The Step-By-Step Small Business Start Up Guide

THE STEP-BY-STEP SMALL BUSINESS START-UP GUIDE There is nothing more exciting (or scary) than setting up your own business. This simple guide is designed to help you remember the basic requirements necessary to ensure your business success. BEFORE YOU START Before you jump straight into setting up your business, there are a few key things to consider beforehand which can really make life easier and give your business a fighting chance of success. STEP 1 STEP 2 STEP 3 RESEARCH YOUR MARKET DEVELOP AND PLAN FIND A MENTOR Before you launch, it's crucial to research your market. Look at exactly who your customer base is and also your A clear plan from the outset will help clarify your business idea, spot potential problems, outline your goals and most importantly, measure your progress. Finding a mentor can really help you manage the pressures of running your own business: Someone you can trust to offer support and guidance. competitors - can you learn from them? REGISTER YOUR BUSINESS You legally have to register your business with the Government (HMRC & Companies House) when you start trading but before you do you must establish the following: DEFINE YOUR BUSINESS TYPE Before you register your business, it's important to decide what of the following 3 business types you'll be. 2 SOLE TRADER BUSINESS PARTNERSHIP LIMITED COMPANY You run your business as an individual. Where you and your partner(s) share responsibility for the business. Profits are shared between the partner(s) and An organisation you set up to run your business. Responsible in its own right for You can keep all business profits after you've paid tax. Any shortfalls or business debts will be held personally. everything it does and its finances are separate from your finances. each partner pays tax on their share. UK BUSINESS STATS A quick overview of 2014 UK business UK BUSINESS BREAKDOWN A look at the 2014 business types registered in the UK 15.2 million Sole Trader 69% - 3,300,000 the number of people employed by small and medium sized businesses Limited Company 29% - 1,500,000 £1.6 trillion Partnership 9% - 460,000 the total combined turnover of small medium business 2 GETTING YOUR BUSINESS REGISTERED With your business type decided, it's time to get yourself registered with the official bodies. To register, simply visit www.gov.uk where you can quickly and easily register with both. HM REVENUE & CUSTOMS You need to register with HMRC to Companies House make sure you pay the correct Income GOV.UK Tax and National Insurance. 581,173 COMPANIES HOUSE The record breaking number of businesses who registered with Companies House in 2014. A major increase on 2013's previous 526,447. Is the UK's registrar of companies. You only need to register however if you are planning on being a limited company. TOP START-UP LOCATIONS The top 10 locations for new start-up businesses registered with Companies House in 2014. #10 Edinburgh 7,480 #3 #5 Manchester Glasgow 8,173 13,054 #7 Sheffield 8,052 6# Warrington 8# Nottingham 7,529 7,641 #2 #1 Birmingham 18,337 Greater London 184,671 #6 Bristol 8,130 Brighton 8,344 BECOME OPERATIONAL - THE CHECKLIST Now you have registered with the relevant authorities; you need to concentrate on the practicalities of setting up and promoting your business. CHOOSE A NAME FOR THE BUSINESS DESIGN A LOGO This should not only reflect what you do, A good logo is critical for business success; a distinctive, easy to remember logo will set but also stand out from the crowd and be easy to remember, your business apart from the rest. REGISTER A DOMAIN NAME AND BUILD A WEBSITE CREATE SOCIAL ACCOUNTS </> You should consider your website as your For SMES, social media is a vital marketing shop window; clearly displaying exactly tool; but do not use too many platforms and make sure they are updated regularly. what you offer as well your contact details. ORDER BUSINESS STATIONERY OBTAIN THE RELEVANT LICENCES Depending on your business niche you could need licences such as a Temporary events notice or Food business registration. Having letterheads, compliment slips and business cards will give your business a professional edge. SET UP A BUSINESS BANK ACCOUNT PURCHASE THE NECESSARY TOOLS It is important to separate your business It doesn't matter if you're an accountant, or finances from your personal day-to-day living to help you stay on track. hairdresser - some office supplies are used by all. Start with a list of immediate requirements. FIND THE RIGHT BUSINESS PREMISES TAKE OUT INSURANCE As a sole trader you will probably start off working from home, but renting space in a business hub is vital as you grow. Every business in the UK that employs one member of staff or more, needs Employers' Liability Insurance. FIND AN ACCOUNTANT FIND STAFF You need more staff fast, advertise in the From advising on business plans, applying for loans and filling out tax returns, an local press or use a recruitment agency to accountant will make your life easier. help you find the perfect employee. 4 LAUNCH YOUR BUSINESS! It's all systems go, go, go...but remember, to ensure your business success you must constantly promote yourself, keep on top of industry news and trends, and, most important of all, enjoy yourself. STEP 1 STEP 2 STEP 3 MARKET & PROMOTE MONITOR & LEARN ENJOY! Business is about constant learning, so keep an eye on not only your own business but the marketplace too. Spot oppourtunities and learn form mistakes. It's taken a lot of hard work to get to this With your business registered and raring to go, it's time to launch! Promote it as much as you can by networking, using point, and there'll still be plenty more hard work to come, but it's important to social media and word of mouth. enjoy the fruits of your labour. Be proud! Sources Hello Print SIMPLY ARRANGED, www.startups.co.uk WITHOUT HASSLE. www.fsb.org.uk www.gov.uk