If you wish to start a business in the UK, you will be required to do so under the Trade Association of Small Business. The TASC has over 900 members from all walks of life in the UK including accountants, solicitors, cafe operators and even cleaners. The aim of this organization is to promote small businesses in the UK and assist them in taking their first steps. This introductory article covers the 8 basic steps to start a business in UK.
There are some important conditions to fulfil before starting a small business in the UK. The company must be registered with Companies House; the company secretary must be an active member of the trade body; the company must be able to demonstrate it has the financial and technical resources to carry on the business as proposed; and the company must have been in operation for a minimum of one year. These requirements are necessary to ensure UK trade law and UK tax law is complied with when starting a business in UK.
After meeting these conditions, you should acquaint yourself with the prerequisites of a business plan. You will need to be thorough with what you want to sell, and how you intend to sell it. This involves the creation of a product mix, and the financing, managing, and marketing aspects of the business. You will need to invest in the right equipment, tools, and resources so that your teams can utilize them for different processes productively.
Having a solid business plan in hand, the next step is to consider securing a suitable office space. To kickstart your business, you’ll need to explore available commercial spaces in your chosen area or city. Once you’ve identified the location, you’ll need to make essential modifications, including renovating the interiors, implementing proper Office Desking, setting up internet connectivity, and installing necessary equipment. Additionally, investing in lighting fixtures and spacious cabins will be crucial for creating a functional and productive workspace.
Speaking of teams, you should hire the best candidates for the roles that need to be filled in. Browse through the potential candidates’ qualifications and experience, and conduct a background check, perhaps with the help of Bond Rees or similar agencies. Filter through the pool of candidates and bring in recruits to start off with your business.
With a grasp of how an ideal business operates, it’s time to explore the available options. Two popular choices for startup companies are registering with a tier-one supplier and pursuing direct sales, each with its own set of advantages and drawbacks.
For many startups in the UK looking to navigate the new trading rules with the EU, partnering with a supplier boasting a local presence is a common strategy. For instance, if you’re planning to launch a grocery store in the UK, collaborating with locally established suppliers like Wanis International Foods can be highly beneficial. Their local presence allows you to tap into advantages like Cash and Carry options, enabling direct procurement from their warehouses. Plus, opting for a local supplier has many other benefits such as flexibility in orders and shipment times, lower overhead costs, and a reduction in import taxes. Considering these benefits, you can consider sourcing goods from local suppliers rather than international ones.
Another route taken by start-up UK businesses looking to start trading in the UK is to go with direct sales. This requires the company to market and sell goods directly to customers. It is important to remember that this type of setup does not offer the same tax benefits that sourcing products from a local supplier would offer. These steps are necessary steps to follow if you want to start a business in UK, regardless of whether you are self-employed or part of a larger business that requires the use of a UK company formation.
As a business startup looking to trade in the UK, you need to decide how you intend to sell your goods or services. If you intend to sell online, you may find that your best option is to use an e-commerce website. By setting up a company, you will have the opportunity to display your goods or services on a web page which can then be accessed by clients all over the UK via the internet. The advantages of setting up a business like this include the fact that you do not have to pay taxes on the income gained, there are no licensing fees and you have access to a worldwide customer base. You are not restricted to using the English language when communicating with customers outside the UK. This means that you can expand your client base, reach a wider audience and increase sales.
To efficiently run your business, it’s also important to manage all of your data and company information in a secure server. Many businesses these days use some kind of hybrid cloud backup service to safely keep their data. This is an effective way of managing your data as some of these servers are highly sophisticated and allow for easy data recovery in case of any mishap. Maintaining hybrid cloud compliance and prioritising the ethical and safe management of data while maintaining the company and employees’ privacy is also necessary when using this type of software.
If your business focuses more on the supply chain of a particular product like mobile phones, drones etc, you should look to establish a distribution company. Distribution services can include stocking, packing and distributing goods to retailers, as well as procuring space for storage. Distribution services can also be used to ship goods between manufacturers and importers, and involve tasks such as physically loading and unloading cargo. A limited company can have all of these services provided for it, or you can provide all of them on your own.
When setting up a business in the UK, the actions mentioned above are only a few of the many you will need to take. There are other issues, including registering office and dealing with VAT, but those are the basics. If you are unsure about any of these steps, seeking professional advice from a Citizens Advice Bureau can be a great way to start. This kind of independent advice can help you to understand what is required to set up a limited company, and if you are unsure about any of the steps for establishing one, they can give you the best advice and show you how to avoid common mistakes.