9 STEPS TO STARTING A BUSINESS

1. Conduct Market Research

Market research is crucial to understand your industry, target market, and competitors. In the UK, you can use resources like the Office for National Statistics (ONS) for demographic data, and market research firms like Mintel or YouGov for industry-specific insights. This research helps you identify market needs, customer preferences, and potential gaps your business can fill.

2. Write a Business Plan

A comprehensive business plan outlines your business goals, strategies, and financial projections. In the UK, you can find templates and guidance on websites like GOV.UK and the Prince’s Trust. Your plan should include an executive summary, company description, market analysis, organization structure, product line or services, marketing and sales strategies, and financial projections.

3. Secure Funding

Determine how much capital you need and explore various funding options. You can consider:

• Government Grants: Check GOV.UK for available grants.
• Loans: Banks like Barclays and HSBC offer business loans.
• Crowdfunding: Platforms like Crowdcube and Seedrs.
• Angel Investors and Venture Capital: Look for investors through networks like UK Business Angels Association.
• Family and Friends: They can be more willing to lend than an institution.

4. Choose a Business Structure

Decide on the legal structure of your business. The main types in the UK are:

• Sole Trader: Simple to set up, but you are personally liable for debts.
• Partnership: Shared responsibility between partners.
• Limited Company: Separate legal entity, offering limited liability protection.
• Limited Liability Partnership (LLP): Combines elements of partnerships and limited companies[5][6].

5. Register Your Business

Register your business with HMRC. If you’re setting up a limited company, you’ll need to register with Companies House. You’ll also need to choose a business name, set up a registered office address, and prepare incorporation documents.

6. Get Tax References

You need a Unique Taxpayer Reference (UTR) from HMRC for tax purposes. If you’re employing staff, you’ll also need to register for PAYE (Pay As You Earn) and get a National Insurance number. For VAT you need to register to start charging and claiming VAT, it is a legal requirement if your turnover is over £90,000.

7. Open a Business Bank Account

Separate your personal and business finances by opening a business bank account. Most UK banks offer business accounts, including NatWest, Barclays, HSBC, and Lloyds. You’ll need proof of identity, proof of address, and your business registration documents. You can use the Dawlish Bank hub to talk to the banks.

8. Set Up Your Accounting System

Choose an accounting method (cash or accrual) and set up a system to track your income and expenses. You can use accounting software like QuickBooks, Xero, or Sage. This is crucial for managing your finances and preparing for tax season. These will be mandatory soon, some starting by April 2026, so be ready.

9. Promote Your Business

Develop a marketing strategy to attract customers. Utilize various channels such as:

• Social Media: Platforms like Facebook, Instagram, TikTok, and LinkedIn.
• SEO and Content Marketing: Improve your website’s visibility on search engines.
• Local Advertising: Participate in community events and local directories. Register with the chamber.
• Email Marketing: Build a mailing list and send regular updates. 

Starting a business involves careful planning and execution, but with these steps, you'll be well on your way to success! If you have any questions or need further guidance, feel free to ask.