Top Tips for Starting a Business

Starting a business is one of the most exhilarating and challenging endeavours you can undertake. Whether you are inspired by a groundbreaking idea, driven by the desire to be your own boss, or looking to make a positive impact on the world, the path to entrepreneurship is paved with opportunities for growth and innovation.

This blog is designed to help guide you through the complexities of launching and growing your own business from researching your idea to the smaller things you can’t afford to miss – we will cover all the essential aspects of starting a business.

You are probably bursting at the seams wanting to tell everyone about your new idea and who could blame you but stop right there! You need to be cautious about who you discuss your business idea with until you are sure it will not land you in hot water. For example;

• Restrictive covenants in your current employment or consultancy contract could prevent you from working in a particular industry or geographical area for a certain time, possibly up to a year.
• Is your idea already owned by someone else? Copyrights, trademarks and patents could all potentially affect you. Do your research and review all of your paperwork – it is better to be safe than sorry.

If your idea is good to go, then the next step is to do your homework, carry out some market research and draft a business plan. Too many businesses jump straight in without looking at whether the numbers will actually work to make a profit. If you need to raise external finance, any bank/investor will want to see a solid business plan before giving you money.

The type of business you should set up will vary depending upon who is involved, and the service you wish to provide. The most common business models adopted are Sole Trader, Partnership, Limited Company and Limited Liability Partnership.

The process of setting up your business will depend on which business structure you choose. When setting up a Company you must comply with the strict regulations set out by Companies House. These include requirements for the Company’s name, the appointment of Directors, recording the shareholders and registered address to name but a few.

While all of the main high street banks provide business bank accounts for new businesses, setting up the right account for your business can take anywhere from a few days to a month or more so it’s best to get the process started as early as possible. There are also other considerations you need to take into account when it comes to monthly fees, transaction fees, accessibility, loans and overdraft options.

To begin with you may be looking to run your business from home and if this is the case, you should check that this is not in breach of any restrictions affecting your property. However, if you plan to lease or buy commercial premises, you will be making a much bigger financial commitment, and you should think very carefully about the right location. For your first premises, it is best to consider the needs of the company in the short to mid-term, rather than thinking about long-term expansion just yet, outside of this you may choose to go online or setup in the cloud.

There are multiple options when it comes to your business premises so taking the time to think about what is best for you and your company is a must. If you are looking to lease or purchase a commercial property, read our dedicated articles on Commercial Leases and Buying a Commercial Property. Before arranging any viewings speak to your accountant to discuss your upper limit for the purchase price or rental payments.

When your new business starts trading you will need to register with HMRC for taxes such as Corporation Tax, PAYE and VAT and be conscious of AML (Anti-money Laundering ) and KYC (Know your client) Concepts in business. With the introduction of Auto Enrolment, nearly all businesses will need to register with the Pension Regulator and choose and set up a pension provider for their staff. You may also need to register with other bodies depending on your business. Your accountant will be able to assist with any registrations that are necessary for your business.

If you’re providing a service or goods as part of your business, it is very important that you have written Contracts with all of your customers. These could be anything from standard Terms and Conditions (“T&Cs”) for the customer to sign to confirm the agreement, right up to complex, bespoke contractual agreements between your Company and the customer.

Becoming an employer means that you now have a whole new set of rules and regulations to follow. You will need documentation such as employment contracts, policies, procedures and handbooks and you will need a working knowledge of the rules on things like:

• Working hours and holidays
• Flexible working
• Salaries and pensions
• Sickness and sick pay
• Working parents’ rights
• Health and safety
• Disputes, disciplinaries and grievances
• Termination of employment

If you will hold and use personal data on individuals as part of your business, then you will need to ensure that you are compliant with Data Protection regulations. You will need to register with the Information Commissioners’ Office as a Data Controller, pay an annual fee and ensure that you process the data you hold in such a way as to avoid data breaches where this information is lost or stolen. You will also need to consider the security of your IT systems (including phones) and ensure that remote working is as secure as working in the office.

We have already outlined details regarding the main areas of setting up a business. However, there are still other things to consider:

• Licenses
• Intellectual property
• Insurances
• IT and Communications
• Website, Social Media and SEO services
• Office supplies
• Utilities
• Marketing, branding and promotion
• Card payment facilities
• Accounting and payroll systems
• Fire Risk Assessments, PAT testing and other Health and Safety issues

At Backhouse Solicitors, our team are here to help businesses get off the ground. We can help you with many aspects of the process and point you in the right direction. To book a free initial consultation with one of our experts, contact us today, let’s get your business off to a flying start!

Tel:          01245 893400
Email:     info@backhouse-solicitors.co.uk
Visit:       17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.