Starting a business is easier when the first decisions are made in the right order. This updated guide replaces an older Business Bus Stop article and provides a practical checklist for a new UK business.
Choose what you will sell and to whom
Define the customer, the problem you solve, the price and why a buyer should choose you. Speak to potential customers before spending heavily on branding, premises or software. A simple test sale can reveal more than a lengthy business plan.
Choose a business structure
Many businesses begin as a sole trader or limited company, although partnerships and other structures are available. The choice affects tax, administration, liability, funding and how easily the business can later be sold. GOV.UK provides a current comparison and set-up guidance.
Check the name and permissions
Search company names, trademarks and domain names before committing to a brand. Check whether your trade requires a licence, professional authorisation, planning permission or insurance. If working from home, consider mortgage, lease, insurance and local-authority restrictions.
Set up records and banking
Keep business income and spending organised from the beginning. A separate bank account makes reconciliation clearer even where it is not legally required. Decide how you will invoice, collect payment, keep receipts and monitor cash flow. Check when you must register for tax, payroll or VAT.
Put basic documents in place
Use written terms covering price, payment, scope, cancellation and liability. If you process personal data, identify the lawful basis, prepare appropriate privacy information and check whether an ICO data-protection fee applies. Employment, consumer and sector-specific rules may create additional obligations.
Protect the business
Review insurance, cybersecurity, backups and access controls. Decide who can commit the business to expenditure and how important decisions will be recorded. Keep a simple contingency plan for illness, supplier failure and loss of data.
Measure the first year
Track cash, sales, gross margin, overdue invoices and the source of each enquiry. Review what is working monthly. A small number of meaningful figures is more useful than a complex reporting system that no one maintains.
Official starting points include the GOV.UK guides for setting up as a sole trader and forming a limited company.
Jonathan Fagan is MD of Ten-Percent.co.uk Limited and TP Recruitment Limited, a set of websites involved in a range of recruitment work. Jonathan has been running small businesses for over 20 years and has a number of interests and investments in companies as diverse as transcription, legal recruitment and a bit of marketing. He is an author of a number of guides and books, together with a children’s novel. In his spare time he enjoys playing golf, cricket, coaching girls’ football, operating a parent taxi, lots of running and paddleboarding on Bala Lake and the River Dee. He is a strong believer in a good work-life balance and regular blogs on making money vs enjoying life. Jonathan’s website is https://www.jonathanfagan.co.uk