Key Requirements to Setting up and maintaining a Healthy Business
Setting up a UK-based business is generally quick, cheap and easy. However, whether you are a small business entrepreneur or a scalable start-up, the road ahead can be treacherous and there are common pitfalls which can be easily avoided. Some of the key requirements to setting up and maintaining a healthy business are listed below:
1. Research your Business Ideas
Make sure your business ideas are viable before investing too much time and money.
- Examine the market and industry you will be entering e.g. is there a demand for your product/service?
- Analyse the competition – what they do well? Can you compete with them?
- Research your potential customers.
Test out your ideas by conducting surveys, questionnaires and/or focus groups. Ask friends and family for their honest opinions. You will likely receive critical feedback that could help you improve your product or service.
2. Write a Business Plan
- You will need a business plan if you intend to approach investors, banks, lenders or specialist advisors. They will want to see a detailed outline of what you plan to do and how you plan to achieve it.
- They might ask for financial projections for start-up and running costs. You will be expected to demonstrate the viability and sustainability of your idea.
3. Choose a Company Name!
- The name of your business is incredibly important. It’s worthwhile dedicating sufficient time to this task.
- It can be fairly common to find entrepreneurs that haven’t given the company name much thought and immediately purchase an off the shelf company through which to trade.
4. Open a Business Bank Account
- Once your business has been registered, you can set up a business bank account. This is the best way to manage your finances effectively.
- Avoid using your personal bank account when your business is up and running, unless you are a very small sole trader. It will just complicate matters.
- Discover leading bank account solutions for your business.
5. Finding your ‘Dragon’s Den’ to Raising Finance
You must give serious thought to how you will finance your business. This includes start-up costs and expenses, as well as running costs and personal income management. Many small businesses are self-funded. Others require financial assistance.
There are several ways to finance a business ranging from personal savings, small business loans to angel or corporate investors.
6. Direct Marketing
- There are various marketing tools that can be considered, including direct mail advertising and events.
- A marketing plan may be the key to success. If you don’t market your business, no one will know you are there.
- Marketing is a continuous process, even when your business is established and successful.
7. Websites and Social Media
- Take a look at competitors’ websites for inspiration. Are they visually pleasing, easy to use, responsive and informative? Based on your findings, you can think about how you would like your website to look and behave.
- Social media is a really important consideration, too. It is one of the most effective and affordable ways to promote your business and connect with your target market.
8. Employing Staff
If you plan to employ other people to work for your business, you will have a number of obligations and responsibilities:
Register with HMRC as an employer.
- Operate payroll.
- Adhere to health and safety requirements.
- Take out Employer’s Liability insurance.
- Enrol eligible employees into a workplace pension scheme.
9. General Data Protection Regulation (GDPR)
- Data protection and information rights have in the past often been overlooked, but these are thing that businesses need to be aware of.
- If you will be holding information on any individuals, including customers, employees or suppliers, GDPR legal framework requires you to protect all personal data and information.
10. Business Taxation
- Once you have set up your business, you will need to register with HMRC for certain taxes. This may include Corporation Tax, VAT, PAYE and Self-Assessment. It depends on what legal structure you choose.
e.g: Sole Trader, Private Limited Company (Ltd) or Partnership (LLP). This is when the joyous tasks of bookkeeping and accounting come into play.
11. Bookkeeping and Accounting
- It would be best to engage an Accountancy firm like Mico Edward Accountants for guidance and assistance to deal with the administrative burdens of bookkeeping, tax returns, year-end accounts, payroll, etc. This would enable you to focus on your core business goals and objectives.
