Do you want to start a business? First of all, look into my post about whether you have the skills to run your own business. If you decide that you meet the requirements – or you can build a partnership to share the responsibility or just want to give it a go – here are the steps to start your own business in the UK.
Sign Up for Self Assessment
When you own your own business, you will need to fill in self-assessment every year. To make sure that you are sent the tax return information, you need to sign up through the HMRC website. This is something that you need to do within three months of starting your business, whether you are a sole-trader, partnership or company.
You will need to decide on the type of business that you are. This will affect the type of tax that you pay. Do you expect your earnings to be over £75,000 per year? You will need to register for VAT too.
When you spend money on your business, whether through an out-of-pocket expense, a bill or a recurring fee, you can claim from your profit. You will only be taxed on the amount of profit that the business makes within the year. However, you will need to keep the receipts to make sure you know the exact amount that you spend on your business every year.
Find Your Business Idea
You need to have a business idea that you will turn into a money making venture. Take your time to think about the type of things that you are good at and then research whether your ideas will make you money. You need to find something that has a little competition – as it means that there is the chance to make money – but not too much.
This needs to be something that you can develop into a business and help grow. You cannot have a one off idea for a product and not go any further as, eventually, you will run out of customers.
Create a Business Plan
You will need to create and develop a business plan. This is something that should be done before you start selling anything. Your business plan will go through the reasons for creating your business and the goals. This will also show your financial plan, which is necessary for any type of business finance that you look into.
Create a Website
All businesses need websites to help make them money. The truth is that more people are searching online for businesses instead of looking in the telephone book or waiting for flyers through the door. Create a website that catches the attention and then look for the best webhosting deal for your needs. There are many different webhost companies out there so you will need to think about factors such as the number of domains you need, the amount of space you require and whether you want to add extra such as shopping carts.
There are ways to create websites for free through Content Management Systems (CMS) like Java and WordPress. However, you may find that it is better to hire an experienced website developer. A web developer will know how to set up shopping carts to suit your needs. The problem with hiring a developer is that you will need to spend money whereas a CMS is free.
Look Into Business Finance
How will you support your business to start with? Some money making ventures do not need much to start up, especially those who work from home. However, there are some that require a lot to start. Will you use your savings to help or will you look into getting a business loan? If you want financial aid, you will need your business plan to show how you plan on using the money and making it back.
The above are a brief overview of the steps needed to start up your business. There is much more that you will need to do to help your company grow and succeed. Don’t jump into your business headstrong as you will likely fail; take your time and nurture your idea.