Are you looking to start a business of your own in the UK? Whether you’re someone who is still in the planning stages or someone who is ready to venture out into the unknown, there are a number of factors involved in developing a successful startup business in the UK. In this article, we look at the 5 simple steps you’ll need to take to establish your very own successful startup. Grab a cup of tea and read on to find out more!
- Evaluate Your Idea
When it comes to developing a startup of your own, it is important that you spend time evaluating your idea. There are certain questions you will need to ask yourself such as, are you offering something that people need? Is your business idea useful to the community? Do you think people would be willing to pay for your products or services? Are you truly passionate about your idea? These questions are very important to go through when developing your business model and idea. Success starts with planning, and failure to plan is planning to fail, so evaluating your idea early on is one of the best steps towards developing a successful startup in the UK.
- Open a Business Bank Account
Opening a business bank account is one of the most important steps when developing a successful startup. A business bank account will assist you in clean and accurate bookkeeping, prove to potential investors and customers that your business is not just a hobby, and offers you a clear audit trail for taxation purposes. Aside from a bank account, we suggest looking into accounting software in the UK, as digital accounting is one of the best ways to keep on top of your finances. Not only is it accurate and fast, but you’ll also be saving your employees time and increasing their efficiency levels with the assistance of automated accounting.
- Attract Your Investors
Investors are key to any successful startup. As an up and coming startup, we recommend getting the SEIS approval in the UK. The SEIS exists to help small and budding companies raise equity finances by offering tax reliefs to new investors who purchase new shares in your startup. In order to be eligible for SEIS, you will have to carry out a new qualifying trade, be established in the UK, have gross assets of no more than £200,000 and have less than 25 full-time employees at the timeshares are issued. Having SEIS approval will greatly increase your chances of attracting new investors, helping your startup get off the ground quickly.
- Pay Attention To Your Finances
Startups are a costly thing, and paying attention to your finances from the get-go is highly recommended. Over 40% of startups fail due to insufficient funds, to be sure to map out your financial plan. Keep on top of your numbers — from cash flow to overheads and everything in between. Take note of potential production costs, how much you’ll need to charge customers to make it viable and plan on when you will need your first investment. Having a good financial map is imperative to any successful startup!
- Don’t Forget To Register Your Company
Last but not least, don’t forget to register your startup through Companies House. You can do this very quickly, but do pay attention and make sure that your directors have UK residency. When it comes to filling in an address, you can fill in your home address, or the address of any office space you’ve rented. The standard registration fee to set up a company is just £12 for ‘standard’ Companies House web incorporation services, and this will take only about a day or so to turnaround.
We hope that this article has been helpful in giving you some ideas when it comes to developing a successful startup in the UK.