Want to start a business from home? From ideas to permissions and things to consider, read our guide on running a business remotely. Starting a Business from Home - What You Need to Know 10 min read Company Formations Table of Contents Categories Understanding the concept of home-based business Essential steps to start a home-based business Legal considerations for home-based businesses Setting up a home business while working full time Getting started on your business at home Choose the right business idea Create a business plan Set up your home workspace Managing finances as a home-based business Using your home address for your business Balancing work and home life Growing your home-based business Key takeaways Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office It’s undeniable that Covid-19 had an impact on where we prefer to work. Prior to the pandemic, around 1 in 10 of the UK’s workforce worked at least one day from home. During the pandemic, this changed to 49% of workers, and once restrictions were lifted, around 1 in 5 people worked at least one day from home per week. This shift towards home-based working has consequently changed how and where people prefer to work. Perhaps you’re seeking flexibility or a better work-life balance, or even looking to fulfil a life-long dream. Whatever your motivation is for starting a business from home, there’s really no feeling quite like being your own boss. Here, we’ll uncover exactly how to start a small business from home, diving into the opportunities and challenges you’re likely to encounter along the way. With this insight, you’ll be ready to start building your home-based business in no time. Understanding the concept of home-based business As the name may suggest, a home-based business is a small business that operates from the business owner’s home. As well as location, home-based businesses often have only a small number of employees. Several reasons could spur the decision to start a home-based business. Perhaps you’re looking to say goodbye to the 9-5 and seek a more flexible work schedule, or maybe you’re looking to operate from home to spend more time with your family. Whatever your motivation, starting a business from home continues to be on the rise, with around 50% of small businesses beginning their business journey from home. While a home-based business can offer you several benefits, from not needing to rent an office space, to being flexible on the hours you work, there are some obstacles you may encounter along the way. Operating from home may leave you feeling lonely at times, and you may find it tough to switch off at the end of the day when your home is also your workplace. But there are solutions to these challenges, which we’ll cover later on. You won’t know what works best for you until you try it, right? Essential steps to start a home-based business Ready to put your entrepreneurial spirit into action? Here are some essentials you’ll need to tick off your list to start a business from home. Decide on a business idea: A great business idea is the first step in your journey. If you know you want to start a business but can’t settle on an idea, our ideas to start a business are sure to leave you feeling inspired. Form your business: To form a business in the UK, you’ll need to register your company with Companies House . You can choose to do this yourself through the Companies House website for £50, or to save yourself the hassle, we can take care of the formation process for you for free (yes, really!). Decide on a workspace: Try to find a space within your home you can dedicate to your new business. Not only is this a way of keeping your home and work life separate physically, it can also help you get into the work mindset each day. You could turn your spare room into an office, or transform the garden shed into your workshop. Get creative and bring your business vision to life. Get your workspace ready: Once you’ve chosen where you’re going to work from, it’s time to get decorating. Make sure you have all the equipment you need (if you’re looking to keep costs to a minimum, could you consider renting or borrowing some equipment at first?), and create a workspace you’ll feel happiest in. After all, you’re in charge! Who’s to stop you from painting your new office pink to celebrate your new venture? Legal considerations for home-based businesses Depending on the type of business you’re looking to start, there may be legal considerations you’ll need to look into beforehand. You may need permission to start your home-based business, or you may need to take out insurance. Here are some legal considerations that may apply to you: You’ll need to check if you need permission from your mortgage provider or landlord, local council or local planning office to run your business from home. You may need business insurance to protect your business against the unexpected. The type of insurance you’ll need will depend on the type of business you’re looking to start, and if you plan to hire employees. Looking to hire others to support you on your journey? You’re legally required to take out employer’s liability insurance. If you regularly interact with or serve members of the public, you may choose to take out public liability insurance as well. Looking to start a food business ? While you don’t need to hold a food hygiene certificate to prepare or sell food in the UK, you must ensure you receive food hygiene training. The government provides free online food safety training courses to help you brush up on your knowledge. Setting up a home business while working full time There’s nothing stopping you from setting up a business when you’re already employed. Perhaps you’re planning to eventually leave your current job once your new business takes off, or only looking to start a business for some extra cash. If you can manage your current job responsibilities while becoming an entrepreneur, you should take full advantage of the opportunity! Here are some considerations to keep in mind should you choose to follow your business dreams while working full time: Don’t rush: Try not to let yourself become overwhelmed - there’s no rush when it comes to starting your business. Prioritise your existing work and if you have some free time to spend on making your business plans come to life, go for it. You can start a business at any age, there’s no need to panic. Maintain a work/life balance: Working full time while trying to start a business leaves you with little ‘you’ time. Perhaps you have little ones to take care of, or need to factor in time to unwind. Make sure to consider the needs of your family and yourself - try to take regular breaks and adapt your schedule to meet the needs of your family and your wellbeing. Be mindful of your employer: Depending on the nature of your day job, you may have certain rules within your contract that you’ll need to follow. You could end up in trouble if you develop an idea while at work, for example, which you then decide to use to start your business. Make sure you have the evidence to hand that your business idea was developed outside of your paid employment. Getting started on your business at home Starting your own business is truly the adventure of a lifetime. If you’re ready to become your own boss, we’ve covered everything you’ll need to start a business from home below. Choose the right business idea Your new business is likely to take up a lot of your time, so it’s important to choose something you care about. Of course, making a profit is important, but enjoying the work you do matters most. If you’re stuck on where to start in choosing a business idea , a bit of self-reflection can get you started. Ask yourself why you want to start a business. Maybe you’re looking for financial independence, or to fill a gap in the market. From there, you can tie your ‘why’ with your passions or talents. Maybe you’re a winning writer, or a connoisseur in the kitchen - with passion and determination, a business idea will appear when you least expect it. Create a business plan Writing your business plan is an essential part of your entrepreneurial journey. It details your company’s plans and objectives and how you set out to achieve these goals. Your business plan serves as your go-to manual to refer back to, covering the ins and outs of your business, from your financial circumstances to your market research. If you want to apply for a business loan , the bank will usually ask to see your business plan as evidence of how you plan to grow your business and what you’ll use the borrowed funds for. Check out our guide on how to write a business plan for tips to get started. Set up your home workspace As mentioned, having a dedicated workspace at home is super important. Not only can it get you in the right frame of mind to start work each morning, it can also help you keep your work and personal life separate. After all, there’s no place like home - you’ll want to enjoy your happy place at the end of a long day. Your work environment can affect your productivity. Factors to consider when deciding on your home workspace include noise (which can distract you from those important tasks), lighting and room temperature. Pay attention to the air quality of your workspace, the layout of the room and how comfortable you’ll feel while working. Don’t forget storage solutions, not only to keep your paperwork organised but also to prevent a cluttered desk! If you’re starting a food business and will work from your kitchen, the above still applies. But if you’re working from a kitchen, it’s vital that you pay attention to the cleanliness of your workspace and adhere to good hygiene practices. Managing finances as a home-based business If you’re apprehensive about your new business’ finances, you’re not alone. It’s only natural to worry about your business’ livelihood, particularly if you don’t have much experience managing business finances. Here are some tips to help you stay on top of your business’ money matters: Managing your cash flow: Your business’ cash flow is the money that moves in and out of your business over a period of time. You’ll want to aim for positive cash flow, where you’re receiving more income than you’re paying out. But there may be a time when you experience negative cash flow, for example, a client’s payment may be late. As long as you’ve planned for this negative cash flow and you revert to a positive one, this shouldn’t cause any major problems. Monitor your spending: As a business owner, you may find you have several accounts to your name. It’s important to keep an eye on each of your accounts and keep track of what you’re spending. It’s all too easy to use your business bank card for a work lunch now and then, but this can soon mount up. Keep a log of your expenses so you’re not left with a hefty, unexpected bill! Keep your funds separate: While it’s not a requirement to keep your business and personal finances separate, it can help to keep things organised. That way, you’ll have separate bank statements for your business and your personal spending, so you can monitor your funds and reach your goals. Stick to a budget: Putting together a business budget can outline all the expenses needed to keep your business running and ensure you don’t overspend. Your budget can also forecast the revenue you expect to generate, so if you don’t hit your targets you can find a way to cut back on your expenses. Using your home address for your business To form a company in the UK, you’ll need a physical UK address. This address will be shown on the public register, and all mail from Companies House will be sent there. While you can use your home address as your business address, you may prefer not to, to protect your privacy. To avoid the cost of renting a physical office space, you could opt for a virtual office address instead. SUAZ’s virtual office service gives you a business address in the bustling city of Manchester which can be used to protect your home address and establish your professional image. Balancing work and home life Working from home offers flexibility and convenience, but does come with its challenges. Here are some challenges you may face as a home-based business and how to overcome them: Maintaining boundaries: The blurring of boundaries between your work and personal life can be all too easy when working from home, making it difficult to switch off at the end of a long day. Setting aside a space that you use purely for work can help you differentiate your work and home life - and remind those you live with not to interfere when you’re busy! Feeling isolated: It’s easy to feel lonely when working from home. After all, you’re likely to miss out on the social activities and interactions you gain from a typical office environment. Make sure to set aside time to see others, whether that be meeting for lunch (virtually or in-person), or attending networking events. Managing your time: There are often more distractions when working from home. If you need to focus on a particular task or project, be sure to work in a quiet area, free from distractions, to meet your goals. Growing your home-based business You have your winning business idea and the determination to get you where you want to be. Next, you’ll need to find a way to get your business’ name out there so you can reap the rewards you’ve worked hard for. Some strategies for growing your home-based business include: Set clear goals to hold yourself accountable and put together your business plan. Identify your niche - what makes your business stand out against your competitors? Tailor your service or products to appeal to your target market. Get your name out online by building a website and social media presence. Collaborate with other like-minded people by attending networking or industry events. Nurturing those relationships can lead to new business opportunities and partnerships. Key takeaways Starting a home-based business offers flexibility, convenience and the freedom to work in a way, and a space, that is entirely yours. To make your home-based business a success, you’ll need to establish clear boundaries between your work and personal life, which can be a challenge. With a strong business plan, motivation and a designated work space you’ll thrive in, there are no limits to what your next chapter can bring. Ready to form your own business? Our professional company formation service can support you every step of the way, so you have one less thing to think about. Apply to form your company today and bring your dream to life. Recommended Readings

Learn the key differences of paying tax, personal liability and more if you’re weighing up whether to run a business as a sole trader or a limited company. Self Employed vs Limited Company - What’s Best? 12 min read Company Formations Table of Contents Categories What’s the difference between a sole trader and a limited company? Tax differences between self-employed and a limited company Tax if you’re a sole trader How much can you earn self-employed before paying tax? Tax if you’re a registered limited company VAT Could I change from a sole trader to a limited company? Greater pension options Reduced risk of personal insolvency You could sell your business Weighing up your options to form a company Let SUAZ help you on your business journey Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office No feeling compares to taking the leap to start your own business. Financial freedom, flexible working hours and the ability to build a culture you care about - the list of benefits is endless. From doing your research, you’ll know there are several big decisions you’ll need to make as a business owner - and we’re not just talking about the paint colours of your new office. You’ll need to decide on the structure of your new business, and weigh up the pros and cons of a self employed vs limited company. Below, we’ll uncover the difference between a sole trader and limited company, so you can figure out which business structure works best for your new venture. What’s the difference between a sole trader and a limited company? While operating as a sole trader or limited company won’t change your role as a business owner, there are numerous differences to consider when you compare limited company vs self employed in the UK. We’ve put together this table to outline the differences between a sole trader and limited company, so you can match your needs to a business structure that works for you. Sole trader Limited company You’ll need to register with HMRC to let them know you’re self-employed Limited companies are treated as separate legal entities, meaning you aren’t personally responsible for your business’ losses or debts You’ll be personally liable for any business debts or financial losses Most limited companies are ‘limited by shares’, meaning they’re owned by shareholders. You can own 100% of the company, or a percentage of it depending on the weighting between shareholders If you’re sued, your personal assets may be at risk It will cost you money to register as a limited company (a £50 registration fee) but SUAZ covers the cost to make it more affordable for you to chase your dream It doesn’t cost you anything to get started as a sole trader - but remember, you’re personally liable should things go wrong financially When your business is registered you become a director of the company Tax differences between self-employed and a limited company A key difference between becoming self-employed and forming a limited company is tax. Below, we’ll explore some of the tax implications of a self employed vs limited company. Tax if you’re a sole trader As a sole trader, you’re responsible for keeping on top of your taxes. How much tax you pay will depend on the profit you make and how much income you earn each financial year (which runs April-April). Once your income exceeds the tax-free personal allowance threshold, which is £12,570, you’ll need to pay tax on anything you earn over that amount. Sole traders pay between 20-45% income tax, whereas limited companies pay only 19% corporation tax, making them more tax efficient. Those who are self-employed are also required to pay National Insurance Contributions (NICs) and the class you pay depends on the profit you make. If you make a profit of £6,725 or more a year, Class 2 contributions are treated as having been paid to protect your NI record, so you don’t need to pay Class 2 contributions. If you earn less than this a year, you don’t need to pay anything but can choose to make voluntary Class 2 contributions to protect your NI record, so you qualify for certain benefits and the state pension. Make more than £12,570 a year? You’ll need to pay Class 4 Contributions, which for the 2024-25 tax year are as follows: 6% on profits of £12,570 up to £50,270 2% on profits over £50,270 How much can you earn self-employed before paying tax? You’ll pay tax on anything you earn over the standard Personal Allowance, which for the 2024/25 tax year is £12,570. Tax if you’re a registered limited company As a limited company, you’ll pay corporation tax, which is typically less than the income tax you’d pay as a sole trader. If your business made more than £250,000, you’ll pay the main rate of corporation tax which is 25%. If your company’s profits were £50,000 or less, you’ll pay the small profits rate of 19%. As a company director, you may choose to pay yourself a mix of salary and dividends, meaning your salary amount is smaller, and in turn, you’ll pay less tax. Dividends are taxed at a lower rate , allowing you to maximise your take-home pay. This method also lowers the amount of National Insurance you’ll pay. As the director of your limited company, you’ll pay two types of National Insurance contributions - the company itself will pay NIC as an employer, and you’ll also pay it on your salary. You’ll be responsible for paying National Insurance through HMRC’s PAYE (Pay as You Earn) system, as part of your business’ payroll. Limited companies are also required to file annual reports to Companies House, which become available to the public. These accounts include details on your profits and losses, a balance sheet, a director’s report, an auditor’s report and your name and signature. VAT Whether you’re a sole trader or limited company, you’ll need to register for value added tax (VAT) if your turnover goes over £90,000 - the VAT threshold. You can also choose to register for VAT if your turnover is less than £90,000, known as voluntary registration. Currently, in the UK, the rate of VAT is 20%. A good way to think of it is your business isn’t paying VAT - instead, you’re charging your customer, for you to then pay HMRC. You’ll then complete a VAT tax return, usually quarterly, to let HMRC know how much VAT you’ve charged. You’ll need to include your total sales and purchases, the amount of VAT you owe, the amount of VAT you can reclaim and the amount of VAT HMRC owes you. You can submit your VAT return using compatible accounting software, through an agent or accountant, or by using your online VAT account . Could I change from a sole trader to a limited company? You have the freedom to operate as a sole trader initially while you find your feet, and later decide to register your business as a limited company. Just because you started out as a sole trader, it doesn’t mean you can’t change your mind further down the line. But, it’s important to be aware of the challenges many new businesses face. According to the UK’s self employed survival rates for 2025 , a significant number of sole traders close within the first few years. Understanding these survival rates can help you plan your business journey more effectively. Changing from a sole trader to a limited company could shield you from financial risk. This is because a limited company is treated as a separate legal entity from its director, meaning you won’t be personally liable should your business suffer financially. You may also benefit financially when it comes to business tax. Rather than paying between 20-45% income tax, you’ll pay corporation tax at 19%. As a director, you can also choose to take home a smaller salary and receive your additional income as dividends to help lower your tax bill. There are further benefits to registering as a limited company including: Greater pension options As a sole trader, you’ll only be eligible for a personal pension and you can’t deduct your pension contributions as an expense of your business. This means your contributions will need to come from your take-home pay after tax. You’ll still be eligible for the State Pension as long as you have ten qualifying years on your National Insurance record to get any state pension, and at least 35 years to receive the full State Pension. Operating as a limited company can unlock greater pension options. Your pension contributions can be treated as an allowable business expense if the payments are ‘ wholly and exclusively ’ for the purposes of the profession, trade or vocation. What does this mean exactly? Well, you can offset the pension contributions against your business profits and in turn reduce your corporation tax bill. As a limited company, you may also have the chance to join or provide a small self-administered scheme, known as an SSAS pension - a type of workplace pension that is independently managed by the company that sets it up. Reduced risk of personal insolvency As we mentioned earlier, as a limited company you have the legal protection that should your business face financial difficulties, you won’t be personally affected. This is known as limited liability , which protects you should your business ever struggle with debts, financial losses or liabilities, the business itself is responsible for them - not you individually. This is because, in the eyes of the law, your business is classed as an ‘individual’ and separate legal entity. You could sell your business You never know what the future holds - one day you may feel ready for something new and choose to sell your limited company. Remember, if you have more than one owner, all shareholders will need to agree to the sale first. You may also need to pay capital gains tax if you make a ‘capital gain’ when selling your business. Weighing up your options to form a company Deciding which business structure suits you best can feel tricky, especially when you consider the differences between a sole trader and limited company. To help you weigh up your options, we’ve put together this comparative table comparing a self employed vs limited company. Advantages Disadvantages Sole trader You’ll have full flexibility and control over your business without the input of shareholders You don’t need to register your business with Companies House, meaning you’ll have less paperwork to complete You keep all profits after tax You aren’t legally separate from your business, so you’ll be personally liable for any business debts Your personal assets are tied to your business The tax you pay will depend on your income (between 20-45%) Limited company As the owner of a limited company, you’re financially protected should your business suffer financially Your personal assets aren’t tied to your business Your limited company is treated as an ‘individual’ and is a separate legal entity You’ll pay corporation tax at a flat rate (19%) Control is shared between owners, known as ‘members’ You have to register your company with Companies House and pay a registration fee (unless you register with SUAZ - we’ll cover the registration fee for you) Your profits are taxed via corporation tax, income tax and National Insurance Let SUAZ help you on your business journey If you’re looking to start your own business, there’s no reason to wait. Why not let SUAZ help you on your road to success? We can help you form your limited company and even take care of the registration fee, completely free of charge. Apply to form your company and reap the rewards you deserve. Recommended Readings

Determine the right amount of professional indemnity insurance for your needs with our practical guide. Read more to protect your business effectively. How much professional indemnity insurance do I need? 15 min read Company Formations Table of Contents Categories What is professional indemnity insurance? Factors influencing how much professional indemnity insurance you need Calculating the appropriate level of professional indemnity insurance Minimum vs. recommended levels of cover Balancing cost and coverage Tips for choosing the right PII policy Reviewing and updating your cover Start your business journey Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Taking the leap and starting your own business is a one-of-a-kind adventure. And after all that hard work, the last thing you’d want is something to go wrong and affect the longevity of your business. That’s why taking out the right business insurance is so important. If your business offers professional services or advice, or works with data or intellectual property, you may benefit from taking out professional indemnity insurance (PII). PII offers financial protection - there to cover you financially should a client claim your advice or services caused them harm. Without it, you may need to pay out for legal costs and compensation yourself, which can be extremely costly. In this guide, we’ll answer the question ‘how much professional indemnity insurance do I need?’, by explaining how to calculate the level of coverage you require. We’ll also explain how to choose the right policy for your business needs. What is professional indemnity insurance? As a business owner offering professional services, you likely take pride in all the hard work you’ve put into your career. With this in mind, the last thing you want is the unexpected threatening your business’ reputation or financial wellbeing. That’s why professional indemnity insurance is so important - to cover you financially should a client file a claim against you. Your policy will cover the cost of compensation and legal fees, should a client accuse you of providing negligent services or offering poor advice that leads to financial loss or damage. You’d also want to be wise and think about all potential risks your business may face. That’s why you may consider bundling PII with other types of insurance to make sure you’re fully protected. Public liability insurance is another type of cover, designed to protect your business from accidents because of your business activities. To understand the specifics, our guide on what is public liability insurance and what does it cover answers all possible questions on this topic. Factors influencing how much professional indemnity insurance you need How much professional indemnity insurance you need is likely to depend on several factors, including: Industry requirements: Some industries, such as legal, financial and healthcare are required to have a minimum level of cover. Even if you’re not legally required to have insurance, it may be common practice to have a certain level of coverage to remain competitive or credible in your field. If you’re a member of a professional body, they may require you to have a minimum level of indemnity insurance to be registered with them. Client contracts: Clients may ask that you have a minimum level of PII to protect themselves, and may ask that this is listed in their contract. Risk exposure: How much risk you’re exposed to will depend on the nature of your services. For example, if you have a higher chance of making errors that could cost you financially or damage your reputation, you may require more coverage. Business size and revenue: Chances are the higher your revenue, the more exposure you have to claims. You may wish to choose a higher policy limit to protect yourself as your business grows. Your business size can also impact how much coverage you need, as having a larger team increases the likelihood of errors. Calculating the appropriate level of professional indemnity insurance To calculate how much professional indemnity insurance you need, you should evaluate potential risks and the financial impact of any claims on your business. First, consider the largest possible financial loss that could occur due to an error in your work. Consider the costs of rectifying your mistake, any compensation you would owe to clients, legal fees and the damage to your reputation that would arise. What may feel like a small mistake to you could cost you significant money, which without insurance you would need to pay for yourself. For example, an insurer paid £22,500 for an architect who was sued by his client for the costs of rectifying an extension built from a flawed design. Another way to calculate how much PII you’ll need is by looking at how often claims occur in your industry. High-risk industries such as construction, legal and finance, typically experience more claims than lower-risk sectors. The same applies to projects - the more complex your projects are, the more risks or errors they’re likely to carry. Minimum vs. recommended levels of cover While you could opt for the minimum amount of coverage, which is often dictated by industry standards and regulatory requirements, this may not be enough to fully protect your business. For example, law firms in the UK must have the compulsory primary £2m or £3m of cover in line with the Solicitor's Regulation Authority’s Minimum Terms and Conditions, but you may choose to take out additional cover to fully protect your business. Depending on the complexity of their projects, those in construction often need at least £250,000 to £1 million in professional indemnity insurance. However, recommended coverage often exceeds these amounts once you consider factors such as larger potential claims and high-value contracts. Try to balance minimum requirements with recommended levels to ensure your business is fully protected should the unexpected happen and you need financial support. Balancing cost and coverage You’ll want to find the right balance between cost and coverage to ensure your policy protects you for what you need it to, but doesn’t blow your budget. The higher your cover limit, the higher the premium you’ll pay. While you could pay less for your professional indemnity insurance, this could leave your business vulnerable with less coverage to protect it should you need to claim. To manage these costs, you may choose to pay a higher policy excess, meaning you’ll have more to pay in the event of a claim. But it’s important that you have the funds available to cover this cost if a claim does arise. Ultimately, to balance cost and coverage you’ll need to assess your level of risk, how likely you are to make a claim and if you’ll have the funds to hand to cover a higher excess should you need to. Tips for choosing the right PII policy Knowing you have the right professional indemnity insurance policy for your needs can give your business the confidence to thrive. Here are our top tips for choosing the right PII policy: Research the provider’s reputation: Try to choose an insurer that is known for handling PII claims effectively. Read their reviews, especially from other businesses in your industry. Review your policy coverage: Make sure the policy covers all the risks associated with your business (such as errors, omissions and negligence), including legal defense costs. Check policy flexibility: Choose a policy that can be amended should your business change. Check that you can adjust your coverage limits as your business grows. Consider additional coverage options: Consider policies that bundle PII with other types of insurance such as public liability insurance to ensure you’re fully protected. Compare premiums and excess: Gather quotes from different providers to compare pricing and excess. Try to balance premium costs with the excess cost, to ensure you can afford to pay it if you need to claim. Reviewing and updating your cover There’s more to professional indemnity insurance than just getting your policy. You’ll need to remember to review and update your policy regularly to ensure it continues to support you and your business’ needs. Try to conduct a review of your policy at least once a year, checking that your cover limits align with any contractual obligations you have and current industry standards. Also ensure you update your policy as your business grows. It’s likely that as your business evolves, your exposure to risk increases, especially if you’ve taken on larger clients or expanded your services. Make sure your policy is adjusted to cover these changes so you remain fully protected. Don’t forget to review your claims history and identify any patterns, such as recurring issues that may affect your risk profile. If you’ve needed to claim, your premium may have increased, so make sure your policy remains competitively priced and you’re still covered for similar claims going forward. Start your business journey Getting your professional indemnity insurance taken care of means you’re a step closer to chasing your business dreams. With SUAZ, you can form your limited company for free (yes, really!) with professional advice and support every step of the way. Form your limited company today. Recommended Readings

Ensure you’re HMRC tax compliant by claiming the correct deductible expenses while running your business. Learn which expenses you can claim to deduct costs. What tax-deductible expenses can limited companies claim? 12 min read Company Formations Table of Contents Categories What are tax deductible expenses? What are the rules for claiming expenses tax-free? What business expenses can you claim as tax deductible? Business premises’ rent Business insurance Office costs Equipment Accommodation Business travel and mileage Eye care Training Pensions Marketing and advertising costs Using your home as an office What are allowable expenses for employees? What type of expenses aren’t tax deductible? How do you claim tax-deductible expenses? Start your business journey Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Tax can feel like a lot to get your head around as a new business owner, and it’s natural to worry about getting things wrong. Understanding which expenses are tax-deductible can ensure you’re paying the right amount of tax and maximise your business’ financial efficiency. Tax deductible expenses as a limited company can significantly reduce your Corporation Tax bill, but it’s important that you understand the rules to avoid making any errors. You may choose to work with an accountant to alleviate any anxieties - they’ll talk you through the complexities of business tax and ensure your finances are managed correctly and efficiently. In this guide, we’ll uncover what expenses are tax deductible and how allowable expenses for employees work, so you can navigate your business tax with ease. What are tax deductible expenses? As a new business, chances are you’ll need to invest in certain equipment, tools or workspace for your business to run effectively. For example, if you run a construction company , you’ll need the right equipment and safety gear to get things up and running. Your business wouldn’t be able to function without these costs, so you won’t pay tax on the money you spend on them. The costs are deducted from the business’ gross income before tax - so if your business made £250,000 in the last year, but had £8,000 worth of tax deductible expenses, only £242,000 would be subject to tax. For an expense to be tax deductible, its purpose must be ‘wholly and exclusively’ for your business. So, if an expense is for both personal and business use, you can only claim tax relief on what you used for business. What are the rules for claiming expenses tax-free? You can’t claim just anything as tax deductible expenses. There are rules you’ll need to follow, including: ‘Wholly and exclusively’: You can only claim expenses that are wholly and exclusively for the running of your business. No dual-purpose expenses: You can’t claim expenses that have a dual purpose for business and personal use. For example, if you bought train tickets to see a client and continued your journey for leisure purposes, you can only claim the portion of the travel that was for business. Payment method: Business expenses can either be paid through your business bank account, or if you paid for a business expense with your personal account you can be reimbursed later by your business. Record keeping: Make sure you keep detailed records of all business expenses, including receipts, bank statements and invoices. That way, you have evidence to justify these expenses should HMRC challenge them. Corporation Tax offsetting: You should be able to offset against your limited company’s Corporation Tax liability. But it’s important to note that there are some exceptions to this rule, such as business entertainment which isn’t deductible. Necessary and reasonable: Your tax deductible expenses should be necessary for business purposes, and a reasonable amount. Claim on time: Make sure you claim expenses in the correct accounting period. For example, if you incur a business expense in May but pay it in June, it should be claimed in the May accounting period. What business expenses can you claim as tax deductible? So, what expenses are tax deductible? We’ll explain some of the most common business expenses you can claim for when starting your new business. Business premises’ rent If you rent an office or other working space for your business, this is generally fully tax deductible. You can’t, however, claim expenses or allowances for buying business property or premises. Business insurance As a new business owner, the last thing you want is disaster striking and affecting the running of your business. While we can’t predict these things happening, business insurance can soften the blow and can offer peace of mind against the unexpected. As long as your policy is explicitly for business purposes, you should be able to claim business insurance as a tax deductible expense. The types of business insurance you should be able to claim for include public liability insurance, employer liability insurance and professional indemnity insurance. Office costs If you pay for communicative assets such as an office landline, internet and mobile phones, you should be able to claim them as tax deductible expenses. Other office costs include stationery and office supplies, including food and drinks for employees. Equipment Provided your equipment is used solely for running your business, you should be able to claim the cost as tax deductible expenses. This equipment may include office furniture, vehicles, electrical goods and stationery. Accommodation When your limited company incurs accommodation costs for business trips, these expenses can be claimed as tax deductible. So, if you or your employees need to stay overnight for business reasons - such as visiting a client or project site, or attending a conference, the cost of a hotel or other accommodation can be deducted from your business’ taxable income. Remember, the accommodation must be ‘wholly and exclusively’ for business purposes, so if you need to extend your stay for personal reasons, that duration of the trip would not qualify. Make sure you keep detailed records of the trip, including any receipts, to support your claim. Business travel and mileage You can claim travel expenses if the trip isn’t just regular commuting and is made ‘wholly and exclusively’ for business purposes. You can claim various travel expenses, from the costs of running a vehicle such as fuel and parking fees, to transport fares for flights. So long as you use your vehicle for business trips and have paid for the fuel costs, you can claim back the mileage from HMRC. Just ensure that your journeys are ‘wholly and exclusively’ for business purposes, such as trips between two workplaces for the same job, going from an employee's home to a client or trips taken to complete work. Just keep in mind that you can only claim the cost of fuel if your company owns the car. See below for the rates you can claim for travel: Vehicle First 10,000 miles Over 10,000 miles Car, van £0.45/mile £0.25/mile Motorcycle £0.24/mile £0.24/mile Bicycle £0.204/mile £0.20/mile Eye care As a limited company director, you can claim eye tests and eyecare as an allowable expense against Corporation Tax, if you use a computer screen for over an hour a day. If your glasses are purely needed for work purposes you can claim the cost back against tax. But like other tax deductible expenses, make sure you’re able to prove this and that you don’t wear your glasses for personal reasons. Training As a business owner, you may be able to receive tax relief on training courses and learning materials (such as books) for you and your employees. The rule around this is that the course must be related to your existing line of work and should teach you new skills too. Should the training update your skills and professional expertise, it can be viewed as a business expense which you can claim for. Pensions Once you’ve come to an agreement with your pension provider, you can contribute towards your pension and it will be a tax deductible expense. Just bear in mind that there’s a £60,000 pension allowance for the 2024/25 tax year - this is the most you can pay into your pension in a single year and still receive tax relief. Marketing and advertising costs Most marketing and advertising for your business can be claimed as a tax deductible expense, as they are considered an essential element of running a business. As a limited company, marketing is essential to get your name out there, connect with your potential customers and boost your profitability. As we mentioned earlier, HMRC’s rule when it comes to business expenses is that they should be ‘wholly and exclusively’ for business purposes - and this includes marketing and advertising. Just some of the marketing and advertising expenses that are tax deductible include: Direct marketing such as leaflets, flyers and brochures that advertise your services Subscription costs to join trade or professional bodies Social media advertising Website costs, including the designing, maintaining and hosting of your website PR activity Using your home as an office If you run your business from home , you can claim a percentage of household utility costs as tax deductible expenses. Deducting your business-specific home costs could make a noticeable difference to your income over time. If you use your home office, you can claim a rate of £6 a week as allowable business expenses. HMRC doesn’t ask you to keep a receipt for this and it isn’t considered a benefit in kind, so you don’t need to pay tax on the amount. You may be able to claim a portion of household costs used by the business, such as utilities and other household expenses. You’ll need to work out which rooms you use for your business and how much time you spend using them for business purposes. From there, you can calculate the proportion of utilities that you can allocate to business use. You can also claim for basic office expenses, such as stationery, printing costs, accountancy and other office supplies. What are allowable expenses for employees? If you’re a limited company with employees, there may be personal expenses they’ll need to cover to fulfil their duties, which you as a business can claim back. For example, your employees may need to purchase lunch while attending a work-related event or visiting clients. You can reimburse these expenses to your employees through your payroll system and then claim them as tax deductible expenses. That way, the money they’ve spent on work-related expenses won’t affect their personal finances. What type of expenses aren’t tax deductible? Some company expenses aren’t eligible for tax deduction, meaning they can’t be claimed as legitimate business expenses. Some examples of expenses that aren’t tax deductible include: Fines and penalties: Any fines, penalties and legal fees incurred due to breaking the law or regulations Personal expenses: As the name suggests, any expenses that are purely personal and aren’t related to business such as personal clothing, personal travel and personal entertainment Income as dividends: Dividend payments to shareholders aren’t considered allowable expenses Donations not made via gift aid: Any donations made to charities, clubs, or political parties Client entertainment: Any expenses incurred purely for entertainment, including gifts and hospitality offered to clients, customers or suppliers How do you claim tax-deductible expenses? Worked out what tax deductible expenses you can claim for? Next, you’ll need to gather your financial records for the year, including receipts for your expenses and submit your claim. You do this through your annual self-assessment tax return. You don’t need to submit your records with your tax return, but should keep them on hand in case HMRC queries any of your expenses. You may benefit from working with an accountant to keep track of your business expenses and submit your tax return accurately and efficiently. That way, you’ll have a professional at hand to make sure all your documents and processes are compliant with HMRC. Start your business journey Tax deductible expenses as a limited company can feel tricky to get your head around, and the last thing you want is to face any potential fines. But by understanding what you’re entitled to claim for, you can significantly reduce your taxable profits and boost your business’ profitability. With Start Up A-Z, it’s never been easier to step into those entrepreneur shoes and chase your business dream. You can register as a limited company for free , and you’ll have our support at every stage of your journey. Recommended Readings

Learn to quote and charge effectively for freelance work with expert strategies. Elevate your pricing game and boost your freelance success with Start Up A-Z. How to Quote & Charge for Freelance Work 12 min read Beginner's Guide Table of Contents Categories How to write a quote for freelance work Negotiating Freelance Rates Dealing with non-payment issues Calculating Your Freelance Rate Get your freelance business off the ground with SUAZ Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office The 2022 report of IPSE says that that there are almost 2 million freelancers in the UK , which shows the rise of more self-employed workers in the region. And if you’re planning to be one of them, knowing how to price your services can be confusing. If you want to know what’s inside a quote for freelance work, we’ll uncover everything about writing quotes, negotiating rates, handling delayed payment issues, and calculating your rate. How to write a quote for freelance work A well-written quote is what you need to secure projects and establish good and professional relationships with your clients. We recommend that this document be as clear as day, outlining the scope of work, deliverables, timeline, and pricing to set realistic expectations for both parties. Below is an example of a well-crafted quote: Let’s breakdown this amazing quote into parts. Here's the things you need to include with helpful tips for structuring your quotes effectively: 1. Project Scope After discussing the full set of requirements with your client, a written document such as the project scope makes sure that all details are on paper. This is where specific tasks fall into, detailing the full work that must be accomplished. If you’re a web developer, the project is commonly split into multiple parts or phases just like this web design quote template. A good tip is to also specify what is not included in the project to avoid misunderstandings later. If the additional work is something that you also offer, you can open a potential discussion on a separate quote for this. 2. Deliverables The deliverables clearly state what the client will receive at the end of the project, such as documents, designs, or code. You may break down the deliverables into parts such as this template or use bullet points or numbered lists for easy comprehension. If you’re a web developer, you can also add the number of revisions in the quote. Techniques like these push the favour to you as you go through the project due to quick turnaround times, eventually leading to faster completion of the project. 3. Timeline These outline the dates and deadlines to keep the project on track. Once you’re clear on what to deliver to your clients, you can set plausible timelines according to your workflow. Giving your clients peace of mind on when to expect the deliverables is a good practice to establish professionalism and potential collaboration in the future. Another good tip is to allow for unexpected delays or challenges by building in some buffer time or offsetting hours from your usual time to finish a given task. 4. Pricing Breakdown Itemise or break down the total cost into individual components, such as hourly rates, fixed fees, or project-based rates depending on certain milestones. When dealing with fees, freelancers usually consider including payment terms on their T&Cs, such as upfront payments, payments per milestones, or final payment upon completion. 5. Additional Considerations We’ve discussed the crucial parts of the quote but it’s as important to use clear, concise and professional language to avoid confusion. Always proofread your quote carefully and don’t forget to include your company details and customer information in your quote. Negotiating Freelance Rates You’d probably agree that haggling is a skill every freelancer must have, especially when it comes to pricing and scope. Potential customers might try to fit their needs within a certain budget and while it’s good to be flexible as a freelancer, you’ll still want to be paid at your desired rate. To start, you want to research the current rates through salary surveys, peers, headhunters, and forums as these sources give you an idea of the industry standard rates. For instance, Glassdoor states that as of October 2024, the average salary for a freelance web developer is £32,697 per year . Sources like Totaljobs, Indeed, LinkedIn, Glassdoor and Upwork provide a goldmine of data on the average market rates in freelancing. Research the skill demand, and assess the project complexities you’ve handled before to benchmark your minimum acceptable rate (MAR). Be ready to walk away if the potential client goes lower than your MAR. Now that you have an idea of the rates to charge, how do you win conversations of getting your desired rate? Here are some strategies to keep in mind: 1. Be confident When it comes to these conversations, confidence is surely your friend. Remember that you are the expert, and clients approach you to avail of your services because they either don’t have the time or the skills to do it. So, approaching a negotiation with a secure and composed facade increases your chances of getting your desired rate. 2. Start higher Paul Whitehead, a director of an IT Recruitment company Career Concept Ltd, states that negotiations on rates usually go down instead of up . So, giving a clear number could help you out. To give you an idea, growth marketing consultant Dan Siepen goes for 20-30% higher than his usual amount . On the other hand, Virginia Hogan , a freelance writer, shares the trick of “letting them say no the first time” because based on her experience, they can still possibly return. 3. Aim for a win-win situation for both parties You’ll most likely lose the negotiation talks when you intend to rip off your clients. Building a good agreement where both parties benefit from the outcome is a great way to win the project and accommodate their request. The negotiation may not just involve money. Perhaps you may consider other parts of the quote such as deliverables and scope when given a tight wiggle room. In such situations, we advise you to stay polite, open-minded, flexible, and assertive by clearly communicating your needs. 4. Focus on value more than price When you're talking about pricing, we don’t want to focus on how much you're asking for. Instead, show your client how much they'll get out of working with you. Talk about what you can do for them, the results you've gotten, and any good feedback you have. Let your work speak for itself. That way, you can start asking for a fair price that doesn't make you look like you're undervaluing yourself. Content writer Sanketee Kher followed this strategy where he established the value of the services first and then laid prices last. 5. Bundle services into packages To get a client to agree to your desired rate, consider offering packages of your services to simplify their needs. By providing deliverables in bundles, you give your potential clients the impression that you are adding value. This is especially useful in situations when they might place a high value on certain services, which have low marginal cost to you. Dealing with non-payment issues Clients not paying is not uncommon for freelancers. In fact, the research commissioned by the Department for Business and Trade (DBT), shows that less than 10% of supplier invoices are not paid within the agreed timeframe . To future-proof your services from these kinds of scenarios, you’ll want to establish clear payment terms on your T&Cs and contracts. First, like other freelancers, you may ask for a 50% upfront fee before starting the project. There is also a law called Late Payment of Commercial Debts (Interest) Act 1998 which protects freelancers like you when dealing with late payments. You can add a note in your contracts saying something like this: “If payment is not made by X date, the client is liable for daily statutory interest of 8% + the Bank of England base rate for business-to-business transactions and £X debt recovery costs as per the Late Payment of Commercial Debts (Interest) Act 1998. This will take effect after the said due date.” But in case you’re already in a position where you are not paid for your work, you may send reminders, check in with your clients by asking politely, add the late fees, hold work until payment is received, or file a court claim . You may also resort to using debt recovery services if the common actions mentioned prior are ignored. Calculating Your Freelance Rate Some freelancers charge hourly, some charge per project, some charge retainer fees and some charge based on value. If you’re new to this game, it can be confusing to figure out your rate. But it always depends. The type of pricing strategy will depend on the nature of the work, complexity of the project, budget and your level of expertise. Hourly rates are usually used for ongoing work where the time it takes to complete a task isn’t always predictable such as legal consultations. Project-based fees are better for one-off jobs with a clear start, finish, and detailed deliverables. An example is when offering website design and development. Retainer fees , on one hand, are for consistent work giving you a steady paycheck for a certain period of time such as social media management and virtual assistant services for email and calendar management. Value-based pricing focuses on the profit the project will bring to your clients, usually in a form of a percentage of the projected value. It’s a popular trend among freelancers to increase the prices of projects. Remember to align your strategy with your main goal. Some freelancers tend to follow project-based pricing strategy because they may be able to work fast. An anonymous content writer in the 2022 data on freelancing writing rates survey by Peakfreelance said: “I started with per-word pricing but as I gained experience I realized it didn’t truly reflect the work needed to create a high-quality post. So I switched to per project rates.” To give you a better idea, below is a summary of different job roles for freelancers in the UK. You might also want to use a freelance calculator to help you get your after-tax pay. Get your freelance business off the ground with SUAZ Freelancing offers a flexible and lucrative career path, but it requires careful planning and strategic pricing. We hope this guide help you in crafting effective quotes, negotiating rates, handling payment issues, and determining appropriate pricing strategies. By understanding these key aspects, you’ll surely increase your chances of securing profitable projects. If you’re ready to start your freelancing business, form your business today with SUAZ to get started. Recommended Readings

Discover the perfect dog walking business name with our suggestions and guide to creating a name. Stand out in the industry and attract clients effortlessly. A Guide to Finding a Dog-walking Business Name 10 min read Beginner's Guide Table of Contents Categories How to choose the perfect dog walking business name Understanding your brand identity Brainstorming business name ideas Evaluating and refining name options Leveraging naming resources and tools Legal and practical considerations 10 example dog walking business names Register your dog walking business with SUAZ for free today Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office So, you’ve decided to start a dog-walking business? Congrats! Financial freedom, job satisfaction and endless opportunities await you. But before you grab your wellies, leash and dog waste bags (so glamorous), you’ll need to come up with some good dog walking business names to help you get noticed. With the amount you have to organise when starting a business, it’s likely that you’ve left your business name until the last minute. But don’t panic - we’ve put together this guide to choosing dog walker business names to inspire you. Our tips and tricks can help you generate a unique and memorable business name that reflects your brand and business mission, and helps you stand out from the crowd. How to choose the perfect dog walking business name Your business name is more important than you may realise. It’s a key element of your business’ identity and is the first thing your potential customers see - so you’ll want to set aside some time to brainstorm your ideas. Deciding on a winning business name doesn’t need to feel im paws ible. Here are just some ways to get you feeling inspired and embracing your creativity. Understanding your brand identity Brand identity plays a crucial role in your business’ overall brand and marketing strategy. Before you start brainstorming the best dog-walking business names, you’ll need to pinpoint your brand identity - all the unique characteristics that influence your brand’s appearance, personality and overall image. Building your brand identity is a lot like a novelist choosing the traits and key attributes of their main character. Your brand identity is your chance to personify your brand, get creative and differentiate your business from its competitors. Try and think of some unique selling points (USPs) that set your business apart from the rest, what your brand stands for and your communication style - how you’ll talk to your customers. Your brand identity encompasses all the visual elements of your brand too, such as your logo, the colours you use and of course, your business name. Having a strong, consistent brand identity can help potential customers spot your business among the crowd and recognise it again in the future. You can build trust with potential customers and eventually build a loyal customer base that returns to your business time and time again. Brainstorming business name ideas For some, coming up with a business name is the most exciting stage of entrepreneurship - allowing you to flex your creative muscles and put a name to all your hard work. Whereas for others, the thought of brainstorming business names may feel like the hardest step in your journey. Some creative ways to brainstorm business name ideas include: Word association: A simple and effective way to get your brain in gear, word association can help you generate business name ideas by thinking of words that you associate with others. First, write down key words that relate to your business such as ‘walking’, ‘dogs’, ‘paws’. Next, list words you associate with each of the core words, such as ‘puppy’ next to ‘dogs’ and ‘outdoors’ next to ‘walking’. Finally, you can try to mix and match your words to create potential names! Mind mapping: Mind mapping can be a great way to visualise the connections between different ideas, allowing you to come up with ideas you wouldn’t otherwise consider. First, write ‘dog walking business’ in the centre of the page. Next, draw branches around for different aspects of your business, such as the services you’ll offer and the values or benefits you hope to demonstrate. From there, you can expand each branch with related terms to then combine your ideas. For example, a branch under ‘values’ might be ‘flexible’ which you could combine with the service ‘walking’ to get ‘Dog Walking, Your Way’. Rhyming and wordplay: You’ll want to choose a business name that’s memorable, so customers return to your business in the future. Using alliteration, rhyme or puns can be a great way for customers to remember you. First, list simple, core words that relate to your business such as ‘walking’ or ‘dogs’. Next, look for words that either start with the same letter or rhyme. You can then combine these words to have a creative, out-of-the-box name like ‘Hounslow’s Happy Hounds’ or ‘Walk Your Wagger’. Acronyms and abbreviations: Using an acronym can make your business name unique and personal to your business’ values. First, list the key elements of your business - for example, you may have ‘professional’ and ‘walking’. From there, you can use the first letters of each word to form your acronym. Make sure your acronym makes sense, is memorable and easy to say! An example is ‘PAWS - PAws itive Walking Service’. Asking yourself the following questions can help you pinpoint your dog walking business name too, by focusing on exactly what your business will offer. Will you exclusively offer dog walking services, or will you provide other services too such as grooming? If so, make sure your name encompasses all the services you look to offer. Would you prefer for your business name to be creative and playful, or would you prefer for it to reflect your company’s professionalism? Do you want to position yourself as the biggest and best, or would you prefer to be a smaller, more luxury-type business? Are you hoping to expand to other areas? If so, you may look to avoid choosing a location-specific name in case you expand your business further afield. Evaluating and refining name options Next, you’ll need to evaluate your list of potential dog walker business names, based on the following factors, to ensure the name is suitable for your new business and reflects the nature of your brand. Relevance: Make sure your potential business name aligns with the nature of your business or industry. Your potential clients or customers should be able to tell you’re a dog-walking business , for example. Also consider your target audience and ensure that your name resonates with them. Memorability: Having a business name that is easy to spell and pronounce and spell, is more likely to be remembered. Uniqueness: Ensure your name stands out from your competitors. It can be tricky finding a unique name, but the more original your name is, the less likely it’ll be confused with other brands. Domain availability: If you plan to have a website for your business, you’ll need to make sure a corresponding domain name is available for your business name. A matching ‘.com’ or ‘. co.uk ’ domain is ideal, but alternatives like ‘.net’ and ‘.org.’ may work too. Name availability: You’ll need to make sure your business name isn’t already taken. You can verify the availability of your business name through our handy name checker - talk about convenient! It’s also worth doing a quick search yourself on major social media platforms like Instagram and LinkedIn, to ensure it’s available when you start promoting your business across social media. Leveraging naming resources and tools If you’re struggling for inspiration or simply need a nudge to get the creative juices flowing, you can make use of online resources and tools designed to help entrepreneurs generate business name ideas. Google is your best friend when it comes to business name ideas, and brands like Shopify and Wix have their own AI-powered business name generators you can try out. Legal and practical considerations While there’s no legal obligation to trade mark your business, there are benefits in doing so. Registering your business name as a trade mark can offer legal protection by ensuring no one else can trade under your business name in your sector. You can use the government’s trade mark checker to make sure there’s no trade mark similar to your brand that already exists in the UK. Once you’ve decided on your business name, you’ll need to officially register your business with Companies House. You can register your business with Companies House yourself for a £50 filing fee, or alternatively, you can let SUAZ take care of things for you. We’ll cover the £50 incorporation fee for you and you’ll get hands-on support every step of the way. We offer several, professional company formation packages to help you get your business up and running, which can offer you peace of mind in knowing everything is taken care of. 10 example dog walking business names Now it’s time for us to share some of our creative (or terrible, it’s all subjective…) dog-walking business name ideas. We’re certain yours will be much more impressive, but here are some examples of good dog-walking business names to get you started. Tail Wagging Treks The Dog Walker’s Delight Your Canine Compass Fetch and Go Wag ‘n’ Walk Pawsitive Strides Strutting Mutts Hiking Hounds Woofing Wanderers Doggy Dashers of Dorset Register your dog walking business with SUAZ for free today An impressive dog-walking business name can set the foundation for success and help you establish a strong brand presence in the dog-walking industry. While starting your own business is sure to be your most exciting adventure yet, it’s also a lot of work. Why not let SUAZ take care of the complicated stuff? Our company formation service can handle the admin and legal aspects of your new venture, with support every step of the way. That leaves you to focus on the most important thing - your life-changing next chapter. What are you waiting for? Form your company today with SUAZ. Recommended Readings

Limited liability is a corporate structure and method of business protection when forming a limited company. Explore what it is and why it's important here. What is Limited Liability in a Business? 7 min read Company Formations Table of Contents Categories Why is limited liability important? What is a sole trader? Does it really make a difference if you’re a sole trader or a limited company? What is unlimited liability? What other types of businesses have limited liability? Public limited companies (PLCs) Limited liability partnerships (LLPs) Limited by shares vs limited by guarantee Limited by shares Limited by guarantee Are there any exceptions to limited liability? Form your limited company today Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office When starting a business, it’s likely you’ll come across a lot of jargon and legal terms that can leave you feeling out of your depth. If you’ve asked ‘What is limited liability?’ - we’ve got you covered. Here, we’ll cover how limited liability works, what the difference is between limited and unlimited liability, and the protection limited liability can give you when starting your own business. Why is limited liability important? Before we dive into why limited liability is so important, we need to answer the question ‘what is limited liability in business?’ Limited liability is the protection you receive as a limited company, should your business face financial difficulties. As a limited company, your business is legally classified as an ‘individual’ and separate legal entity to you and other owners. Limited liability is important to protect you against the unexpected. So, if your business ever struggles with debts, financial losses or liabilities, the business itself is responsible for them - not you personally. This means you wouldn’t be liable for these financial hardships and all your personal assets would be secure. You would be legally protected and wouldn’t be obligated to pay any debts or cover any financial losses, should your business fall through. The same protection applies for your shareholders too - they have no legal obligation to pay more than the nominal value of shares they hold. Take a look at the advantages and disadvantages of limited liability for more information. What is a sole trader? If you’re self-employed, run your own business as an individual and work for yourself, this is known as being a sole trader. As a sole trader you’re in control of your business, its profits after tax and any assets. But unlike a limited company, as a sole trader you are personally liable for your business’ debts, meaning if your business struggles financially your personal assets may be at risk - we’ll explore this in more detail below. Does it really make a difference if you’re a sole trader or a limited company? It’s easy to assume there aren’t many differences to being a sole trader or a limited company - they both involve running a business after all! But there are significant differences between forming a limited company and becoming a sole trader. Here are some of the biggest differences between being a sole trader and a limited company: Liability: As mentioned, as a limited company you gain limited liability meaning your personal assets are protected should your business suffer financially. A limited company is treated as a separate legal entity from its owners and shareholders are also protected. Whereas as a sole trader, you are personally liable for all your business’ debts. Company size: Sole traders are considered self-employed, whereas limited companies can vary in size. Decision-making: Sole-traders are personally responsible for business decisions as they operate as one individual. Whereas limited companies often have several decision-makers, such as shareholders. What is unlimited liability? By having unlimited liability you’re legally responsible for your business’ debts. This means there is no legal distinction between your business and you personally. If your business runs into financial difficulties, you’ll be financially responsible and creditors can seize your personal assets and property to repay your business’ debts. With this in mind, you may choose to form a limited company instead to mitigate risk to your new business. What other types of businesses have limited liability? As we’ve explained, a limited company limits the amount of liability taken on by its owners and shareholders. Limited liability serves as a form of legal protection and prevents you from being responsible for your company’s financial losses. Here are some other types of businesses that have limited liability: Public limited companies (PLCs) A public limited company is a type of business that is managed by directors and owned by its shareholders. A PLC can offer shares of stock to the public and the buyers of those shares have limited liability - so won’t be liable if the business struggles financially in excess of the amount they paid for the shares. Because PLCs are listed on the stock market, they need to be transparent about their financials and must make their financial reports public so potential shareholders can read up on them before investing. Limited liability partnerships (LLPs) Another type of business structure is a limited liability partnership. A LLP works in a similar way to a limited company in that it is treated as a separate legal entity and is incorporated with Companies House. As the name suggests, a limited liability partnership also offers limited liability to its members. LLPs must be profit-making businesses and be formed by two or more people. Unlike limited companies, there are no shareholders, shares or directors in limited liability partnerships. Limited by shares vs limited by guarantee As mentioned, limited companies provide their business owners with limited liability. But before you go ahead and register your new limited company , you’ll need to decide which type of limited liability best suits you - limited by shares or limited by guarantee. The type of limited liability you should choose will depend on the industry you’re looking to operate in and the type of business you’re striving to build. Here are the differences between limited by shares and limited by guarantee: Limited by shares A business limited by shares is set up with share capital, meaning you must divide your company into shares and choose shareholders. The value of shares owned by each shareholder represents the amount of control and ownership they have, and the limit of their personal liability for business debts. A limited-by-shares company must have at least one share and one shareholder - so you can choose to set up this type of business by yourself. But you also have the choice to divide the company into several shares and have multiple shareholders. Limited by guarantee You may choose for your company to be limited by guarantee. Limited-by-guarantee companies are usually not-for-profit organisations like charities. Instead of shares being issued, all profits are kept within the company. Rather than shareholders, limited-by-guarantee companies are owned by guarantors who pay a fixed amount of money, known as a guarantee, towards the business’ debts should the business struggle financially. This financial guarantee is the limit of a guarantor’s personal liability to the company, which is typically a nominal amount, often as little as £1. Both models of incorporation offer directors the protection of limited liability, if their business faces financial strain such as insolvency. Are there any exceptions to limited liability? While limited liability can offer you protection if your company struggles financially, there are some exceptions where you may be personally liable. The protection that comes with limited liability can be withdrawn should you commit negligence or other unlawful actions. Here are just some scenarios where you may be held personally liable for your company’s debts: Continuing to trade once your company has become insolvent. This includes paying dividends to shareholders and disposing of business assets below their market value Not filing your annual confirmation statement to Companies House Misusing company funds Breaching data protection, either deliberately or on account of negligence Ignoring court orders issued to your company Paying your employees less than the statutory minimum wage Evading tax Engaging in fraudulent activities Form your limited company today Always wanted to be your own boss? There’s nothing stopping you from chasing the life you deserve. Starting your own business can feel daunting - but it doesn’t need to be. Why not let us take care of things? Start Up A-Z can help you form your limited company in no time, so you have one less thing to worry about. Apply to form your company and prepare for your life-changing next chapter. Recommended Readings

If you're planning to start a business in the UK, chances are you have tons of questions and concerns on your mind. Starting a Business: A Complete Guide 15 min read Beginner's Guide Table of Contents Categories Planning a business idea Researching your business idea and market Writing your business plan Financing your business Setting up a business bank account Do I need an accountant? Choosing your legal structure Registering your company Understanding your legal responsibilities Business Insurance Do I need business insurance? How much does business insurance cost? Choosing your business brand Designing a logo and brand identity Creating a Website Ensure your business can be contacted Strategising your growth Have a sales and marketing plan Need support? We can help Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office If you're planning to start a business in the UK , chances are you have tons of questions and concerns on your mind. You’re probably reading lots of blog posts and watching loads of videos to make sure you don’t miss anything. From creating a business plan , to finding investors and registering with HMRC, launching a business can feel overwhelming, but with some guidance and practical advice, it doesn't have to feel like hard work In this guide, we'll take you through the process of starting up a successful new venture from scratch – no matter what sector or niche you're looking to tap into. Planning a business idea The idea forms the foundation of your venture and sets the stage for its future success. But how do you generate that brilliant concept that will drive your business forward? You can solve a problem, identify a market gap, make something cheaper, or leverage your personal interests or hobbies into something new. For example, busy people crave healthy, tasty, home-cooked meals but struggle to find the time to make them. You could offer a subscription-based meal delivery service for them and solve their everyday problems. If you're looking for more inspiration and want to dive deeper into business ideas, we've put together a guide to motivate you on starting a busines s. Researching your business idea and market So, you've got an amazing business idea, and you may want to register right away and build your website and branding. But before you jump in, it's time to do some research. Trust us, it's a crucial step that is often overlooked, but doing so will provide you with certainty and confidence. Here’s how to do it: Understand your target audience: To make your business shine, you need to know who you're serving. Dive into the minds of your potential customers. Learn their needs, desires, and pain points. This knowledge will guide you in creating products and services that truly resonate with them. Remember, happy customers are the fuel that keeps your business running. Spot market opportunities: The market is like a treasure trove waiting to be discovered. Research unveils hidden gems and untapped niches. Keep an eye out for gaps in the market where you can swoop in and shine. Find those opportunities where others might have missed the mark. It's your chance to bring something fresh and exciting to the table. Check market viability: Will your business idea fly or flop? Research helps you find out. Peek into the market and gauge the demand for your offerings. Look at trends, conduct surveys, and gather feedback. This way, you can ensure that there's a hungry crowd waiting for what you're about to serve. Keep an eye on competitors: Hey, it's good to know who you're up against. Look at what your competitors are doing, how they're pricing their products, and what customers are saying about them. Learn from their successes and mistakes. This knowledge empowers you to stand out in the crowd and offer something truly unique. Find your market hotspots: Location, location, location. Research helps you find the sweet spots where your target market is hanging out. Understand the geographical nuances, cultural preferences, and local regulations that might affect your business. This way, you can tailor your approach and ensure you're hitting the bullseye with your marketing efforts. Remember, research is an ongoing adventure. Keep your finger on the pulse of your industry, especially your customers. Stay curious and adapt as needed. Writing your business plan Having a well-crafted business plan is like having a business blueprint by your side. It's not just a document to satisfy potential investors or lenders; it's a tool that guides your every move and sets you up for success. We’ve got a complete guide on how to write a business plan here, but here is a quick summary: Executive summary: This is a short summary of your business, including what it does and what makes it special. It's like a snapshot of your business that grabs people's attention. About your business: Here, you'll provide more details about your company, its structure, and what it offers. Think of it as introducing your business to someone new. Market analysis: This section is all about understanding your market and competition. You'll explore who your customers are, what they want, and how your business can stand out. Organisational structure: Here, you'll explain how your business is organised and who's in charge. It's like introducing the team behind your business. Products or services: Describe what you're selling and why people should buy it. Share the features and benefits that make your offerings unique. Marketing and sales strategies: Explain how you plan to promote and sell your products or services. It's like sharing your game plan for getting customers interested. Financial projections: This part is all about the numbers. You'll forecast your sales, expenses, and profits. It helps you see if your business can make money. Funding request: If you need money to start or grow your business, you'll explain how much you need and what you'll use it for. It's like asking for support to make your dreams a reality. Appendix: This is where you include any extra documents that support your business plan, like resumes, research data, or legal agreements. Keep in mind that although you might need to present a business plan for investors or lenders, it doesn't need to be long or complicated. It’s for yourself and it can even be in the form of bullet points. Don’t worry about simplifying your business plan. In fact, a shorter, more focused business plan can be much more effective. Regularly review and update it as your business evolves and market conditions change. Financing your business Whether we like it or not, money will always be a factor. However, you won't need to worry because of these options for raising money for your business: Bootstrapping: Use your own savings or resources to fund your business. It lets you stay in control and keep costs low, like starting a garden from seeds you already have. Friends and family: Turn to your loved ones who believe in your business idea. They can provide the initial capital and support, like a friendly hand to give you a boost. Business loans: Seek loans to start a business from banks or financial institutions. Present them with a solid business plan and show them your repayment ability. Crowdfunding: Engage with a community of backers through online platforms. They can contribute funds in exchange for rewards or a stake in your business, like a group of friends chipping in to help you achieve your goals. Angel investors: Attract investors who believe in your vision and are willing to invest their own money. They can provide not only capital but also guidance and connections, like having a wise mentor by your side. Venture capital: Tap into the world of venture capital firms that invest in high-growth startups. They can provide substantial funding and industry expertise to fuel your growth, like having a rocket booster for your business. Government grants: Explore grants to start a business , subsidies, or tax incentives offered by governments to support entrepreneurs. These programs can provide financial assistance and encouragement, like getting a special grant to kick-start your business. Speak to us: Here at Startup A-Z (SUAZ), we understand the challenges faced by startups when it comes to financing their dreams. That's why we offer our startup finance service , designed to help entrepreneurs navigate the complex world of financing a business. Consider important financial aspects such as break-even analysis and running costs when deciding on your financial decisions. In that way, you will have a rough idea how much capital you will need for your dream business. Setting up a business bank account To trade as a business, you’ll need to set up a business bank account. Plus, it adds a professional touch to your brand and enhances credibility when dealing with clients, suppliers, and investors. Let's explore some popular banking providers known for their features and benefits: Barclays : Barclays offers comprehensive business banking services, including online banking, mobile apps, and access to business loans and credit cards. They are a trusted choice for entrepreneurs seeking a wide range of banking solutions. Zempler : Zempler Bank is a popular alternative banking provider offering business accounts with features like online banking, prepaid cards, and expense management tools. They provide accessible banking solutions for businesses of all sizes. NatWest : NatWest provides business banking solutions with a wide range of features, including online banking, international payments, and business planning tools. They have a wealth of banking expertise and tailored services to meet your business needs. Mettle : Mettle, backed by NatWest, offers a digital bank account designed specifically for small businesses. Their real-time bookkeeping, invoicing, and expense tracking features simplify financial management, helping you stay on top of your business finances. Monzo : While primarily a personal banking provider, Monzo offers business accounts with intuitive budgeting tools, real-time notifications, and integrations with popular accounting software. They focus on user-centric features, making financial management straightforward. Remember to consider the fees, customer support, and additional services offered by each provider before deciding. Choose the one that aligns with your business's financial needs and long-term goals. Do I need an accountant? It depends on your circumstances. For most UK startups, hiring an accountant right away may not be necessary. In the early stages, when your business is still small and simple, you can handle basic financial tasks yourself or with the help of accounting software. This allows you to keep costs down and maintain control over your finances. However, as your startup grows and becomes more complex, it's advisable to consider bringing in an accountant. They can provide expert advice, ensure compliance with tax laws, and help you navigate the financial intricacies of scaling your business. An accountant can also help you make informed financial decisions and assist with strategic planning. Ultimately, it is highly recommended but the decision of when to hire an accountant depends on your specific circumstances. Assess the complexity of your finances, your knowledge of accounting, and your comfort level in managing financial tasks. Consulting with an accountant can provide valuable insights and guidance tailored to your startup's needs. Remember, even if you don't hire an accountant right away, it's crucial to research, keep accurate records, stay organised, and familiarise yourself with basic financial management principles. As your startup progresses, you can reassess your needs and determine the optimal time to bring in professional accounting assistance. Choosing your legal structure Choosing the right legal structure for your business is like finding the perfect fit for a pair of shoes. You want something that suits your needs and provides the right level of comfort and protection. Let's look at some common options and how they could work for you: Sole Trader: Being a sole trader is a popular choice for one-person businesses like freelance artists and photographers. It's straightforward – you have complete control over your business, and everything you earn is yours to keep. Just remember, as a sole trader, you're personally responsible for any debts or legal issues that may come up. So, it's important to stay on top of your finances and be aware of potential risks. Private Limited Company (LTD): If you're thinking of starting a limited company, you're stepping up your game! With a LTD, your business becomes its own separate legal entity. That means your personal assets are generally protected if your business faces any financial or legal troubles or what we call limited liability . But keep in mind, running an LTD involves more paperwork and formalities. You'll have to deal with things like annual financial statements and filing requirements. Taking care of these responsibilities ensures your company stays compliant and ready for success. Partnership: Partnerships are formed when two or more individuals come together to run a business. Partnerships allow for shared responsibilities, decision-making, and the combination of different skills. But here's the catch – partners have unlimited liability. That means you're personally responsible for the partnership's debts and legal obligations. The key is to establish clear partnership agreements and maintain open communication to tackle challenges together. Limited Liability Partnership (LLP): LLPs are a great choice for professional service firms like law or accounting practices. They give you the best of both worlds – the flexibility of a partnership and the limited liability protection of a company. While LLPs shield partners from personal liability for the actions of other partners, you still need to be responsible for your own mistakes. So, it's important to maintain professionalism and follow best practices to manage any potential risks. Public Limited Company (PLC): PLCs are large companies that are allowed to sell shares to the public. They are for the big players and aren’t realistic for most startups. Going down the PLC route can give you access to public fundraising and opportunities for expansion. However, be ready for more legal requirements, regulatory oversight, and higher compliance costs compared to other structures. For non-profit organisations: Unincorporated association: Unincorporated associations are like informal groups of individuals with a common goal. They're easy to set up and operate, but here's the thing – members have unlimited personal liability, and there's no legal separation between the association and its members. To navigate this, it's important to have clear governance structures and communication channels to ensure accountability and manage any potential risks effectively. Charitable trust: If you're all about doing good and managing charitable assets, a charitable trust might be the way to go. Trustees have legal responsibilities, and funds must be used solely for charitable purposes. So, working closely with trustees and following best practices is key to making a positive impact and maintaining transparency. Charitable Incorporated Organisation (CIO): CIOs are like the superheroes of the nonprofit world. They provide limited liability protection for their members while focusing on charitable activities. It's like having the best of both worlds – a company structure with a strong focus on doing good. Just remember to stick to governance requirements and manage your resources wisely to navigate the charitable landscape successfully. Company limited by guarantee: Companies limited by guarantee are commonly used by non-profit organisations, including charities. Members guarantee a specific amount in case the company winds up, providing a level of protection. By ensuring everyone understands their commitments and adopting solid financial practices, you can confidently carry out your mission. Charitable company: Charitable companies are formed for charitable purposes and come with compliance obligations and reporting requirements. By dedicating resources to meet these requirements and fostering transparency, you can effectively carry out your noble objectives. Community Interest Company (CIC): CICs are all about making a positive impact on the community. They aim to benefit society and reinvest their profits for community purposes. With a CIC, you're combining social objectives with the entrepreneurial spirit. It's like doing well by doing good! Just remember to keep your community-focused vision alive and make a difference. Remember, it's important to seek professional advice and carefully consider your specific circumstances before deciding on a legal structure. Each has its own pros and cons, and it's crucial to consider your specific situation and seek professional advice to make an informed decision. Registering your company Selecting a legal structure: First things first, let's figure out the best legal structure for your business. Whether you're leaning towards being a sole trader, forming a partnership, or setting up a limited company, each option comes with its own set of benefits and things to consider. At SUAZ, we specialise in helping entrepreneurs like you register limited companies . It's a simple process that we're well-versed in. For other legal structures, we recommend checking out the relevant government websites for specific guidance. Choosing a company name: Now comes the fun part - choosing a name that captures the essence of your business. A great name can make a lasting impression. We'll gladly assist you in checking if your desired name is available and guide you through the registration process. Handling the paperwork: We know paperwork can feel daunting, but don't worry, we're here to help. Our team will provide guidance on the necessary documents, such as articles of incorporation or partnership agreements, ensuring everything is in order and saving you from any last-minute headaches. Registering with Companies House: Companies House is the go-to place for officially registering your company in the UK. We'll help you prepare and submit the required documents, making sure everything is in tip-top shape. Consider it one less thing on your plate. Additional registrations: Depending on the business nature, there may be additional registrations to take care of, like VAT or PAYE for payroll purposes. We'll inform you about any additional registrations that apply to your specific situation and guide you through the process, step by step. For detailed guidance on how to register a limited company, we've put together a handy step-by-step guide on how to register a company . For other legal structures, we suggest checking out the relevant government websites, as they provide comprehensive guidance tailored to each structure. Here at SUAZ, our expertise lies in helping entrepreneurs like you with the registration of limited companies, and the best part? Our services are completely free. While we may not have all the answers for forming other types of companies, we're here to provide the support and guidance you need throughout the limited company formation process. Understanding your legal responsibilities When you run a limited company, it's important to know your financial and legal responsibilities to keep things running smoothly and stay on the right side of the law. Here's what you need to keep in mind: Record Your Financial Transactions: It's a legal requirement to keep track of your business's money matters. That means jotting down your income, expenses, and other financial transactions. By keeping your records up to date, you'll be ready to file your accounts and hand them over to your accountant without any last-minute stress. Prepare & File Annual Accounts: As a limited company, you'll need to submit your annual accounts. These accounts show how your business performed financially during the year, including all the ins and outs of your transactions. They're also used to calculate your corporation tax. If you're organised and your records are in good shape, preparing these accounts can be a breeze with the help of your accountant. File a Confirmation Statement: Once a year, you'll need to send a confirmation statement to Companies House. This statement is like a little check-up to ensure all the information they have about your business is accurate. If anything needs updating, make sure to let them know. Register for Self-Assessment: If you're a sole trader, company director, or part of a limited liability partnership, you'll need to register for self-assessment. It's a way for the tax authorities to assess the tax you personally need to pay based on your business's income. Don't worry, it's not as scary as it sounds! Just make sure you understand the ins and outs of PAYE and dividends if you're a company director. Register for VAT (Value Added Tax): If your business is going to hit the annual VAT threshold (£85,000) you'll need to register for VAT. This means adding a little extra tax on top of your goods or services and filing VAT returns. On the bright side, once you're VAT registered, you can claim back VAT on business purchases. Register for Corporation Tax: If your limited company is up and running, you'll need to register for corporation tax within three months of starting or trading . This tax is based on your business's profits, as reflected in your annual accounts. It's a flat rate tax, and the amount you pay depends on your profits. Understand Business Rates: Business rates are taxes imposed on commercial properties by the government through local authorities. If you own or rent a shop, office, or warehouse, you'll likely need to register for and pay business rates. But if you're running your business from a small part of your home, you can breathe a sigh of relief as you might not have to worry about business rates. Keep Companies House and HMRC in the Loop: If something important changes in your business, like your registered address, it's crucial to let Companies House and HMRC know as soon as possible. Remember, while this gives you a solid overview of your financial and legal responsibilities, it's always wise to seek professional advice or check out Company House’s website for the nitty-gritty details. Staying in the know and fulfilling your obligations will keep you on the right track and away from any unnecessary fines or penalties. Business Insurance Business insurance is like a safety net for your business, offering protection and peace of mind. It's there to shield you from potential risks and liabilities that could arise during your operations. Whether it's covering damages to your property, compensating for legal claims, or safeguarding against accidents, having the right insurance is crucial. Do I need business insurance? Yes, but the type depends on what you do. In the UK, common types of business insurance include public liability insurance, professional indemnity insurance, employer's liability insurance, and property insurance. Each type serves specific purposes and helps businesses navigate potential challenges. Public liability insurance: Covers you against claims made by third parties for injury or damage caused by your business. Employer's liability insurance: Required by law if you have employees, it provides coverage for workplace-related injuries or illnesses. Professional indemnity insurance: Protects you from claims of professional negligence or errors in your services. Property insurance: Safeguards your physical assets, such as buildings, equipment, and inventory, against damage or loss. It's important to assess your business's unique risks and consult with an insurance professional to determine the most suitable coverage for your specific needs. How much does business insurance cost? Business insurance is a must-have for your business. It helps protect you from unexpected risks and provides financial support when you need it most. The cost of business insurance can vary depending on factors like the size of your business, the type of coverage you need, and the industry you operate in. For small businesses in the UK , the cost typically falls in the range of £100 to £1,000 per year, but this can vary. When considering insurance for a limited company, keep in mind the added liability protection it offers. To get an accurate cost estimate, it's best to reach out to insurance providers who specialise in small business coverage and request personalised quotes. They can give you a better idea of the specific costs based on your unique needs and circumstances. Choosing your business brand Having a professional brand is crucial for your business. It creates a strong and memorable identity that builds trust and credibility with your target audience. A well-established brand sets you apart from competitors and effectively communicates your values and unique selling points. Your brand includes your company name, logo, tagline, visual elements, and messaging. Consistency in branding across all touchpoints is key for a cohesive and recognisable brand identity. Designing a logo and brand identity You can either hire professional design services, hire a freelancer, buy stock logos , or create a logo yourself. A professionally designed logo represents your brand effectively and becomes the face of your brand. It is highly recommended to hire a professional for this but if you have design skills, you can use vector-based tools to create your own logo. Don't forget the brand strategy and brand identity which includes the colour schemes and assets as they are what make up your visual brand. Creating a Website Most businesses today have a website to establish credibility with their customers. An online presence can help your business to reach a wider audience. Define your website's purpose, target audience, and desired functionalities. Choose a relevant domain name and a reliable web hosting provider. Design your website with a user-friendly interface and compelling content. You can use website builders or content management systems if you're comfortable or hire a web developer/designer for a more professional touch. Optimise your website for search engines and ensure it's mobile-friendly. Ensure your business can be contacted Set up a dedicated business phone and email address to establish professionalism and facilitate customer communication. Use social media platforms that align with your business to further connect with customers. Being accessible through multiple channels enhances your brand's visibility and engagement. Remember to choose phone numbers, email addresses, and social media handles that reflect your business name and brand. Strategising your growth Now it's time to plan your sales and marketing efforts to fuel your growth. The approach you take will depend on the nature of your business and target audience. Have a sales and marketing plan Running a business is an ongoing adventure, and your work has just begun. It's crucial to have a solid sales and marketing plan in place to ensure your success. This plan will help you attract customers and fulfill their needs through effective sales techniques and promotional strategies. Your sales plan should focus on understanding your target market, meeting customer demands, and finding creative ways to generate sales. Meanwhile, your marketing plan should outline how you'll spread the word about your products or services, whether it's through digital advertising, social media engagement, content creation, partnerships, or good old-fashioned networking. Keep in mind that creating and implementing a sales and marketing plan is a continuous process. Stay alert to market trends, listen to customer feedback, and keep an eye on your competition. By adapting and optimising your strategies along the way, you'll drive ongoing growth for your business. Need support? We can help Now, here's the secret ingredient: balance thinking with action. While brainstorming and dreaming up your business idea is exciting, it's crucial to put your plans into motion. Take those calculated risks, validate your ideas through market research, and adapt along the way. Here at SUAZ, we understand that starting a new business can be overwhelming. That's why we're here to support you every step of the way. Whether you need assistance with registering your company, developing a sales and marketing plan, or accessing valuable resources, we've got you covered. Our team specialises in limited company formations, making the process simple and hassle-free. Register a limited company with us for free and you'll benefit from our expertise and guidance to ensure you meet all the legal requirements and set a solid foundation for your business. But that's not all. We also partnered with an online small business platform where you can access a wealth of tools, resources, and support to help you navigate the challenges of running a business. From business planning and accounting software to legal documents and expert advice, the Business Support Club (BSC) platform is designed to empower you on your entrepreneurial journey. Recommended Readings

While there’s no legal requirement to use an accountant for a limited company, find out how a qualified accountant can reduce tax fines and risk of liability. Do I need an accountant as a limited company? 12 min read Company Formations Table of Contents Categories How can an accountant help a limited company? Company tax return Filing annual accounts Advise on accounting software Bookkeeping VAT returns Payroll Reduce room for error Reduce tax Is it worth getting an accountant for a limited company? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Starting a limited company comes with a lot of big decisions to make, especially around your financial responsibilities. From tax filing to legal and compliance requirements, there’s a lot to get your head around, especially if you’re new to entrepreneurship. If you’re asking the question ‘Do I need an accountant as a limited company?’, chances are it could benefit you. In fact, a whopping 92% of SMBs use the service of an accountant , with half of them using their services at least weekly. Using an accountant can alleviate any worries you may have about managing your business’ finances, so you can focus on the exciting stuff like steering your business towards success. We’ve put together this blog which covers the role of accountants for limited companies, the key benefits they can offer and whether it’s worth the investment for your new enterprise. How can an accountant help a limited company? Starting your own business often requires you to wear several hats, especially to begin with. You’ll be figuring out how to market your product or service, becoming your own boss and running the day-to-day operations. Another key responsibility is managing the financial side of the business, which can feel daunting. Just some of the financial responsibilities you’ll need to take care of as a business owner include: Dealing with Corporation Tax: Calculating and paying your Corporation Tax is an important responsibility - should you miss a deadline or make an error, you may need to pay a penalty. End-of-year accounts: You’ll need to prepare and file your annual accounts with Companies House and ensure they comply with accounting standards. Managing VAT returns: You’ll need to manage VAT invoices, calculate VAT due and submit your returns to HMRC. You’ll usually need to submit a VAT return to HMRC every 3 months, known as your accounting period. Your company’s payroll: If you have employees, you’ll need to take care of your company’s payroll. This involves calculating income tax, National Insurance Contributions (NIC), and making sure your employees are paid the right amount on time. Handling HMRC and Companies House filings: You’ll need to keep up with your Companies House and HMRC filings to stay compliant with legal requirements. Your personal tax return: You’ll need to submit a personal tax return each year which can feel complicated, especially if your income includes money from other sources or dividends. Your annual confirmation statement: You must file a confirmation statement at least once a year to ensure the details Companies House holds about your company are up to date. Ongoing bookkeeping: Keeping records of all your transactions and bank statements as a business is key for financial health and compliance. Quite the list, isn’t it? These tasks may sound unnecessary or time-consuming, but are crucial for running a successful business and ensuring you adhere to legal requirements. But you’ll be relieved to hear, should you choose to hire an accountant, the above will all be taken off your hands. Working with a finance professional means you can delegate these responsibilities to an expert who has the knowledge and experience to manage them correctly. This can alleviate any fears of filing something wrong or missing a deadline, so you can solely focus on growing your business. So, if you’re asking ‘Can I do my own accounts for a limited company?’, the answer is yes, but you may benefit from trusting an expert to take care of the financial side of things for you instead. We’ll cover the ways an accountant can help you in more detail below. Company tax return While you don’t legally need an accountant to help file your tax return, having one can give you the peace of mind that all the boxes are ticked and no mistakes have been made. They can help you file your company’s tax return by accurately calculating your company’s profits, expenses and any allowable deductions. They’ll ensure all of your financial records are organised correctly, and use this information to calculate how much corporation tax you owe. Accountants are well-versed in all areas of tax, so are confident in handling complex tax calculations. This can be a major time saver, especially as a new business owner with a never-ending to-do list! An accountant can free up your resources, so you can focus on the important and more exciting stuff like marketing your business and keeping clients happy. Filing annual accounts As a limited company , filing annual accounts is a crucial responsibility and should you miss a deadline, you may need to pay a significant penalty. Hiring an accountant will ensure that your annual accounts are prepared correctly and filed on time, so you can avoid those costly late submission fees. Just some of the ways an accountant can help with filing annual accounts include: Sticking to deadlines: As a business owner, you’ll likely have endless things to remember, making it easy to forget filing deadlines. Your accountant will prepare your annual accounts well in advance, so you don’t need to worry about missing the deadline. Avoiding late fees: As mentioned, if your accounts are filed late Companies House will impose automatic penalties starting at a whopping £150 for being just one day late . These penalties increase significantly the longer the delay. Hiring a professional means you won’t worry about missing a deadline and being out of pocket. Trusting an accountant to file your annual accounts means you can focus on running your business with the peace of mind that your accounts are all taken care of. You’ll know you comply with legal requirements and won’t face any unnecessary fines. Advise on accounting software Accounting software can streamline repetitive tasks such as invoicing and payroll, saving you time and minimising the risk of errors. Reliable software allows you to access your real-time financial data and make informed business decisions. Accountants are experts in their field, so you can trust their opinions when it comes to choosing the best accounting software for your business. Given their background and expertise, as well as their understanding of your business’ needs, they can recommend software that best suits you. You’ll know that your chosen financial management tools aren’t just effective but also the right choice for your unique business’ needs. Bookkeeping Bookkeeping is a vital aspect of business management and can be time-consuming and complicated at first. That’s where an accountant can help. They can handle your day-to-day bookkeeping tasks, from preparing financial statements to recording transactions. You’ll never need to worry about your financial records not being accurate or compliant, as you’ll be working with an experienced professional. Trusting an accountant to handle your bookkeeping responsibilities can streamline your bookkeeping processes, ensure your books are updated regularly and help you plan for future investments. Perhaps you’ll look to expand your business or buy new equipment - your accountant can take a look at your accounts and help you plan for your financial goals. VAT returns Value Added Tax (VAT) is an important financial obligation for many businesses. As a business, you need to register for VAT if your VAT-taxable turnover exceeds £90,000. You can also choose to register for VAT if your turnover is less than £90,000. As a VAT-registered business, there are several conditions you must adhere to such as keeping records of how much VAT you pay for things you buy for your business, reporting the amount of VAT you charge your customers and the amount of VAT you pay to other businesses. Your accountant can ensure that your business handles VAT correctly, pays it on time and ensures you avoid any fines or penalties. They’ll track VAT on any applicable transactions and make sure your business claims all allowable VAT. They’ll also ensure that you meet each VAT return quarterly deadline. Payroll Regardless of the size of your company, managing your payroll correctly is crucial. Payroll management involves making sure your employees are paid accurately and on time, as well as ensuring the correct amount of tax and National Insurance is deducted and paid to HMRC. Here are just some of the ways an accountant can support you with payroll management: Paying your staff: An accountant can calculate the correct wages for all your employees, including the more complicated stuff like overtime and bonuses. PAYE (Pay As You Earn): Your accountant will handle the tax side of things, making sure the correct amount of income tax is deducted from employees’ and directors’ pay under the PAYE system. Meeting deadlines: Accountants ensure everyone is paid on time and also make sure all tax and NIC payments to HMRC are delivered on time, so you won’t need to worry about any late fees or penalties. Reduce room for error An accountant’s job is to do the finance side of things correctly. This means you won’t need to worry about making a mistake on any important forms, missing a deadline, or misreporting information. They’ll double-check your financial data before it’s submitted to Companies House or HMRC and also handle any complex transactions to give you the reassurance that they are taken care of correctly, in line with tax laws. Speaking of tax laws - these regulations frequently change and it can be tough to keep up with as a business owner. With an accountant, you won’t need to worry about keeping up to date with the latest tax legislation - that’s their responsibility. You’ll have the peace of mind that you’re always compliant with any new rules or changes. Reduce tax A key benefit of working with an accountant is their understanding of tax rules and how you can minimise your tax as a business. They can advise you on any potential tax deductions, such as making the most of your director’s pay by paying yourself a smaller salary and taking the majority of your income as dividends. They can also explain which deductible business expenses you’re entitled to claim, such as office costs and travel expenses. With an accountant’s support, you’ll know the most tax-efficient way to pay yourself as a business owner, as well as any changes in tax law that may affect your business. Is it worth getting an accountant for a limited company? It’s understandable to want to keep costs down when starting a new business. But hiring an accountant for your limited company could save you significant money long term. When it comes to managing complex financial tasks such as tax returns and ensuring compliance with legal requirements, an accountant can be a huge asset to your business. An accountant’s expertise can save you time, be a source of knowledge and prevent any errors that could cost you significant money in penalties. It sounds like a worthy investment to us. Looking for the right accountant for your business? Our business partner, BSC, can match you with an accountant that understands your business needs. Alternatively, if you’re thinking of taking the leap and starting your own business, SUAZ is here to help. With us, you can form your company for free (yes, really!) and we’re here to support you at every stage. Form your company with SUAZ today and experience a journey like no other. Recommended Readings

Want to succeed in the food industry? If you're wondering how to start a food business, we've created a complete guide to get you started. Read more. A Guide to Starting a Food Business in 2024 10 min read Company Formations Table of Contents Categories Are you ready to start a food business? Can you start a food business from home? How much money do you need to start a food business? How to find your niche How to write a business plan How to build your brand Understanding food laws How to grow your food business How to hire the right staff Understanding costs Understanding postage and packing How to move your business to a business premises Get your food business cookin’ today Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Do you pride yourself on being a proper foodie? If you have what it takes to cook up a storm, starting a food business in the UK could be life-changing. Nothing beats becoming an entrepreneur, and deciding on an industry is often one of the first hurdles. So if you’re set on starting a food business, you’re already well on your way. We’re not going to downplay it - starting a business can feel like a minefield . From opening a business bank account, to getting to grips with all the jargon, there’s a lot to familiarise yourself with. That’s why we’ve put together this guide. We’ll cover exactly how to start a food business, so you can embrace your new adventure with open arms. Are you ready to start a food business? As you may expect, starting a food business in the UK takes a lot of commitment and is quite the lifestyle change from the standard 9-5. Becoming an entrepreneur requires patience and determination - after all, your business may not make the profit you want overnight. You may need to work long hours to get your business off the ground and will need to prepare yourself for less free time. There’s also the legal side to consider - you’ll have to study the regulations that surround the food industry and ensure you adhere to them. If you’re ready to embrace the unknown and have the determination to succeed, there’s nothing to stop you from achieving your business goals. There’s no better feeling than starting a business - in fact, 82% of small business owners said being their own boss is the top perk. Starting a food business can open the door to flexible working hours, financial freedom and the immense pride you’ll feel in calling yourself a business owner. If you feel ready to start a food business, what’s stopping you? There’s no limit to what you can achieve. And for the support to get your company up and running, the experts here at SUAZ would love to guide you through the process. Can you start a food business from home? While starting a food business from home is certainly possible, there are factors you’ll need to consider when deciding if it’s the right choice for you. Even if you don’t consider yourself a food business, but provide people with food on a regular, organised basis, you are seen as a food business under food law. This means you will need to ensure you’re following the laws outlined by the Food Standards Agency. Here are some factors to keep in mind if you plan to start a food business from home: Check you have permission: Planning to run your food business from home or on domestic premises? You’ll need to make sure you have permission from your mortgage provider or landlord. If you’re looking to make major alterations to your home to get your business set up, you may need permission from the local planning office. It may be worth checking with the local council whether you need a licence to run your business. Take a look at the government’s rules around running a business from home for more information. Suitable premises: While you may love nothing more than cooking for your family in your home, you’ll need to make sure it’s suitable to run your business from. Your home must be kept clean and in good condition. Make sure you have enough wash basins for everyone working to wash their hands regularly, and that surfaces are regularly disinfected. Food safety: Want to make sure you’re adhering to best hygiene practices? You could look to take a food safety training course. There are several food safety courses online for you to explore, including free allergy training where you can learn how to manage allergens in your kitchen. How much money do you need to start a food business? Before you commit to starting your own food business, you’ll need to make sure you have the funds available to bring it to fruition. While starting a business is a significant investment, with the average budget for new UK startups being £5,000 , the possibility of financial gains is second to none. A great place to start to help you estimate the costs of your new venture is by writing a business plan . Your business plan is a written document that details how your company will operate, its objectives and how you plan to achieve them. In simple terms, your business plan is what success looks like for your company. A key section in your business plan is around your finances - after all, without a profit, your business is likely to struggle. It may be worth making predictions around how much profit you expect to make, and any potential losses you envision. From there, you can calculate your equity by subtracting any money you owe from what you own. If you’re looking to apply for a bank loan to give your business a boost, banks will often ask to see the finances section of your business plan to understand your financial situation and ensure you have the means to pay back what you owe. It’s often a good idea to overestimate the amount you’ll need. Expenses can always rise, particularly with inflation, so it may be worth overestimating the cost of something to avoid any panic further down the line. How to find your niche Finding your niche when starting your business can help you stand out from your competitors and attract loyal customers. When it comes to finding your niche, asking yourself what your skills and interests are is a good place to start. Perhaps you pride yourself on your hearty home-cooked meals, or maybe you’re a star baker whose cakes are always well-received. Choosing a cuisine or style that you love to cook will make your work even more enjoyable, and give you the drive to succeed should you face any roadblocks further down the line. Another great way to identify your niche is by looking for gaps in the market. Are there any cuisines or dietary options that are missing in your area? Perhaps you’ll offer a unique dish no one else has thought of, or commit to sustainable business practices. Whatever your niche, setting yourself apart from your competitors is sure to make your business thrive. Remember that finding your unique selling point (USP) won’t necessarily happen overnight - don’t be afraid to experiment and adapt your niche to connect with your customers. How to write a business plan As mentioned earlier, your business plan is a written document detailing all the plans and aspirations you have for your new food business. While writing a business plan may sound tedious, it’s an important step in your entrepreneurial journey and can help to set your company up for success. Our guide to writing a business plan covers the process in greater detail, but here are some considerations to get you started: Use data as evidence to back up your points. The more research you have to support your ideas, the more readers will be able to trust what you’re saying. Keep things simple. You don’t need to sound like the next Charles Dickens! Your business plan should offer a clear overview of your business’ goals, so the clearer you explain things, the easier stakeholders will find it to understand your ideas. Show your passion. Your business plan is your chance to showcase your drive and determination, so don’t be afraid to express how excited you are for your new adventure. Don’t rush. Take the time to know your competitors, your audience and your industry. The more time you spend writing, the more you’ll know your business inside out, so you’re prepared for all eventualities. How to build your brand Your brand is more than your company’s name or logo. It includes your stylistic choices, such as the colours used on your website, as well as anything that impacts your company’s image and reputation. The first step in building your brand is getting to know your target audience and what the market is looking like. Is there a recurring theme amongst your competitors? Perhaps all the food businesses you’re looking to compete with use similar colours or tone of voice across their social media or website. Try to position yourself in your customers’ shoes and what you’d resonate most with. Once you know what your customers are likely to expect or want from your brand, you can establish a brand personality. If your business were a person, what would they be like? How would you describe them? Alternatively, you may prefer to assign an animal or an object to represent your brand and the vibe you’re looking to give off. This can help you to identify the qualities you’re looking for your brand to represent. After all, your brand is more than the food you sell or the logo on your packaging. It’s the personality attached that makes your business feel human. Understanding food laws As a food business in the UK, it’s vital that you get to grips with the various food standards and regulations you must adhere to. Here are just some of the key regulations that underpin the food industry: Food Standards Act 1999: This act established the Food Standards Agency. Introduced in 1999, its purpose is to protect public health where food is concerned, by outlining various food safety standards . This gives the Food Standards Agency the authority to step in on behalf of the consumer at any stage of the food production process or supply chain. Food Safety Act 1990: This details all food legislation across England, Scotland and Wales . Its purpose is to ensure businesses don’t include anything in food, remove anything from food, or treat the food in any way that would damage the health of those eating it. Other areas covered include ensuring food labels aren’t misleading, and that food businesses sell food at the quality consumers expect. General Food Law: As a food business, you’ll need to learn the legislation around food imports and exports, safety, traceability, labelling, product withdrawals and product recalls. This is to protect human health and applies to all stages of food production, including the processing and distribution of food. How to grow your food business There’s no one-size-fits-all approach to growing your business. But with a strong business idea and the determination to succeed, there’s no limit to the growth you can achieve. Each business is different and what works for one may not meet the needs of another. While it’s easy to focus on increasing sales and the financial success of your new venture, the longevity and profitability of your business are just as important. Some ways you can look to grow your business include: Working with a business mentor who can support you and offer advice as you get your business off the ground. Look for funding opportunities such as new investors. Make use of customer testing (or tasting!) so you know what foods they love and which you should improve. Focus on customer retention to build customer loyalty. Make sure to prioritise strong customer service, engaging with your customers on social media, or even creating a customer loyalty programme to reward your customers for their purchases. How to hire the right staff When you’ve put so much work into your business, you’ll want to hire only the best team to bring it to life. But how do you hire the right staff for your business? First things first, make sure you have a clear job description that outlines exactly what you’re looking for. What skills will the person need? How much are you looking to pay? During the interview process, be sure to make detailed notes of the candidates’ strengths, weaknesses and their expectations of the role. Make sure to assess how well the candidate will fit in with the business culture you’re looking to create. This involves asking questions that go beyond their background or skills, and instead give a taste of their personality and values. That way, you’ll be able to assess who they are as a person and whether they’ll represent the ethos of your new business. Understanding costs To help you get an idea of what you’ll need to put money towards to get your food business off the ground, here’s a list of potential costs: Essentials: These are those purchases that your business won’t be able to proceed without. From hiring employees to investing in new cookery equipment, you’ll need to factor these costs in for your business to grow. One-off costs: The one-off payments you’ll need to make, such as Companies House’s filing fee which costs £50 to form your new business, or the cost of a top-level domain for your website. If you let us take care of the formation process for you, we’ll cover the cost of the Companies House filing fee for you - one less thing to think about. Ongoing costs: These costs are what you’ll pay for on a regular basis, such as your utilities, rent and business insurance. If you’ve taken out a business loan, you’ll need to keep on top of your repayments too. You may not want to register your business at your home address , but you still may want to avoid the cost of renting a physical space, our virtual office solution may suit you. You’ll have a business address right in the heart of Manchester to help you to establish your professional image, while keeping your home address private. Understanding postage and packing Looking to sell your food products for delivery? To keep your food in good condition and ensure it’s safe to eat, there are various postage and packaging rules you must follow. If you’re delivering food, it must be delivered in a way that keeps the food safe to eat. Looking to deliver food with your domestic vehicle? You’ll need to meet certain hygiene requirements outlined by the Food Standards Authority . It’s important you choose appropriate food-grade packaging for deliveries, so if food needs refrigerating, make sure to keep the food cool during transportation by using a cool bag, for example. If you’re sending food by post, you’ll need to package it securely so the food remains intact and safe for consumption. How to move your business to a business premises Once your business starts to thrive, you may find you out-grow your home workspace and need to invest in a business space. Before you rush into making big decisions, make sure a physical office space is the right choice for you. Remember you don’t need a business premises to appear professional or make your mark in the industry. If you’re looking to keep your home address private but want a business address to boost your professional image, a virtual office may suit you. You’ll get your business’ name on the map, and avoid those hefty office rental costs. If you do decide to make the move to a business premises, make sure to set a budget before you get your heart set on a space that’s out of your price range. After all, if you’re looking to move to grow your profits, it wouldn’t make sense for your outgoings to shoot up as a result. As a food business, make sure you choose a space that meets your needs such as enough cooking space for you and your team, and modern facilities that are easy to keep clean. Get your food business cookin’ today If you’re dreaming of becoming a business owner, what is there to stop you? Nothing beats the feeling of being your own boss… apart from sharing your passion and talent for quality food, of course. We have heaps of guide to help you out, including our complete guide to starting a business. Looking for support with your new chapter? Our expert company formation service can do the hard work for you, so you can focus on the important stuff like your exciting new start. Form your company with SUAZ today. Recommended Readings

Read advice and expert knowledge on the most valuable business mistakes you can make. Supported with data on why start-ups fail. The Most Valuable Business Mistakes 10 min read Beginner's Guide Table of Contents Categories The top reasons startups fail Running out of cash/failing to raise new capital Declining market need Got outcompeted Industry experts share their business mistakes and how to overcome them Ronald Osborne, Business Coach Joshua Pearson, Managing Director, Preaco Marketing Claire Bartlett - Director, Arden Bookkeeping Ltd Izabela Wisniewska - Founder, Creatos Media Ready to start your business journey? Sources Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office You’ve probably come across the idea that we learn from our mistakes, but a fear of failure can often stop us from trying in the first place. With 84% of small business owners seeing mistakes as an opportunity for growth, those hurdles can help you and your business grow. Making mistakes when starting a business shouldn’t get you down, or put you off chasing your dream altogether. In fact, a bump in the road could be a learning curve, or serve as an opportunity to improve your business for better chances of success. We’ve explored the most valuable mistakes when starting a business, gathering top tips from business owners, as they share their mistakes in business and the steps they took to overcome them. With this knowledge, you should feel empowered to embrace the uncertainties that come with starting a business. The top reasons startups fail Wondering how many startups fail? According to research by NerdWallet [1] , 20% of small businesses fail in their first year, with 60% failing within the first three years. Instead of worrying your new venture might not make it, why not use that figure to encourage your success? There are multiple reasons why businesses struggle, and many causes can be preventable. Some mistakes to avoid when starting a business include: Running out of cash/failing to raise new capital We’re not going to downplay it - starting a business is likely to cost you. The average budget for a new UK startup is £5,000 , and that budget should cover not only the launch of your business but the strategy for it to survive long-term. 38% of startups [1] fail due to running out of money or failing to raise new funds, which is why having a strong business plan is so vital. Your business plan works as your guidebook for how you’ll run your company, detailing your plans for the future, your objectives and your financial situation. A business plan also encourages you to evaluate your business costs by looking at your expenses and how you’re going to fund your new adventure. The more planning you put in, the better prepared you’ll be for any obstacles that may come your way. Declining market need 35% of startups [1] fail because of a lack of market demand. When starting your business, it can be all too easy to focus on your new product or service rather than the market you plan to operate in. After all, the product or service you’re launching is your passion, right? Just remember to get to know your market, your competitors and the needs of your target audience. Does your product or service solve a problem? Is there demand for your business right now? Equally, even if you have identified a market need, make sure your pricing and features appeal to your target market. If your product or service ticks the boxes of your customer base, you don’t want to put them off with a mismatch in pricing for example. Try and go above and beyond by offering something your competitors haven’t thought of to improve your chances of success. Got outcompeted After spending time and money getting your business off the ground, the last thing you want is a competitor stealing the spotlight. With 20% of startups failing due [1] to being outcompeted, it’s worth prioritising what makes your business competitive. What is your strongest asset? What makes your business stand out from the competition? If you’re competing in a saturated market, you may want to adopt a niche or new approach to your business. For example, if you’re a dog walking business , you may choose to specialise in a particular breed of dog to appear as a specialist in that area. Take a look at the top 10 reasons startups fail below: Industry experts share their business mistakes and how to overcome them We asked the following computer programming and consultancy experts all about their business mistakes and the lessons they’ve learnt during their entrepreneurial journeys. Ronald Osborne , Business Coach If you had to pick one, what was your most valuable business mistake to date? I hired a friend who never found any success to run the civil construction side of my multi-million turnover business. There were a lot of red flags early on that I overlooked based on our personal relationship, and it hurt my team and me greatly. Once all was said and done, he cost my business upwards of £100k, plus the loss of two great employees. My valuable takeaway was never to hire friends or family unless they met strict criteria and would be suitable for the role in the first place. I urge all business owners to take the time to find the right person for the job, even if it means passing over a close friend. It will protect your money and your personal relationships. Joshua Pearson, Managing Director, Preaco Marketing If you had to pick one, what was your most valuable business mistake to date? My most valuable mistake as a marketing agency has to be taking on bad clients. While clients are incredible, of course, some clients are just not compatible with the style or nature of work you are able to provide at a particular time. What impact did this have on your business - initially and after you’d learnt from it? Through trial and error, I am much more selective of who I work with and make sure that it’s only ever an organisation that I know I can help. This has led to a much more positive environment and a happier work-life, as well as happier clients. What would you recommend to new small business owners off the back of this learning? I would always suggest not saying yes to anything and everything just because it pays. In the long term, it really doesn't. Instead, put the effort into finding the right clients first. Are there any other valuable business mistakes that come close? And any other lessons to share with other new business owners? I learn more about business every single day, and a lot of that comes from small mistakes, but those mistakes become less and less of a problem as things grow and scale up. Claire Bartlett - Director, Arden Bookkeeping Ltd If you had to pick one, what was your most valuable business mistake to date? I own a bookkeeping practice which I have run for eight years now. My most valuable business mistake was believing I had to accept every potential client that came my way. In the beginning, it’s hard to not just chase money and agree to work with everyone. But I soon learnt to listen to my gut and if a client felt like they wouldn't be a good fit, they most likely wouldn't be! It is much harder to disengage with a client than say no at the beginning. Always make sure your clients share the same values and work ethic as you otherwise it can make your working day very difficult. What impact did this have on your business - initially and after you’d learnt from it? Accepting the wrong type of client added so much stress and negativity to myself and my team. I’d worry about when the client would call and feel frustrated about repeating myself. And these clients tend to linger, they fight against fee increases and just take the joy out of your work. Since learning the hard way I am much more conscientious about who I accept as clients and it has made the working day so much more enjoyable. We love speaking to all our clients now and have mutual respect which is needed in a business relationship like ours. What would you recommend to new small business owners off the back of this learning? I know it’s difficult to not be blinded by the fee you could earn and to just accept all new business that comes your way in the beginning. But you need to keep the faith that your ideal client will come your way, and filling your time up with the wrong clients takes away your resources to help the perfect client when they do come to you. Are there any other valuable business mistakes that come close? And any other lessons to share with other new business owners? Business is all about making mistakes but the important thing is to learn from them. When you are new to business everything is uncharted water and you’ll sometimes take the wrong turn. Another mistake I made early on was not listening to my gut when recruiting new staff. It is very important in every decision you make to listen to your own intuition. Have you ever made these mistakes again, perhaps in a slightly different way? Or did you make a similar decision but something else made that decision work in your favour? I did go against what I’d learnt regarding ideal clients when it came to friends. I have had friends ask me to help them with accounts and despite my intuition telling me to not mix my personal life with my work, I didn’t listen and again I learnt the hard way. I now keep these two areas of my life completely separate but have peers in the industry I can recommend to friends if needed. Izabela Wisniewska - Founder, Creatos Media If you had to pick one, what was your most valuable business mistake to date? It’s hard to choose really but I think not treating my business as one of my clients was the biggest one to date, and I really struggled to turn this around - both since starting Creatos Media and even before that when I was freelancing. I was freelancing alongside full-time jobs so it wasn't such a big issue at the time but if I opened my eyes sooner, Creatos Media could have had an easier start! I still struggle sometimes but I really try to treat my business as if it’s one of my clients now and spend a fair share of time on marketing, networking, collaborating and getting out there. Because the only way people will want to work with me is if they trust me, and they won't trust me without knowing me first. What impact did this have on your business - initially and after you’d learnt from it? Initially, I didn't know what the impact was. I was getting my clients from one place and that was a website for freelancers. I did have some reviews and I just went off of that alone. But now I know that if I can easily show that I am good at what I do, people are more likely to work with me. It is easier to sign up clients nowadays, and I get clients from various events as well. My company is growing but it could have easily been what it is now five years ago, if I only treated my business as if it was one of my clients from the beginning. What would you recommend to new small business owners off the back of this learning? Make sure you invest (not necessarily a lot of money from the start, but time!) in marketing for your own business. Make sure you start building your own brand, and showing you are a top voice in your industry from the very beginning. It is so easy to forget about this aspect as you have so much to do, but this is critical for any business to really grow. Are there any other valuable business mistakes that come close? And any other lessons to share with other new business owners? Many! But the one that I think comes close is never passing up an opportunity to learn more, to attend events and network. It will all benefit building your brand as well. Have you ever made these mistakes again, perhaps in a slightly different way? Or did you make a similar decision but something else made that decision work in your favour? I think I still sometimes make the mistakes I mentioned, but I am coming back to the right track. I understand it’s critical for my business so even if I’m very busy, I will soon come back from it. Ready to start your business journey? Ready to make your business dreams come to life? We’ve covered the most valuable business mistakes above, so you can feel prepared for whatever eventualities come your way. After all, making mistakes only better equips us for the future. Here are some key takeaways to keep in mind: Take your time to find the right client or person for a job. Make sure your clients share your values and you have mutual respect for each other. You’re allowed to say no! Some clients might not be compatible with your business and that’s okay. Invest (not just money, but time) into marketing your business and building your brand - it’s a vital step in growing your company and getting your name out there. Our company formation service takes care of the complicated stuff for you, with support there whenever you need it, helping you get on the road to starting a business. Form your company today with SUAZ. Sources [1] NerdWallet - How Many Businesses Fail in the First Year in the UK? https://www.nerdwallet.com/uk/business/start-up-failure-statistics/ Data used for copy and design. Recommended Readings