Your essential guide to starting a business

Quick Checklist: Starting a business

Click the headings below to jump straight into the answers to your questions.

1. Clarify your vision
2. Plan and prepare
3. Register and set up
4. Promote and launch
5. Help and support

 

 

Clarify your vision

 

Why start a business?

The drivers and motivations you have for starting a business form the basis on which all your other decisions are made.

Your operating structure, how long you want to keep the business going, whether you want to grow and more stems from the reason you’re starting a business in the first place.

If you’re at the start of your journey, asking some clarifying questions can help you make sure that you’re setting off in the right direction.

To get started, ask yourself:

• What drives me to start a business?
• What do I hope to achieve?
• How will this shape my decisions and goals?
  
  

Is now a good time to start a business?

Yes, you can start a business successfully at any time of your life, in a range of circumstances, and no matter what the economy is doing.

Success at any time will depend on aligning your offering with market needs and your personal circumstances.

If doubts about timing are holding you back from starting, try clearing what you’re telling yourself about ‘now’ and clarify your readiness.

 

Am I allowed to start a business in the UK?

Immigration status affects whether you can start a business in the UK. For example:

• Asylum seekers cannot legally start a business until granted refugee status.
• Refugees and migrants can start a business if they meet visa requirements.

Given the complexities, we recommend you seek specialist advice to understand your options. Resources like The Entrepreneurial Refugee Network and the Immigration Advice Service can help.

 

What kind of business should I start?

If you’re keen to start a business but still exploring ideas, consider these factors:

• Demand: What businesses are always needed?
• Costs: Which businesses are cost-effective to start?
• Skills: Do you have the skills, or can you upskill?
• Funding: Can you self-fund, or do you need financing?

When narrowing down your business ideas, be sure to identify whether there is a market for your product/service, whether you will be able to finance the business, and how long it will take you to achieve a return on investment (ROI).

If you are thinking about setting up in business but can’t quite decide check out some ideas.

 

Should I buy or start my own business?

The options and alternative ways of describing businesses can be confusing.

There are some key decisions to make that will depend on why you’re starting a business and your ambitions for it. These will naturally make some options a better fit for you than others.

Here are some common options:

1. Buying an existing business

Benefits:

• Established operations and market presence.
• Potential to retain existing staff.

Challenges:

• Limited flexibility for changes.

Find out more about buying an existing business.

 

2. Starting your own business

Decide between:

• Self-employment (sole trader): You are the business (eg contractor, freelancer). Simple to set up but comes with personal liability.
• Setting up an organisation: Independent from you, with options for leadership changes and less personal financial risk (eg limited company, partnership).

3. Creating a social enterprise

If your goal is community benefit over profit, consider a social enterprise. These businesses reinvest profits into social impact and can be almost any legal structure, including Community Interest Companies (CICs).

Find out more about common legal structures and how to set them up. 

 

 

2. Plan and prepare

 

How do I show my business idea is a good one?

When starting a business, you should develop your business model first, before creating a full business plan. The business model helps you conceptualise and validate your idea, while the business plan details how you will create and run the business.

• Experiment with frameworks like the Business Model Canvas or Social Business Model Canvas for social enterprises - these allow you to describe, design, challenge and pivot your business model.
• We recommend that you complete a SWOT analysis to evaluate your current strengths, weaknesses, opportunities and threats (SWOT). You can access our SWOT analysis template for this.

Once you validate your idea, it’s time to write your business plan.

 

What is a business plan?

A business plan is your blueprint for success. It outlines your objectives, strategy, and financial projections, helping you stay on track and attract investors or partners.

It helps you:

• Clarify your vision: Define what you want to achieve and how you’ll get there.
  
  
• Identify your target audience: Understand who your customers are, their needs, and how you’ll reach them.
  
  
• Validate your idea: Assess the demand for your product or service in the market.
  
  
• Attract investors or partners: Demonstrate your business’s potential with clear goals and financial projections.
  
  
• Guide operations: Outline the processes, resources, and strategies needed for daily operations.

Your business plan will be a ‘living document’ that will evolve as you research and develop your ideas.

 

What should a business plan include?

A strong business plan typically includes: 

• Executive summary: An overview of your business and goals.
  
  
• Business description: An in-depth look at your business, including your mission statement, products or services, and the problem you’re solving. 
  
  
• Market analysis: Insights into your target market, customer demographics, competitors and industry trends.
  
  
• Organisation and management: Details about your business structure and key team members and their roles, skills, and experiences. 
  
  
• Products or services: Explain what you’re offering, how it benefits customers, and what sets it apart from competitors. If applicable, include information about your supply chain or development process. 
  
  
• Marketing and sales: Outline how you’ll attract and retain customers. Include branding, pricing, advertising, and sales tactics. 
  
  
• Funding requirements (if applicable) Specify the amount of funding you need and how you’ll use it.
  
  
• Financial projections: Budgeting and forecasting for at least the next three years. Include pricing, income statements, cash flow forecasts, and break-even analysis. 

A business plan template can guide you, even if you’re unsure about all the details initially. It will help you identify gaps in your knowledge to research and decide.

 

Tips for writing your business plan 

• Start with a template: Use a business plan template as a guide, customising it to suit your business. 

• Keep it simple and clear: Avoid jargon and focus on clarity, especially if presenting it to investors. 

• Be realistic: Use accurate data and reasonable projections to build trust with stakeholders. 

• Update regularly: Revisit your plan periodically (at least once a year) to ensure it reflects your current goals and market conditions. 

 

 

3. Register and set up

 

What are the steps to register and set up my business?

Once your business plan is in place, it’s time to handle the legal and operational essentials before you start trading:

1. Choose a legal structure
   1. Choose the right structure for your business as each will impact how you register and run your business.
      1. Sole trader: Simple setup, but personal liability.
      2. Limited company: Offers personal financial protection.
      3. Partnership: Shared responsibilities and profits.

2. Register your business
   1. Register with HMRC or Companies House (depending on your structure).
   2. Protect your business name by registering it as a trademark, if applicable.
3. Set up your finances
   1. Open a dedicated business bank account.
   2. Set up accounting software to manage your cash flow with bookkeeping, funding, and payment systems.
4. Secure insurance and licences
   1. Obtain the necessary licences and permits for your industry.
   2. Consider insurance - public liability, employer liability, and professional indemnity are the most common types.
5. Set up operations
   1. Choose where you want to locate your business, establishing your premises (if needed) or decide to operate from home.
   2. Build efficient systems and consider using technologies for managing suppliers, customers, and day-to-day operations.
   3. If you need to employ staff, start to recruit and support your new team.
   4. As you start, it’s always good to consider how you protect intellectual property, manage and protect data and use secure IT systems.

Working together with our network of partners and affiliates, we have a number of discounts and deals available to you. Covering everything from business registration and banking to accountancy and insurance, we can help you start your business for less.

 

 

4. Promote and launch

 

How do I launch my new business?

Develop a launch plan to tell people about your business and start getting customers.  

1. Build your brand
   1. Develop a memorable logo and visual identity.
   2. Craft a brand message that resonates with your target audience.
2. Create an online presence
   1. Launch a professional website optimised for search engines (SEO).
   2. Set up social media profiles on platforms relevant to your audience.
3. Engage in early marketing
   1. Leverage free or low-cost marketing channels, such as social media, email marketing, and networking.
   2. Offer promotions or introductory deals to attract your first customers.
4. Plan Your launch event
   1. Host a launch event, either in person or online, to introduce your business to potential customers and partners.

Your launch sets the tone for your business, but it’s essential to create a solid and ongoing marketing strategy to continue to attract customers.

 

 

5. Help and support

 

Can I get help to start my business?

Yes! Starting a business can feel overwhelming, but there’s a wealth of support available to help guide you.

Here are some valuable sources of support:

• Local councils - Speak to your local council as they may offer tailored business support services, including grants, workshops, and guidance on legal and regulatory requirements.
• Start-Up Loans – A government-backed scheme, Start-Up Loans provides funding along with mentoring to help you launch and grow your business.
• Free or low-cost training and networking - Search online for free or affordable training sessions, networking events, webinars, and courses designed for start-ups.
• UMi’s resources and advisers - We specialise in supporting businesses at every stage of their journey. Our guides, templates, and expert advisers are here to help.

Take advantage of these resources to build your knowledge, expand your network, and start your business on solid ground.

If you’re ready to take the next step, speak to an UMi adviser and we’ll help you do more and go further.