10 things that hold people back from starting a business and how to overcome them

But all these challenges and worries can be dealt with. By recognising the issues that are preventing you from launching a business, you can prepare and overcome them.  

1. Fear of failure 

“What if I fail?” is a common mindset and it is true that a significant number of new businesses don’t make it past their first few years.  

However, failure isn’t necessarily a bad thing. It’s what you learn from it that counts. Use failure to change course, launch a new idea or do things better.  

Some of the most successful entrepreneurs have failed.  

On his way to creating his famous vacuum cleaner, James Dyson had 5,126 failed prototypes, and Oprah Winfrey was fired from her first job as a television news anchor because she was deemed "unfit for television”.  

2. Lack of startup capital 

Shows like Dragons’ Den might make you think you need thousands of pounds to start a business, but many businesses can be set up with very little money.  

For some businesses, pretty much all you need is a laptop! We’ve outlined 10 low-cost business ideas here, including dog walking, dropshipping and selling through online marketplaces. 

Running a business as a side hustle alongside your full-time job is a great way to keep costs low, as you have a stable income and can focus on your entrepreneurial venture in your spare time.  

If you do need external funding, there are lots of funding options for new businesses, including Start Up Loans, grants and crowdfunding. 

3. Not knowing where to start 

Some new entrepreneurs feel overwhelmed by the legal, tax, and registration actions needed to start a business, but for most founders the initial steps are quite simple. It involves registering a limited company with Companies House and HMRC, or setting up as a sole trader.  

Once you’re registered, it’s a good idea to create a short business plan. Use it to outline key details about your venture, what you want to achieve and how you are going to get there.   

The plan helps to clarify your targets and objectives for your start-up and as it grows, you can use it to measure progress, spot potential problems and make necessary changes.   

4. Imposter syndrome and self-doubt 

Imposter syndrome, the belief that you’re a fraud, don't deserve success and other people are better than you, is very common among business owners. 

But rather than thinking about other people, focus on your own achievements. Celebrate your wins, no matter how small. Keep a record of positive moments such as emails, awards and completed projects. Look at it regularly to remind yourself of your successes.  

There may be other things that give you self-doubt, such as dyslexia and ADHD. However, you turn them to your advantage.  

Successful entrepreneur and Dragons’ Den investor Theo Paphitis describes dyslexia as his “superpower”. He said: "I can safely say that I wouldn't be where I am if I weren't dyslexic because it's given me this ability to problem-solve, and throughout my journey, I've come to realise that it's not just me saying this - many others gain huge value from the differentiation that dyslexia gives them. 

5. Lack of time 

It can be tempting to balance a business with a full-time job, but it’s a good idea to start small and run your business in your spare time.  

To improve your productivity, use time blocking to schedule specific periods in the day for particular tasks. Apps like Asana, Trello and Monday.com can help. 

Having a co-founder to run your business with can reduce your workload. If you have the funds, you could employ a virtual assistant or use freelancers for certain tasks. 

6. Fear of financial instability 

It’s common to worry about financial instability when starting a business. Leaving a stable salary to start your own thing is scary. 

If that is a concern, start small and do it part-time. Run your business as a side project alongside your main job so you have the funds for day-to-day expenses and you don’t get into financial trouble. 

Once your venture is generating some steady income, you could drop a day or two from your main job to dedicate more time for your business. Build a safety net of funds to cover you when you make the biggest leap and go full time on your own company.  

7. Lack of business knowledge or skills 

You don’t need to spend thousands on an MBA to start a business. There are loads of free or low-cost resources.  

Plenty of successful entrepreneurs have written books, so browse the business section in your favourite bookshop. You could also visit your local library, some of which have a Business & IP Centre provided by the British Library. 

There are lots of free online small business resources provided by the likes of Federation of Small Businesses, Enterprise Nation, SMEWeb and Start Up Donut. 

The government also provides business advice, as do accountants and mentors. 

Look for business events on Eventbrite and Meetup. 

8. Overthinking and waiting for the ‘perfect idea’ 

Perfectionism leads to paralysis, so don’t wait for what you think is the optimum time to start your business; just do it! 

Starting small and iterating is much better than taking ages to get going. 

9. Legal and tax concerns 

Fear of red tape or making costly mistakes can be a concern for some new business owners, particularly those operating in highly regulated industries. 

Look for affordable professional advice such as booking a free consultation with a TaxAssist Accountant and looking for a solicitor. 

The government provides guidance for many business regulations, and there are organisations that can help with specific laws such as the Health and Safety Executive for health and safety advice and Acas for tips on employment law.  

10. Lack of support system 

Some entrepreneurs come from a family of business owners so it’s natural for them to start their own thing, but this isn’t true for everyone and you might feel you lack a support system or you have family and friends who discourage your risk-taking. 

This is where networking, mentors and business communities come in. Look for events where you can network and meet fellow business owners and experts. Join business groups to make connections and solve challenges.  

Get support with your new business or side hustle   

If you're launching a small business or side hustle in the UK, get the right advice from the start. Contact our team at TaxAssist Accountants today.  

 

Last updated: 2nd October 2025