Starting a new business in any country is never an easy task considering the regulatory approvals, taxation policies, competitive landscape, legal aspects, business policies etc. In a nutshell, starting a new business is not a cakewalk; this blog will cover some of the necessary elements to contemplate during the planning stage of your business.
Entrepreneurial Scenario in the UK
According to an official Government statistic, 15% of the working population in the UK are self-employed, which is a significant number. Many of them are entrepreneurs, traders, freelancers and small business owners earning decent pounds. You can do it too if you have a business plan in your mind and entrepreneurial bug keeps biting you. There are more than 150 business incubators as well in the UK for start-ups.
There are many stages involved right from having an idea of raising bad credit CCJ loans for funding the idea, and from marketing the product to complying with the regulations. All the necessary stages are mentioned in this blog.
How to Start A Business In The UK?
There are many steps to follow before starting a business, important of them from the UK context are mentioned below:
Firstly, check for your eligibility as to whether you are legally eligible to start a business or work as a freelancer in the UK. Even if you are a resident of any of the European Union country, you may now need to confirm your immigration status after Brexit. If you are a UK citizen, verify all your ID proofs and residential proofs with a passport before starting your business.
The next important thing is to have an idea for your business. You need to be sure about what problem people are facing currently and how you are solving it efficiently with your business. You need to study whether your business idea is unique or not, whether it will work in the UK or not, is your concept scalable and sustainable or not?
As an entrepreneur, you need to have all the answers to these questions. Only if these answers are convincing, then go ahead with your idea. It is the most crucial step as this idea is the foundation of your business; entrepreneurs think more of funding than their product. Don’t make that mistake. You can get bad credit CCJ loans for financing, but your idea and business plan should be substantial.
This stage will transform your business idea to a business model based on your research. Your research should include an in-depth competitive analysis like
- What other players are doing?
- How you can be different?
- Who is your target audience?
- What is the demand for your product?
- Is it seasonal or year-round?
- How stringent are the regulations of the industry you are entering?
These are some of the important questions, which should be answered in your research. You can use famous management frameworks like PESTEL, SWOT analysis, BCG matrix, Porter’s Five Forces, VRIO framework, Value Chain analysis, Blue Ocean Strategy etc. for your research.
This is the stage where your idea takes the shape of a business with several stakeholders involved. The business plan consists of:
- The vision and mission statement of your business
- The structure of your business
- Who will be your suppliers?
- Who will be the logistics partner?
- Who will be the distributor of your product?
- How will the supply chain work, your marketing plan, sales channels, promotions and advertising, recruitment, etc.?
All these points should be comprehensively covered in your business plan.
Now comes the most crucial part, the sole reason why you thought of doing business in the first place, it is money. This stage includes extensive number-crunching from estimating revenue to determining segmental costs. Here you will allocate budget to every department (Sales, Marketing, HR, Production, Operations etc.).
You will estimate the sales of your product in the first month, first quarter and the first year. Then, you will compute the breakeven period of your business in which you will recover your investment. This stage will broadly give you an idea about how much profit you will make in this business going forward.
Registering Your Business
Now you will have to register your business with the government. You can register as a sole proprietorship where only you alone own the business. You can register as a Limited Company to limit your risk. You can register as a Private Limited Company, a Limited Liability Partnership (LLP), or a Public Company where shareholders are public. It is solely your decision as to the owner or a team of owners.
You will have to register your company online the on Companies House on Gov.UK portal by paying £12. Think of the name of your company, registered office address, details of directors of the company, company’s shareholding pattern, and articles of association.
Get your Intellectual Property (IP) Rights in place to protect your business. Go for a patent of your business idea, process or any technology. Trademark your brand or company name if you want to.
Hire Domain Experts
You might have to hire an accountant for dealing with all your accounting software systems and manage it in compliance with UK GAAP or IFRS standards. Hire a solicitor or a legal expert for taking his inputs before trading with customers of other countries. Hire a taxation specialist to take care of your taxation policies and financial statements auditing. Choose a bank to open a current account for your business. Prefer that bank which will give bad credit CCJ loans for your business going forward.
Now, you are all set to start your business in the UK. Make sure to follow these steps with due diligence before investing all your lifelong savings in the business. We wish you all the very best!