A recent survey has highlighted that the idea of setting up and running your own business appeals to many individuals in the UK. It’s revealed that 70% of people have debated the idea, with four out of five 16-21-year olds striving to achieve this one day. In 2017, there were 5.7 million private sector businesses, which represented a representing a four per cent rise from the year before. However, it’s perhaps surprising to find that 80 per cent of new businesses fold within their first 18 months.
There are numerous businesses starting up, whether that is as a side hustle or full-time job. But as a huge number are ultimately failing, we’re here to look at the laws you must follow and how to give your business the best chance of success through advertising.
How to correctly register your business
It’s likely most owners will register as a limited company, Sole trader or partnership. Regardless of preference, it’s crucial you register it at the beginning of your business’s life. While it may be easier to set up as a sole trader, this deems you responsible for any debt the company may build up and leaves you in charge of certain accounting issues.
With being a limited company, it allows you the flexibility to keep your personal finances separate from your business ones. This too is easy to set up yourself, but many prefer to seek the assistance of a professional figure such as an accountant as there are a lot more reporting and management responsibilities involved.
If you’re going into business with someone else, it’s advised to go down the partnership route. This is the simplest way to set up your new business if there are two a more people involved.
The need to knows about licensing
This section is sometimes overlooked when setting up a small business since it may not be required for certain ones, but you should always check at the earliest opportunity to avoid fines or being shut down before you’ve really began.
Use the Gov.uk tool to find out which licence type your business may require. Any business that is associated with selling food, music or trading in the street requires a license.
Don’t forget about insurance
To ensure your company is protected against any unexpected losses, it’s essential you have business insurance. It doesn’t matter if you run a large multinational company, a small business, or are self-employed, it’s important to find the right insurance for you. For example, dog grooming business insurance will greatly differ from catering insurance or retail insurance, so be sure to properly research your options.
To protect against any mistakes, legal costs and damage, it is important liability insurance is purchased. Certain insurances are required by law, such as employers’ liability insurance. This will cover the cost of any injuries or illnesses any employees may suffer due to work. Elsewhere, if your company will be using vehicles, you must have commercial motor insurance, while some professions must also have professional indemnity insurance that has been provided by their professional bodies or regulators.
Despite the likes of commercial property and cyber insurance being non-compulsory, it may be worth taking out depending on the nature of your business. If you are going to be working from home, while it’s not a requirement to have business insurance, you should consider updating your home insurance as you’ll need to have the appropriate commercial property insurance.
The need to knows about becoming an employer
There are several elements that must be taken in under consideration when hiring staff – one being the amount you plan on paying them. Remember, it has to be at least the National Minimum wage and you must set up their National Insurance payments. It is worth noting here that you’ll be able to claim an allowance to reduce your bill. You must also make sure that they are actually legally entitled to work in the UK, so don’t just presume — be sure to do thorough checks, including a possible DBS check if needed.
For anyone employed longer than a month, you’ll need to present a legally binding statement of employment. As previously mentioned, there’s also employment insurance. HM Revenue and Customs must also be informed via registering as an employer.
Ways in which to advertise
If you want your business to succeed, its extremely important you advertise and promote it once all the legalities have been dealt with. A solid marketing plan is crucial in order to outline where you want your business to go and how you can progress. It will look at how much advertising will cost. A great cost-effective way for any local start-up to take advantage of is door to door leaflet distribution.
Research reveals that 9 in 10 people can recall receiving a door-drop mail. Of this group, almost half confirmed that they keep ahold of these leaflets, making it an effective method of advertising if you utilise it correctly. It’s recommended that you keep your content simple, include your business name and logo, telephone number, email address and the service(s) you are offering.
After ensuring they have been properly written, newspaper advertisements are one cost effective method of promotion. Make sure you don’t neglect your online presence, either. This is a significant area in advertising at present, and social accounts are a great way to promote your business to your intended audience.
Outdoor banners are an effective way to attract public attention if you plan on opening a new office space. These relatively cheap and durable displays can be used outside your workspace and research has found that the majority of a local business’s regular customers live within a five-mile radius of where you are based. This means that each potential customer could see your banner up to 60 times each week.
If you want your brand to be remembered for all the right reasons as oppose to the wrong, creating a thorough business plan is crucial to its success from the get-go. By fully researching the above points, you will stand yourself in good stead from the offset.
