How to start a business: 8 essential steps

If you’re thinking of starting your own business, you’re not alone. A recent survey found that nearly half of all UK adults are considering starting a business or side hustle. But if you want your dream to become reality, there are both practical steps and strategic considerations to go through. We’ve pulled together the key things you need to think about and do before you decide to quit your day job, so that you have the best chance of business success.

The entrepreneurial spirit is growing in the UK, according to the latest StartUp Ambition report from Enterprise Nation. 47% of UK adults said they wanted to start a new business or side hustle this year – up 12% on 2024. The figure is even higher among younger demographics, with nearly two-thirds of 18- to 30-year-olds saying they were planning to start a business, and more than half (51%) of 31- to 40-year-olds sharing this ambition.

Key drivers behind this surge include a desire to earn extra cash to keep up with the rising costs of living (33%) and a wish to monetise a skill or hobby (33%).

But before you hand in your notice, it’s worth taking stock to identify whether your business idea has the potential to fly, and the practical steps you will need to take to get it off the ground. 

Business planning step 1: Identify your market

Packing in your day job to pursue your dream may sound tempting, but if it’s to be your main source of income, it will need to earn enough money for you to keep body and soul together. So it’s worth undertaking some market research. You’ll need to identify:

• Whether there is demand for the goods or service you want to offer: Look at industry trends, search engine data (like Google Trends) and forums to understand if people are actively seeking your solution.
• Who your ideal customers might be and how you might reach them: Define your target audience’s age, location, income level, and interests. Think about where they spend time—online and offline—and how you can engage them.
• What price they would be willing to pay: Check out competitor pricing and conduct informal interviews or surveys with potential customers to understand their budget expectations.

How to carry out market research:
Start by researching online—use tools like Statista, government data, and trade publications to get an overview of your sector. You can also post surveys on LinkedIn, use platforms like SurveyMonkey, or talk to people in relevant Facebook or Reddit groups. If your idea is local, go out and ask people in your community directly. Listening is your best tool at this stage.

Business planning step 2: Understand your competition

Competitor research can also reveal insights into many of the questions that you need to answer to identify your market. It will also help you refine where in the market you might sit. Looking at the competition’s websites, social media feeds and other marketing materials will help you understand their offering. As you stalk their profiles, look to understand:

• Who they are appealing to: Check their reviews, testimonials and tone of voice. Are they targeting startups, professionals, families, students?
• What marketing strategies they are using: Are they active on Instagram, running Google Ads, writing blogs, or relying on local PR?
• Their pricing: Can you compete on cost, or will you need to justify a premium with added value?

• Their key points of difference: There are very few truly unique businesses, but most companies have some points of difference which helps them attract different target customers.

Business planning step 3: Refine your proposition

Having done your market and competitor research, you can refine your own proposition more confidently. Key things to define are:

• Your goods/services: Are you solving a problem people care about? Adjust your offering if necessary to better meet your audience’s needs.
• Your market position and pricing: Will you be seen as a cost-effective choice, or a premium provider with a bespoke service?
• Your points of difference from your competitors: Use what you learnt to identify a niche or positioning that helps you stand out. You don’t need to reinvent the wheel—but you do need to make it your own.
• Your target customers: Create a customer profile that outlines where they live, how they shop, and what matters to them—this will enable you to tailor your messaging accordingly.

Business planning step 4: Choose your accountant, lawyer and commercial insurance broker

Even as a sole trader working from home, being a business owner takes you into a whole new territory that you will need to understand to ensure you are compliant, that your business interests are legally protected, that you have the right insurance in the event that anything goes wrong, and that you aren’t paying too much or too little tax.

The need for professional advice ratches up if you’re going into business with a partner, if you’ll need to make significant investments to get your business off the ground, if you’re likely to employ staff from the get go or if you need to take on large commercial premises.

It’s worth ensuring you have your chosen A team on board from the start, even if your requirement for them is not that great in the early stages:

• Accountant: Will help you set up your business structure (sole trader, limited company, partnership), register with HMRC, manage bookkeeping and VAT, and ensure you are tax-efficient.
• Lawyer: Can help you create contracts, terms and conditions, intellectual property protection, partnership agreements, and employee contracts.
• Commercial insurance broker: Will guide you through the types of cover you need—such as public liability, professional indemnity, employer’s or contents insurance—based on your sector.

Ask other small business owners in your network for recommendations and meet a few providers for a free consultation before deciding who to work with.

Business planning step 5: Create your business identity

Your business identity is more than just a logo—it’s the face, personality and tone of your business. Key elements to consider include:

• Business name: Should be memorable, relevant, and available (check Companies House and domain name availability).
• Logo and colour palette: These create instant recognition—hire a designer or use tools like Canva to get started.
• Tone of voice: Is your brand formal and professional or chatty and relaxed?
• Mission and values: What do you stand for? This helps customers connect with your purpose.
• Design consistency: Use the same fonts, colours and style across your website, emails and marketing materials.

Business planning step 6: Create your digital presence (your website)

Your website is often the first impression potential customers get of your business. Even if you’re setting up a bricks-and-mortar business, you will need a website so customers can research your offering before coming to visit. It should:

• Be mobile-friendly: Over 50% of users browse on phones.
• Clearly explain what you do: Use simple language to outline your services or products.
• Include clear calls to action: Tell visitors what you want them to do—call, book, buy, or subscribe.
• Offer contact details: Make it easy for people to get in touch.
• Use testimonials or reviews: These help build trust early on.

Business planning step 7: Create your social presence

Social media is a powerful (and free) tool for new businesses to grow visibility and connect with audiences quickly. It helps you:

• Build brand awareness
• Engage with early adopters
• Get feedback and insights
• Drive traffic to your website
• Create community

Things to think about:

• Choose your platforms: LinkedIn for B2B, Instagram for visuals, Facebook for community, TikTok for younger audiences.
• Consistency matters: Post regularly, not perfectly.
• Engage, don’t just broadcast: Reply to comments, like other posts, and build relationships.
• Schedule your posts: Use tools like Buffer or Hootsuite to manage your content calendar.

Business planning step 8: Create a marketing strategy to launch your business to the world

A great launch can help build momentum fast. When creating your launch strategy, think about:

• Who you are targeting and where they are
• What messaging will resonate with them
• How to create a sense of urgency (e.g. launch offers)
• What marketing channels to use (email, social media, flyers, PR)
• How you’ll track results and adapt
• Whether you need a soft launch to test systems before going fully live

Starting your own business is exciting and challenging – taking the time to plan properly gives you the best shot at success.

If you’re looking for office space from a provider that wants to support your business success, get in touch.