For the majority of start-ups in the UK, the process of setting up an enterprise is fast inexpensive and simple. It’s even possible to establish your business in just a few hours! If you’re aware of the type of business you’d like to begin, and you’ve been contemplating for a long time, gone through the books, taken the classes… Maybe it’s time to get it done?
This article focuses on the fundamentals of how to establish an enterprise. Follow these simple steps and you’ll be running your business within a matter of minutes:
Step 1. Inform HMRC inform them that you’re self-employed.
Choose the best starter kit for your needs. It’s possible to do it all via the internet, or over the telephone, and will start you off as sole trader (for other legal structures , see “part 2” below). We also suggest that you complete the free online course offered by HMRC that will provide you with simple tips on maintaining records as well as filling out and filing tax returns as well as what you should do if you hire the services of a third party.
Step 2. Find out the insurance coverage
Insurance will protect you and your company from risk such as sickness, accidents as well as theft and legal costs. The coverage you need depends on the type of company and the way you manage it. Axa’s Axa commercial insurance quote tool can be a good beginning. It will inform you of the insurances you’ll need and the ones you should be considering. Specialist brokers are great for businesses with a niche, and Trade Associations typically offer large discounted rates for its members. If you have children, ensure you have life insurance as well.
Step 3. Select a name for your business.
Use search engines like Google as well as Companies House to see if the name you’re seeking is available. If you’re not sure choose your own name for the moment, e.g. Jane Smith Cakes – but do not invest in printing or marketing materials until you’re confident. Purchase the domain name for your website when you’re done.
Step 4. Establish an account for business banking
You will require a bank for business account if you’ve set up your own company, as it’s a distinct legal entity that is not linked to you. It’s not required when you’re a sole trader (though it is generally suggested) However, you must keep your accounts in order.
Step 5. Be sure to comply
You must ensure that you meet all requirements of the law, e.g. health and safety, licencing and data protection. Gov.uk provides a number of excellent tools for you to navigate this. This process takes only about a minute and is easy for the majority of startups.
Step 6. Begin to account for everything
Set up an accountant, or hire an accountant. your own simple bookkeeping system. Keep a record of all expenses and sales. A web-based accounting program can save you lots of time and effort as well as keeping your records up-to date and in top condition.
Step 7. Make sure you have your workspace organized
The Local Authority/ Council should be able to give you information about the business’s premises and fees in your location. If you work at home, ensure you know:
What home-based business expenses can claim, which includes the amount of your household expenses
Planning permission is required if you are expecting frequent business visitors or employ someone who will work from home contact the local planning department for guidance
If you rent, make sure to look over your lease to confirm whether home-working is permitted.
If you do your work on the internet or use laptops most times You might want to consider co-working opportunities within your region and lease a desk for a couple of hours or even full-time. Co-working is an excellent method of breaking the isolation and establishing routine and discipline as you start to get started.
Perhaps a more of a push but you’ll be able to do the majority, or perhaps all of it all in one day.
Thus, establishing your business officially isn’t too complicated and shouldn’t take much time at all. However it’s more likely to be successful in start a business if start off with solid foundations.
Step 8. Make sure your company’s logo is in place in
Create a brand image that is reflective of your values and how you wish you to look to your prospective customers. Design a logo, and make sure you use the same colour scheme and font across every piece of material.
Set up a website, and then order stationary and business cards. Design platforms such as Canva today make it fast and simple, as well as cost-free to create your own appealing material and social media pictures.
Step 9. Select the best legal structure for your company.
It’s a common decision between sole trader or limited business. If you’re creating a social enterprise, there are other factors to take into consideration.
Step 10. Create a business plan
Business plans are essential in the event that you have to raise money. It’s essential and must be a continuous document, frequently reviewed and updated. Your business plan must include the sales and marketing strategy, as well as financials.
Here is a great business startup book that will help as you start out…
Step 11. Control your cash flow
Make a cash flow projection and then update it with current results frequently. A basic spreadsheet will usually be sufficient. Here’s a cashflow tutorial that is free to download and. Even if you require an accountant or bookkeeper to complete this task, make sure you know the material and revisit frequently.
Step 12. Make sure that costs are as low as feasible
When your business’s structure is set and you’re having a good time, make sure you ensure that you keep your expenses as low as you can. There’s plenty you could accomplish with just a little. If you’re in need of an initial loan look into the Start-up loans business that is backed by the government. The loans are non-secure with extremely low rates of interest and you’ll receive support from an adviser and mentor.
Step 13. Place your business kits put together
Shop, borrow, and bargain around for office equipment, IT equipment furniture, and transportation.
Step 14. Set up communications
Be sure that customers can reach your contact information via email, phone as well as on relevant social media platforms. Start by identifying the social networks that your customers frequent. If you’re not sure the names of your customers, contact them!
Your brand’s image should remain consistent throughout all social media platforms, using the same logo and tagline – you must be easily identifiable. If you’re required to conduct lots of marketing on social media, make use of tools such as Crowdfire to manage and schedule the social accounts you have.
Step 15. Make sure you have your support in the form of an order
Examine your skills and figure out how you’ll fill in the gaps. Avoid hiring others until you’re absolutely required to. Many small-scale businesses begin by subcontracting or working with freelancers, or even small enterprises. This is now much easier with platforms for freelancers like Fiverr, which lets you purchase slices of help in designing, marketing administration, and more.
In the end, ensure that you have someone to communicate with regularly regarding your business. There will be good days as well as days that go wrong, and you lose motivation. Find a mentor who is reliable or business adviser or someone else who are in the same situation as you. They are the ones you can discuss the issues and the opportunities to come.