You cannot talk about starting a business without having a business idea. Although having the business plan is the first step, you cannot bring it to life if you lack the technical know-how required for the process. Conceiving and starting a business without proper analysis of the technicalities, competition, and the market is the fastest route to failure – however, it is possible to start a business in a day.
To set up a business in the UK, you have to be abreast of the legal requirements of doing so. The legal requirements differ from one company to another. It is necessary to check the viability of your idea as well as the level of competition you are bound to face. This can be accomplished by seeking the assistance of professionals or signing up with a business coach.
The moment your idea has passed the viability step, you need to think it through and pen down a business plan for it. It is sad that many entrepreneurs do not see the need for a business plan. A business plan serves as a blueprint that would help you stay on track. It is also an important business document that would be required by financial institutions when you approach them to open a business account or seek for funding for your business.
Selecting a name is a long-term decision. The name of your company should be concise and encapsulate your business idea. It will take a long time to build your business name into the subconscious of your customers. Hence, you need to get the name right the first time. It is paramount to choose a name that is apt and brief. A good moniker has the propensity of making your company a household name. Using a name that has been used by someone else can lead to serious legal issues. Verify that the name you have chosen is still available by searching through Google and Companies House.
You can get your business registered as a sole trader, limited company or partnership. Getting registered as a sole trader takes a simpler process. However, the debts of your business, as well as accounting responsibilities, will be your sole responsibility. Limited companies are more complicated because your personal finances are separate from your business finances. It may be a good idea to seek professional assistance if you intend to register a limited company. A partnership allows two or more people to run a business together. In this case, accounting responsibilities and debts are shared between the partners depending on how much stake they have in the firm.
If you operate some kinds of businesses (like play music, trade in the street or sell food), you may need a license. The traditional licenses you may need in the UK are Temporary Events Notice (England and Wales), Occasional license (Scotland), and Food business registration. The UK law requires that you have some business insurance depending on the type of business you operate.
Employers are legally indebted to have employer’s liability insurance which covers the compensation cost of employees injured or become ill through work.
Businesses that make use of vehicles are to have commercial motor insurance.
Other business insurance options are elective like the commercial property insurance which covers repair and rebuilding cost of business premises, and liability insurance which takes care of compensation claims if a client, customer, shareholder, investor or member of the public should bring a lawsuit against you or your business.
Finance is a crucial part of any business. The government-backed Start-Up Loan Company in the UK provides some funds and free mentoring to help start-ups, as well as existing businesses, grow. If you are going to seek a loan, you have to get the necessary documents ready. You need to also check your eligibility for funding. Next, appoint an accountant to take care of your financial records.
Your business model must be structured in a way that keeps the price at the barest minimum until your sales rise to take care of your expenditure – and do not forget to make provisions for your tax.