Forming a start-up is as much about instinct as it is about knowledge. True, anyone looking to become an entrepreneur will need a certain amount of business acumen to lean on, but they also need passion, motivation, energy and adaptability in equal amounts.
That said, starting a business can’t go ahead if you don’t have a clear and comprehensive checklist in mind. It may sound prosaic when your head is running a hundred miles an hour between branding, product design, networking and funding, but it will prove to be one of the most central documents you have to hand during these first few weeks, months, and years.
Here are the key items to include on your start-up checklist.
Write a Business Plan
You may feel like you know your business idea back to front but, when the time comes to put it into words (clearly and eloquently) for potential investors, banks, lenders or specialist advisors, the only way to make sure your pitch really lands is to have a strong business plan written down.
Passion and enthusiasm go a long way, but not when you’re tripping over your words, umming, and getting lost in your own whirlwind of ideas.
Choose a Structure
Do you want to be an LLP or a sole trader? What about a limited company? Your decision will have a significant impact on your tax obligations going forward, so carefully reviewing each option is a very important step.
Get Your Head Around Finances
It is possible for self-funded start-ups to succeed, but many entrepreneurs find that, in order to get off the ground, they need to invest time and research into garnering a healthy interest from investors or lenders. Beyond the costs of starting up, you’ve got to consider how you’ll manage the day-to-day running costs before you start turning a profit, as well as your own personal income.
Find the Right Premises
This should fall high on any entrepreneur’s list. You need to decide where your business will operate from – not just for your own benefit, but also for tax purposes. If you are setting up a business as a sole trader, for instance, you will need to provide HMRC with a trading address. There are benefits to running your business from home, but the increased financial outlay of renting or owning commercial premises may well be worth it if you’re looking to meet with clients or customers, or produce products in-house.
Think About What Licenses and Permits You Need
This will look a little different for everyone, depending on the nature of the business in question. This is just one of the things that a corporate solicitor can advise you on, and it is far wiser to work with a professional from the beginning than it is to attempt to manage this side of business ownership on your own.
Are You Going to Employ a Team?
You may have plans to do this much further down the line, or it may be that you need to start onboarding team members as soon as possible. Becoming an employer, even if you are only employing one or two people, for now, is a very big step, and you need to be fully compliant with employment law from the get-go – and make sure you and the business are protected. Again, this is something only an experienced solicitor can help with.
Create a Marketing Plan
You could offer the best products or services in your industry, but without a strong marketing effort, it’s unlikely your business will ever get off the ground. This should be one of your top priorities, but many entrepreneurs overlook this step and assume a strong business will always stand out to customers.
Get a Hold of Your Taxes/Accounts Right Away
This is so important, no matter what business you’re starting. As mentioned above, the structure of your business will dictate what your tax obligations will be, but the importance of knowing what those obligations are is the same across the board.