How to start your own business in 9 clear steps

Have you ever had an idea so good you just couldn’t shake it? A solution to a problem, a product that everyone needs, or a service that would make life easier for countless people? That spark of inspiration is the first and most important ingredient in becoming a small business owner.

Starting and running your own business is an exciting journey. With the right guidance, you can turn your idea into a successful, thriving reality. Forget the intimidating myths about needing a huge investment or years of experience. You can start a business right now by following these 9 clear steps.

Let’s get started on building your new business.

The foundation of any successful business is a great idea which solves a genuine problem for people. Think about your daily life: what frustrations do you have? What products or services do you wish existed?

To identify a problem worth solving, start by listening. Ask friends, family and potential customers about their challenges. Use social media and online forums to see what people are complaining about or asking for advice on. The key is to find a problem that is widespread, significant and for which people are willing to pay for a solution.

Once you have a problem, your business idea is the solution. It could be a physical product, a digital service, or a consulting offering. The possibilities are endless!

To get your creative juices flowing, here are a few popular business ideas for inspiration:

• E-commerce store: Sell niche products like sustainable home goods that you can’t pick up on the high street, custom art prints or speciality coffee beans that are hard to find
• Consulting services: Offer expertise in areas like social media marketing, personal finance or wellness coaching
• Subscription box services: Curate and deliver products on a recurring basis, from gourmet snacks to craft supplies
• Freelance creative: Use your skills in graphic design, copywriting, photography or web development to help other businesses
• Local service business: Provide services like professional organising, dog walking or home cleaning

So you have your brilliant idea – what next? The next logical step is to check if there are similar existing businesses and if they’re doing well. This is where market and competitor research comes in. You need to determine what demand there is for your product or service.

First, let’s look at the key concepts:

• Total addressable market (TAM): The total revenue opportunity available for a product or service. Think of it as the maximum size of your market
• Serviceable addressable market (SAM): The portion of the TAM that you can realistically target with your products or services
• Serviceable obtainable market (SOM): The portion of the SAM that you can capture. This is your realistic target for the first few years of business
• Buyer personas: Detailed profiles of your ideal customers. These personas go beyond basic demographics to include their goals, pain points, motivations and buying habits.

There are lots of ways to conduct your research, each with its own pros and cons. You can use free online tools to analyse search trends and social media conversations to gauge interest in your niche.

Carry out surveys or interviews with potential customers for direct feedback. Analyse your competitors’ websites, social media and customer reviews to understand their strengths, weaknesses and pricing strategies. While a full-scale analysis can be in-depth, a short, focused research effort is enough to confirm if your idea has potential.

A business plan is a document that notes the core details of your business and serves as your roadmap to success. It can be used to help you secure funding but it’s also a vital tool for clarifying your business’s vision and strategy.

It forces you to think through every aspect of your business, from your purpose and product descriptions to your financial projections. Your business plan should include:

• Executive summary: A concise overview of your company, its mission and your key goals
• Company description: An explanation of your business’s purpose, what it does and what makes it unique
• Market analysis: What you found from your research, including your target market, buyer personas and a rundown of your competition
• Organisation and management: Your business structure and any key team members
• Product or service line: Detailed descriptions of what you’re selling and how you’ll source this (if applicable)
• Marketing and sales strategy: How you will attract and retain your customers
• Financial projections: Your projected costs, revenue and funding needs to get your business up and running

A well-structured plan will keep you on track, help you make informed decisions and prove to potential investors or lenders that you have a solid path forward.

The name you choose for your business is a big decision. It’s the first thing customers will hear. It needs to be clear, simple and a memorable reflection of your brand.

Some advice for landing on the perfect name for your business:

• Keep it simple: Avoid anything that’s hard to spell or pronounce. A name that’s easy to say is easy to remember!
• Be descriptive: The name should hint at what your business does – “Freshly Squeezed Juicery” is clearer than “The Green Elephant”
• Check for availability: Before you get too attached, search to see if the name is already in use with our company name availability checker. This is also the best time to check if the corresponding domain name and social media handles are available

This is where you make things official! The actual company registration process might sound intimidating but it’s straightforward, especially with a service like ours to guide you.

The most important decision you’ll make in this step is choosing a business structure. This choice impacts everything from your liability to how you file taxes.

The most common business structures in the UK are:

• Sole trader: You’re personally responsible for all business debts and obligations. This is the simplest structure and is perfect for many freelancers and consultants
• Partnership: Two or more people share ownership and responsibility for the business
• Limited company: This structure separates your personal assets from your business’s assets, offering liability protection
• Limited liability partnership (LLP): A hybrid between a partnership and a limited company, often used by professional services firms

If you opt for a limited company structure, you can register your business with us for free and get a business current account with our online company registration service.

In the UK, the process of registering your business depends on its structure.

• If you’re a sole trader, you’ll need to register for Self Assessment with HM Revenue & Customs (HMRC) to pay income tax and National Insurance contributions
• If you’re setting up a limited company, you must register it with Companies House. This makes your company a distinct legal entity

Registering your business as a limited company can provide credibility, legal protection and access to financial services that are often unavailable to unregistered entities.

Business insurance is a non-negotiable part of protecting your new business. It’s a way to mitigate risk and safeguard your hard work from unforeseen events.

Common types of business insurance in the UK include:

• Public liability insurance: Protects against claims from members of the public for injury or property damage caused by your business
• Professional indemnity insurance: Covers your business against claims of professional negligence or mistakes in your services
• Employers’ liability insurance: This is a legal requirement for most businesses that employ staff, covering you against claims from employees who become ill or are injured at work
• Cyber liability insurance: Essential for any business that stores customer data online, protecting you from data breaches and cyberattacks

Why is a separate bank account so essential? For starters, it keeps your personal and business finances completely separate. This makes accounting, tax filing and managing cash flow a lot easier. It also establishes your business as a professional and legitimate entity when customers pay you.

With Countingup, you can register for a business current account in less than 4 minutes and start getting paid straight away. You get a free 3 month trial, with money, accounting and tax tools included in your subscription.

You’ll need a few things to get started:

• a device with the Countingup app installed (minimum supported version iOS 13+ and Android 6+)
• a UK mobile number
• an email address
• either a UK passport, driving licence or European ID card

Congratulations! With all the foundational work done, it’s time to build and grow your business. This is where the real fun begins.

Sourcing suppliers
If you have a physical product, finding reliable suppliers is key. You can search online directories or attend trade shows to meet suppliers. Always request samples to check the quality before placing a large order and aim to build strong relationships with your suppliers for long-term success.

Securing funding
Your business plan will help you determine if you need additional capital. In the UK, a range of funding routes are available. You can use your own savings, apply for a small business loan from a bank or look into government-backed schemes. For larger investments, you could seek out angel investors or even consider crowdfunding on platforms like Crowdcube to raise money and build a community around your product.

Developing a brand
Your brand is much more than just a name and a logo. It’s the visual identity, tone of voice and the overall feeling customers get from your business. To develop a strong brand, start by defining your core values and mission. Use this to create a consistent look with a logo and colour palette, and establish a consistent tone of voice for all your communications.

Marketing
This is how you tell the world your business exists. You can use social media to engage with your target audience on platforms they use most, or create valuable content like blog posts to drive organic traffic to your website. You could also consider paid advertising on platforms like Google or social media to quickly reach a larger audience.

You have the idea, the passion, and now, the plan! The path to your own business has never been clearer. Start a business today by taking that first step – solidifying your idea, doing your research or drafting your business plan. The future you want to build is waiting, and we’re here to help you every step of the way.

The best business to start is one that combines your skills and passions with a genuine customer need. Look for problems you can solve and research if people are willing to pay for your solution. Consider your own interests and expertise to find an idea that you’ll be motivated to build on for the future.

Starting a business with little or no money is possible by “bootstrapping” – this means using your own savings and resources. Focus on service-based businesses, freelancing or using drop-shipping, which all have low startup costs. You can also explore options like small business grants or crowdfunding to raise initial capital.

While no business is without challenges, some are easier to start due to lower overhead and easier operations. Examples include freelance writing, virtual assistant services, social media management or selling handmade goods you have the skill to make on platforms like Etsy.

Many businesses can be started from home, especially service-based or e-commerce ventures. The process is the same as any other startup business: nail your idea, create a plan, register your business and get growing. If you’re thinking about starting a business from home, you might need to let your local authority know you plan to use your residence for business purposes.