Financial security is the 'key' to starting a business

The biggest challenge faced by new companies is achieving financial security, according to BT Business.

Company spokesman Mick Hegarty says starting a business can be a positive move, however he claims entrepreneurs must ensure that costs are "manageable and under control".

"When you are striking out on your own, it's great being your own boss, but the challenge is that it is all down to you," he explains.

Mr Hegarty suggests business owners get themselves recognised quickly and ensure their company stand out from the competition.

He says that small business owners must also manage the revenues they generate, which can include dealing with tax returns, company accounts, bookkeeping and payroll issues.

In a study by Enterprise Nation, on behalf of BT Business, it was revealed that 58 per cent of home-based businesses view financial stability as their "biggest hurdle", while in London 44 per cent of business owners said it was an issue for them.