How To Start A Business | A 10-Step Guide

It can be so exciting when you’ve decided to take a leap of faith and start making that business idea a reality. However, it can soon become apparent just how much you need to put in place. Feeling daunted by it is understandable. In which order should you do it all in? If you’re not sure what to tackle next, we’re here to help.
Here's our 10-step guide to starting a business.

Step 1 - Do your research

You’ve identified that there’s a need for your product or service, but now it’s time to dig deeper and do your research. This is the critical first step. Who needs your product or service and why? What are they willing to pay for it? What are your market competitors doing in terms of pricing and promotion? What is your unique selling point (USP) and why should someone choose your offering over your competitors? You need to define clear answers to all of these questions. You also need to consider the broader market conditions such as stability of the economy, availability of goods, and any other current factors. And you need to analyse your strengths, weaknesses, opportunities and threats (SWOT), which can help identify what you might need to focus on in either the short or long term. For a detailed guide on how to do a SWOT analysis, read our blog

Step 2 - Write a business plan

A surprising number of new business owners skip this essential step and then come back to it later, often needing to undo work they’ve already done. Don’t scrimp on time here. A business plan will help you identify potential obstacles early on. Your business plan should include details on your product or service, information about your audience – which you’ll know from having completed Step 1 – your business structure (especially if other people are involved), a sales and operations structure, a financial plan that includes business costs, funding and projected revenue, and a marketing plan.

A woman writing out her business plan at her desk

Step 3 - Name your business

When thinking about the name of your business, it’s important to choose something that reflects your USP and your mission. Exploring the ‘what’, ‘who’, ‘how’ and ‘why’ of your business is a great way to develop name options. Have a brainstorming session with other stakeholders in the business, or with people close to you who’ve been on the journey with you so far. And when you’ve got some options in front of you, ask yourself these questions. Is it different from competitors? Will it stand the test of time or will it soon be dated? Will your customers understand it and want to engage with it?

Step 4 - Register your business

It’s likely you’ve already given some thought to the structure of your business, but it’s wise to consult an accountant or a solicitor. They can fully explain the liabilities and taxes associated with the most common types of business structure, including sole proprietorship, partnership, limited liability partnership, limited company and corporation.

Once you’ve decided your business structure, you’ll need to register it with Companies House and get any contracts in place, as well as creating official accounting records.

Person working on branding their business on their laptop

Step 5 - Review your legal requirements

Depending on the nature of your business, there may be further requirements you need to follow to make sure you are operating legally. Do you need a business permit, are you importing or exporting goods, or do you need a licence for your premises or other business activities? If you’re unsure, the Gov.uk website has a list of permits here. If you’re planning on importing goods, check this page, and find information on exporting goods from the UK here.

Step 6 - Search and apply for funding

Whether you’re planning to work from your home initially or you’re looking to take your business from your kitchen table to more official premises, start-up funding can really help get your new venture off the ground. Here at BIP, we have close links with organisations and local authorities that provide funding for small businesses. And, we can also help you prepare for and submit a strong application.

Alongside start-up loans and grants, you could consider crowdfunding, peer-to-peer lending, private investment, bank or building society loans, and the British Business Bank. Read our in-depth guide on how to get business funding.

Small team of people celebrating good news in front of laptop

Step 7 - Build your brand

Branding is important. It communicates who you are as a business and what you stand for – it facilitates engagement with your business on an emotional level, and it’s one of the key deciding factors in whether customers choose you or a competitor. It’s not only important for customers – if you’re branding resonates with investors, suppliers and employees, they’re more likely to want to be involved.

If you’ve followed steps 1 and 2, you’ll already have your mission and USP. These are the foundations for defining your brand positioning, which is the strategy you’ll use for setting your business apart from the rest. You could choose to position yourself based on customer service, price, quality, convenience, sustainability or something else. Your brand positioning should highlight your product or service’s competitive advantage and communicate how you’re different from the competition.

When it comes to the visual side of things, you could work with a graphic designer to develop your brand identity, or access free online tools such as Canva to choose colours, fonts and create your logo.

Make sure to get your branding right. Businesses that are clear and consistent in their brand identity see an average revenue increase of 10-20% and successful branding brings benefits such as increased trust and customer loyalty, an improved image, and a relatable identity that puts you above the rest.

Step 8 - The nuts and bolts

Providing a seamless and consistent customer experience is essential to any business’s success, be it new or well-established. To get off to the best possible start, map out your customer journey, taking into consideration your marketing and communications, and supply logistics. This will help you figure out what you need in place to deliver your product or service, including equipment, technology and software, and third party services such as couriers, printers, wholesalers or others.

There are lots of excellent free and low-cost tools available to help manage your internal processes, such as CRM (customer relationship management systems), sales and project management platforms. A CRM system will help you keep track of customers and what they’re purchasing which gives you greater insight in how to market to them.

Get a website and social media channels in place. You can choose to work with a web developer or you can easily create your own site using platforms such as Wix, Shopify or Squarespace. Your website is the online shop front of your business so it’s important to get it right in terms of user-friendly functionality, how it looks and how fast it is.

Step 9 - Launch!

Depending on the nature of your business, you could either launch with a big splash, or opt for a softer launch where you build things up slowly. Whatever your approach, once you've got started, keep communicating with your customers – that may be via social media, through email marketing, or networking, depending on your business. Word-of-mouth is going to be your best friend throughout your business journey providing you focus on delivering great customer experience and a product or service they value.

Step 10 - Get support

While starting your own business is incredibly exciting, it can also be a lonely and daunting experience at times, especially if it’s only you at the helm. Talking to people such as business mentors, coaches, other entrepreneurs or not-for-profit organisations all provide excellent sounding boards for ideas and collaboration, plus advice and encouragement when you need it. Here at BIP, we have been providing tailored small business advice in Devon for over 30 years. As a start-up, you could be eligible for free support through one of our fully-funded programmes. Or you might want to join one of our free Business Skills Workshops which cover a broad range of topics. Our local, Devon-based business advisors will draw on their years of experience to steadily guide you through the process of starting your own business. If you’d like to know more, please get in touch with our friendly team.

Tap into free business support with Prosper

Funded by the UK Government, Prosper is designed to help you get started in business. When you join the Prosper programme under Start-up Support, you'll have access to inspiring workshops and regular peer-to-peer sessions with our Enterprise Club. These sessions are a great way to network with other entrepreneurs and talk through your challenges with one of our advisors.

How to start a business: Our 10-step guide