Stepping into 2025 With the Ambition to Start Your Own Business

As we step into 2025, the FashionCapital team would like to wish you all a very Happy New Year – especially to the nearly half of UK adults who are considering starting their own business or side hustle this year. 

According to the latest StartUp Ambition report from e-nation, 47% of UK adults are eyeing entrepreneurship in 2025 – a 12% increase from 2024. This rise in ambition is a welcome sign for the UK economy, as entrepreneurs are the backbone of growth, innovation, and employment.

Small and micro businesses, those with fewer than 50 employees, account for 99.6% of UK businesses, and they are responsible for 50% of employment and 75% of innovation. It’s no exaggeration to say that without them, our economy simply wouldn’t function.

So, if you’re one of those brave individuals ready to embark on this exciting journey – whether in tech, retail, fashion, creative, or another sector – good luck! But before you dive in, let us offer you some crucial pieces of advice:

Take All the Help You Can Get

Running a business is hard. It’s exhilarating but exhausting, and one of the most challenging aspects is the feeling of isolation. You’re juggling sales, marketing, accounting, operations, and more—all while trying to keep your head above water. In the early days, family and friends can be a great support system, but unless they’ve been through it themselves, they can only offer limited guidance.

This is where professional advice and support can make a huge difference. Accountants, business advisors, lawyers, trade associations, and networks are invaluable resources. You’re probably thinking—“I can’t afford professional help!” However, you can’t afford not to. The right advice can help you set up your business correctly, avoid common pitfalls, and free you up to focus on what you do best.

One Key Lesson: Master Cash Flow

If there’s one key lesson in running a business, it’s this: cash flow is king. Without cash coming in at the right time, even the most successful business can fail. You may have great customers and big contracts, but if you can’t pay your bills in the meantime, your business is in trouble.

Most have learned this lesson the hard way, overlooking payment terms and deadlines. Always make sure you understand the payment terms in your contract before agreeing to the work.

• Set your own terms whenever possible. If the client is not willing to accept your terms, negotiate.
• Be prepared to walk away if the payment terms don’t work for your business. It might be tough, but better to lose a client than risk your business over delayed payments.

Know Your Payment Terms & Protect Your Business

Payment terms of 30 days are generally standard unless otherwise agreed, and 60 days may be acceptable in certain situations. But anything longer than that can become problematic, especially if it’s “grossly unfair” to your business. If you agree to long payment terms and your cash flow suffers as a result, it will be hard to argue that it was unfair down the line.

Make sure all terms are in writing – verbal contracts are binding, but proving them later can be a nightmare. If you’re unsure about anything in the contract, get professional advice before you sign.

Start Strong: Plan for Payments from Day One

To sum it up: Set clear payment terms, and don’t let larger clients bully you into unfavourable agreements. Know exactly when you will get paid, and if a payment doesn’t arrive on time, chase it immediately. You may even consider charging interest and compensation for overdue payments, as permitted by law.

Starting a business is a thrilling and rewarding experience, but it requires careful planning, especially when it comes to cash flow. Take the time to set things up right from the start, and you’ll be in a much stronger position to succeed.

Here’s to a successful and prosperous 2025!