How to plan to start-up a new business

According to the ONS, as of March 2017 15.5% of all retail spending was done online. Thanks to figures like these, creating a small business has never been easier. The internet is a great place to start getting your business’ name out there, and get the sales rolling in before you have the opportunity to create a physical company.

But where do you start? When you’re planning on how to set up your new business, it can be an overwhelming task. Take a look at these six steps to help you on your way.

1.      Start with a business plan

This first step is possibly the most important. A well thought out business plan not only gives you a road map to follow for your company, but it shows the bank and other potential investors the potential for growth your business has.

When creating your business plan, you’ll want to include things such as:

• The vision of your business e.g. your objectives
• Your capacity for growth
• Where you see your business in five years’ time
• Your target market and details of customer profiles
• Your planned finances and a cash-flow forecast
• Market research on the necessity of your company/product/services

Your business plan will help you to avoid any road bumps or mistakes you might make along your journey, and show your investors you’re committed to making your business a success.

2.      Brand your business

Your next job is an exciting one – naming your company! To the public, your business name is the most important part of your brand. It will portray your company to the world, giving an insight into what products and services offer before they’ve even viewed them.

You should think about what name will easily show what your business does, while being easy to remember and spell. Don’t feel as though you have to pick the first name you think of, it’s an important decision! Be careful not to limit yourself to a name which portrays just one service, as you never know when you’ll need to expand!

3.      Register your business with the Government

To ensure you’re complying with Government rules, you must register yourself as self-employed with HMRC. The website will give you a way to submit any tax returns at the end of the year. It will also give you help with setting up your Class 2 or Class 4 National Insurance contributions.

The HRMC online gateway allows you to fill in all of the necessary registration details for your new business. You can select how you would like to register your business, including sole trader, partnership and or limited company.

It’s crucial that you complete this registration within three months of establishing your business, as you could be heavily fined.

4.      Outline a plan for your finances

Now that you’re the director of a business, it’s completely up to you to ensure all your accounts are organised, so you can calculate your tax bill at year end. A great way to make sure that everything stays ordered is to keep your personal finances from your business transactions by setting up a dedicated bank account for your company.

When your business begins to take off, managing the finances yourself may become quite a large job. It’s at this point that you could consider seeking out the services of an accountant. You could also consider financial management software, if you’d like to keep your accounting in-house.

5.      Create your own website

Given the amount of transactions carried out online, having a website is extremely important. It gives your customers a space to not only purchase your products or services, it helps people to gather information about your company, and contact your team if necessary.

Make sure the design is easily recognisable as belonging to you. It’s also a good idea to try and get a domain name that includes your company name, as this will help people trying to find you on the internet.

6.      Consider applying for financial support

Setting up a new business isn’t easy, especially from a financial point of view. At the start of your business journey, you’ll have to consider  costs such as possible office space, computers and printers, and maybe even employees. One of the most common reasons new businesses fail it due to cash flow.

To help increase the numbers of successful small businesses, the Government has started offering grants for start-ups that have a robust and sensible business plan. You should look into your eligibility for these grants, as you could receive  a loan such as the New Enterprise Allowance, which supports those who are currently on benefits and wanting to start their own business.

So, if you’ve taken these tips and ready to take action, you should be ready to get started with your new business! All you have to do is take the jump into setting up your company, and watch your dream turn into a reality!

Looking for more insights on starting your own business?  Check out the videos below!