Starting a new business is, needless to say, a comprehensively busy endeavour. It’s an undertaking equal parts exhilarating and infuriating, a stressful sprint in which a great deal of administrative and regulatory hoops need to be jumped before the real work can successfully begin. And that sheer amount of administration is one of the fundamental reasons for which so many budding entrepreneurs fall at the first hurdle.
If you’re looking to start a new business, whether you’ve a killer new idea for your industry or simply a wish to escape the clutches of the conventional, salaried 9-5, you might be wondering how to maximise your own chances of business success. Here, you’ll find a helpful step-by-step to get you started on your entrepreneurial journey without making an unnecessary misstep.
Choosing the Right Business Structure
First and foremost, you need to make a core decision about the structure and format of your business. Will you be operating as a sole trader or as a limited company? Sole traders, by another name, are freelancers; any business profits made as a sole trader are Income Taxable, and any business expenditures deducted from profits as expenses. This is a simple approach to starting a business, and one that only requires registering for self–assessment with HMRC.
If you intend to hire employees or invest heavily in business infrastructure, your best bet is to register as a limited company. This is a business model that separates business finances from personal finances, ensuring you don’t become personally liable in the unfortunate event of business failure. It also makes it easier for you to manage staff, using PAYE to conduct payments and manage tax obligations.
Premises, Location and Operational Setup
Your next consideration should be more operational in nature – namely, where and how to physically set up your business. As a new business with staff, you may need a central office environment; this needn’t be as complex as arranging an expensive multi-year lease for a whole commercial premises, a prospect which can seem daunting to a new business with tight books. Instead, serviced offices in London can provide you with an easy workplace solution, one with minimal overheads and a lightweight set of contractual obligations.
Indeed, location is a broader consideration well worth careful thought. London is a natural starting-point for most businesses, being the financial capital not just of the UK but of much of the world. Of course, if your business is smaller and more regional in scope, you may want to put more thought into basing yourself near a key distributor or industrial centre.
Complying with Regulations
Regulatory compliance is a decidedly unglamorous pursuit when starting a new business, particularly when set against more exciting endeavours like branding, research and development. However, it’s the most fundamental step in the process for securing business longevity; one missed regulation could lead to fines, sanctions or even premature closure of your business. Regulations differ from industry to industry, but overarching legislation with respect to employee rights and health and safety apply broadly. Do your research accordingly, and leave no stone unturned.
