06 Sep A Guide to Starting a Business in the UK
Starting a business is indeed challenging. However, the rewards are far greater that makes the endeavour well worth it. If you blend your vision with persistence and hard work, there is nothing that can stop you from making your startup a success.
In this post, we will share some tips regarding how to set up a successful startup in the UK.
1. Know Your Target Market
The most important thing when starting a business is to identify target market. Your business will simply fail if you don’t identify the target market at the start. That’s how important it is to select the right target market.
You should select a target market that is highly likely to purchase your product or services. Take a close look at the value that is generated by your offering. Now match the value with the target segment that will benefit the most from it. For instance, if your product offering includes luxury goods, your target market should be high-income individuals residing in posh localities.
In case you intend to sell fast moving consumer goods, your target market includes low to middle-income consumers. You can reach this target market through small format out-of-home advertising such as bus stands, billboards, and others.
2. Keep Costs to a Minimum
During the initial stages after establishing a startup, your focus should be on keeping the costs as low as possible. You need to make the most of every penny. Try to avoid relying on costly loans to meet business expenses. It’s best to use the business profit for financing activities to expand the business.
3. Appoint a Startup Accountant
A startup accountant can maintain proper records of all important documents. The accountant will look over the process of record keeping and reporting and ensure compliance with regulatory requirements. The accountant will also advice you on how to maximize your tax savings thereby retaining maximum profits. This is a critical step that should not be overlooked when starting a business in the UK.
4. Inform HMRC About Business Status
You should inform HM Revenue and Customs (HMRC) about the business status — sole-trader, partnership, limited liability company — to get the right starter pack. This will allow you to obtain generous tax exemptions on certain expenses. You should consider getting the advice of London startup accountants to know more about tax incentives available for different business types.
Experienced startup accountants will provide you with practical advice regarding how to select the right legal structure.
5. Ensure Compliance with UK Regulatory Requirements
Startups in the UK and elsewhere need to comply with regulatory requirements regarding data protection, health & safety, and licensing. In addition, you should check relevant regulations regarding product safety, employee pension, payroll, and health and safety at work. Consider consulting with London startup accountants to find out regulatory requirements for your business.
In case you plan to operate the business over different localities, you should follow the rules of the primary authority. This will help avoid duplication of paperwork and inspection.
6. Hire the Best Team
The success of the company depends to a large extent on the skillset and experience of the team. You should hire experienced employees for key positions in the company including business development manager, IT manager, and chief marketing officer.
If you outsource tasks to a third-party company, make sure that you carry on a background check to ensure that it has years of experience in handling the required tasks. Nothing can replace experience and skills when it comes to making your startup a success. You should always value experience even if you have to pay more for the services.
Remember that the journey to success is never a smooth ride. You should be prepared for the bumps along the way to success. In the end, persistence and patience will help you see your company rise from zero to a million-pound company and beyond.