Step 1 - Explore your business idea
What do you want to do, and who would pay for it?
Think about your military skills, qualifications, hobbies and interests. Identify a problem you could solve for a customer, then speak to potential customers to see whether there is genuine demand.
Next step: Write down your idea and identify your first five potential customers.
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Step 2 - Work out whether the numbers add up
What will it cost, and how much could you earn?
Estimate your start-up costs, monthly running costs, prices and likely sales. Remember to include your personal living costs and allow for tax, quieter months and unexpected expenses.
Next step: Create a simple income and expenditure forecast.
Step 3 - Create your business plan
Turn your idea into a plan you can follow.
Explain what you will sell, who your customers are, how you will reach them, what makes your business different and how you expect to make money.
Next step: Need help with this? Visit the link below for our step by step guide.
Step 4 - Choose how to set up your business
Understand the options before registering.
When looking to register your new business there are two main types to consider.
1 - Sole Trader.
The simplest business structure. The sole trader makes all business decisions and keeps all profits after tax.
2 - Limited Company.
A Ltd company is legally separate from the people who own it, with one or more directors.
Next step: For more information on which would be appropriate for you and your business, you can visit the Government link below.
Step 5 - Arrange funding if you need it
Understand your options and what you can afford.
There are various routes which can be taken to fund a new business.
1 - Self funding
Involves using personal savings, and careful cash flow management to finance the business without external investment. This allows full control from the business owner, but does come with the personal financial risk.
2 - Start Up Loan
A government back scheme, which allows start ups, and businesses who have traded less than 5 years access up to £25,000, repayable over 5 years.
3 - Other forms of business finance
Such as asset finance for specific equipment or vehicles, Invoice finance to release cash ties up in invoices, or Merchant finance for funding based on your card takings.
Each funding option come with different eligibility requirements, and all loans must be repaid.
Next step: Calculate your funding gap before exploring suitable options.
Not sure which funding would be best for your business, we can help. Use our finance finder quiz to guide you to your options.
Step 6 - Get ready to launch
Take care of the practical details.
The final details you need to ensure are covered, before you launch.
1 - Business banking - You will need a business bank account for your incoming and outgoing business payments. This keeps your business and personal banking separate, making cash flow, expenses, tax calculation, and any business finance easy to track.
2 - Insurance - What cover does your business need? Simple business insurance, public liability, tradesmen insurance?
3 - Licenses - Do you need a particular license for your role? Waste management, personal licence (sale of alcohol), uprated drivers license (vehicles over 3.5ton)
4 - Record keeping and customer contracts - Do you have a method of keeping records? Where will you store your customer data, and contracts? Do you have any data protection requirement for this information.
If you unsure on any of these questions, we can help. Please get in touch to speak to the team.