In September of last year it was reported that in the first half of 2021, almost 80 new businesses were registered every hour here in the UK.
Overall, there were a whopping 5.5 million small businesses in the UK at the start of the year, according to the National Federation of Self-Employed and Small Businesses. It seems like the UK’s entrepreneurial spirit is alive and well, with new ideas, solutions and bouts of creativity cropping up all over the country, and long may it continue.
If you’re an aspiring entrepreneur ready to launch your new project, then it’s first important to get to grips with the key tenets of starting a business here in the UK. With that in mind, here are 8 beginner’s tips you should know before forming a company in the UK.
Finding The Right Finance
Before you take the plunge and start a company, it’s important to map out exactly where the financing will be coming through. You need to have a clear idea of what you’re getting into, and what it will take to make your business successful. That means studying the market, learning about your competitors, and understanding the legal and financial requirements of starting and running a company.
Bumps in the road in terms are inevitable, with shocks in store for those who don’t have the safety net of proper financial backing to catch them when they fall.
Make sure you have the resources you need to get started and to carry you through turbulent times. The more prepared you are, the smoother your startup process will be.
Read: Tips for financing for small business start-up in 2022
Get Your Finances in Order
On a similar theme, one of the most important things you need to do before starting a company is getting your finances in order. You’ll need to have a solid understanding of your current financial situation and what it will take to sustain your business.
This includes estimating your start-up costs, forecasting your future expenses, and setting up a budget that will help you stay on track. And don’t forget to factor in some room for error – it’s always best to overestimate than underestimate when it comes to business expenses. You may also want to think about hiring a financial advisor to help you with these tasks. By getting your finances in order early on, you’ll be able to avoid any potential money problems down the road.
Additionally, if you’re expecting to incur any tax implications as a result of your business activities, you should also consider consulting with a tax advisor to make sure that you’re properly prepared. With the right tax strategy in place, you can save yourself time, money and stress.
Choose The Right Business Structure
When starting a company in the UK, you need to choose the right business structure. This will determine how much taxes you pay, what type of legal protection you have, and other important factors.
There are a few different types of business structures to choose from before you set up a business in the UK, so make sure you pick one that’s right for your company. For example, if you want to keep things simple and don’t want to deal with complex tax laws, you might want to choose a sole proprietorship.
If you want more legal protection, however, you might want to consider forming a limited liability company (LLC). Registering your company with the right structure is essential for its success, so do your research and choose wisely. Check out this breakdown of the different types of business structure for startups in the UK for more on that.
Write A Good Business Plan
A good business plan is essential for any startup. It will help you map out your business goals, strategies, and resources, and it will also serve as a roadmap for your company’s growth.
Without a business plan, it will be much harder to make your business successful, particularly when changes in strategy are required. So take the time to create a comprehensive plan that outlines your company’s mission, target market, products and services, marketing strategy, and financial outlook.
If you are not sure how to write a business plan, there are plenty of resources available online or you can hire a business planner to help you. Just make sure you have one before you launch your company as this document will be invaluable as you grow your business.
Some of the best online resources and platforms to help you write a business plan include LivePlan, Startup Donut’s Essential Guide to Writing a Business Plan, and the Prince’s Trust’s useful resource of business plans and templates.
Build a Strong Team
No company is successful without a good team. So when starting a business, it’s important to build a strong team of talented individuals who share your vision and are passionate about your product or service. This will help you achieve your business goals and grow your company faster.
But finding the right people can be tricky, so start by creating a job description for each position and posting it on different job websites. You can also reach out to your personal and professional networks to see if they know anyone who would be a good fit for your company. And don’t be afraid to take on interns or contract workers in the early stages – they can be a great way to test out potential employees and see if they are a good fit for your team.
Develop a Strong Marketing Strategy
No company can be successful without a good marketing strategy. You need to find the right channels and strategies that will reach your target market and help you achieve your business goals. This may include investing in online marketing tools like SEO, social media, and email marketing, or it might involve traditional marketing methods like print ads, direct mail, and TV commercials.
The key is to find the marketing mix that works best for your company and budget and stick with it. By developing a strong marketing strategy early on, you’ll be able to attract more customers and grow your business faster.
Read: 5 of the best online marketing strategies to capture the attention of new customers
Have a Good Lawyer on Hand
No company is immune to legal issues, so it’s important to have a good lawyer on hand who can help you with any legal problems that may arise. This includes drafting contracts, dealing with trademarks and copyrights, and handling any litigation that may come up. By having a good lawyer on your side, you’ll be able to avoid any costly legal problems and keep your company running smoothly. A good lawyer will also assist you in setting up your business entity and preparing for any potential lawsuits. Even if you don’t think you need a lawyer right now, it’s always best to have one on standby just in case.
Don’t Be Afraid to Take Risks
As the old saying goes, “the only way to succeed is to take risks.” And this is true when it comes to starting your own business. So don’t be afraid to take risks and experiment with new ideas – you may just find a successful formula that will help your company grow. But make sure you do your research first and understand the risks involved before taking any major steps.
By taking risks and being innovative, you can help your company stand out from the competition and achieve greater success. And if things don’t go as planned, you can always learn from your mistakes and try again.
The Bottom Line
Forming a company is a big decision that should not be taken lightly. These eight tips will help you understand what it takes to start a business and how to set your company up for success. By following these guidelines, you’ll be well on your way to starting a successful company that will thrive for years to come.