Do you have a great business idea you’re passionate about? Getting started is much quicker than you think, and you could become a business owner in as little as 24 hours.
From choosing the perfect business name to creating an online presence, the UK’s leading company formation agent, Rapid Formations, will take you through the key steps to starting a business today.
Choose a business name
Your business name will be a core part of your brand identity on which customers, partners, and clients will often base their initial opinions of your company. If you don’t have one in mind already, you should develop a concise, memorable, and distinctive name.
It’s important to note that all UK-registered company names must be unique. So, check if the business name you want is available. You can do this with just one click on the Rapid Formations website.
Sole trader or limited company?
Next, you’ll need to decide whether to operate as a sole trader or a limited company, the UK’s two most popular business structures. Their key differences include:
Sole traders:
- Are self-employed
- Report their earnings to HMRC via annual Self Assessment tax returns
- Pay Income Tax
- Are not regulated by legislation
- Cannot legally protect their business name (unless trademarked)
- Are not a registered business, which could make it more challenging to secure funding
Limited companies:
- Pay Corporation Tax (this is charged at a lower rate than Income Tax, generally making limited companies more tax-efficient)
- Are registered at Companies House, so they are often seen as an esteemed business structure
- Allow for succession, as they continue to exist unless formally dissolved
- Legally protect the company name during its lifetime
- Are regulated by the Companies Act 2006 (they are legally obligated to report their activities, which can make lenders, investors, and customers more likely to trust them)
In addition to these, liability is a vital differentiator that may help you make your decision. Sole traders are personally responsible for the entirety of their business finances. If the business accrues debts or faces legal action, the owner may need to pay these off personally.
However, limited company owners (shareholders) can minimise that risk and protect their personal assets. They are only financially liable up to the nominal value of their company shares.
Register your business
Both registration processes are quick and straightforward whether you opt for the self-employed or limited company route.
You can start your business activities immediately as a sole trader—all you need to do is register for a Self Assessment with HMRC. The deadline for this is 5 October, after the end of the tax year.
To register a limited company, you need to apply to Companies House. Rapid Formations can help you with this. Simply tell us your company name, select a company formation package, and fill out your company details.
We’ll then check your application before sending it to the registrar and email you all your incorporation documents. Many companies are approved and registered on the same day.
At this stage, you’ve started a business in just one day. To help it thrive, move on to the next steps.
Write a business plan
A business plan will help you plan your company’s first few years, detect its strengths and growth opportunities, and determine whether your idea is viable in the long term. Some of its main components include a description of your business and its products/services, market research, financial analysis, and a logistics and operations strategy.
You should also think about an exit strategy. We can’t predict the future, so it’s best to be ready for any eventuality. Banks and lenders will also want to see that you’ve considered and prepared for every scenario, making them more likely to trust you when applying for funding.
Create an online presence
An online presence will allow potential customers to learn about and interact with your business and develop that all-important trust. Your website, social media profiles, and a Google Business page are the three channels to prioritise. Fortunately, these are all quick and easy to set up.
Popular website builders like WordPress and Wix offer free subscription options, including plenty of templates to help you design the perfect website in no time.
Creating social media profiles for your business is instant. Work out which platforms your audience is present on and which they’ll find most valuable, and start there.
For instance, if your core customer is under 25, you may want to focus on Snapchat or TikTok. Or if it’s millennials, YouTube or Instagram might be more suitable.
Finally, a Google Business profile is a one-stop shop for new customers seeking local businesses. It puts your location, opening hours, contact information, website, and reviews all in one place, making your business easier to find and instilling confidence in potential customers.
Conclusion
Starting a business in 24 hours is possible with the proper preparation and tools. And with help from the company formation experts at Rapid Formations, the process is even smoother. Take the first step today, and you could be running your own business by tomorrow.
