The UK is a booming market for start-ups, with approximately 672,890 new companies registered every year.
But while registering is an important part of getting started, it’s no guarantee of success. Only 40% of businesses make it beyond the three-year mark. Why? Because starting a successful business requires resolute planning and preparation.
A survey by CBInsights that covered employees and founders from 101 startups analysed the reasons why those companies failed. The main results were as follows:
42% of startup businesses fail because there’s no market need for their services or products.
29% failed because they ran out of cash.
23% failed because they didn’t have the right team running the business.
19% were outcompeted.
18% failed because of pricing and cost issues.
17% failed because of a poor product offering.
17% failed because they lacked a business model.
14% failed because of poor marketing.
14% failed because they ignored their customers.
Before you launch, you need to build a strong foundation that details your idea and unique value proposition (UVP), how you will structure and market your business and how you will set up your business finances.
In this guide, we outline a detailed step-by-step process that teaches you how to start a business from scratch and set yourself up for the best possible chance of achieving immediate and long-term success.
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Put your startup idea to the test.
Your business concept should solve a problem for people, close a market gap, and provide long-term value.
To determine whether your idea is viable, conduct a SWOT analysis. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats.

Answer the following questions about your business concept:
Strengths. What distinguishes your company from the competition? Do you have a more superior product? Are you able to compete on price? Do you have more knowledge or industry experience?
Weaknesses, What could be holding you back? Is there anything that the competition does better? Do you have any weaknesses?
Opportunities. Why is this the best time for your concept? What issues do customers have that you can help them with? Is there a lack of competition in this field? Is the market trending in your favour?
Threats. What are you likely to face in your business? Are new competitors on the horizon? Is there a chance that the market will change? Could regulatory changes cause issues?
Some of these questions you will most likely already know the answers to. Primary and secondary research can be used to find answers to other questions.
Primary research entails testing your concept on potential customers through questionnaires, focus groups, interviews, and product or service trials in order to understand:
Who is going to buy your product or service?
How much do people want to pay for your product or service?
What others think about your competitors
What potential issues does your company face?
Secondary research entails examining existing data, such as:
Data from the government
Recent polls and studies
Newspaper articles
Data from a recent company
For example, if your plan is to launch project management software and you have extensive industry experience, your SWOT analysis might look something like this:
Strengths. Simple to use, limited functions, does one or two things exceptionally well, outperforming the competition in those areas. Decades of industry experience indicates that the expertise is likely to be greater. The idea is to provide premium features at a lower cost than our competitors' premium plans.
Weaknesses. There are already dozens of successful project management software platforms with large user bases. That's why this product focuses on just a few features to outperform more comprehensive offerings. However, this means that our audience is more specialised, which can be both good and bad.
Opportunities. There is a significant opportunity to capture an audience that desires aesthetically simpler but functionally more complex project management software. Many existing project management applications.
Customers complain that the products are too clunky and attempt to do too much, failing to do one thing exceptionally well. I believe that market trends are shifting in favour of products that fill specific needs that broad products cannot.
Threats. We'll be up against a slew of competitors who are constantly improving their products. The market is unlikely to change dramatically, but our major competitors may update their products to compete with ours. Nonetheless, our industry experience is most likely superior. Regulation will not change or cause any issues.
Completing a thorough SWOT analysis will provide you with a clear picture of where you are now and whether your idea is worth pursuing.
Don't let the negative aspects of SWOT analysis deter you. Instead, consider how you can transform your weaknesses into strengths and opportunities.
Learn about business laws and regulations.
According to GOV.UK, red tape is a barrier to success for 43 percent of small-to-medium-sized enterprises (SMEs).
But it doesn't have to be that way.
While there is a lot of red tape to deal with, the information you need to overcome these obstacles is all available online for free.
The business section of GOV.UK has detailed information on everything you need to know. Not everything will be relevant to your business, but a lot will.
For example, the GOV.UK website's "Set up a business" section immediately informs you that:
"There are also rules to follow if you sell goods online, buy or sell goods from abroad, store or use personal information."
Each point is followed by a link where you can learn more. When we click on "sell goods online," we are presented with a long list of information that a seller must provide to a buyer before placing an order. Understanding this information before making a sale is critical not only for success, but also to avoid a fine or more serious punishment.
Some of the potential roadblock areas to be aware of include:
Employee costs and benefits PAYE, tax calculation, capital gains tax, employee loans, and expense reporting
Regulations governing employment. Regulations governing wages, health and safety, disciplinary procedures, parental and compassionate leave, and holiday leave.
Exports and imports Tariffs in the United Kingdom, classification of imports and exports, shipping goods, duty relief, export agents, and the Excise Movement and Control System (EMCS).
Copyright trademarks and patents How to apply for a patent, how to defend your intellectual property (IP), how to use someone else's IP, how to register a trademark, and how to licence.
Data security. GDPR, responding to data protection requests, and the Privacy and Electronic Communications Act are all examples of regulations.
Waste and the environment Environmental taxes, reliefs, and programmes addressing commercial waste, vehicle fuel, and emissions
Tax on business. Tax returns, tax compliance, accounting periods, VAT, Corporation tax, and reporting business model changes
Insolvency and debt Liquidation of a company, County Court Judgements (CCJs), debt recovery, claims, and the restoration of a dissolved company
If you have any questions about the red tape that surrounds your business, you can seek help from government-related resources. Alternatively, give us a call to set up your free business consultation to help you simplify
Make a business plan
A business plan is a road map that details what you intend to do and how you intend to do it.
It serves two functions:
To assist you in focusing on the path your company must take to achieve its objectives
To persuade others that your company is a good investment (important if you want to position your company for investment).
The following key sections should be included in your business plan:
Business summary. An overview of your company and what you hope to achieve Business concept A brief description of what you intend to offer, why and to whom, and why your idea will be successful.
Strategy for marketing and sales Information about your customers, competitors, pricing, and distribution and marketing strategies
Structure of management Details on your professional credentials, the credentials of your team, and the people you intend to hire for business operations Information on the business's location and premises, as well as its production and information technology systems.
Financial forecasts Cash flow forecasts, accounts, and balance sheets are all detailed. This section should cover your income and revenue sources, the amount of capital required, how you intend to repay loans, and what security you can provide lenders.
Your business plan does not have to be extremely long, but it must be comprehensive. The appropriate length will be determined by the amount of space required to demonstrate that you truly understand the market, your execution, and your financial/funding strategy.
It should also include both short-term and long-term goals so that potential stakeholders can be confident, your company will not only succeed in the short term, but thrive over time.
The Prince's Trust, and Start Up Loans are some great resources and templates to help you write your business plan. Or Give us a call on 0330 175 9933 where we can arrange a meeting with a business expert, who specialises in business plans, Grants, Loans.
Maintain your business plan by updating the facts and figures to reflect where you are in your business journey.
Decide on a business structure.
To make your business official, you must register with HMRC or an approved formation agent of Companies House, such as our partners tide. You can easily register your business with Tide for free while also opening a separate business current account. Plus £100 cahabck to get you started right. There are no monthly or annual fees, and no credit checks are required to open a business bank account with tide.
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A business bank account is essential because it separates your business and personal finances, making you appear more professional and aiding in organisation.
When you register your business, you must select a legal structure from one of the following options:
A sole trader. A self-employed person who owns and operates their own business. Registration is free, and all business profits after taxes are yours to keep. The most common business structure for people who work alone, such as hairdressers, photographers, and freelancers, is sole trader.
Limited Liability Corporation (LTD). A legal entity distinct from its owners and directors, in which the company (rather than you) enters into contracts and incurs business debts.
This means that any money earned belongs to the company and must be paid out as a salary or dividend, and you are not required to sell personal assets to pay off debt. Registration is more difficult than forming a sole proprietorship, and taxation is more involved. Taxation, on the other hand, can be more efficient, and there are more opportunities for investment.
Partnership. Similar to a sole proprietorship, but both the partnership and the individuals must be registered for self-assessment. If one partner leaves, the partnership must be dissolved.
Limited Liability Company (LLP). In terms of registration and accounting, it is similar to a private limited company, but responsibility is shared among partners.
Each structure has its own set of legal requirements, as well as tax and accounting obligations.
Create a brand for your company.
Your market research will reveal how competitors present themselves. Use this knowledge to create a distinct brand.
At this early stage, you should concentrate on two key identifiers: your company name and logo. Other branding elements, such as a website and marketing collateral, can be added later.
Your business name and logo are the things that bring your idea to reality. They're also the first impression people have of your company.
Developing a business name and logo
Making a company logo
Your logo, like your company name, should adhere to the five principles of effective logo design and be memorable, simple, timeless, versatile, and appropriate.
Versatile: Your logo should work in a variety of sizes and formats, both online and in print.
Appropriate: The design and colour of your logo should fit with your audience. For example, the LEGO logo is great for kids, but it wouldn't look right on the outside of a law firm office. Use a colour psychology chart to help you choose the right colours for your logo.
Memorable: When people see your logo, they should immediately associate it with your brand, even if they aren't sure what your brand does. McDonald's and other well-known brands have memorable logos.
Simple: A simple logo like Nike’s swoosh or Apple’s apple are instantly recognisable and distinctive because of their simplicity. Follow the KISS Principle of design: Keep It Stupid Simple.
Timeless: Your logo should steer clear of trends. As designer David Airey says, “Leave trends to the fashion industry. Trends come and go, and when you’re talking about changing a pair of jeans or buying a new dress, that’s fine, but where your brand identity is concerned, longevity is key. Don’t follow the pack. Stand out.”
Your company name should be memorable and related to your product or service as well as your values.
When jotting down ideas, consider the following:
Does the company's name make a good first impression?
is it simple to read and say?
Is it simple to grasp?
Is it in any way offensive, including in other languages?
Is it remembered?
Even though business names are short, choosing the right one is far from easy. It necessitates a concerted effort and may take some time. Consider it like a building foundation: if you rush it, the final structure will be unstable.
Your company's name should be:
Original. You want your company to stand out from the crowd. You can certainly draw inspiration from other businesses, but avoid coming up with a name that sounds too comparable to anything else. This will not only help your brand thrive, but it will also protect you from potential copyright or trademark infringement issues down the road.
Energetic. Your name should embody your overall vibe. Choose a name that mirrors your industry’s energy levels. Going with the Product Management Software example from above, the industry energy may be viewed as “full of life”, “supportive”, “multi-faceted”, “driven” and “well rounded”. This is apparent in existing PM software tool names, such as Asana, which is a yoga term that represents a sitting meditation pose. And Trello, which was originally named Trellis, representing a tool that supports the growth of trees or plants. Both of those names represent well-grounded, supportive concepts and tie directly into what the product does.
Simple. Think outside the box, but make sure your name is simple to remember and professional. You don't want to make something so unusual that customers have difficulty spelling or pronouncing it. Aim for something simple, memorable, and catchy.
Focus. Avoid using words like "Global" or "Enterprise" in your company name. Consumers want to know what makes you different, niche, and special, and broad tags like that indicate a fully realised operation. You can always add to or change your name later, but for now, keep it simple and relevant to your target audience. On the other hand, avoid using location-specific tags, which may limit your potential for growth.
Benefit of trademark registration
It adds value to your company.
It safeguards your content against unauthorised use.
If you have already registered something, no one else will be able to register.
Gives you an advantage in the event of any legal issues
It safeguards your brand's identity.
Are you ready to be your own boss? Register your company for free.
Tide's business registration process is quick, simple, and free. You not only get to officially start your business, but you also get a free business current account. In addition, we will give you £100 in cash to get you started. Which is the best way to ensure that your finances are in order from the start. Be your own boss by registering your business with Oaktree & Tide.
Congratulations, from Oaktree business support partners.
Calculate costs and seek funding
In your business plan, you will cover the costs of starting and running your business. However, it's worth going a step further and categorising these costs to see exactly how much you'll need to spend where.
Initial costs and expenses to consider include:
Stock Premises and Commercial Rates
Insurance and licences
Promotional items
Stationary
Legal and financial counsel
National Insurance and Tax
There are numerous ways to fund your small business in order to cover startup costs and maximise initial growth, such as:
Loan for a New Business. The Start-Up Loan, which is backed by the government
Grant for new businesses. There are numerous government, Angel investment options. Crowdfunding. If you can't find what you're looking for or need help with the application process, please contact Oaktree on 0330 175 9933. We've helped people from all walks of life. If English isn't your first language and you'd prefer to speak to someone in your native tongue, we can make that happen.
A bank loan Business loans from high street banks aren't as common as they once were, but several major banks do offer unsecured loans of up to £250,000. over 1-15 years.
Promote your company
Everything up to this point has involved laying the groundwork for the best possible chance of success. It's now time to get your brand out there and attract customers.
It's fantastic if you already have a following from creating pre-launch content. It's always a good idea to validate your UVP before investing in its construction or maintenance. That way, you'll know your target audience is interested in what you're offering and will buy it once it's available.
It's perfectly fine if you don't yet have a following. The time has come to construct one.
There are numerous ways to market your business, including telling friends and family and attending networking events, advertising your product or service in the local press and/or online, and a variety of other activities are all options. Digital marketing is the most likely place to see consistent results.
Create a website.
A website is required. Even if they intend to purchase in-store, 87 percent of shoppers start their product searches on digital channels. Your website is your online storefront, where customers can learn more about you and your goods or services.
A website does not have to be large or flashy, however has to make a good first impression and to provide visitors with the information they seek.
It only takes 5 seconds for a user to form an opinion about your website, so having a clean, fast-loading site is essential. Especially since, according to Forrester, a well-designed interface and a smooth UX design can increase conversion rates by 200 and 400 percent, respectively.
Every website should follow the following guidelines:
Simplicity. A website should make it simple for vistors to access and do what they want.
Visual hierarchy. The elements of your website should be organised in such a way that visitors see your most important messages first.
Navigability. It should be painless to get from point A to point B.
Consistency. The overall appearance of a website should be consistent across all pages.
Accessibility. A website should work flawlessly on all devices and operating systems.
Conventionality. The design should stick to what users are already familiar with (e.g logo in the top left or centre of a page).
Credibility. The information provided should be upfront and transparent.
User-centricity. Users' feedback should be gathered in order to fine-tune and boost efficiency.
If possible, work with a web designer to create a website that adheres to these guidelines.
Oaktree has partnered with professionals who can do just that, or better yet, teach you. to create user-friendly websites from the ground up without any design experience and without breaking the bank No prior cooing experience is required.
All that is required is a willingness to learn. Call us right now at 0330 175 9933 to discuss your requirements. We will assist you at every step of the way.
Alternatively, hire a friend or family member who has developer experience and is willing to assist you.
Find the appropriate business support, such as Oaktree business support partners.
While running a business is exciting, the day-to-day can be exhausting. According to a small business survey conducted by the Department for Business, Energy, and Industrial Strategy, 34% of business owners sought advice and information related to the day-to-day operation of the business. In addition, 40% of business owners seek strategic advice to aid in growth.
Getting the right assistance can be crucial in overcoming obstacles and avoiding potentially costly mistakes. Fortunately, professional advice and business support are abundant at Oaktree and, in most cases, free.
Call our helpful team at 0330 175 9933 to find out how we can support you.
If you've never handled business accounts before, you might consider hiring an accountant.
An accountant can assist you with everything from tax returns to avoiding penalties with HMRC and Companies House. Give our friendly team a call if you need help finding an accountant who will meet your needs. We provide free, unbiased advice and match you with the best account for your needs.
Let's go over the steps you need to take to build a successful business in the next 60 seconds.
Spend time analysing your business idea to ensure it is viable.
Branding: Create a memorable, appropriate, and timeless name and logo.
Business strategy: Make a detailed plan that includes your concept, finances, and structure.
Structure: Select a legal structure that is appropriate for your company. set-up
The red tape: Learn about the laws and regulations that apply to your company.
Funding: Determine your startup costs and whether you require a loan or investment.
Permit or licence: Determine whether you need a licence or permit to operate.
Location: Choose the best place to work for your company and its customers.
Marketing: Create a website and a digital marketing strategy to market your company online.
Support: Seek advice and mentorship to help your company grow.
Starting a business from scratch necessitates a methodical approach. Do your homework and take advantage of the resources available to help you along the way.
Register a free limited company as your first step.
Plus a £100 cash bonus
Maybe you're not ready to trade right now, but you have a great idea and a great company name. Register your company name before someone else does, and then trade when you're ready. As an added bonus, your free business bank account will be established for you with no monthly or annual fees. When you're ready, we'll be ready.
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