The very idea of bringing the business idea, which has been haunting you since ages, to life is empowering. It gives you the strength to arrange the funds and manage other essentials such as workspace, staff, etc.
However, with the strength to start a new business, you need to be aware of the business atmosphere as well. You should begin with acquiring knowledge about your own finances and the aids that the government is willing to provide.
Here, we are going to take you through how you can start a new business in UK.
- Let HMRC Know That you are Changing your Status
When in UK, you need to abide by the terms of HMRC so that you can receive an apt start-up aid from them. For this, the first step is to inform HMRC that you are becoming self-employed. Also, you can avail a lot of help regarding the financial aspect of your business through free online courses offered by HMRC.
It will help you in creating and managing accounts, using them for filing the tax-returns, and running the business smoothly.
- Have a Business Plan
Once you know what you are going to deal in, you should have a clear business plan too. It includes deciding upon the marketing strategy that you are going to follow, how you are going to arrange funds for your business, and how the operations are going to take place.
Although one thinks that everything will fall into place eventually, it is better to have everything on paper so that you don’t end up missing out on an important detail.
Speaking of details, in this dynamic environment you cannot expect things to remain constant. Therefore, you need to work over and over the business plan as the time passes to keep up with the trends.
- Sort our Finances and Insurance Cover for your Business
Now that you know how you can manage the finances, you should arrange for a business start up loan. It can either be from your own savings or borrowed from various liable sources, such as crowd funding, bootstrapping,
Once you are through with the funding part, you can now use some of it for meeting the future uncertainties, i.e., insurance. Make sure that you take into account all insurances that are applicable on your business including theft insurance, legal fees, accidents, etc. Also, you can become the part of a trade association to avail discounts, which you can really use as a start-up.
- Look up a Name and have it Registered
Your business has to have a name that adds to its brand value. Plus, you will have to check whether the name, or a similar name already exists. If yes, you might not be able to use the name because that can be counted as intellectual property theft.
Therefore, you need to have a unique name which is not pre-registered. As much as the relevance is important, you also need to have a name for which the domain name is available. That’s because, sooner or later, you will have to bring your business online.
Once you have a name for your business that satisfies all the above conditions, then only get the business cards printed.
- Create a Bank Account for your Business
When you know what your business is going to be called, it has become a separate entity. You can no longer run its finances through a business account that works under your name, you need to set-up an individual account for it.
Everything that you are going to invest in your business will be the start-up capital.
Although, sole-traders do not have to follow the mandate to create a business account, it is advised to do so for ensuring clarity in accounts.
- Follow Statutory Compliance
When you are new into the business world, you need to abide by the state laws regarding the fire safety, licensing, and other norms. If not, you can be charged with heavy penalties which your start-up cannot afford. Therefore, go through the norms stated by the government for your line of business and comply with them.
- Start with Accounting for Expenses
When you are starting a business, possibly, for the first time, there are chances that you will end up messing your accounts because you did not account for them in the beginning. Therefore, we would advise you to start accounting for each and every expense in setting up and beginning expenses as soon as you spend your first penny for the venture.
You can either hire an accountant or use a book-keeping software for doing the job for you. Although time-taking at first, business accounting is a great way to go.
- Figure Out a Working Space
Starting a business requires you to have a suitable space for setting-up the operations. Like most start-ups, you can start from your home, or you can rent a office and register it.
When you plan on creating a working space in your own premises, make sure that you are accounting for the utility bills and space used as a business expense. This is important because although you are not paying for it separately, you would have incurred these expenses when you would have rented a separate space.
Also, when most of your work is online and doesn’t require much of operational space, you can simply look-up co-working spaces in your area. They are tranquil, loaded with like-minded people, and serve as perfect environment for producing quality results.
The Bottom Line
There you have the steps you can follow to set-up a new business in today’s market. Since your business is a start-up, no matter which industry you are a part of, you need to cut back on costs. When you have learnt how to minimise costs, will you be able to maximise profits and reach the break-even point sooner.
In the end, having a business idea is just the beginning of a new adventure that will unfold as you start acting upon it.