b'implications for the authoritys own statutory duties; impact on the current services provided by the local authority; resource implications for the authority; costs associated with any potential breach of contract by the local authority in relation to trading activities; impact on employees, and any associated costs to the local authorityie if work being undertaken ends and cannot be replaced; amount of investment the authority will need to make to render the venture worthwhile. The final point will perhaps be considered most carefully by local authorities, given the current funding environment, causing such schemes to be approached with caution. In other cases, innovative ways of meeting start-up costs, and mitigating risks, may be considered. Risk of trading and failure of companies 4.12 Whilst many local authorities seek to make additional income and profit from new ventures, any business start-up will face difficulties and problems, particularly in the early years.What is not well publicised is the number of local authority trading enterprises which have not been a success, and which have either been quietly wound up or have otherwise been terminated via the various statutory insolvency procedures. It is perhaps understandable that people who have the drive and ambition to set up an enterprise would not want to think too deeply about the possibility of failure.However, particularly where public funds are at risk, this is precisely what needs to happen through the business planning process and other financial modelling and market testing analysis which should always be undertaken prior to establishment of any new business.The 2015 Grant Thornton report on local authority trading ventures, Spreading Their Wings, warns as follows: It is possible for LATCs to make a loss A number of adult social care service LATCs have slipped into deficit or have been brought back in-house following concerns over service delivery and value for money.A trading company entered into a large catering contract resulting in a substantial loss that required funding by the council.A supplier of council house windows did not have a business plan outside of the decent homes standards requirements. When this ended, the company required significant levels of interim financial support and restructure.56'