few benefits that have encouraged startups such as government policy and availability of raw materials. It is therefore apparent that the risks that a startup business faces in Britain are far much compared to the benefits. Firstly, the business is affected by factors within its control and reach. The management of an upcoming business can easily lead the company to failure due to many challenges that are experienced. They should have both long-term and short-term goals for the business and ensure they are implemented. A shaky management can contribute greatly to a business failure. The business owners have the capacity to find the best individuals to steer the business to success. Marketing strategy should be in place and should have a target market. A failure in this aspect will result to losses in the business hence closure. Financial management is also required when starting a new business; the available resources should be used maximally. Failure to do this will strain the business and if takes long before it breaks even, then there is a possibility of it closing down. Other aspects are outside the business control. These include regulations, market dynamics among other external factors. The demand for several products and services has continued to shift. Despite the increased and improved quality, new business, find it difficult to penetrate the market because the existing demand itself is below the supply. This is the reason why market survey is necessary before engaging in any business. Government regulations especially those developed in the process of establishment of a business can result to closure due to the requirements of conformity. Despite the risks that are associated with new