If you’re reading this article, it’s likely that you’re thinking of setting up your own company. Congratulations! This is an enormous decision that comes with a great deal of responsibility. However, don’t worry about it. You’re not the only one. In the UK there are 5.7 million small businesses and that number is increasing. What do you need to do to join this ever-growing group? This blog post serves as a reference guide to starting small-sized businesses within the UK. From determining your financials to registering your company, and other things, we’ve got you covered.
Choose the structure of your business
There are a variety of different business structures that you can choose from when starting a new business in the UK. The most popular are partnerships, sole proprietorships as well as limited liability corporations (LLCs).
Sole proprietorships provide the most simple company structure and are the easiest to establish. There is no requirement to file any documents with the government and all earnings and losses go directly to the business’s owner. But sole proprietorships provide no protection against personal liability and the owner is the sole responsible party for any debts or liabilities that the company incurs.
Partnerships are like sole proprietorships because they are simple to establish and do not require filing any documents to the authorities. Partnerships can be restricted or unlimitable. In a limited partnership, certain partners are liable only for their own personal assets which means they are only accountable for their own investments in the company and are not responsible for any liabilities or debts which the company may incur. If the partnership is unlimited, each of the members has unlimited liability. This means that they share and are separately responsible for all obligations and debts that the company incurs.
Limited liability corporations (LLCs) offer greater security than sole proprietorships and partnerships since LLC owners are able to take on only limited liability for debts and obligations incurred by the company. LLCs can be managed by members or managers. In a manager-managed member-managed company, each member (owner) is required to take an active part in the running of the company. In a manager-managed company, some or all of the members give the authority to one or more managers.
Find insurance for your company
As an owner of a business, It is your obligation to ensure your business is adequately insured. There are numerous kinds of insurance that are available, and the kind you require is contingent upon your company’s needs. Talk to an agent for insurance to determine the types of insurance available and get estimates from various insurance companies.
The most popular type of insurance used by businesses is called public liability insurance. It protects you in case you are injured or your property is damaged because of your business’s activities. If you employ employees, you must carry insurance for employers’ liability. This protects you in case an employee gets injured or suffers illness because of their job.
Other kinds of insurance important to your company include:
1. product liability insurance covers you in the event that the product you sell results in injury or damages
2. Professional Indemnity Insurance which covers you if you provide professional advice that leads to financial loss for someone else
3. Insurance for buildings and contents This covers any damage to your building and its contents, such as furniture and equipment
It is also worth getting your own insurance for sickness and accidents which can provide you with income if you’re not able to work because of an accident or illness.
Know tax basics and sign up with HMRC
When you begin a new company in the UK it is necessary to sign up at HM Revenue and Customs (HMRC). This is the department of the government with responsibility for taxes, National Insurance, and customs duties.
You’ll have to tell HMRC that you’re self-employed to ensure that they provide you with the correct tax returns and assist you to pay the right amount of tax. This can be done by signing up online for self-assessment.
If your company is a limited company you’ll also have to register the company through Companies House. The company house is the government agency with the responsibility of incorporating and dissolution of limited companies and maintaining the records of information about companies.
After you’ve signed up through HMRC or Companies House, you will be required to file regular tax returns and ensure that you pay any tax or duty due at any time. If you don’t, it can lead to hefty penalties.
It is important to know the various types of taxes that your company might be subject to so that you can manage your finances properly and avoid unpleasant surprises later on. The most common types of taxes that businesses are required to pay within the UK are:
Corporation Tax It is a tax on the profits of limited corporations. Currently, the rate is 19%.
Income Tax: It is a tax imposed on personal earnings, which includes money earned through self-employment. Tax rates on income vary based on the amount you earn, however, the current base rate is 20 percent. The highest earners have to pay 40% tax on their income.
Create a business plan
At the beginning of a business, it’s important to develop an organized and clear business plan. This will provide you with an overview to follow and will help to secure financing from investors.
Here are some important things that you must include in your company’s plan
Overview of the company
– Market analysis
Marketing and sales strategy
– Operations plan
Stock your shelves (or workspace)
When you start a company and of the crucial tasks to complete is to prepare the shelves (or workspace). This means that you have all the essential items in your inventory to allow you to start right away.
For a medium-sized business operating in the UK the most important items to keep in your inventory include:
– Stationery: paper, pens, pencils, etc.
– Office supplies: paper clips, stapler, staples, etc.
– Printer and computer
Telephone and fax machine
– Furniture: desks, chairs, filing cabinets, etc.
Of course, this is only an outline. It’s based on the kind of business you’re launching there may be other items, too. However, having these essentials available will help you begin off with a successful beginning.
The most crucial aspect when starting a mid-sized company within the UK is securing the best personnel. It’s not just important to locate employees who are qualified and skilled to fill the roles you’re seeking to fill however, you’ll also have to ensure they’re a good fit to the culture of your business.
For that reason to help you, here are a few suggestions for locating and hiring the most suitable staff for your mid-sized company:
1. Employ job boards as well as recruitment agencies
There are plenty of excellent job boards and recruitment agencies that can assist you in finding suitable people to fill your vacant positions. Simply put your job postings on these websites and then expect applications to be received.
2. Conduct complete interviews
If you’ve found several candidates that seem like they could be the perfect candidate for your company If so, it’s time to conduct extensive interviews. Find out about their work background, qualifications, and their reasons for being interested in the job. Be sure to ask them lots of behavioral questions to discern their character and how they could work in your corporate style of work.
3. Onboard new employees properly
After you’ve identified the ideal candidate and you’ve offered them your job It’s essential to welcome them in a proper manner. This includes orienting them to the values of your business, your culture, and your expectations. This also includes offering them all the resources they require
Advertise your company
When you’re beginning a new business, it’s all about marketing. It is essential to establish your brand and build a solid reputation, and get customers.
There are many ways to promote your business and you’ll need to test to determine the best solution for your needs. Here are some suggestions to help you get going:
Utilize social media platforms to create accounts for yourself on Twitter, Facebook, and LinkedIn as well as other social media sites. Make sure to regularly post updates and engage other users.
Make sure you have a website. A professional website is vital for every business today. It’s a great opportunity to present your products or services and inform people about your business.
Use Search Engine Optimization (SEO) It is an approach that can improve the position of your website on the results pages of search engines (SERPs). Utilizing appropriate keywords within your articles you can draw more traffic from search engines such as Google.
Advertising online: Pay-per-click (PPC) advertising is an effective method of driving visitors to your site. It is also possible to use banner ads on websites that are relevant to your company.
Utilize traditional methods: Do not overlook offline marketing strategies such as direct mail, and even radio or television commercials.
The process of starting a business in the UK is a difficult job, but with correct planning and execution, it can be an extremely satisfying experience. We hope this guide can provide some insight into what you must start and help ensure that your business is successful. If you have any concerns or require guidance, do not hesitate to get in contact with us. We wish you the best with your new business!