New small-business owners should develop a "sound business plan", one expert has advised.

Adam Wayland, editor of smallbusiness.co.uk, commented that most people find funding the biggest challenge when starting a business, but that planning was essential.

Groundwork and market research were advised as two important strategies for any new entrepreneur, with assumptions about an idea's viability said to be ill-advised.

But he said: "The biggest hurdle for people is money, getting the money to start up in the first place and then keeping that cash flowing because obviously you’re not going to sell from day one."

People who hold equity in property may find they gain access to higher volumes of credit through home equity loans, according to Moneyfacts.

The price comparison website also said that such loans may have lower interest rates than their unsecured counterparts.

Office for National Statistics figures from August 2007 indicate that there were 4.5 million businesses in Britain at the start of 2006, with 99.3 per cent of these classed as small firms.ADNFCR-1287-ID-18595323-ADNFCR

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