Starting a business in the UK? Ask yourself these 10 questions first.

The idea of starting a business sounds exciting and appealing, but it certainly requires dedication and hard work. It is not uncommon to dream of being a successful business owner, but few actually achieve that goal. This means you need to have the right information before you take any action. ​

For all future business owners, here are 10 questions you should ask yourself before starting a business in the UK.​

The reason may seem obvious sometimes. You want to follow your passions; you want to achieve financial independence; you want to control when you work and how you work. However, starting a business is a leap of faith. You need to take risks and try something new. Don't wait around, start now if you think that sounds exciting.​

Getting enough funds to get started is significant when it comes to starting a business. Without sufficient funds, you may not be able to build your business. The first step is to write down everything you need to buy. Consider if you need to build a website, rent an office space, whether to hire employees or contractors and more. ​

 In order to get an estimate on how much money your initial investment is needed, we have an article on the costs of starting a business in the UK. Hopefully, you can have a basic idea of it. ​

After having a ballpark figure in mind, you can start to think about funding. There’re a number of ways to get funding, such as​

This guide from GrantTree may help to understand further start-up business funding. Ultimately, you need to make a decision on which option suits you the best.​

Knowing your competitors allows you to understand what they are offering in the market and what they aren't. In addition, it allows you to gain a better understanding of the market. Your competitors' products or services, pricing, and marketing strategies will be revealed through competitive analysis. Ultimately, this information you gather will help you develop a better product.​

It’s important to understand and make sure your product or service has a unique selling point (USP) so you can stand out from the competition. It is the reason people should choose your products or services over your competitors'. Your website, flyers, advertisements, and other marketing materials should highlight the answer to this question. ​

It could be as simple as sourcing all raw materials ethically or offering a lower price. If you don’t already have an USP yet, you could identify your differentiators by doing some competitive research. ​

Marketing to the right people is the core of a business. You should be asking yourself who your target audience is. ​

Knowing your target audience will enable you to convey the right message, offering the right products and services to the right people. Knowing that targeting everyone is essentially no one is helpful. Finding a niche market and concentrating on it is the key to success.​

Pricing your product or service can be tricky as you don’t want to be overpriced or set your price too low. Correct pricing has a direct impact on sales and incorrect pricing may lead your business to failure. ​

Competitive research comes in handy when determining your pricing. What are your competitors offering? What’s included in their packages? Do they charge extra for additional services such as shipping? You’ll also want to take costs into account such as postage, production, the softwares you need, marketing, when leaving room for profits.​

While different pricing strategies can apply, you need to figure out what suits your industry.​

Before starting a business, you need to ensure that you understand all the legalities so you won’t be able to get caught off guard or breaching laws. The common legal requirements for starting a businesses in the UK are:​

It’s essential to seek professional advice from experienced lawyers in order to guide you through all the requirements for starting a business or funding a startup. ​

Business owners have an important and challenging responsibility: staying on top of their tax obligations. It's crucial to understand what your responsibilities are as a business owner, even though most owners seek the advice of professionals (accountants and tax agents).​

In general, tax obligations depend on your business structure, type of business, and whether you have employees. ​

Here's a quick overview of all the different taxes you need to consider as a business owner: ​

You can choose to pay for professional advisors such as accountants and lawyers, or you can just talk to people you know in your network to validate your business ideas. In order to make good business decisions, or even to challenge your assumptions and blind spots, you should get a wide range of advice. When it comes to starting a business, invaluable help and advice can come from speaking with your advisors, no matter if they are professionals, friends or family.​

Read more: How to find the right accountant for your small business​

You can easily get cloud-based softwares to make your business process more efficient. For example, CRM systems (e.g., Hubspot, Keap) can help to stay in touch with your prospects and customers; project management tools (e.g., Asana) can help you to track the progress of the projects you’re working on; accounting softwares (e.g., Xero) can help you with bookkeeping, record keeping and generating key financial reports and much more.​

A stack of software for your business may cost you upfront, but it will streamline mundane administrative tasks and improve business operations.​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.​