How to Start a Start-up Business in the UK

Starting a business in the UK isn’t always that easy. However, knowing how to go about it can make life easier now and in the future. This article aims to explore what a start-up business is and how you can start one.

1. What is a Start-up Business?
2. Registration
3. Bank Account
4. Seed Enterprise Investment Scheme (SEIS)
5. Accountancy
6. Taxation
7. Create a Business Plan

What is a Start-up Business?

Some people consider a start-up to be a business whereas others consider it to be something of an attitude. However, a start-up is a new and emerging business that is trying to grow and develop in a specific market. There are many types of start-up business out there and they can be anything from apple growers to zoos.

Registration

If you wish to register your business, you will need to do it through HMRC. This is so that you can pay taxes. If you have a limited company, you’ll need to register your business with Companies House.

Bank Account

You will need to make sure that you have a bank account so your earnings can go into it. However, you’ll also need to make sure that you have a bank account so you can receive any funding you’re eligible for. This bank account needs to be registered in the UK. You can typically start off by using a ‘normal’ bank account, but you could benefit from having a business bank account. Accounts such as these come with perks such as overdrafts and/or loans and good interest rates.

Seed Enterprise Investment Scheme (SEIS)

The Seed Enterprise Investment Scheme (SEIS) is a scheme which offers tax-efficient benefits. These benefits are offered to investors who invest their money in early-stage and small UK start-up businesses. Created to help boost the UK’s economic growth, the scheme was introduced in 2011 and helped to shake up tax incentives. These days, SEIS is one of the best schemes that has been created by the British government.

Accountancy

When you have a start-up business, you need to make sure that you get all of the basics right. While this can be quite an exciting time, it’s essential that you keep track of your accounts at all times. Getting your accounts right from the start can help to set a tone for your business. It can ensure that your earnings are higher and you’re more likely to be successful. This is because you need to manage your numbers so that you can continue to trade every day.

The good news is you do not have to be a maths wizard in order to get your accounts right. All you need to do is have an understanding of finance and bookkeeping.

Please make sure that you know how to do deal with your:

• Invoices
• Employee wages
• PAYE
• Expenses
• Outgoings
• Self-assessment
• Corporation tax
• Income tax
• VAT

If you do not have the time to deal with your finances, you should consider hiring someone who knows what they’re doing.

Taxation

When it comes to working out your taxes, you need to make sure that you get it right. Failure to do so could result in you having to pay fines. If you’re self-employed, you’ll need to register for Self-Assessment. You will need a National Insurance number to do this. You might also need to register for VAT.

Create a Business Plan

Every single business needs a business plan. A business plan can help you to attract investors and it can help you to understand how well your business is doing.

Your business plan will need to include:

• A snapshot of your business
• A company description
• Your management structure
• Your business structure
• Market analysis of your competitors
• Sales and marketing
• Financial projections
• Funding requests.

When it comes to writing a business plan you will need to:

• Do your research
  Spend a lot of time researching your market and your objective. Research your product so you know what it is and who the market is and competitors are.
• Have a purpose for your plan
  This will help you to plan your businesses future and help potential investors to see what you’re looking for and where you’re going.
• Have a company profile
  This will show what services or products you offer. It will also show how you’re going to solve your customer’s problems.
• Have a marketing stategy
  This will help to introduce new products, enter long-term contracts, enter new territories, raise prices, and enhance your product delivery or manufacturing.
• Make it appeal to different audiences
  Banks, for example, will be more interested in your balance sheets whereas investors might be more interested in your business concept.

A business plan can help your business now and in the future. Investors, lenders, and your colleagues will have a better idea of how your business is run and what your plans for the future are. If you do not have a business plan, you’re less likely to attract any investors. Doing the hard work now can ensure you’re much more likely to get the funds you need to boost your business.