Starting your own business can be an exciting and liberating decision. But passion and ambition alone are rarely enough. One of the most overlooked factors in business failure is a lack of direct experience or knowledge in the chosen industry. Put simply, someone who has spent their working life as a plumber is unlikely to make a success of running a restaurant without serious planning, training or help.

Every industry has its own rhythm, customer expectations, regulations and operational quirks. When you know the business from the inside out, you already understand what a typical day looks like, where the risks lie, what customers value most and which details really matter. That type of knowledge can be priceless when problems arise, and it often helps keep costs under control too.

Trying to run a business in a sector you are unfamiliar with often means learning everything at once: pricing, supply chains, compliance and customer service, all while managing staff and watching the cashflow. That is a tough ask for anyone, especially when you have your own money on the line. You may find yourself relying too heavily on advisers or hiring experienced staff who quickly realise they know more about the business than the owner.

Of course, there are exceptions. People sometimes succeed in completely new industries, especially if they partner with someone who brings the missing expertise. But the risks are higher, and the margin for error is smaller. Without lived experience in the sector, even simple decisions can go wrong — choosing the wrong location, targeting the wrong customers or misunderstanding seasonal demand patterns.

If you are thinking about starting a business in an unfamiliar sector, consider ways to build your knowledge first. This might include shadowing someone in the trade, taking relevant training courses or working part-time in the industry. Alternatively, collaborate with a business partner who knows the ropes and shares your goals.

Ultimately, your chances of success rise sharply when you understand both the day-to-day realities and long-term dynamics of the business into which you are getting. Passion is a great driver but pairing it with experience makes it far more likely that your new venture will thrive.

Starting and growing a business is an exciting and demanding challenge. It is easy to focus all your energy on immediate goals like winning customers, generating income, and keeping cash flow under control. But at some point, every business owner will exit, whether through sale, succession, or closure. That is why having a clear exit plan is not just something for later; it adds value from the very beginning.

An exit plan sets out how you intend to leave the business and what outcomes you want to achieve. It might include selling the company, handing it over to a family member or management team, or winding it down in an orderly way. Crucially, it also considers what steps you need to take in advance to make that possible.

Without an exit strategy, business owners can end up underprepared and undersold.

Many discover too late that their business is not ready to attract buyers or that its value is too tied up in their own efforts to run it. Others face difficult decisions when ill health, retirement, or unexpected events force them to exit without a plan.

By contrast, owners who start preparing early can take practical steps to increase business value, reduce risk, and make the eventual transition smoother. This might include documenting key processes, developing a strong management team, reviewing ownership structure, or getting clear on financial performance. These are all steps that can help a business run more effectively in the present as well as the future.

Exit planning also helps you stay focused on what success looks like for you. Whether your aim is to achieve a target sale value, create a legacy, or secure a comfortable retirement, it gives you a measurable goal to work towards.

Reviewing the exit plan every few years ensures it stays aligned with your business’s progress and your personal circumstances. It can also highlight gaps or opportunities to make the business more attractive and resilient.

In short, having a plan for how you will leave your business is just as important as how you start it. If you have not yet created or reviewed your exit plan, we are happy to help you explore your options and take the next steps to secure your long-term goals.

From 2025, Companies House is rolling out new identity verification requirements for directors, people with significant control (PSCs), and anyone forming or managing a UK company. These changes form part of the Economic Crime and Corporate Transparency Act and are designed to reduce fraud and increase confidence in UK companies.

If you are involved in running a business, you may soon need to prove your identity either directly through Companies House or via a registered agent such as your accountant. Without completing verification, you will not be allowed to register a company or take up a new role as a director or PSC.

These rules apply to:

• Company directors (existing and new)
• Individuals with significant control (usually shareholders with 25% or more of shares or voting rights)
• Company formation agents
• Anyone filing information at Companies House on behalf of a business

The new system is already partially in place. Since April 2025, authorised agents can verify identities on behalf of their clients, but from a future date still to be announced, Companies House will require all key company officers to comply before filings will be accepted.

For business owners, this means a few practical actions:

• Ensure all directors and PSCs have current and valid photo ID.
• Decide whether you want to complete ID checks directly or use an authorised agent.
• Check that your company’s records at Companies House are up to date.

We expect enforcement and deadlines to follow later in the year, so it is wise to prepare in advance. If you are uncertain how these changes affect you, or how best to carry out the verification, we are happy to help.

Artificial intelligence (AI) is no longer something for big tech firms alone – it is becoming a practical tool for small businesses, especially when it comes to financial management and forecasting.

We can now harness AI tools to speed up data capture, analyse financial trends, and identify opportunities for growth or savings. This is not about replacing people with machines but about making better use of real-time insights to support your decisions.

Here are just a few ways AI is being used to improve the services we offer:

• Automated bookkeeping: AI can process bank feeds, receipts, and invoices more quickly and with fewer errors.
• Cash flow forecasting: Smart systems can identify seasonal trends or highlight risks before they affect your business.
• Performance dashboards: AI-powered platforms can create dynamic reports, giving you a visual summary of profits, margins, and costs.
• Client support: AI tools can help answer common queries faster and track action points across your business operations.

As accountants, we are increasingly integrating these technologies into our advisory work, giving clients deeper insights and more proactive support. The value we offer lies not just in compliance, but in helping you understand the bigger picture.

If you are wondering how AI might benefit your business, or how we are using these tools to improve the service you receive, please do get in touch. We are here to help you get the best from both technology and human expertise.

In a significant update, the UK government has unveiled a new compensation scheme targeting individuals affected by the earlier “Capture” software, used in over 2,000 Post Office branches during the 1990s. This programme aims to redress those who suffered financial losses prior to the widely known Horizon IT scandal.

Background on Capture

Before Horizon, the Post Office operated the Capture system during the mid-1990s. This legacy software generated accounting records that later allegations suggest were sometimes erroneous, triggering investigations and prosecutions of postmasters, even though the data was flawed.

Scheme details and timeline

The scheme is scheduled to launch in autumn 2025. It will begin with a pilot phase involving around 150 applicants, allowing processes to be refined before a wider rollout. The focus will be on providing fair compensation for financial shortfalls suffered due to faulty Capture software between 1992 and 2000.

Context within broader Post Office compensation efforts

To date, over £1 billion has been paid to more than 7,300 postmasters who suffered losses under the Horizon system. The Horizon Shortfalls Scheme Appeals process also began in May 2025. Although these efforts have been significant, they have only addressed Horizon-era cases. Victims of the earlier Capture system have, until now, received no compensation.

Why this matters

This announcement is a key step toward justice for early victims. A previously unreleased independent report has recently resurfaced, highlighting flaws in the Capture system and renewing pressure on the Post Office and government to act. Parliament’s business and trade committee has urged the Post Office to disclose all records relating to Capture convictions and prosecutions.

Government comment

The Department for Business and Trade has stated that the scheme will be fair and accessible. It is intended to deliver swift redress, with initial payments expected in autumn 2025. This move complements the existing Horizon redress work, which has already delivered over £1 billion in compensation.

Looking ahead

Applications for the Capture scheme will open in autumn 2025, starting with a smaller pilot group before full implementation. Detailed guidance and application forms will be issued in due course. The Post Office is expected to cooperate fully by releasing all relevant documents to support claims and help correct the historical record.