Want to run your own business, but have no idea where to even begin? Read on. In this blog, we will be discussing the 9 steps you need to take when setting up a new business.
1. Establish a Business Idea
First things first, you need to know what sort of business you are starting. If you already have a business idea, great! If not, you’ll need to start brainstorming and think about what you’re good at, what you enjoy doing, can whether you spot any obvious gaps in the market. Once you have your idea, you’ll want to undertake some basic market analysis to ensure there is demand for your product or service and that it is not an already overcrowded space.
2. Business Plan
Writing a business plan early on helps to provide direction and clear actionable steps. Your business plan should include the following:
- Company name and a brief description – ensure your company name is available and that you can get matching domains/trademarks/ social handles etc.
- Management and Organisation
- Products / Services offered
- Market Analysis
- Marketing Plan
- Customer Segmentation
- Logistics and Operational Plan
- Financial Forecast
3. Funding your Business
Depending on the type of business you are starting you may need to raise some capital. There are different ways to do this depending on your goals and how much you need to raise. Your business plan will have helped to establish this. Methods of finance can include; a business loan, business grants, personal investors and crowdfunding. It is worth looking at each method in detail to establish which will work best for you and your business needs.
4. Business Structure
When setting up and registering your business you will need to decide on your business structure. The most common business structures in the UK are sole trader, partnership, limited liability partnership or limited company. Each style has different legal and financial protections, so you will need to determine which is the best fit for your business.
5. Licences & Permits
Depending on what your business will be doing you may also need licences, permits and/ or insurance to be operational.
6. Bank Account
Opening a business bank account helps to keep your finances separate from those of your business. It can also help when it comes to calculating taxes and VAT. It is also worth noting to set up a good record-keeping system for all receipts, invoices, expenses etc.
7. Business Insurance
The industry your business operates in will impact the type of insurance your business may/ will need. The most common types of business insurance include public liability insurance, professional indemnity insurance, employers liability insurance, legal expenses insurance and small business health insurance. Although there are many other insurance options available, you will need to do your research to establish which you need. Having business insurance protects you against costs of everyday risks such as damages, accidents and legal fees.
8. Tools & Software
Most businesses will require tools and/ or software at some point, whether this is for accounting, email marketing, ads, project management or to manage a website and/ or online store. Although not always necessary, some tools and software are worth the expense to save you time, and effort and potentially needing to pay someone else to do the task instead.
9. Market your Business
When launching your business, you will need a brand identity to help stand out from competitors. This usually includes a logo, fonts and colours, an established tone of voice and brand positioning. You will also need to set up a website and/ or online store to reflect your brand identity and ensure you can get your name out there and allow customers to find and/ or purchase from you.
There are many other details involved in setting up a business, you may also need to consider if you need to hire staff straight off the bat or if you are selling internationally what other factors you will need to set in place. However, most businesses follow the same basic steps, which are then adapted or expanded to suit the needs of each business.
