The Challenges of Launching a New Business in the UK

It seems like we’re right in the middle of a boom time for new businesses starting up. Figures for 2016 suggest that nearly 343,000 were established in the first six months alone – that’s a rate of around 80 every single hour. The reasons behind this entrepreneurial zeal range from individuals wanting to take charge of their destiny to those who need to introduce more flexible working arrangements into their lives.

Yet however appealing the prospect may sound, starting any new enterprise isn’t without its challenges. This article aims to outline a few of the more practical considerations and suggest how to overcome them.

UK startup founder

Financing and registering the business

Assuming that you’ve done most of the preparation, have a clear idea of what business you want to create and who your potential customers will be, then it’s time to get down to the nitty-gritty of how you’ll finance the business and what kind of legal entity it will be.

Provided that you have a robust and well thought-through business plan then you’ll be in a good position to approach banks for start-up finance, as well as looking for any government or other grants that might be available. Peer-to-peer lending is another possible source of finance that has emerged in the last few years and is becoming an increasingly popular option.

You’ll also have to think about what kind of business you want yours to be. Essentially you have the choice of being a sole trader or forming a partnership, a limited company or a limited liability partnership. Each has its own benefits and restrictions so it’s essential to discuss the implications of each one for you with a trusted accountant or financial adviser.

London old town

Choosing the right premises

You’ll also need an operating base if you don’t want to be running your new business from the spare room, so the next challenge will be finding premises to suit. While the first inclination may be to choose the smallest and most cost-effective option possible, this could be a short-sighted approach. Presumably growth and expansion will be part of your plan so you need to think ahead and choose somewhere large enough to see you through the next couple of years at least. After all, moving premises is expensive and you could probably do without these extra costs in your early years.

Along with premises there are also all those other considerations like arranging the right kind of insurance for your business and ensuring that you know all of the rules and procedures if, for example, you’re planning to trade with clients in other countries of the world.

Naturally, there are also a million and one other things to be considered, especially if your new business is going to involve employing other staff. However, by taking a systematic and carefully-planned approach these should not be too hard to overcome.

Then it’s just a question of getting going and striving for success.