How to start a business.

 

Step 1: Come up with a business idea

Step 2: Research your idea

Step 3: Create your business plan

Step 4. Choose your business structure

Step 5. Register your business

Step 6. Marketing and Branding

Step 7. Other red tape 

Step 8. Premises or from home

Step 9. Launch your business

Step 10. Conclusion

 

Have you ever thought about running your own business? Have you always had the urge to be your own boss? Well now is the time to seriously consider taking those first steps and branching out on your own. 

 

In the UK, there were approximately 4.39 million self-employed workers as of March 2023. Self-employment in the UK has increased consistently throughout the last 20 years, from a low of just 3.2 million workers in December 2000 to a high of over five million in the beginning of 2020.

 

Being self-employed, gives you the freedom to make decisions and shape your business according to your vision. You can pursue your passion, specialise in a particular niche, and select projects that align with your interests and expertise. Making your work more fulfilling and enjoyable.

 

So, once you´ve decided being your own boss is definitely for you, where do you begin? 

 

Research your idea

 

If you're thinking about launching a business, you've probably already decided what you want to offer or at least which sector you want to join. Conducting a search for established companies in the market is essential and you'll soon discover what current leaders are doing and how you can do it better! 

 

Who is your target market? Can you narrow them down and focus on one or two smaller areas to start with? 

Remember trends change. Make sure your ideas are up to date and significant in today's relevant market. 

 

After doing your research, if you believe your company can do something that other firms cannot (or can provide the same thing faster and cheaper), you have a good concept and are ready to develop a business plan. 

 

Step 3. Business plan

Start by formulating a business plan. This plan should outline your goals, target market and services you will offer plus your financial projections. This will help to focus on delivering a clear message to your potential customers.

There are different types of business plan. But you can use my 1 page business plan here. It’s designed to cut the waffle but has enough detail to make it a meaningful tool so that you remain laser focused on what needs to be done when you set up this business.

 

Do you need to do a business plan?

There is often some confusion if a business plan is needed or will be a useful exercise for a lot of start up businesses. Why? Do you really need to conduct market research and focus groups to establish there is a need for a cleaning business? 

 

No - of course this is self-evident and no sane minded entrepreneur would waste their time doing this. However, a business plan IS useful for other reasons. 

 

Here are a few top reasons to write a business plan:

 

Establishes that you have a plan to enter a market place and beat your competitors.
Forces you to write the plan down, this means you are more likely to stay on plan and execute it successfully.

 

1. Competitor analysis - Who will you be competing with? How strong are they? What are their competitive advantages? What are their weaknesses and how will you exploit them?

2. What is your USP?

3. How will you market your business *exactly* to beat your more established competitors.

 

USE the 1 page business plan for “essential” planning EVERY business should do.

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A business plan should:

Show market size
Show number of competitors
Identify likely/potential/projected market share (these will show the viability of your business)

 

Marketing plan: How will you execute a winning plan that brings in clients to your business over your competition?

Fulfilment: How will you fulfil your product / service
What equipment is needed?
Projected Turnover/ Break even calculation /

• How much do you think you will turnover (minimum 12 months)

• What is your break even calculation INCLUDING THE MINIMUM YOU NEED TO SURVIVE - This is THE most important number you need to know when starting a business.

 

Step 4, you need to decide on your Choice of business structure

 

This is fundamentally important when you are setting up any business. As a solopreneur, you can start this business as either a sole trader or a limited co mpany.

 

A sole trader is a business that is owned and run by one person. There is only one owner, but they may have employees who work for them. Sole traders are usually start-ups or small businesses.

A private limited company can be a small or large business. Any type of business can be set up as a private limited company, for example, a painter and decorator, hairdresser, cleaner, accountant or gardener.

The need to register with Companies House and submit annual tax reports is one of the primary drawbacks of starting a private limited company, but that is where we come in to ease you quickly and smoothly through the process, offering guidance along the way. 

However, I would strongly consider a hybrid startup structure where you can reap the benefits of both structures with minimal cost and risk.

This could enable you to start trading with the simplicity of a sole trader but also have secured the limited company for marketing hacks and saving tax later if you decide to incorporate your business.

If you are unsure what to do at this point I recommend seeking professional advice, my team is available to talk you through this in a clear and concise way you will understand. 

  

 

Step 5. Registering your company.

Create a great company name and domain name for your website:

 Choose a name that is related to you and your business and is memorable for your potential customers. Avoid complex or confusing words or spellings that may make it difficult for people to find. 
 

Use our Company Name checker to see if your idea is available and get great tips on how to choose the perfect trade name for YOUR business. Play around with our name checker tool and remember, choosing a business name is a creative process, and it's essential to take your time, brainstorm ideas, and explore different options before making a final decision.

 

You will then have to register a domain name for your website.We all know websites are crucial nowadays so make sure you get yours registered as soon as you have chosen your trade name. Head to our easy to use domain checker and let´s get you onto the world wide web!! 

 

We can quickly and easily help you get the ball rolling with this and other services, registering your company and domain name and even providing you with fully featured business email boxes making your business look more professional, adding credibility when you are approaching new customers. So instead of emailing from an @yahoo or @hotmail address you can be emailing from @mycompanyname. Doesn´t that look better? Remember to steer well clear of similar sounding names so confusion does not occur with other companies. 

Step 6. Marketing and Branding

Most buyers/potential clients will automatically go to Google to look for a new service. Sure some will use an app, some might ask for a recommendation on social media but MOST will look on Google.

Google knows that when someone is looking for a particular service, they want to see results close to where they are located.

This usually means that Google will show a maps listing at the top of the search results like the image below.

 

If your business shows up here then you are right at the top of the search results, under the nose of people who want the service.

For any type of business/search term where Google shows a Maps listing like this , I describe these businesses as having “high local marketability”.

High local marketability means if you know what you are doing and tick the right boxes with Google you can get a lot of business enquiries very easily.

So if potential customers can’t find you on Google, they won’t be calling you. And guess what? That means someone else is picking up that client and you’re missing out!

 

So how do you dominate Google search results for this business?

You have to optimise for the Google maps listing.
How do you do that? Follow these 10 simple steps.

10 steps to marketing a business:

 

1. Get a website. Make sure it complies with Google’s best practice guidelines.

2. Get your new website in Google so clients find YOU. 👈

3. Provide LOCAL PROOF. Use a local phone number to tell clients and Google you are definitely a local business.

4. Provide SOCIAL PROOF. Show reviews from real customers on your site. This is called “social proof”and turns browsers into buyers! 

5. Use LANDING PAGES. A landing page is optimised for a specific search term making it rank higher than your competitors. Landing pages are for people who want to buy your service now. They show the client what they want to see

6. Provide great CTA’s (CTA =call to action). Make it super easy on your website for clients to get in touch with you by including features such as a messaging/chat app and CTA’s that show clients exactly how to contact you.

7. Share FEEDBACK. Go the extra mile to provide an outstanding service and you are sure to collect plenty of positive feedback from clients. Ensure you harness this by collecting reviews from every new customer.

8. AUTOMATE – You won’t have time to be manually updating your website. Make sure you automatically show the new reviews on your website, driving more clients to your business.

9. PROMOTE – Regular updates to your website and using Google tools will give your website an extra edge.

10. MAINTAIN – From time to time websites need technical maintenance to the software they run on to keep peak performance.

 

Most businesses in this sector DO NOT invest enough time and money to execute this simple marketing  strategy providing you with the opportunity to step in and DOMINATE in the local search engine results.

Listing your business – use sites like Google My Business and Yell.com to make sure you come up when people search online for your business.

 

 

Live Chat Function - This is great as it gives your potential customers a “one click method” to message you straight from your websites – you get the messages on your usual messenger account, this is probably something that your competitors won’t have and we’ve had clients getting great success using this tactic. Make it easy for your potential clients to get in touch with you. 

 

Still confused? We can create a personal website for you to get you off to the best start. 

Here are some great more tips to help you market your business effectively:

Do your research: 

 All businesses are competitive, so it's important to research your competitors in your local area. Identify what you can offer that others don't. This will help you differentiate your business and attract more customers.

Keeping to your business plan will help you attract new customers and spread the word. 

Create a website:  

A website is essential for any business today . It is accessible 24/7, which means that customers can find information about your business at any time. 

A comprehensive website shows that you are serious about it and willing to invest in what you do. 

 

It's the perfect place to show off all your reviews and the range of services you offer and give clear and correct contact details. 

 

Photos and videos are fantastic for a more attractive website and give lots more information about your business. Remember to update your site regularly, new content will help with search results.

 

It is also a great opportunity to give a little information about yourself, making the business more personal and boost customer confidence. And don´t forget to give your experience and qualifications. 

 

We can create a personal website for you to get you off to the best start. 

SEO (Search engine optimization): 

 This is the art of getting your website to the top of the search results on Google and the other search engines so that you have the best chance of getting their business. 

If you’re new to running a website it’s easy to get caught out with a low cost SEO service that just doesn't work.

We can help put together an affordable SEO package and we'll always tell you what we are going to do and what results you might expect to achieve.

Design an eye-catching logo 

Your logo is an important aspect of your brand identity, so it's essential to design a logo that represents you and your business and can be used everywhere, including your workwear, car/van, business cards and leaflets. 

 You can use one of our logo design and branding packages to create a logo or use online logo makers to create one yourself.  

Our in-house web and graphic designers are highly skilled and employ cutting-edge technology to develop any unique artwork, websites, and marketing materials that you may want. If you have a brief that demands specialist management, please contact us so that we may discuss your vision and make it a reality.

 

Use social media: 

 Why would a dog walker, a gardener or a hairdresser use social media? Social media platforms such as Facebook, Twitter, LinkedIn,  Instagram and TikTok can be incredibly powerful marketing tools. 
 

Create social media pages for your business and promote its services to a wide audience in an eye-catching and modern way. Plenty of photos, videos, reviews, updates and promotions will keep you in full sight of your target audience. 

 

Also join local business Facebook groups or similar platforms. 

How about a bit of networking, forming relationships with other local businesses can be mutually beneficial. A dog walking business and dog trainer or local vets?  A house cleaning business and gardening business? 

What about attending trade shows? Check out the competition from around the UK.  You can also build relationships with unrelated local businesses who may refer customers to you.

 

Looking after and supporting your local community is becoming increasingly important to people. Have a real presence in your community and make sure potential customers know where they can easily contact you. 

 

AND always, always ask for references and reviews for your website. This is so important for new customers looking for a reliable company. 

 

Google reviews, testimonials and recommendations are essential. Potential customers WILL check for reviews when they are searching for a service, product or trade. 

This is difficult when you first start out and asking can be uncomfortable but a happy client will want to help you up the ladder every time. Why not offer your services free of charge or at a reduced rate to get the ball rolling. 

 

 

 

Word of mouth is a powerful and effective marketing tool and should never be underestimated. Just start chatting, you might even get more ideas! 

 

How about asking if you can leave your business cards or leaflets in local shops, restaurants, bars, etc.  Make sure you have any additional services mentioned on them. 

 

If you belong to a trade, being a member of a trade association is always an excellent way to show your professionalism. Make sure this is shown on ALL your marketing materials. 

 

 

Step 7. Other Red Tape 

 Tax Requirements 

It's critical to understand the legal and accounting obligations that come with running your own business. 

After you earn the initial £1,000 of tax-free income, you must officially register with HMRC or Companies House. Whether you’re a sole trader or run a limited company you must submit your tax return by 31 January each year. 

 

An employer pays income tax through the PAYE system but a self employed person must pay through Self Assessment. 

 

As a sole trader you will need to register with HMRC so you can pay your annual tax return, this can be done online or on paper although this is being phased out. 

Keeping good accounts throughout the year is vital and will make your HMRC Self Assessment much easier. 

You will need to record your profits and show evidence of your expenditure. Travel, office supplies and equipment, work vehicles, uniforms, marketing, insurance etc can be claimed for. If your business is based at home part of your utilities bill may be claimed as well.

If you are a limited company the system is more complicated. You must register with Companies House, submit a memorandum of association and articles of association and pay Corporation Tax. 

As with a sole trader, you must keep and file all your receipts, invoices, and any other important paperwork. Rent, utility bills, insurance, stock and raw materials, legal and financial costs can all be claimed for. 

Remember if employees travel to visit customers or suppliers, their expenses will need to be paid and claimed for as well. 

The Government website has a lot of information about what can and can´t be claimed for. 

The UK Government issues large fines for tax evasion so accuracy is paramount. 

Well-organised company records will help you stay out of trouble in the case of a tax inquiry, with HMRC recommending you keep your tax records for at least 5 years. 

 

What´s your bookkeeping like? 

No idea where to start with your filing and tax returns? 

We can help you with your bookkeeping and payroll accounts, making sure you go into your new venture full of confidence and secure in the knowledge that the finance side of it will be looked after. Find out more about our Accountancy Services Packages

 

Open a business bank account

 

Keeping your personal and business finances separate is crucial for several reasons. It simplifies accounting and bookkeeping, making it easier to track business expenses, income, and tax obligations. It also helps demonstrate financial transparency, which can be important for legal and tax purposes.

 

Even if your venture begins as a pastime, a business account gives your small business more legitimacy and professionalism. When payments and transactions go via an account with your company's name on it, your clients and consumers will be more likely to trust your company.

 

A business bank account might be as basic as a money-in, money-out account or as complex as one that lets you issue invoices, manage payroll (if you have employees), and assist with accounting and tax returns. There will be an account available to assist you with whatever you require.

 

You need to pick a bank which will integrate well with your accounts package. 

 

Insurance

 

One of the startup costs that you can’t avoid is insurance.

Anyone that employs you will expect you to demonstrate that you have comprehensive business insurance cover.

What type of insurance you need obviously depends on what type of business you run. 

Could an unhappy client sue your company for damages claiming you were negligent? Could a consumer be hurt by your operation and seek compensation? Do you need to insure any buildings, goods, business equipment, tools or stock? 

 

To many new entrepreneurs' surprise, you will also need insurance if you work from home or online with no physical products. 

The important world of insurance can be confusing, luckily there are plenty of providers of specialised business insurance to guide you through your needs so premiums are competitively priced if you shop around.

Remember, it is vital you review your insurance coverage periodically as your business grows and evolves to ensure it remains adequate and up-to-date.

 

Pension 

 

Just 31% of self-employed people are saving into a pension (IPSE). If you’re self-employed, saving into a pension can be more difficult than for people in employment. There’s no one to choose a pension scheme for you, no employer contributions and your income probably fluctuates but saving into a pension is becoming increasingly important. 

 

Obviously the earlier you start making contributions into your pension, the better and more pension companies are now trying to persuade self-employed workers to pay into schemes. Take financial advice and start saving as soon as possible. 

 

Finance/Funding 

Business grants are usually awarded by the government or other companies and, unlike a loan, business grants do not need to be repaid. 

This money is largely obtained through government loans, tax rebates and grants. Grants and loans can be on a local, regional or national level. There are many options available and you will have to see which suits your particular needs. 

Government grants range in terms of what can be done with the money, they could be used to hire and train new employees, pay wages, buy machinery, tools, and equipment or reach new markets. The purpose of the self-employed grants is to assist you as a self-employed person with financing your start-up business or growth of your firm.

There are 100´s of types of grant available including Innovation grants The National Lottery Heritage Fund, Local Enterprise Partnerships (LEPs) and The Prince’s Trust

Obviously grants are preferential to loans but many small businesses find them useful. Again there are various types of loan on offer.  

You can apply for a government-backed Start Up Loan of £500 to £25,000 You’ll need to pass a credit check and you will get free mentoring for a year. Find out more about grants and loans on the government website

Also take a look at our Start-Up funding report

Capital Card? 

 

Step 8. Finding premises or working from home?

 

Another big decision you will need to consider is if you require premises, for example a small shop or a larger storage space, to work from or if you can run your business from your home. 

The nature of your business will determine what you need and obviously what you can afford at this time. Remember that your circumstances may change quickly so be prepared. 

 

If you do need to use premises there are a few things you need to consider.

 

• The financial commitment: Renting or buying a premises comes with financial obligations, including lease or mortgage payments, utilities, insurance, and maintenance costs.

• Additional logistics: Operating a physical location involves managing logistics such as commuting, parking, and potential additional paperwork or permits.

• Limited flexibility: Having a fixed location may limit your flexibility in terms of work hours or the ability to work remotely.

• Overhead costs: Operating a physical business premise can involve higher overhead costs, especially in the early stages of your business, potentially affecting profitability.

 

These factors may make the task seem very daunting but there are plus sides as well.

 

• Professional image: Having a dedicated business premises can enhance your professional image and credibility.

• Space and resources: A separate premises provides you with more space for equipment, inventory, and conducting meetings or events.

• Work-life separation: Renting premises allows for a clear separation between work and personal life, promoting better work-life balance.

• Collaboration and networking: Having a physical location can facilitate in-person collaboration with employees, partners, and customers. It also provides networking opportunities with other businesses in the area.

 

 

To run a business from your home, you may need permission from your mortgage provider or landlord so contact them as soon as possible. 

Will you have to make alterations to your property? In this case you´ll need to contact your local planning office. It is also a good idea to let your local council know as well. 

 

If you can start your own business from home you will benefit from; 

 

1. Cost savings: Working from home eliminates the need for renting or buying a separate premises, saving you money on rent, utilities, and commuting costs.

2. Flexibility: You have the freedom to set your own work hours and have a more flexible schedule.

3. Convenience: You save time and effort by not having to commute to a separate location.

4. Comfort and familiarity: Working from the comfort of your own home can create a relaxed and familiar environment, which may enhance your productivity.

 

However, you may find also experience these downsides; 

 

1. Limited space: Home environments may not provide ample space to accommodate business equipment, inventory, or meetings with clients.

2. Distractions: Home settings can be distracting due to household chores, family members, pets, or other personal responsibilities.

3. Lack of separation: It can be challenging to establish a clear boundary between work and personal life, leading to potential work-life balance issues.

4. Professional image: Depending on the nature of your business, working from home may not project a professional image to clients, customers, or partners.

 

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Checklist for launching your business

 

You´ve made it this far, so now you need to get your business out there. 

 

1. Develop Your Marketing Strategy: Make sure you´ve got your business and marketing plan in order, that includes online and offline tactics such as website development, social media marketing, content creation, search engine optimization (SEO), email marketing, and traditional advertising if applicable.

 

2. Build Your Team: Determine the skills and expertise you need to run your business successfully. You can start as a solopreneur and gradually expand your team as your business grows. Ensure they align with your company culture and values. 

 

3. Establish Your Online Presence: Build a professional website that showcases your products or services, provides essential information, and enables customers to contact you. Concentrate on social media platforms relevant to your target audience and create profiles to engage with potential customers and build brand awareness.

 

4. Launch a Soft Opening or Beta Testing of Your Website: Consider doing a soft opening or beta testing period before the big official launch to gather feedback, tweak your content and address any possible concerns. This can be done in a controlled setting or with a chosen group of people.

 

5. Plan A Launch Event or Marketing Campaign: How about you develop a launch strategy that generates buzz and excitement around your business! Consider hosting a launch event, offering special promotions or discounts, collaborating with other local businesses, or implementing a local PR campaign to generate media coverage.

 

6. Moving ahead - Monitor, Adapt, and Grow: Once you've launched, track your success with key performance indicators (KPIs) and make improvements as needed. You must continuously analyse your business plans, keep an eye on and adjust to market changes and act upon client feedback to enhance and improve your services and customer happiness.

 

Conclusion

 

Starting up any business is daunting but our business consultants and legal team can guide you through the company formation process and answer any questions you might have. 

As well as forming sole trader businesses and standard limited companies, we undertake charity, non-profit and CIC formations. In all cases we are able to provide bespoke drafting of memorandum and articles of association and form companies with specialist share allocations.

 

 

Remember that starting a business is a dynamic process that requires flexibility, patience, and ongoing learning. 

 

Your business will grow naturally if your customers are happy and you provide exceptional customer service and develop a trustworthy reputation. Remember that good communication is crucial, and a satisfied customer will not only refer you to others, but will also become a return customer. 

 

Don't be afraid to seek advice from mentors, industry experts or business support agencies to receive insight and assistance as you embark on your entrepreneurial path!