A Complete Guide on How to Start a Business
12 Tips on How Do I Start a Business?
There are so many things to think about when you start a business – from the initial planning stages to the day-to-day tasks of running the business. How do you know where to start? How do you make sure you don’t overlook anything important? When should you start a business?
This article will provide an overview of the steps involved in starting a new business. It will also offer some tips on making the process as smooth and stress-free as possible. So if you’re thinking of starting your own business, read on!
We certainly cannot cover every aspect of every business in one blog, but what we can do is discuss the main points you need to consider to get you off on the right foot.
Here are our top 12 tips on things to do when you start a business.
- Start with a Business Idea
- Plan what you are going to do and who it is for
- Get Business Finances if Needed
- Create a Business Name
- Decide on the Legal Structure – sole trader vs limited company
- Check which Business Insurance you may need
- Open a Business Bank Account
- Have an idea for branding and logos
- Understand your accounting responsibilities
- Be visible online!
- Find Potential Customers
- Ask for help and support!
1. Start with a Business Idea
Coming up with a small business idea is one of the most critical steps in starting a business. In order to come up with a good business idea, you need to identify your passions, interests and skills. Once you know what you’re interested in and what skills you have, you can start brainstorming ways to turn those into a business.
There are many different ways to make money from your passion or skill. You can set up a small shop, offer services or craft items, freelance, or build a website. Once you’ve decided on an idea, it’s time to start planning. It includes researching your industry, developing a business plan, and figuring out how much money you need to start your business.
2. Write a Business Plan what you are going to do and who it is for
Yes, that makes sense. A business concept may be so fantastic and exciting that you rush away from yourself, coming up with names and purchasing domains before you’ve even sat down and thought about exactly what you’ll provide and who it will appeal to.
Understanding these things will help you do helpful market research and see what is already available. You’ll need a unique selling proposition (USP) and a method to make yours more appealing than existing options.
A successful business involves planning and research. Even a small online shop might have cost that you hadn’t thought about or a very limited market in the product.
Before you start a business, you need to put a plan in place.
A business plan might include the following:
- Executive Summary
- Business Model and Description
- Industry Analysis
- Market Research and Analysis
- Competition Analysis
- Product or Service Plan
- Marketing Plan
- Sales Plan
- Operations Plan
- Financial Plan
There is a free business plan template on startup loans.
3. Get Small Business Finances if Needed
When starting a new small business, it’s essential to have a clear idea of the financial resources you will need and any initial investment. It might be possible to finance it yourself, or you may need to borrow money or seek investors to help you get going.
Here are some tips for getting started:
– Talk to your local bank about getting a business loan.
– Try to find angel investors or venture capitalists who are willing to invest in your business.
-Talk to family and friends, even if they can’t help, they may know someone who can
– Negotiate with suppliers and customers to get better deals on products or services.
4. Create a Unique Business Name
When starting a business, one of the first things you’ll need to do is come up with a name. This can be difficult, as you’ll want to choose something memorable and catchy but also legally available. Here are a few tips for coming up with a good business name:
– Brainstorm ideas with friends or family
– Use keywords that are relevant to your industry
– Make sure the name is easy to spell and pronounce
– Check to see if the domain is available
– See if the name is trademarked or copyrighted
5. Decide on the Business Structure – sole trader vs limited company
One of the most significant decisions when you start a business is the structure. It is something you must decide as soon as possible, but if you start as a sole trader, you can convert to a limited company, but not vice versa.
The two primary business structures are self-employed and limited companies.
Self-Employed
Someone self-employed can be a sole trader, partnership or contractor.
The simplest business structure is self-employed; you’ll need to register as self-employed with HMRC. This process is simple and can be completed online.
Please read our guide on registering as self-employed and get a unique taxpayer reference with HMRC.
Limited Liability Company
Setting up as a limited company will need registering at companies house.
One of the main advantages of a limited liability company is that the owners are protected from any legal action taken against the business (personal liability). This means that if the company is sued, the owners are not held responsible. It can be helpful if you’re looking to start a business with minimal financial risk.
Companies House is an official body that records and provides information on the registered details of all UK Limited Companies, including their names and addresses. The registration process is straightforward; you can register online.
Another choice is to go online and use an accountant or company registration service to do it for you. Whichever route you choose, make sure that you do your research and compare prices to get the best deal.
Please see our other blogs on these two as they go into more depth about which one might be best for you.
Advantages of a Limited Company
6. Check which Business Insurance you Need
At the very least, most people will want to get professional indemnity insurance if you’re giving out advice. This protects you if something you do results in a loss for someone, and they decide to sue you! If you deal with the public, you will need public liability insurance, and if you employ staff, you will need employer’s liability insurance.
There are also many trade/industry-specific insurances to bear in mind, so do your research (asking other trusted businesses in your sector can be helpful). When setting up insurance, you will go through a set of questions about your and how it is run (most companies have simple-to-use sign-ups online). So, this will guide you into making sure you have the right cover for you.
7. Open a New Business Bank Account
When you’re starting a business, it’s important to keep your business and personal finances separate. One way to do this is by opening a business bank account. This will help you keep track of your expenses and income and make it easier to file your taxes at the end of the year.
when you set up accounting software it will use open banking to obtain a bank feed into the software, saving time on entering transactions.
Banks offer a variety of business accounts to suit your needs and objectives. Some will give you discounts on account fees when you open an account with them.
Another advantage of having a separate bank account is that it can help protect your personal assets in the event of legal action against your business. So if you’re serious about starting a business, be sure to open a bank account for it!
It might also be helpful to apply for a business credit card; they help buy business supplies and pay for expenses.
8. Have an Idea for Branding and Logos
Obviously, you will be thinking of names and the brand you want to set up. But be aware this will evolve over time! For example, Amazon has had at least 6 versions of their logo over the years. Therefore, it is vital to limit your spending at this early stage.
If you spend thousands on branding and logo design, then later you realise the business has evolved; it will have been a big waste of money. So, consider using Fiverr, PeoplePerHour or Legiit to source some more affordable help and then splash out in the future when the big bucks are rolling in.
Legiit created the logo for this website.
9. Understand your accounting responsibilities
At the start, you may not want to hire an accountant or bookkeeper to help you, so ensure you know what records you need to keep straight away. It will be a lot easier to be accurate right from the start and try and keep on top of it. Using an online cloud accounting system simplifies this process and prevents you from losing the paperwork or deleting a spreadsheet, as it will all be online.
The basics you will need to keep track of are income and expenditure. So, for every penny you spend, you need to keep a record and provide a receipt of some kind. Every payment received should be recorded. If you are dealing with cash, you need to bank the money regularly.
The most popular option for most companies is to open a business bank account with one of the big banks or an online firm like Monzo or Starling.
You can then connect it to your accounting system using a bank feed; that way, every transaction is tracked and accounted for. Check out this blog for all the best accounting software options.
10. Register for VAT
If your annual turnover is expected to exceed £90,000, you must register for Value-Added Tax (VAT). It is a tax on the value of goods and services you sell. You must also charge VAT to your clients and pay it to HM Revenue & Customs (HMRC).
If the turnover is less than £90,000, it is possible to register voluntarily.
11. Be visible online!
It is vital for a new business to have social media accounts now. You do not have to be on every platform but think about which ones will be most popular with your potential clients and get signed up. Be consistent with your branding across different platforms, using the same colours, wording and imagery.
It all adds to your reputation and credibility online so remember that people will be viewing your personal accounts in association with the business and ensure you come across the way you want to. You don’t NEED a website straight away, but as a small business, having a visible presence is an advantage.
12. Find Potential Customers
Getting those first few clients or customers is one of the most challenging jobs for a new business owner when you start a business. How can I find my target audience or customers who are more likely to buy from me? How can I get them interested in what I have to offer?
Here are a few ideas on how to find potential customers when you start a business:
- Sell on platforms already set up – eBay, Amazon, Etsy
- Create an online Store – WordPress is a good option with lots of guides
- Develop a strong marketing strategy
- Create valuable online content for your target market
- Make use of online advertising platforms
- Attend industry events and trade shows
- Network with other business owners
Ask for Help and Support!
Last but not least, ask for help! Don’t struggle alone; find others who have set up a business before or post on social media (like LinkedIn) about what you need, and people will pitch in. Networking can sometimes be a great way to meet other small business owners, online or in person.
There are lots of friendly Facebook groups, etc., so be selective about which ones you join. But don’t stress yourself out; other people will have felt what you’re feeling, and talking about it always helps. Because running a business is hard work, expect it to take its toll at times.
It is worth checking out the Prince’s Trust; they offer lots of workshops and support for young people. https://www.princes-trust.org.uk/help-for-young-people/support-starting-business
Conclusion on How to Start a Business
Starting a business can be challenging, but with the right business idea, planning and research, you can make it a success. Here, we have outlined some key tips to help get you started, including selling on established platforms, developing a strong marketing strategy, and using social media to reach potential customers.
We also suggest networking with other business owners as a way to find new clients and ask for help when needed. With these tools in place, you’re well on your way to starting a successful business!
We hope you find these 12 tips on how to start a small business helpful; let us know how you get on!
