Tips on starting a business in the UK
If you’re starting a business, you may have some questions. Where do I start? What do I need to do first? This guide will help you get started with your new business as quickly and easily as possible. We cover everything from registering your company name, finding office space, and making sure that your business is properly insured. By the end of this guide, you’ll be able to take your idea for a business and run with it!
Business Coaching in Surrey
At Reboot Coaching, we help businesses get the reboot they need, helping you bridge the gap between where you are and where you want to be. We can also help you in the first stages of starting your business, get a free taster session here today.
Ideas and reason – Why start your business?
You should consider what you want to do, how and why. Has it been done before? If not, why? If so why hasn’t it taken off for someone else? Before starting anything look to see if you have any competitors in your area to see how this will affect you. If you feel like your idea is good, it’s time to look at the benefits and risks of starting a business in the UK. Are you starting your business for the right reasons? If you are just in it for the money then you may be surprised when you find out that it’s often harder to run your own business than to work for an employer then you may be shocked!
Below are some of the most common issues that businesses face and why they might fail.
Failure to plan ahead
One of the biggest reasons businesses fail is a lack of planning. It’s tempting to launch your business quickly without looking forward a year or so to see where you might be. Creating a business can help with this.
Lack of demand
Are people even willing to buy the products or services you are offering? Is there a demand for them? It’s important to spend a lot of time researching the market to see where there might be gaps. Create a spreadsheet on what your potential customers might look like in terms of age, location, income level etc.
Bad or no Marketing
So you’ve launched your business, created a nice website, and social media accounts, and maybe you have a physical shop. The problem is, no one knows you exist. This is often the case when you have done little or no marketing. Creating a marketing plan for your business will ensure people are seeing your brand and will make them more likely to purchase. If you are looking to create a marketing plan then Hubspot has a great article on how to write one along with example templates here.
Knowledge and skill gaps
Often people start businesses because they have spent many years working full-time in the industry. This is a great way to know the business’s ins and out however if you are coming into working on a business without any prior knowledge you know to get caught short in areas you should know. A lack of knowledge in the business could lead to silly mistakes so it’s important to do lots of research before running headfirst into a challenge. It might be useful to get a business coach or mentor to guide you through areas you might be unfamiliar with.
Money issues
The simple problem every business faces is to make more money than it’s spending. If you don’t keep track of your finances then you are at real risk of spending money you don’t have. Make sure you have a professional accountant or use accounting software to keep track of invoices as well as expenses. You must also plan ahead of time when it comes to paying bills, restocking goods, paying rent, marketing costs, etc to make sure you have the cash flow to make these payments.
Money is the number one stress that business owners face
Impact on your health
Although working for yourself may sound amazing, it can often lead to extra stress. Running a business isn’t like having a 9 – 5 job. You might often find yourself working a lot more than at a regular job. It can completely take over your life, so it’s more important than ever to have a proper work-life balance when running your business. Make sure you are exercising regularly, have set hours for yourself, and take holidays, a co-founder can help share the load.
Your reason for starting a business may include:
You enjoy working for yourself (self-employment).
You are passionate about an idea that could help others or make money (innovation).
You want to work for a larger company but don’t have the right skills, experience or qualifications (career change).
Business Coaching can often help with issues you are having with burnout, Reboot Coaching is here to refresh your mindset and get you back on track, get in touch now for your free taster sessions.
Different kinds of self-employed businesses
The first step to self-employment is choosing the right business structure. There are many different kinds of self-employed businesses, and each has its own advantages and disadvantages.
Some possible choices include:
Sole trader – The simplest form of business, which suits people who want to work alone or have only one employee (this is called a ‘sole employee). You don’t need to file any paperwork or register with HMRC unless you earn more than £8600 in a year, in which case you’ll need to pay tax and National Insurance contributions like any other company would. You can also set up a limited company or partnership if you think your business might grow bigger at some point in the future.
Partnership – A partnership is similar to being self-employed as there’s no legal distinction between partners, but it means more paperwork when it comes time for filing taxes because partnerships must file their accounts publicly every year. Partnerships also require an accountant’s opinion about whether they’re financially viable before they can be registered with Companies House; this process often takes several months so make sure that your plans are solid before embarking on registering one! If everything checks out then congratulations! You’ve just opened up shop as part of Britain’s thriving small business community – which brings us back around full circle because now we’re going over what steps entrepreneurs need to take once they have decided what kind of venture best suits them.”
Read this post by SBA to find out more about what business structure you should choose.
Budget
Your business plan should include a budget, so you can see how much you’ll have to spend on certain things and what the end result will be. A budget is a financial plan that covers expenses and income for a specific period of time. For example, if you’re planning to open an online store that sells cakes, then your expenses would include things like ingredients for baking cakes, packaging materials and other costs associated with making each cake (including labour). Your income would come from customers buying your cakes once they are ready – this could also be split into different components depending on whether it’s online or offline sales etc.
Once you’ve worked out all of these figures, it’s easier to decide how much money needs to be put aside every month so that there are no unexpected surprises along the way!
There is a number of online resources to help with budgeting your business. Hubspot has free business templates available to download here.
Budgeting can be hard but when you have a template it’s a lot easier to start
Negotiating with clients
Negotiating with clients is one of the biggest challenges of starting a business in the UK. To make sure that you’re not taken advantage of, it’s important to have a good understanding of your market, product and competitors.
Be clear about what you want and why you want it. Have a very clear idea of what your aims are so that there isn’t any confusion when it comes to making decisions or setting priorities. This will also help reduce stress levels because if everything is planned out beforehand then there will be less room for uncertainty later down the line which could cause stress-related illnesses like heartburn or headaches!
Branding
Branding is important! Branding has a lot to do with your company’s personality, values, mission and voice. It also has a lot to do with the look and feel of your products or services. A business with good branding looks professional, which helps to build trust in customers, who will know they are getting a quality product. Branding also can make your business stand out from the competition. Branding is important in a lot of ways. It helps build trust with customers, and it can make your business stand out from the competition by giving off an overall professional appeal.
The way you brand your business will have a big impact on its success. If you don’t build an authentic brand for yourself and your business, it will be hard for people to connect with what you are trying to offer them.
Canva is a great place to start with your branding process, they have lots of free resources available like logos, social media posts, Facebook cover photos etc.
Build a Team
When you start a business, you’ll usually want to bring in people who can help with your vision for the company. These are called “team members.”
Team members are the people who work for and with you—the ones you share your dream with during brainstorming sessions, who pitch in during big projects, and who keep the lights on when things get tough. They are also the ones that represent your brand through their actions, words, and appearance.
They will be responsible for tasks ranging from administrative duties such as answering phones or booking appointments; to financial responsibilities like filing taxes or managing finances; to creative tasks like designing websites; to marketing responsibilities such as crafting copywriting pieces or developing content strategy plans.
A team is made up of different roles that allow an organization’s strengths to combine into one cohesive unit:
Build a Network
Networking is a key part of your business development. It’s important to get out there and meet people in person, but you can also network online.
You can find networking events via Meetup or LinkedIn groups, or by using Google search terms like “networking for startups” in your area. Online communities are also great places to connect with other entrepreneurs and professionals who have experience with starting a business from scratch, as well as resources that can help you on the path towards success.
Business plan
A business plan is a formal document that outlines your company’s objectives and goals, as well as the actions you’ll take to achieve them. A good business plan will help you secure funding and attract investors, while also providing an opportunity to evaluate your progress throughout the year.
Many businesses start out small, with just one person working on their own—but as soon as they hire employees or begin to grow, they need more structure around how they operate day-to-day. This is where a written business plan comes in handy: it can provide this structure by detailing what exactly needs doing (and by whom) for any given task or project within your organization.
Once written down in black-and-white terms of what needs doing first; second; third; fourth etc., it becomes clear which tasks are most important and should be given priority over others during each working day (or week). This helps ensure there’s always someone available who understands what needs doing next when other employees aren’t around or unavailable due illness or holiday leave.”
Business plan resources to help you start
There are tonnes of free resources online to help you write your business plan. Here are a few we recommend.
There are lots more to choose from, so make sure you do some research before starting.
Paying taxes
You should be familiar with the tax implications of your business and know how much you’ll pay.
There are two types of taxes: corporation tax and income tax. Corporation tax is paid on profits that exceed certain thresholds, while income tax is paid by all businesses as well as employees. Self-employed workers pay both of these taxes.
Paying your taxes monthly makes it easier for HMRC to track your business and ensure you don’t owe them any money at the end of each year. You can also get help from HMRC if you’re struggling to keep up with payments by setting up an instalment plan—this will allow you to pay smaller amounts at regular intervals throughout the year instead of one big lump sum at the end of each 12 months’ trading period (which is traditionally April).
If a company owes more than £1 million in unpaid debts then HMRC could take its assets—including bank accounts, cars, houses or other property—to cover this amount so always make sure there’s enough cash available in case something goes wrong!
Bookkeeping
A company’s books are its financial records, which must be kept accurate and up-to-date. This can be a significant task for any business owner, but it’s absolutely essential to running a successful company.
In order to succeed with your bookkeeping, the first thing you’ll need is an accounting system that works for your business. There are many different accounting systems available; they all have some features in common, but they also have some differences depending on their focus and how much detail they require from the user. Your accountant can help guide you through this process of choosing an accounting system that meets your needs as well as being easy for you (and whoever else will use it) to use regularly.
Do you need an accountant?
If you’re planning on running a business in the UK, you may need to hire an accountant. You will definitely need one if your company has more than one employee or if its turnover is over £83,000. If you are self-employed and/or have a business with over £83,000 in turnover then it’s also recommended that you hire an accountant.
If none of these apply to your situation but still want some help with bookkeeping tasks such as preparing monthly accounts and tax returns then maybe using an online accounting software package or service could be sufficient?
Personal and business insurance
It’s important to take out the right insurance cover for your business. You need to consider what you want the policy to pay out for, how much cover you want and how much you can afford to pay.
Every business owner should have some kind of public liability insurance and professional indemnity insurance if they intend on working in their industry (e.g., a lawyer or doctor). These policies will protect your business from legal costs or claims for compensation by customers. You may also need commercial property insurance if you own any buildings or land, but this depends on whether or not you live above your premises as well as whether there are other businesses operating in those buildings/lands with which you share responsibility over property damage caused by them (e.g., neighbouring shops).
Benefits and self-employment
As a self-employed worker, you’ll have the freedom to work when and where you want. You can choose your own hours and holidays. You’re also responsible for collecting your own income tax, national insurance contributions (NICs) and pension contributions from yourself.
As a result, there are no restrictions on how much money you earn in any given year; there’s no ceiling on what you can earn per hour or week as long as it is within the legal limits around pay. However, if you want to claim certain tax allowances this will affect how much of your earnings go into your pocket each month
Conclusion
Starting a business is an exciting but stressful time. You’ve got to make sure you have everything in place, from registering your company name and writing a business plan to get insurance cover. It’s also important to remember that it takes time for any business idea or venture to succeed—even if it seems like a great idea right now!
So don’t be disappointed if things don’t work out straight away; keep working on them until they do, and good luck! Reboot Coaching is here to help you every step of the way, view some of our packages here.