Starting a new business is exciting, but it can also be a tad daunting, especially if you don’t have any business experience. Whether you’re launching a side hustle or diving into a full-time venture, numerous questions and concerns can pop up. To help you get off to the best start, we’ve created a ‘7-day Guide to Starting Your Own Business’ that addresses key things you need to be thinking about when you start your own business.
In this blog, we’ll be giving you an overview of the essential steps you need to take, from initial planning to promoting your business. Plus, we’re also offering a free consultation with a startup business expert (worth £175)!
Step 1: Define your business
The first step on your new business adventure is of course defining your business idea. This involves deciding what product or service you want to offer, understanding your target market, and analysing your competition.
Key questions to consider:
- What problem does your product or service solve?
- Who is your target audience?
- What makes your business unique compared to competitors?
Make sure you take the time to conduct thorough market research to validate your idea and ensure there’s a demand for what you plan to offer. This will help you to lay down a solid foundation for your business.
Step 2: Creating a business plan
A well thought out business plan is essential for guiding your business and helping you to secure funding if required. It should outline your business goals, strategies, and financial projections.
Essential components of a business plan include:
- Executive summary: A brief overview of your business.
- Company description: Detailed information about your business, mission, and vision.
- Market analysis: Insights into your industry, market trends, and target audience.
- Organisation and management: Your business structure and management team.
- Products or services: Detailed descriptions of your offerings.
- Marketing and sales strategies: How you plan to attract and retain customers.
- Financial projections: Revenue, expenses, and profit forecasts.
Step 3: Choosing a business structure
It’s important that you decide on the right business structures as this affects your legal obligations, taxes, and personal liability.
Common business structures:
- Sole trader: Simple to set up and gives you complete control, but you’re personally liable for debts.
- Limited company: Provides limited liability protection but involves more administrative responsibilities.
- Partnership: Shares responsibility and profits among partners, but each partner is personally liable for debts.
You may want to consider consulting a legal or financial advisor to determine the best structure for your business.
Step 4: Registering your business
Once you’ve chosen your business structure, it’s time to register your business. This process varies depending on your location and the type of business you’re setting up.
Steps to register your business:
- Choose a business name: This is a fun one! You’ll want to make sure your chosen name is unique and not already in use.
- Register with relevant authorities: Depending on your country, this could be your local government or a national registry.
- Obtain necessary licenses and permits: Check what specific licenses or permits your business might need.
Step 5: Setting up finances
Proper financial management is absolutely key to the success of your business. You’ll want to start by setting up a separate business bank account to keep your personal and business finances separate.
Financial considerations:
- Business bank account: Helps manage cash flow and simplifies tax reporting. Many personal accounts cannot be used for business means either, so setting up a specific business account is
- Accounting software: Invest in reliable accounting software to track expenses, income, and generate financial reports. Xero is a great software to use and one of our favourites.
- VAT registration: Determine if your business needs to register for VAT (Value Added Tax). In many countries, this is mandatory once you reach a certain revenue threshold.
Step 6: Promoting and advertising your business
With the administrative tasks all ticked off, it’s time to focus on promoting and advertising your business. You’ll want to create a strong marketing strategy to attract customers and build brand awareness.
Effective marketing strategies:
- Build a website: A professional website acts as the online face of your business and helps more customers find you.
- Social media: Use platforms like Facebook, Instagram, and LinkedIn to build an audience and engage with your customers.
- Content marketing: Create valuable content such as blog posts, videos, and infographics to engage your audience.
- Networking: Attend industry events and join business groups to connect with potential customers and partners.
Of course, there are more ways to market your business, but these are a solid place to start.
Step 7: Managing taxes and compliance
You need to make sure you understand your tax obligations so you can stay compliant with legal requirements. If you’re struggling to wrap your head around the rules and regulations, it’s a good idea to talk to an accountant or financial professional who can help you make sure everything is set up correctly and that you’re compliant.
Tax and compliance tips:
- Hire an accountant: An accountant can help with tax planning, filing returns, and managing financial records.
- Understand your tax obligations: Familiarise yourself with tax deadlines, allowable deductions, and credits.
- Stay compliant: Ensure you’re meeting all regulatory requirements, including health and safety regulations, employment laws, and industry-specific standards.
If you have questions about any aspect of your finances, please get in touch with the Trinity team. We’d love to help!
