Things To Consider Before Starting A Company In The Uk

By Author: James Walsh
Total Articles: 68
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The First Step

Every year thousands of new companies come up in the UK. Once you've decided to become your own boss, don't jump into it right away. Starting a business could be highly demanding and you need to be prepared to make a lot of sacrifices. Be physically prepared to work hard and have the mental strength to take risks and face the outcome. Make sure your family is supportive in your efforts.

Ask yourself why you would want to start your own business. What is it that you desire to accomplish? An honest introspection would help you understand your goal, because even before you start a journey you need to know where you're headed. Only a clear goal can guide you to success.

Getting Started

You need to finalise the following as a first step towards setting up your company:

Total Investment: Determines the size of the business that you wish to set up. It is decided based on the total money that you can gather from various sources and the amount of risk you wish to take.

Company Name and Location: Choose a catchy name that best describes your product/line ...
... of business. Make sure that the name is unique and is not used by other manufacturers of similar products. The location can be chosen based on the availability of man power, supply of raw material or market for your goods in that area.

Trademark: Make sure to get a trademark that help customers identify your product.

Number of Employees: Based upon the size of the investment, decide the optimum number of employees necessary to meet the requirements.

Number of Machines/Systems and Software Requirement: Decide on the optimum number depending upon the business requirements.

Stationery & Miscellaneous: Get a list of stationery and other items like furniture, etc. that would be required for the business.

Mapping Demand and Supply

Now that you know how much you want to invest, you can borrow the amount from one of the following sources in case you don't have sufficient savings:
Banks
Private Investors
Friends/ Family

Government and various groups provide grants for businesses started by handicapped persons or those started in under-developed areas.

In case you're not able to get sufficient capital, you can also enter into a joint partnership with another person.

Legal Procedures

All limited companies in the UK need to be registered at ‘Companies House'. Take assistance from a solicitor in matters of registering your business, licensing for your products, etc.

Make sure your accountant keeps a neat record of business transactions to be produced to government authorities when required. Also follow the procedures on tax to be deducted from staff salaries, the tax payable by you in the form of corporation tax, VAT, etc.

There are various insurance schemes available in the market to cover your business, property, etc. Choose the scheme that best suits your needs.

Exploring the Market

Even before starting your company you need to be sure of the demand in the market for the type of product you wish to manufacture. Conduct surveys and learn about people's requirements. Study the pros and cons of your competitors' products. The product you design should satisfy your customer's requirements while eliminating the pitfalls in your competitors' goods.

Producing a quality product alone isn't enough. When you launch your product, there might be similar ones in the market that are popular with customers. It's a challenge to make those customers take notice of your products. An introductory offer to promote it might make people sample your product and once they sample it, the quality of the product should be able to retain them as customers. Other customers then will jump onto the bandwagon through word of mouth. Creative advertisements in TV, newspapers and banners will lure the public thus creating a customer base for your goods. You could also advertise your product in related sites on the internet.

Staying on Top

The only way to survive the competition is innovation. Conduct surveys at regular intervals; constantly review and improve your product based on people's changing needs and interests. Never compromise on quality. All of this might come at a cost but will prove to be a wise investment.

James Walsh is a freelance writer and copy editor. If you are interested in starting up your own business and would like some help with your Business Plan see http://www.smartcompanyformations.co.uk