Catherine Livingstone

According to the latest data, women between 18 and 30 have launched over 13,000 new businesses in the UK this year, with Edinburgh leading the way with a 1,313% increase in businesses launched by women under 30.

Catherine Livingstone, partner, and head of the business advisory services team at Wylie & Bisset, said that while it is encouraging to see such a healthy level of start-ups, these are challenging times economically for everyone, so it is more important than ever for entrepreneurs to be as well-prepared as possible.

She said: “Cashflow is critical, given the challenging economic environment and imminent changes to tax rates, start-ups must be well prepared and have a robust business plan.

“They should source the best possible professional advice and, given that cash will be critical to business success, seek to ensure that they have sufficient funds at the outset, prior to starting to trade.”

Ms Livingstone notes that a challenge common to many new starts is that they can grow very quickly, so that keeping control of cashflow can be key to managing growth.

She advised: “Having a strong business plan and knowing your numbers are critical factors because, without these at the core, everything else can become problematic very quickly.

“And with inflation and interest rates on the rise making borrowing more costly, not only is cashflow critical, but scenario planning is essential. I would advise start-ups calculating their budgets and cashflow forecasts to work on a worst-case scenario basis to give them the best possible chance of survival.

“Those start-ups with sufficient cashflow and robust business plans will be best prepared to survive the current economic turbulence to thrive over the coming years.”