There is always going to be risks associating with starting a new business and managing and considering these before you embark on your venture is important.

Whether you risk your product not gaining the traction that you hoped it would or you decide to enter into an ineffective market, there are a number of things that can and may very well go wrong.

The potential for failure can also be determined by the current economic climate.

Read on to discover just how risky starting a business in 2018 is.

The Brexit effect

Most of us are worried about the implications of Brexit, but what does it mean for businesses?

It’s thought that the banking-related effects of a hard Brexit could lead to a higher cost of capital for SMEs and more restricted access to wholesale banking services.

This is worth considering as it could mean that you’ll be paying more than you initially planned to.

Chances for expansion

All businesses want to expand and spread their services as far as possible because, generally, it’s going to mean higher profit margins and increased success.

Advances in technology are making it easier for companies to export goods overseas, so a wide pool of markets are now at their fingertips.

The benefits of online

Marketplaces like Amazon and eBay are making it increasingly easy for companies to sell to different countries because less time and money needs to be funnelled into creating their shopping portals for regional sales.

Such websites are accessible globally and ensure that companies can engage with consumers from all corners of the globe.

The risks of market saturation

Depending on what type of business you are planning on launching, it’s worthwhile considering whether the idea has been done already, and, if so, how much.

The rise in social media has made it a lot easier for people to start businesses from home and to gain attention from followers, so you need to be sure that your business idea is stable and original enough to take off in a potentially saturated market.

Overall, there a number of things that need to be considered in terms of risks associated with starting a business this year.

Having said that, risks are apparent at any time, but it may be worthwhile holding off to see how Brexit plays out for the earlier part of this year before making any decisions.