We are pleased to provide guidance on how to start a business. These include some tips for getting started, like writing a business plan and understanding taxes, benefits, and the law as a new business owner.

Even though it may seem hard, you could become a part of one of the six million small and medium-sized businesses in the UK if you are passionate and work hard.

Learn how to start a business in the UK by reading our step-by-step guide.

 

9 Steps To Starting A Business

 

1. Register a Business Name 

Because it communicates your brand’s personality and sets you apart from the competition, picking a name for your business is a crucial first step. You must come up with a name that stands out and resonates with your intended audience.

 

2. Choose  A Legal Structure

Next, you’ll need to decide how your business will be set up legally:

• Sole Trader – This is the simplest form of incorporation, but it doesn’t offer any protection from personal liability.
• Partnership – If starting a business with another person
• Limited Company – A complicated structure that requires a significant amount of administrative work but ensures that your company is legally distinct from you as an individual.

3. Create A New Business Strategy

No matter how big or small your business is, you need a solid business plan. It is useful in providing you with a better understanding of your strategic objectives, financials, market analysis, and potential roadblocks.

In addition, you will need to develop a budget to implement any new business strategy. The initial investment required to launch a company can vary depending on several factors, including whether you need to purchase specialized equipment, rent a commercial space, or conduct business operations from your home.

 

4. Obtain Funding and Financing

How much cash is required to launch a business? Depending on your offering, it may change. However, as was already mentioned, you must consider this before starting your new enterprise.

If you’re starting small, you might not require a significant initial investment.

However, if you have included several expenses in your budget, you should know your project’s funding strategy. Can you use your savings? Or are you planning to seek assistance from friends, family, or a bank to start a new business?

Remember that grants for new businesses may be available to help with the financial burden. You typically don’t have to pay the money back if you choose a small business grant over a loan.

It is important to look into government funding for start-up companies. The British Business Bank offers the Start Up Loan, another government-sponsored program. An annual fixed interest rate of 6% is available on loans up to £25,000. A complimentary year of mentoring is also included.

 

5. Plan Your Marketing Approach

After settling your financial matters, you can focus on attracting new customers and growing your company.

It’s important to think about marketing, branding, and striking a good balance between online and offline advertising when publicizing a new business.

Here are some of our best suggestions:

• Do Competitor Research – Competitor analysis assists you in understanding the market, setting your prices, and finding a way to differentiate yourself.
• Build A Presence On Social Media – Social media is an excellent platform for showcasing your brand’s personality and voice, connecting with customers, and even selling your products via Facebook Shops and Instagram.
• Build A Website Using SEO – Optimize your website for search engines so that customers can find you and learn about the goods and services you provide.

 

6. Buy Insurance for Your New Company

Your business will determine the kind of insurance you require. Your business, whether it’s an online store or a service, can benefit from insurance against common risks like accidents, property damage, and legal fees. You can tailor your policy to fit your needs. You can install custom-made covers if you want to take additional precautions to protect your inventory or tools.

Choose from a variety of covers:

• Insurance for Public Liability – This is important if clients come to your place of business or if you do work on client sites.
• Employers’ Liability Protection – If you have employees, this is a legal requirement.
• Insurance for Legal Expenses – Covers legal costs for business or prosecution fees

 

7. Figure Out Your Tax Obligations

Understanding what is involved is crucial because managing a business involves legal and financial obligations. You must register with HMRC or Companies House after receiving the first £1,000 tax-free income.

Sole Traders are Required to:

• Sign up with the HMRC
• Submit a Self Assessment tax return every year

Limited Companies Required to:

Become a member of Companies House

• You must pay corporation tax on your business profits
• Submit a corporate tax return
• If your company has reached the VAT threshold. VAT must be paid

You also need to submit a Self Assessment tax return.

 

8. Create A System for Maintaining Business Records

Once you’ve figured out what to do with your taxes, maintaining control is critical so you can pay your obligations at various points throughout the tax year.

You should first keep your personal finances and business finances separate. This is because tax-deductible expenses and other benefits can only be used for business purposes. When you only have one account, keeping track of money coming in and going out is much more difficult.

Last, you must keep business records for at least 6 years. If HMRC asks for them during a tax investigation, keeping accurate and well-organized business records can help you provide the evidence requested by HMRC.

 

9. Keep Your Business with Templates and Support Materials

Explore the support documents and templates below for more information on managing your business, including tips on hiring staff and performing a business health check.

• If you want to get paid for the goods or services you provide, you need to send out invoices to your customers. Find out how to make an invoice free by reading our detailed guide.
• IR35 assistance and instructions for contractors

• How to figure out your business’s turnover
• Resources for self-assessment and taxes

 

Just do it

The early days of starting a business are the most challenging. Once you have established yourself through hard work and persistence, you will not look back at the independence that running your own business offers.

 The United Kingdom supports and encourages entrepreneurs. But it can be hard to start a business in the United Kingdom if you are not a citizen of the European Union. All the necessary steps before starting a business will be covered in this blog.

Southside Accountants can support you start and grow your business.