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Before you dive into selling your products or services, there are a few necessary to-dos to tick off when launching a small business.
Here’s the UK’s leading company registration service, Rapid Formations, with a checklist to walk you through the key steps of launching a small business, from the ideas stage to opening your doors.
1. Come up with a business idea
Every business begins with an idea. To make sure it’s a good one, recognise that it needs to solve a common problem. And if there are other businesses already solving that problem, it needs to be different to what’s available on the market. It’s a good idea to test your thinking with friends and family, or if you can, potential customers. A bit of honest feedback early on can save you a lot of money and effort later down the line.
2. Research your market
Before you commit to your idea, do some research to make sure it’s viable and can generate profit. This will help you understand who your customers are, what they will like, and how much they’re willing to pay. Try to find some statistics to back up your findings via surveys and free resources like the Office for National Statistics. Don’t forget to research your competitors, too. Investigate what they are doing well and how you could make your business a better option for customers.
3. Write a business plan
It’s essential to have a business plan in place before you start selling. Writing it all down makes it easier to stay focused, measure your progress, and give a strong impression to any investors or lenders you might approach.
Make it thorough by describing your product or service, who your customers are, how you plan to market and sell your product, as well as some financial forecasts. This includes what you’ll spend, what you hope to earn, and how long it might take to break even.
4. Choose your business structure
Next, decide how to legally set up your business. The most common options in the UK are sole trader and limited company. Many new business owners choose to form a limited company for the professional image and separation of personal liability. If you go down that route, services like Rapid Formations can help you register quickly and affordably.
5. Register your business
Once you’ve chosen your structure, you need to make it official. Limited companies will need to incorporate, and at Rapid Formations, we specialise in helping entrepreneurs like you register limited companies quickly and easily.
Sole traders must register with HMRC for Self Assessment, while limited companies need to register with HMRC for Corporation Tax. You’ll also need to choose an official business name, register for VAT if you expect your turnover to exceed £90,000, and register for PAYE if you plan to hire staff.
6. Sort out your finances
Getting your money matters in order early on can make life much easier. Here’s a quick rundown of everything you should get done:
- Set up a business bank account
- Choose bookkeeping software like FreeAgent, QuickBooks, or Xero
- Open a savings account to put aside money for tax
- Create a budget and a simple cash flow forecast
- Look into insurance, depending on what you do – you might need public liability, professional indemnity, or employers’ liability cover.
A chat with an accountant can help you get set on the right path.
7. Build your brand
Think of your brand as a personality. It’s how people see and remember your business. This means you should take care when thinking of your business’s name, how it looks and its tone of voice. Which colours and fonts reflect what your business does and who it’s aimed at? Your brand should carry through into your website, social media, packaging and customer service.
8. Register for licences
Depending on your business type, you might need a licence to operate legally. For example, if you sell food or alcohol, offer beauty treatments, trade on the street, or play music in a public space, you may need permission from your local council or a relevant industry body. You can check exactly what licences you’ll need using the UK Government’s licence finder. Make sure you’ve done this before launching, as operating without a licence can land you with a fine or result in closure.
9. Market and launch your business
You’re now nearly ready to launch! So, it’s time to start thinking about how to reach your customers. Good marketing should be placed where your audience already spends time, such as local noticeboards, Facebook pages, Instagram, TikTok or LinkedIn. If you have room in your budget, invest in ads or send out flyers to increase people’s awareness of your company.
You might want to offer a discount or run a launch promotion to attract your first customers. Word of mouth can also be powerful in the early days, so ask your early customers to recommend people they know to come to you.
Ready to set up your company?
Don’t forget, Rapid Formations can help you register your company online in just a few minutes. Our service is trusted by thousands of new business owners every month thanks to our expert support and simple online process.
We also offer helpful extras like London registered office services and business bank accounts to put you in safe hands from day one.
