The ultimate business plan checklist for UK startups

The Ultimate Business Plan Checklist: What UK Startups Need to Succeed

Establishing a business in the United Kingdom can be challenging due to the highly competitive nature of its market. Thousands of new startups are created yearly, and almost 60% fail within their first three years.

To thrive in the UK’s business environment, you need more than just a good idea. Strategic planning and a profound understanding of the business scene are some factors that can help you succeed.

This article provides a comprehensive checklist of essential steps to establish your startup in the UK. It outlines key points to guide you in building and growing a successful business.

1. Develop your business idea

Create a business idea that appeals to your potential customers or solves their problems. An impeccable business idea can come overnight, but usually, it requires a thorough study of the UK market. Also, you can refine an idea as much as you want to perfect it.

Ensure there’s a strong demand for your offering in your focus area. Once you establish that there’s a market for your product or service, make your business stand out by having a unique value proposition.

For instance, if you offer food delivery services in the UK, many other competitors already exist. Therefore, you must show customers why they should choose you over your competitors. A unique value proposition will help you attract more customers, increasing your chances of success.

2. Craft a business plan

A business plan is where you highlight your company goals, vision, and the strategies with which you plan to achieve them. This process involves deeply understanding your offering and performing a thorough market analysis.

Your business plan should include the result of your market analysis, your sales strategies, information on your management team, and a detailed financial projection.

3. Choose a business structure

Choosing a business structure is a fundamental aspect to address in your startup. Three main business structures exist in the UK: sole trader, partnership, and limited liability company.

Sole Trader: You own and run your business alone, with total liability.

Partnership: You run the business with one or more partners and share the responsibility and liability.

Limited Liability: The company is registered as an autonomous organisation. Most large startups in the UK use limited liability due to the protection it offers investors.

It’s imperative to understand these structural differences and choose the right one for your startup.

4. Register your business

If you choose a limited liability company structure, you must register it with the Companies House in the UK. However, you only need to register for self-assessment with HM Revenues and Customs (HMRC) for sole traders and partnership structures.

5. Comply with regulatory requirements

After registering your business, you may need specific licences or permits to operate legally. For instance, you require a permit to place tables and chairs on your pavement if you operate a pub. You must also need one to set up a market stall and auction goods and services. Determine which licences you need for your industry and obtain them.

Your tax responsibilities are another regulatory requirement that you should prioritise. As mentioned earlier, you must register for self-assessment if you run a sole trader or partnership structure. You must also register for VAT once their turnover in the past 12 months exceeds £90,000.

You should also understand your tax legalities if you own a limited liability company.

6. Organise your finances

Most sole traders fund their business from savings or loans from friends and families. However, if you intend to start a large company, you might need to explore other sources of capital. Some ways startups in the UK obtain their capital include;

• Personal savings

• Loans from family and friends

• Business loans from banks

• Government grants

• Venture capitalists or equity investments

• Crowdfunding for startups

After you’ve secured funding, sort out your business account. Opening a separate business account is mandatory for limited liability companies in the UK. While it’s optional for sole traders and partnerships, it’s best to separate your personal and business finances. It would ensure effective fiscal management, enhance easier tax compliance, and make your business more credible.

7. Formulate an effective marketing strategy

Marketing is where you communicate your offerings to potential customers. Formulate a marketing strategy that defines your ideal customer profile and the campaigns you intend to set up to reach them.

You need an influential online presence to thrive as a startup in the UK. Create a company website and be active on social media platforms. If you can, outsource your marketing campaign to experts. When you do so, you can focus on running the business and rest assured your marketing activities are in good hands.

8. Hire the right team

As part of your business strategy, you’ll need to consider your staffing needs. Depending on your business needs, you can leverage the skills available within the UK labour market or hire foreign talent using the Skilled Worker Visa. This route is common for immigrants looking to work in the UK and allows them to bring their family members on the Skilled Worker Dependent Visa route.

Ensure you recruit qualified workers who understand your company goals and are ready to help you achieve them. Additionally, familiarise yourself with UK employment laws and contracts, such as employee rights and minimum wage requirements. You must also register as an employer with HMRC for PAYE (pay as you earn) to hire workers.

9. Prioritise branding

Branding is integral to how people perceive and interact with your brand. As such, you should pay adequate attention to it. Your logo is usually the first thing they see, and you should invest in creating a striking one that reflects what your business stands for.

Select your brand colours carefully, especially if you run a business like a fast-food or luxury goods store. Additionally, your value proposition should be convincing and reflect the experience that your customers get from your offering.

You need careful planning and execution to run a successful business in the UK. Have a solid business plan, formalise your business registration, obtain the necessary licences, sort out your financing, and hire the right employees. If you can manage all the essential aspects, you’re on your way to achieving your business goals.

However, you can outsource some duties to third-party experts, such as lawyers, to help you oversee the complicated aspects and ensure you comply with the legal aspects of running a UK business.