So you’re thinking about starting your own business, the next Elon Musk maybe?
This article is for you!
Here you’ll find everything you’ll need to help you get started, and maybe something extra.
We cover everything from your original business idea(s), researching and testing all the way through to launching.
Hopefully you’ll find some helpful insights that you may have overlooked, if you believe we have missed anything or you want to expand on any part then let us know, all feedback is welcome.
Bennetts Design 2022
Starting Your Business
So you’ve had that inspirational moment and this time you’re going to act on it, you’re going to be your own boss.
DON’T DELAY
Many people have that original idea but are terrified of taking that leap from a comfortable 9 to 5 job to the stresses of being their own boss, but the payoffs can be amazing.
Starting your own business, regardless of size, is always daunting so let me try and help you go through some do’s and don’ts for starting a business in 2022.
Business Research
So you found a niche, fixed a common problem or simply starting a similar business to what already exists, but your’s is going to be different, better? Do your research.
Firstly don’t go it alone, talk to your trusted friends and family, if you have a product, get their response, it’s always a good idea to get people’s feed back, positive and negative.
Keep Notes!
It’s one of the best tips I can suggest, keeping notes.
I use a text document saved in DropBox (cloud storage) so it’s easily accessible by all devices, even on the go.
If there’s an idea that springs to mind, a quote, a to do, I can quickly add it.
Write everything in it, it may look messy but it’s your source for everything, you won’t be able to keep it all in your head, trust us.
It’s a good idea to read through it once a day to keep everything fresh.
(If you’re producing a product)
Testing is key, try sampling your product to groups, friends and family, get feed back both pros and cons, improve, if possible. It’s a good idea to do this continually.
Are There any Legal Regulations or Restrictions?
There’s a lot of regulations when it comes to products that contain any chemicals and foods. You should check on the Government website if there’s any legalities that need to be abided by.
If you’re starting an already existing business i.e beauty salon, building firm etc tell your group, family, friends and explain how yours is different, better, cheaper and see if it would be enough for them to use you over the existing businesses in the sector.
I can almost guarantee someone will tell you something that you haven’t thought about before.
Do some market research, does your product already exist? What’s the demand for it? What are the trends around your product or business idea. If possible reach out to people already in the sector, join business groups and pitch your idea/product, all feed back is valuable.
Are you a true believer in your idea? Passionate even? If not then just STOP NOW.
Launching and running a business is hard work, you will have high points and low points, if you don’t have a passion for it you will give up. Believe it’ll come easy?……It won’t.
You’ll have hard work not pay off, emails that aren’t replied to, website’s not getting many, if any, hits, calls ignored, social posts that don’t get any response……Still willing to give it a go? GREAT!
Your Original Idea and Principles
So you’re pitched your idea(s) collected all the feedback, both good and bad, and that original idea is still there at the core but you may have made some changes on the back of feedback.
Stick to it! It’s very easy and common while building your startup to see other additions to your idea but this is a big no, make notes of them and implement later.
It’s important to get the original idea done first, and done well before expanding.
Choose the Right Business Name
It’s vital to get your business name right, remember there’s so many streams of marketing i.e. word of mouth, printed media, online advertising etc, so having a name like ‘Traceys top biscuits in Southend Essex are the best’ is beyond ridiculous, no one will remember it, no one will type that in to Google and what would the domain name be?
Here’s a good article to hopefully give you some good pointers, choosing a business name
Some Key Facts When Choosing a Business Name.
Keep it short and sweet, remember what your business mission is and try to in embody it.
Try and make it memorable, this is essential for all forms of marketing.
Dare to think outside the box, maybe even add a little humour, unless you’re opening a funeral directors, or any other business that deals with sensitive subjects.
One of the best business names I’ve seen is a Fish and Chips shop called ‘The Cod Father’ it’s stayed with me to this day.
Try and be original, in your research you will obviously know a lot of names of your competitors, make sure yours isn’t like their’s, stand out from the crowd, if possible.
Do a domain name check before you register anything, make sure that perfect domain is available for your website and emails.
Register Your Business
This part can be tricky, should you register as self-employed or a Limited company, I’ll run though these briefly but you should look in to both options in depth.
Self-employed
Being self employed you’re taxed on all your profits over £12,570 every year in the UK.
You’ll also need to pay Class 2 and 4 National Insurance depending on the profits of your business.
- Class 2 if your profits are £6,515 or more a year
- Class 4 if your profits are £9,569 or more a year
| Class | Rate for tax year 2021 to 2022 |
|---|---|
| Class 2 | £3.05 a week |
| Class 4 | 9% on profits between £9,569 and £50,270 2% on profits over £50,270 |
From 6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25%. This will be spent on the NHS and social care in the UK.
https://www.gov.uk/
You must register for Value Added Tax (VAT) if your turnover reaches £85,000 or more per year (2021/22), no matter whether you work as self-employed or through a limited company.
You can register for VAT voluntarily before your turnover reaches the VAT registration threshold if you wish to. This can have benefits.
Limited Company
A limited company is considered separate from the shareholders and director(s), you. Where as self-employed you and your business are considered one, meaning you’re personally liable for debt.
The limited company is taxed on its profits, Corporation Tax, and the employees including directors are also taxed on their wages and money they take out the company.
Dividend tax is levied on any dividends received from the company, and income tax and Class 1 Employees’ NICs are payable on any salaries paid by the company. The company itself must also pay Class 1 Employers’ NICs on salaries it pays to employees.
If you’re still not sure talk to an accountant.
It’s Time to Brand Your Business
Branding, yes this part can actually be fun, is where you get to mould the look and feel of your business, create a strap line, business fonts and colours and more importantly, logo.
Make sure you are 100% happy with the company branding, remember you will have to look at it everyday possibly forever, unless you rebrand.
Make sure all your branding matches, your business stationery, website, advertising materials, social media posts and everything in-between, this is why it’s important to get it right.
This would be a good time to talk to a specialist who can do all this for you.
Are You a One Man Band? Team Selection is Important
If you’re a one man band, you can skip this section.
So you’re reaching for the dream but you don’t have all the skills needed to get yourself where you want to be, you need the dream team.
Focus on the key points of what you need for your business to succeed, is it social media? Branding? Online presence? Marketing? In your research you will have found what your competitors are doing and what you need to compete, beat them.
Select your dream team carefully, don’t over indulge and increase your team too fast too soon, too many overheads too early on is the worst possible start, try and do as much as you can yourself but for those specialist parts, use a specialist.
Outsourcing: This is the best way to keep overheads down, pay a specialists on a job by job bases.
Have a Little You Time
Yes you read that right, starting a business will eat up your mental capacity it’s probably all you can think about all the time you’re awake, sometimes even asleep.
Take a break, you need to rest your mind, you’ll be surprised what a difference it makes turning your brain off of work for a while makes, fresh ideas will start flowing and those issues you couldn’t fix before will be solved much easier.
Finances
So why are you starting a business? It’s to make money obviously, yes your product or idea might save the planet but you want to be rewarded for your time and hard work.
A business that makes no money is a hobby.
20% of all businesses fail in the first year, this is down to a whole multitude of reasons, but the one that keep popping up more then most is cash-flow and capital.
A lot of business startups need very little money to get started, while some need investments to get off the ground for such things as premises, inventory, equipment, staff and so on.
Research shows the biggest expenditure for new start ups is products and inventory, this expenditure alone may leave you short, there are some fantastic options available for new start ups such as small business loans, overdrafts, crowdfunding you business and business loans.
Do your research before taking a business loan, read the small print, check the repayments and do the maths, can you afford the repayments? Is the interest rate set or will it rise after a set time? If so will you have it cleared in time? Check all available options, talking to other business owners and start ups is a great source of information.
Banks will want to you take a loan so be careful, you may not always get the best deals.
Our research has show that Starling is one of, if not the, best business accounts on the market. But do your own research first.
Bookkeeping
This is essentials, if the maths doesn’t work, your business doesn’t work.
Bookkeeping should be one of the primary tasks of your business, you need to take note of all expenditures and profits all the time, after sometime this will become second nature and you’ll even find easier faster ways of keeping your records.
If the books are healthy and you can afford it, it’s a good idea to get professional help, they will save you money in places you wouldn’t expect.
Separate personal and business, open a business account, get a business credit/debit card only ever use that account for business expenditures, this will make your life much easier, everything in one place, specially when doing your dreaded tax returns.
Location Location Location
Will your business need a premises? If so there’s a lot you need to take in to account, check the business rates you’ll need to pay and rent, different areas have different cost brackets.
Location is key, but the closer you are to footfall generally the higher the cost, this is catch 22, you need to find a happy medium between cost and location.
Parking, yes, the dreaded parking, so many businesses don’t take this in to consideration and yet it seems so obvious, if your clients can’t park anywhere near you, but they can your competitors, who do you think they’ll choose? People like the easy option.
Legal requirements, do your checks on what the legal requirements are for the premises, disabled access, health and safety, fire exits, security alarms, insurance and so on, tedious I know, but it must be done, you don’t want to get slapped with a hefty fine do you.
Take your time, don’t rush in to the first premises you see, relax, take a deep breath and seriously work through all the steps I’ve suggested. Time and again I’ve seen clients grab the first premises they view because they can ‘see themselves there’ try and see it from your clients point of view, not yours.
Here’s a good article to help.
Lets Wrap it up
Lets break it all down in to a simple to do list.
- Research your idea, product and test.
- Create your business name.
- Register your business.
- Create business branding. (website, socials etc)
- Bookkeeping, a must!
- Premises, get it right.
