Starting a business in the UK market is quick, simple, and cheap. If you already have a business plan, you can set up a business in less than a week. If you have a business idea, have carefully evaluated the idea, and read a few books—this is the time to do it.
In this article, we are going to cover the practicalities of how to set a business in the UK. Follow these few simple steps to have your business ready and running in no time:
Step 1: Let HMRC know you are becoming self-employed
One should start by getting a starter pack that best suits their needs. To inform HMRC about your transition, do so online to get you started as a sole trader or whichever form of business unit you prefer to establish. It could be a company or cooperation depending on what best suits you. Ensure you also complete the HMRC”s free online training that offers you practical advice on filing tax returns, record keeping, and what is expected of you if you decide to expand your business.
Step 2: Obtain an insurance cover
Insurance cover is vital when starting any considering it protects you and your business against risks such as theft, legal fee, accidents, among others. The insurance cover you require depends on how you intend to run your business and what risks are involved. Familiarize yourself with the various business insurance quotes and policies available to help you pick one that you need the most. Take advantage of specialized insurance brokers and trade associations as they help business start-ups obtain insurance cover at discounted prices. An entrepreneur with dependents should also obtain life insurance for safety reasons.
Step 3: Choose a business name
There is more to selecting a business name considering the name you desire could be used elsewhere by another investor. The best alternative is to check the Companies House to see whether the name you desire is still available. If you are facing difficulties choosing a business name, go with your name- For example John Cleaning Company. However, do not invest in printing and branding unless you are sure this is what you want.
Step 4: Open a business bank account
One requires a bank account if they intend to open a company considering it’s a separate legal entity from the owner. This is not a must for independent traders though it’s highly recommended.
Step 5: Seek compliance
The next step should be making sure you satisfy all regulations put in place like licensing, health and safety regulations, and data protection. For guidance on how to get compliant, one can check Gov.uk. This only takes a few minutes of your time as it is straightforward for start-up firms.
Step 6: Set up an accounting system
At this point, one should start accounting for expenditures. You can either opt to appoint an accountant or set up a simple bookkeeping system on your own. When starting, make sure you record sales and costs. Online accounting packages are a great deal to save on time and effort as they keep your records updated and in order.
Step 7: Set up a workspace
When looking for a workspace, your local authority or council should help you find the most suitable space by providing information on rates and vacant premises near you. If you will be working from home, ensure you have planning permission that allows you to receive regular business visitors, and hire someone to work from your home. Additionally, ensure you have a way to separate household and business expenses. Individuals who work online using their laptops should try co-working to save on cost.
Being your boss can be time-consuming, but you start to reap profits after a while. It also offers you a chance to focus on what you are passionate about, rather than taking commands from someone else. With the above steps, you can easily start your own business in the UK immediately if you have your funds in order.
With a little push, one can accomplish all these steps in less than a week. Don’t wait; the time is now.