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- Step by Step Plan for Setting Up A Company
- Market Research
- Creating A Business Plan
- Forming Your Business
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So, are you wanted to set up a company in the UK, but you don’t know how to did it? This guide will answer your question.
The process of setting up a company is considered rigorous by many. From the business ideation stage to the company registration procedures it looks like a whole lot of work, and rightly so. However, the majority of people who get frustrated along the way tend to be those who delved right into the intricacies without conducting proper research.
Contrary to speeches from motivational speakers, having an idea is not enough to start up a company. It is for this reason that we see a lot of start-ups failing in the first few years and then going into extinction. Having a seemingly excellent business idea but executing it poorly leads to the failure of a business and results in a lot of losses.
There is nothing like too much research, gathering information and statistical data should be a priority for anyone who intends to start up a company. It for this reason that this article has been put together to shed some light and enlighten you on the steps to take in order to put your business on the path to success in the UK. Our goal is to see start-ups thrive, so help us help you succeed.
Step by Step Plan for Setting Up A Company
Setting up a successful company in the UK requires careful planning and sticking to a set of guidelines. Following through with these measures guarantees your success or increases your chances of attaining it. Examples of these guidelines include researching the viability of the business idea (market research), creating a business plan, and registering the company in accordance with the guidelines stated by the governing bodies at the location for which it is intended (in this case the UK) and others. Below are the advisable procedures:
Conducting market research helps to conclude on the viability of a business idea and ensure that as a business owner you are up-to-date with the trends in your line of business. It helps you make better business decisions and obtain a competitive advantage for the company.
Market research is not restricted to starting up a business, it is necessary for every stage of a business.
Research helps to improve the company branding, offer more understanding of the target market, quantify the effectiveness of marketing, identify new opportunities and provide insight into product features so as to increase or ensure sales and as a result profit. The steps necessary for the market research process are as follows:
- SWOT Analysis: this involves identifying your strengths, weaknesses, opportunities, and threats. It encompasses defining your competitors and looking into how they run their businesses, and what you can do better.
- Qualitative and Quantitative Research: this involves asking potential customers about the market in general and gaining insight into what they’re dissatisfied with, as well as what they enjoy. In-person and web surveys are good ways to carry this out. Make sure to ask good questions that would keep the customers comfortable before moving into complexities.
- Data Collection: this pertains to recording all the observations that you have made after following through with steps a and b above.
- Decision Making: this involves putting all the information that you have gathered into use by making informed decisions. It could lead to tweaking previous decisions for instance pricing and quality, or redirecting the business path.
Creating A Business Plan
Creating a business plan is the next step for setting up a business. Having a clear idea of what your product or service does, and who your target market is very important. A business plan will help you evade problems that you would’ve encountered otherwise by answering the necessary questions from the onset. Companies without business plans are more likely to fail due to improper planning and a lack of set goals, all of which could’ve been avoided.
Try answering these few questions to assess your readiness and define your goals.
- What industry is the business in?
- What is the cost of starting a business in your chosen industry in the UK?
- How much capital does the company need?
- What is the operating cost of the company?
- What is the name of the company?
- Who is the target market?
- What needs to do the services being offered by the company meet?
- What do you intend to charges for your products or services?
Defining the capital required to set up a company in the UK for example is of utmost importance. As it helps the business build from the ground up, and a very important consideration is the availability of funding. It is important to consider the nature of the business and the level of acceptance it would receive from financial institutions in the UK. Unless the capital would be provided via personal sources in which case future expansion might still require support from the financial institutions present in the state.
Forming Your Business
Determining the type of business you intend to run (sole proprietorship, partnership, etc.). And obtaining the relevant documentation is an important aspect of setting up a company. This would involve legally registering your business in accordance with the guidelines provided by the government in the UK.
Acquiring the required licenses and permits to run the business. As well as insurance should be a top priority to ensure a stable operation and increase credibility.
Establishing an online presence is also an important step in forming a business. As the internet has made purchasing products and services easier. Having a domain name and in turn, a website that showcases your business should be prioritized. As it brings you a step closer to reaching your audience. Social media presence is also necessary for promoting your brand. Ensure that you hire a competent social media manager, but if you intend to do it yourself then ensure that you put your brand first in everything you do online as the brand image should never be compromised. Also, consider setting up a professional email for the business.
Setting up a company in the UK is not rocket the easiest of things. But the process can be made smoother by following the guidelines stated above.