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8 Steps to Starting a Business

There are around 5.5 million small businesses in the UK, and those that succeed tend to have a great planning process (which, by the way, should start before you even launch!). 

Here are 8 steps to help your new new business succeed:

1. Start your business plan.

Starting your business plan as soon as possible is the easiest way to create a roadmap for your business, helping you turn a passionate idea into a successful venture. 

Include a business description, market strategy, competitive analysis, financial backing ideas, operations, and other data that you'll find useful when planning.

Think about your business plan as a “living”, ever-changing document, expand and make adjustments as you gain more knowledge, and try to answer some of these points:

  • Why should people care about your business and what needs does it fill?
  • What is its purpose? The best business can describe its purpose in one sentence.
  • What will be the service or product you offer?
  • Who will be your audience base or target customer? Be as specific as possible and describe their age, gender, income level, location and other factors.
  • How do you plan to develop your business' products or services, and how will you get it out there?

2. Conduct market research

By doing some market research, you'll discover if your business could survive in the real world. 

Use competitive analysis - look at the competition you face and try to find out product demand, demographics, and market size. This will help you craft your market advantage.

Use a mix of resources available online, as well as conducting surveys, focus groups, and prospect interviews.

After you've conducted your market research and figured out your target audience, you will have a clearer vision when developing products and services that will appeal to them. Market research is also great for helping you decide on your business name and branding.

3. Decide on your business structure.

Once you decide on a relevant, unique business name and domain name, decide what kind of structure is best for your business, such as a sole trader, partnership, or a limited company.

It's important to carefully choose what legal structure you need for your business, as it can influence what taxes you pay, your personal liability, and the ability to get funding. It's always a good idea to consult with an accountant to help you decide.

You’ll also need to think about where your business is located and its operations, whether that’s a home office or a brick-and-mortar store.


4, Sort out your Funding


Calculate how much money you need (it's a good idea to budget one year of operation in your business plan). Using a spreadsheet or any budgeting software, include every expected expense, including overhead and marketing costs.


You can also conduct a break-even analysis, which helps find out the minimum account of money your business needs to sustain itself. 

The formula for the break-even point is Fixed costs ÷ (Item price – Variable costs). Finding out your break-even point can help you determine how to price products and services, how much you have to sell to make a profit, and your overall profitability.


There are a few ways you can fund your new business. You could:


  • Self-fund from personal savings
  • Borrow from friends and family
  • Apply for a small business loan or grant.
  • Crowdfund online.
  • Get investment from an angel investor or venture capitalist.


5. Get your paperwork set up.


Once you've decided on your name, legal structure, and how you'll be funded, it's time to start gearing things into action! You might need to do some (if not all!) of the following:


  • Register with Companies House (if a Limited Company), and tell HMRC.
  • Open a business bank account.
  • Register any domain names.
  • Register any trademarks with the Intellectual Property Office.
  • Start using accounting or bookkeeping software, or work with an accountant.


6. Get the word out.


Create a website for your business, either working with a web developer or by using a do-it-yourself web creation platform. It's important to think of your online presence as a whole, so also think about the social media platforms you need to be in, and what kind of marketing you'll be using to reach your target customers.


Here are a few ways to get the word out about your new business: 


  • Leaflet drops.
  • Holding a giveaway online.
  • Use influencer marketing.
  • Go to trade shows.
  • Online adverts on Facebook and Instagram
  • Online adverts on Google and Youtube.
  • Advertising on Google
  • Radio advertising
  • Advertising on billboards.
  • Get a story in your local newspaper.
  • Pay for advertisements in printed magazines and newspapers.




7. Plan for business growth


With all the stories about unimaginably successful companies that end up losing sales or go out of business due to unforeseen growth, it's important to plan ahead.


Think about delegating roles and responsibilities in the future, make decisions so that you're stable as your business develops, and think about the business structure you may want to achieve long-term.


Here's some other things you can do to ensure regular, and predicted growth:


  • Studying market trends
  • Testing new ideas
  • Acquiring another business
  • Growing into new markets
  • Expanding product lines and services


8. Get ready for your first accounts.


Whether you're a Sole Trader or a Limited Company, you'll still have to file at least one type of paperwork. For Sole Traders, this is an annual Self-Assessment Tax Return, and for Limited Companies, these are Company Accounts.


However, the thing that both have in common is that you need to be organised in your bookkeeping when recording your sales, income, expenses, and operation costs. Staying organised can help you track your budget, and save you time when filing your accounts. 

You can also read our top tips here.


Most businesses have to file accounts once per accounting period, although VAT-registered companies must complete VAT returns quarterly.


Hiring an accountant is a great way to keep on top of your tax liabilities, and save you time so that you can focus on what matters in your business.


At Kubed Solutions, we're always happy to help you with the accounting needs of your new business.  We offer a FREE 30-minute consultation - call us on 0776265277.