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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 Starting a Business from Home - What You Need to Know Read More How Difficult is it to Start a Business? Read More The Power of a Name - Expert Tips for Naming Your Business Read More

Discover how the UK's most entrepreneurial universities, like Cambridge, Oxford, and the UAL, are fostering the next generation of startup founders. The UK’s most entrepreneurial universities 12 min read Beginner's Guide Table of Contents Categories What makes a university great for entrepreneurs? The UK’s best universities for aspiring founders 1. University of the Arts, London 2. London School of Economics and Politics (LSE) 3. Imperial College London 4. University of Oxford 5. University of Cambridge The most popular subjects studied by founders 1. Economics 2. Business administration 3. Management Key takeaways for aspiring founders Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office The UK’s entrepreneurial landscape is forever evolving - driving innovation, economic growth and job opportunities. With one in three UK adults now either running their own business or planning to start one within the next three years, there’s no denying that the UK has developed an entrepreneurial ecosystem. But knowledge and resources need to start somewhere, and many turn to university to develop their skills and open the door to new opportunities. Choosing the right university can unlock entrepreneurial opportunities by cultivating an environment of learning, collaboration and innovation. With over a quarter of students currently running or planning to run a business while at university , it looks like further education can significantly improve your chances of turning your business dream into a reality. Below, we’ll uncover the most entrepreneurial universities in the UK, looking at which institutions provide the right environment, mentorship and support for budding entrepreneurs to thrive. What makes a university great for entrepreneurs? For aspiring entrepreneurs, choosing the right university isn’t just about how it performs in academic league tables. Instead, you’ll be looking for an academic environment that also provides business opportunities and encourages innovation. Here are just some of the key factors that set apart entrepreneurial universities from other institutions. Access to funding: One of the biggest challenges entrepreneurs face is securing the resources needed to launch their business . Choosing a university that offers startup grants or accelerator programmes can supply you with the resources you need to get your business off the ground. Industry connections: The right university can offer invaluable networking opportunities. It’s likely your chosen institution will have strong connections to businesses, investors and industry leaders who can offer mentorship and internship opportunities. Alumni success stories: A university’s reputation is often reflected by the success of its graduates. It’s worth researching the direction graduates’ careers have taken as a strong alumni network can provide invaluable connections. Chances are, successful entrepreneurs may even offer to mentor or invest in the next generation of student-led businesses. Entrepreneurship courses and competitions: Many universities offer traditional business degrees, but the most entrepreneurial institutions offer more innovative opportunities. Look for universities that provide dedicated entrepreneurship modules and work experience options. Some institutions even run startup competitions, giving you the chance to pitch your business idea to investors, with funding as a reward. Student-led startup culture: Research different universities’ student initiatives to gauge their entrepreneurial spirit. For example, you may be looking for a university that supports student-led business societies, co-working spaces and peer-to-peer networking to help you develop your business ideas. The UK’s best universities for aspiring founders To determine the universities with the most business founders, we used the Complete University Guide’s University League table for 2025 and their alumni’s LinkedIn profiles to see how many graduates were listed as company founders. By combining these figures with each institution’s total number of alumni, we were able to rank each university by the percentage of alumni that went on to become business owners, to find the UK’s best universities for budding entrepreneurs. We’ll also uncover the most popular subjects studied by entrepreneurs to help you decide which subject area to pursue. By looking at university rankings and how many graduates became business founders, we’ve curated a list of the best universities that stand out in nurturing the next generation of entrepreneurs. University of the Arts, London Overall founder alumni - 11% With a strong emphasis on creativity, innovation and entrepreneurship in the arts, design, fashion and media industries, it’s no surprise that University of the Arts London leads the way in producing the highest number of business founders among its alumni. During their studies, students are likely to gain exposure to real-world projects, collaborate with major brands in their field and have the opportunity to showcase their work to build their business skills. The university also offers a Creative Enterprise Programme , where students learn and develop their entrepreneurial skills to help build and launch their own startups. London School of Economics and Politics (LSE) Overall founder alumni - 9.11% With 9.11% of LSE’s alumni becoming business founders, it’s a top choice university for budding entrepreneurs. LSE is known for its deep understanding of global markets, economic trends and financial management - all essential skills for startup founders. Offering courses in Entrepreneurial Finance and Business Strategy, students are given the skills and knowledge needed to launch and scale businesses. LSE Generate is the school’s entrepreneurial hub, supporting students and alumni to develop their entrepreneurial skills and build businesses. Generate’s Entrepreneurship Mentoring Programme also connects students with experienced startup founders, CEOs and business mentors. Imperial College London Overall founder alumni - 8.14% With 8.14% of its alumni becoming business founders, Imperial College London stands out as an excellent choice for those looking to develop their entrepreneurial skills and build successful ventures. The university specialises in STEM subjects (Science, Technology, Engineering and Mathematics), which require various key skills such as problem solving, adaptability and creativity, which can help you build a solid foundation for entrepreneurship. The Imperial Enterprise Lab opens the door to funding, mentorship and co-working spaces, to help you develop your startup. LSE also offers various startup competitions such as the WE Innovate Programme and Venture Catalyst Challenge to give you access to early-stage funding and business exposure. University of Oxford Overall founder alumni - 7.72% As one of the oldest and most prestigious universities in the world, it’s not surprising that the University of Oxford made it on our list of top universities for entrepreneurship. Oxford is known to attract top-tier students, faculty and investors, as well as offering partnerships with venture capital firms and government-backed innovation funds. The university’s entrepreneurial hub, EnSpire Oxford, is home to a range of events throughout the academic year, innovation programmes and online resources. The Oxford University Innovation (OUI) also helps students and researchers commercialise ideas and launch businesses. University of Cambridge Overall founder alumni = 7.65% One of the world’s leading universities, The University of Cambridge is another top choice for entrepreneurship due to its world-class research, stellar reputation, strong industry connections and thriving startup opportunities. The university provides endless entrepreneurial opportunities, such as its Accelerate Cambridge scheme - an 11-week programme that includes talks, workshops, weekly coaching, mentoring and pitching for budding business founders. With impressive funding opportunities, mentorship programmes and partnerships with leading startup investors, Cambridge offers a thriving entrepreneurial environment to help you achieve your business goals. The most popular subjects studied by founders While you aren’t required to study a particular subject to achieve entrepreneurial success, there are certain fields that can equip you with the knowledge and skills needed to take the business world by storm. Below, we’ll uncover the top subjects studied by business founders and how these academic fields equip aspiring entrepreneurs with the tools needed for business success. Economics According to our findings, Economics is the most popular degree for budding entrepreneurs, with over 26,000 business founders having graduated with an Economics degree. Considering the course’s subject matter, such as understanding markets, financial systems and consumer behaviour, it’s not surprising that those looking to start their own business would choose to study Economics. It equips entrepreneurs with analytic and problem-solving skills, helping them to identify growth opportunities, assess risks and manage resources - all key skills for business success. Business administration From financial management and strategic planning, to leadership, marketing and entrepreneurial thinking, Business Administration is a popular degree for business owners, with almost 14,000 entrepreneurs having studied it at university. This subject equips entrepreneurs with practical skills in strategic planning, leadership and decision-making, helping them to run and scale a successful business. Management The third most popular subject studied by entrepreneurs is Management, with over 7,000 business owners having Management degrees. Management is a top choice for those looking to start a business, allowing you to broaden your skillset in leadership, strategic planning and organisation efficiency. A degree in Management can help aspiring business owners develop the expertise needed to build and grow a successful enterprise. Key takeaways for aspiring founders It’s clear from our findings that the UK has a thriving university ecosystem that actively encourages and supports entrepreneurship. Universities with extensive research specialisms, funding opportunities and industry networks produce the most successful entrepreneurs. Additionally, strong alumni networks and partnerships with industry leaders further enhance the entrepreneurial experience, offering invaluable support once you’ve graduated. Ultimately, choosing a university that supports your entrepreneurial dreams can significantly improve your chances of building and sustaining a successful business . Ready to kickstart your business journey? Form your company with SUAZ today . Recommended Readings Can a Student Start a Business Whilst at University? Read More The UK small business report - the small business ecosystem and trends Read More What Age is Best to Start a Business? Read More

Going freelance? It’s important to know what tax you’re liable to pay, how much and when it’s due. Find out how to manage freelancer tax in our helpful guide. Paying tax as a freelancer: a guide 10 min read Beginner's Guide Table of Contents Categories What type of tax do freelancers pay? How much can you earn freelance before tax? How to pay tax as a freelancer Do freelancers charge VAT? Claiming tax relief as a freelancer Tax allowable expenses for limited companies What expenses can I claim as a sole trader? Balancing tax as a freelancer Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Becoming a freelancer opens the door to creative and financial freedom, but it can also bring new challenges, especially when it comes to your taxes. If you’re looking to start freelancing, you may wonder how tax will work and what you’re expected to pay. As a freelancer, you can operate as either a sole trader or limited company, and many freelancers prefer to register as a limited company due to the financial protection that comes with limited liability . Tax on freelancers may sound confusing, but it doesn’t need to be. We’ve put this guide together to break down exactly how to pay tax as a freelancer and how freelancer tax deductions work, so you can focus on growing your freelance business without the worry of tax standing in your way. What type of tax do freelancers pay? As a freelancer, the type of tax you’ll pay will depend on your business structure - whether you operate as a sole trader or a limited company. As a sole trader, it’s your responsibility to pay the right tax on time. How much tax you’ll pay will depend on your profits and how much you earn each year. You’ll pay tax on anything you earn over your tax-free Personal Allowance which is currently £12,570. As a sole trader, you’ll pay between 20-45% income tax and National Insurance Contributions (NICs), which for the 2024-25 tax year are the following: 6% on profits of £12,570 up to £50,270 2% on profits over £50,270 Depending on your earnings, operating as a limited company may be more tax-efficient than being a sole trader. This is because you’ll pay corporation tax, which is usually less than the income tax you’d otherwise pay. If your business earns over £250,000, you’ll pay the main rate of corporation tax at 25%. If your profits are less than £50,000, you'll pay 19% corporation tax - the small profits rate. You’ll also pay two types of National Insurance as director of your business. Your company will pay NIC if it's an employer, and you’ll also pay National Insurance on your salary. Take a look at our guide on self employed vs limited company for more details. How much can you earn freelance before tax? As a freelancer, how much tax you’ll pay will depend on your income and the tax band you’re in. You won’t pay tax on the first £12,570 of your income, known as your Personal Allowance. Your Personal Allowance decreases by £1 for every £2 you earn over £100,000, and if your income is over £125,140 you don’t receive a Personal Allowance. Your income will affect the percentage of Income Tax you’ll pay: Up to £12,570: You won’t pay tax on the first £12,570 of your income, known as your Personal Allowance. So, if you earn less than this as a freelancer you won’t pay Income Tax. £12,571-£50,270: You’ll pay 20% Income Tax. £50,271-£125,140: You’ll pay 40% Income Tax. Over £125,140: You’ll pay 45% Income Tax. How to pay tax as a freelancer So, when do freelancers pay tax in the UK? First, you’ll need to submit an annual self assessment tax return with HMRC. You must register with HMRC by the 5th October after the end of the tax year you became self-employed. You’ll need to submit your self assessment tax return and pay any tax you owe for the previous tax year (known as a balancing payment) by 31st January. Your second payment on account will be due on 31st July. Should you miss a deadline, you may face financial penalties, so it’s best to get it out of the way as soon as possible. In fact, 300,000 people filed their tax returns in the first week of the tax year. You can pay your tax bill online through the government’s website. If you operate as a limited company, you’ll need to pay corporation tax and the deadline will depend on your taxable profits. If your taxable profits are up to £1.5 million, you’ll need to pay your corporation tax to HMRC 9 months and 1 day after the end of your accounting period, which is usually your financial year but you may have two accounting periods in the year you set up your company. The government explains your limited company’s first accounts and tax return here . You can pay your corporation tax through your online banking, through direct debit or online through the government’s website. You can’t pay your corporation tax by post. Do freelancers charge VAT? Regardless of whether you’re a sole trader or limited company, you’ll need to register for VAT if your turnover is over £90,000 or you expect it to go over this amount in the next 30 days. Most goods and services are charged at the standard rate of 20%. You’ll then need to complete a VAT return to let HMRC know how much VAT you’ve charged and how much you’ve paid to other businesses. Claiming tax relief as a freelancer Paying tax on your hard-earned income can feel disheartening as a freelancer. You’ll be pleased to know that you can claim freelancer tax deductions, known as ‘allowable expenses’. These are business costs that HMRC allows you as a self-employed person, sole trader or freelancer to claim as tax expenses against your profits. Your expenses will only be approved if they’re ‘wholly and exclusively’ for business purposes, and HMRC can ask for proof of all allowable expenses that you claim. Some costs you may claim as allowable expenses include: The cost of buying stock and/or the materials you need to carry out repairs and maintenance work Rent or mortgage interest (not capital repayment) on commercial premises Computers, mobile devices, printers and other equipment that you buy and keep within your business, as long as you use ‘cash-basis accounting’ (meaning you record your income/costs in your financial records when you’re paid or make payments) Equipment repairs, office furniture, business stationery Tax allowable expenses for limited companies You may also be able to claim business expenses for your limited company, as long as the expenses you claim have been incurred wholly and exclusively during the running of your business. For example, if your employees use computer screens as a key part of their role, they can claim eye tests as well as health checks as limited company expenses. Other tax allowable expenses may include claiming the cost of accommodation while on a business trip, business insurance costs, and a portion of your household costs and utility bills if you work from home. What expenses can I claim as a sole trader? As a sole trader, you can use HMRC’s simplified expenses to calculate your business expenses, which use flat rates instead of working out your actual business costs. This can save you from needing to carry out any complex calculations. Alternatively, you can calculate your expenses by working out the actual costs. Costs you can claim as allowable expenses include things like office costs (such as stationery and equipment), travel costs, staff costs and financial costs like insurance. Usually, as a sole trader, you can claim expenses once a year when completing your self assessment tax return. You can use the government’s simplified expenses tool to see which method would work best for you. Balancing tax as a freelancer How you’ll navigate tax as a freelancer will largely depend on how you run your business - either as a sole trader or limited company. Your business structure also affects the tax relief you’re entitled to, which can also lower your tax bill. Knowing how to pay tax as a freelancer can feel daunting, and you may worry about submitting the wrong form or misunderstanding the tax relief you’re entitled to. Working with an accountant can alleviate any pressure or anxiety you may have, knowing you can rely on a professional to take care of things for you. Once you’ve formed your business with SUAZ you’ll gain exclusive access to BSC’s business marketplace. BSC can match you with the right accountant for your business needs, so you have your tax queries taken care of. Ready to kick start your freelance journey? Form your company with SUAZ today . Recommended Readings Frequently asked questions on freelancing Read More How to start freelancing with no experience in 2024 Read More A Guide to Writing Contracts as a Freelancer Read More

While the saying ‘it takes money to make money’ may sound like a cliché, there’s no denying that starting your own business can be expensive. A Guide to Startup Loans & Business Financing 3 min read Start-Up Finance Table of Contents Categories Financing your business Startup loans vs. Business loans Online lenders vs. traditional lenders Crowdfunding How do I get a loan? Get your business up and running in no time Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office While the saying ‘it takes money to make money’ may sound like a cliché, there’s no denying that starting your own business can be expensive. But you shouldn’t let that stop you from following your dream. If you’re looking for ways to finance your new venture, there are loans to start a business to help you manage the cost. Here, we’ll explain how to apply for a loan to start a business and the different financing options available to alleviate financial worries and pursue your business goals. Financing your business Have a business idea that’s sure to take the market by storm? The next step is making sure you have the money to get the ball rolling. Formulating a financial plan can help you visualise exactly what money you have to work with, and if your business idea is really viable. It’ll cover all the costs of your new company and what you’ll need to finance them. A financial plan is also a useful tool when pitching to investors or when applying for a business loan. Here are some of the components of a financial plan: Your investment budget: Here, you’ll list the investments you need to start your business and those that can wait until further down the road. This should give you an idea of how much money you’ll need to get your business started. Your financial budget: How are you planning to finance your new company? Will you apply for a Start Up Loan from the government? Are you borrowing money from a family member? You have several options available to you which we’ll cover later on. Your operating budget: Next you’ll need to estimate what your business’ turnover will be. You’ll need to analyse the costs of keeping your business running against the money you’ll make to ensure you’re making a profit. Your cash flow budget: Your income and expenses are likely to go up and down throughout the year. Here, you’ll put together a cash flow forecast which includes all income and expenditure per month. This can show you where you’ll have surplus money available and when you’ll need extra funds so you’re prepared for all eventualities. Many banks will also ask to see your cash flow forecast before approving you for a business loan. Startup loans vs. business loans When it comes to loans to start a business, there are two different routes you can take. You can apply for a business loan through a bank, or apply for a government-backed Start Up Loan. Let’s compare the two so you can decide which may suit you best. Government-backed Start Up Loan Did you know you can apply for financial support from the government to kick start your business? The government-backed Start Up Loan can lend you anything from £500 to £25,000 subject to acceptance. Unlike many business loans, the government’s Start Up Loan is an unsecured personal loan meaning your borrowing won’t be secured to a valuable asset like your home or car. But like other loans, you’ll need to pass a credit check. Benefits of this loan include free support to help you put together your business plan , and up to 12 months of free mentoring - ideal if you’re just starting out. To apply for the Start Up Loan you’ll need to be living in the UK, be aged 18 or over and have a UK-based business that’s been trading for less than 36 months, or plan to start one. It’s important to note that you will be charged for your borrowing - this government-backed loan charges a fixed interest rate of 6% per year. You’ll need to repay the loan over a period of one to five years, and you can choose to repay it early without any early repayment fees. Business loans Taking out a business loan is another option when it comes to financing your new business. They work in a similar way to other types of loans - you apply through a bank and will need to repay the amount through regular repayments. The amount you’ll be allowed to borrow will usually depend on your credit history and the bank’s specific borrowing limits. Some may give you a personal borrowing limit based on your credit rating. With this in mind, making sure your credit score is in good shape beforehand can give your application the boost it needs to be approved. Once approved, your business will be lent the money and you’ll start making regular repayments, including interest, over a set amount of time. Most banks will ask the following from you before approving your loan: You’re aged 18 or above You need the money for your business, not for personal reasons Proof that your business can make the repayments Details of any other business loans or finance you may have A Guarantee if you’re a limited company or Limited Liability Partnership Permission to carry out a credit check Online lenders vs. traditional lenders If you’re looking to borrow cash to get your business off the ground, you’ll need to decide whether to borrow from a private online lender, or a traditional lender like a bank. The best option for you will depend on your individual circumstances. If you don’t have much of a credit history or have struggled with bad credit in the past, you may find it easier to be approved by an online lender. One of the biggest advantages of an online lender is the convenience - they typically offer a fast application process which can all be completed online, rather than needing to visit a branch. They’re also known to offer a quick funding process - but exactly how long it will take to receive your money will be down to the lender. Online lenders may also offer you more flexible repayment terms. Alternatively, you may prefer to borrow from a traditional lender like a high street bank. If you have a strong credit score and would prefer to borrow from a well established bank or credit union, going with a traditional lender may suit you best. You may choose to take out a business loan with the bank you already hold a current account with, as they’re familiar to you and you have a history with them. Traditional lenders like high street banks may also offer you a lower interest rate than online lenders, so it’s worth shopping around to get the best rate on your borrowing. Crowdfunding If you’d prefer to avoid taking out a business loan, there are other routes you can take. If you’re looking for some financial support to get your business moving, you could consider crowdfunding. As the name may suggest, crowdfunding is where a ‘crowd’ funds a project, such as your new business. To raise the money you need, you’ll need to gain the attention of your potential investors and prove that your new business is worth their investment. There are a few types of crowdfunding for you to consider. With donation-based funding, your contributors will give money without receiving anything in return. Whereas with equity funding, backers will receive shares of your business in exchange for their funds. For debt-based funding, contributors are repaid with interest. If you choose reward-based funding, your donors will receive tokens, products or services as a reward for their donation. How do I get a loan? Before you go ahead and apply for a loan, it may be a good idea to weigh up whether you definitely need one. Like all types of borrowing, taking out a loan is a big financial decision. Make sure any borrowing you take on is affordable and that you’ll be able to pay it back. If you’ve struggled with debt in the past, you may want to consider other funding options to avoid damage to your credit rating. If you’ve decided a business loan is the right choice for you, how you go about applying for a loan will depend on which route you choose. If you decide to apply for the government-backed Start Up Loan, you can do so through the British Business Bank’s website . They’ll ask you a few simple questions about you and your new business to make sure you’re eligible for borrowing. If you’ve decided to apply for a business loan through a bank or credit union, here are the steps you’ll need to take: Decide how much you want to borrow: While a lender may offer you £20,000 for example, this doesn’t mean you need to borrow that amount. Work out exactly how much money you need to borrow and that you’ll be able to afford the repayments. Choose your term: A loan’s term is the period of time you’ll be repaying your loan. You may decide a year is long enough to pay back what you owe, or you may prefer to spread the cost over five years. Just remember the longer you take to pay back the loan, the more interest you’ll be charged. Provide your details: Your lender will ask for your personal details and details of your new business. Make sure you have all this information to hand so the application process is smooth sailing. Choose your loan provider: Decide which bank, credit union or other lender you want to borrow from. Make sure to compare lenders - they’ll offer different interest rates and deals. You’ll receive your funds: Once your loan has been approved, you’ll receive your funds. How long it will take to receive the loan will depend on your lender, so make sure to check this beforehand. Get your business up and running in no time If starting your own company has always been on your bucket list, you shouldn’t let business financing get in your way. Starting your own business doesn’t need to feel complicated. Why not let us take care of the hard work? Our company formation service can take charge of the tricky side of things, so you can focus on the most important thing - your exciting new start. Apply to form your company with SUAZ today. Recommended Readings Changes to Companies House Fees Read More Do You Need a Business Bank Account to Operate? Read More

If you're looking to start an online business in 2025, we've compiled a detailed guide on the steps involved when launching an ecommerce store. Read more. How to Start an Online Business in 2025 12 min read Company Formations, Beginner's Guide Table of Contents Categories Why an online business? What kind of online business should you start? Consulting Freelancing Dropshipping Homemade goods Creating content Conduct Research Find the perfect product or service Register your company Legal considerations Build your website Increase your odds of success How SUAZ can help Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office If you’re looking to start a business online, there’s really no better time to do so. According to Beauhurst’s New Startup Index, a record 900,000 new businesses were incorporated in 2023 - an impressive 12% increase from 2022. So, if you’re looking to step into those entrepreneurial shoes this year and break free from the standard 9-5, there’s no reason to wait. Whether you’re looking to create a side hustle, or pursue your passion full time, understanding how to start an online business is crucial. Starting a business is no walk in the park, with numerous hoops to jump through - but the rewards can be life-changing. In this comprehensive guide, we’ll cover exactly how to start a small online business, from market research to choosing the right business model, so all the boxes are ticked. By following these simple steps, you can take your business idea and transform it into a thriving enterprise. Let’s get started, shall we? Why an online business? There’s no denying that we’re now living in the digital age. So much of our lives are now online, including online banking , online shopping and social media. Choosing to start a business online can unlock customer engagement on a global scale, often at a fraction of the cost. Here are some of the key benefits of choosing to start an online business: Lower startup costs: Online businesses often require less initial investment. You can avoid the cost of renting or buying a physical space, as well as the cost of utilities and hiring in-store employees. Your operational costs are likely to be significantly lower as you won’t need to cover property maintenance either. Increased flexibility: Unlike running a store or other physical enterprise, you can manage your online business from anywhere in the world. This can offer you flexibility when it comes to both location and your working hours. Customer insights: With an online business, you can make the most of various analytics tools to track your customers’ behaviour and preferences. You can use this data to inform your business decisions and personalise your marketing efforts. Marketing opportunities: You can make the most of various digital marketing strategies to get your business name out there. From SEO to email campaigns, you can market your brand digitally, often at a lower cost than traditional, print-based advertising. Customer convenience: Not only does an online business offer you flexibility, it suits the flexibility and convenience of your customers too. Your buyers can shop from their homes or on the go, which can improve their overall customer experience. What kind of online business should you start? If you’re planning to start a business online, one of the first steps in your journey is deciding on your business model. There are several types of online business models to choose from, and one of them is likely to suit your work preferences and lifestyle the best. Before jumping headfirst into starting your company, it’s always a good idea to plan. Make sure you prioritise writing your business plan . Your business plan details your business’ goals and strategy and can keep you on track. If you’re thinking of applying for a business loan , the bank is likely to ask to see your business plan too, so they know you have a strategy in place to pay back the funds you owe. As technology has evolved, so too have the types of online businesses available which we’ll dive into below. Consulting Online consulting is a business model whereby you offer professional advice to clients through your digital platforms. These platforms may include social media, content marketing (such as blog posts or podcasts) or even one-to-one coaching via video calls. If you have specialist knowledge in a particular area, there’s no reason why you can’t share your expertise with others. Consulting is super flexible too - there are consultants in just about every area or niche imaginable from marketing and finance, to marriage and relationships. If you have the drive to help others and a particular passion or background in a certain area, coaching or consultancy may be for you. It should be a fairly straightforward online business to start too. All you need is your existing knowledge and skills, a stable internet connection and a platform to get your name out there. Freelancing Freelancing is a popular online business model, allowing you to offer your service to clients on a project or contract basis. According to 2024 data, 13.6% of the UK aged 16 and over are doing some form of freelance work. Starting a freelance business is a flexible and popular way to take your skills and passions and transform them into a successful enterprise. First, you’ll need to decide on your freelance niche - the area where your skills and strengths lie. What is it you’re passionate about or excel at? From there you can identify any gaps in the market that you could look to fill with your service, and tailor your offering to the needs of your potential clients. Make sure you shout about your services online, by optimising your website for SEO, and connecting with potential clients at events or through online platforms such as LinkedIn. By making the most of your platforms and digital tools, you can build an independent, thriving business in no time. Dropshipping Dropshipping is a flexible business model with very low startup costs. Rather than buying, storing and shipping products yourself, you get a third party to take care of it for you. You’ll create an online storefront for customers to browse products. When a customer makes a purchase, you forward the order and payment to a supplier who then ships the product to the customer. This eliminates the need to invest in a warehouse or keep stock on hand. This means you can devote more time to marketing your business and connecting with your customers. Homemade goods Homemade goods, often described as DIY businesses, are a creative business route for those looking to sell their creations. Homemade goods businesses take little money to get started and can be started as a side hustle, or your primary source of income. There are numerous benefits to starting a DIY business, from becoming your own boss to the freedom to work anywhere. When it comes to getting started, your to-do list should be relatively small. All you need are your startup supplies, a stable internet connection to set up your website and promote your products and some cash to hand to cover initial shipping costs. From jewellery making to woodwork, you can let your creativity run wild as you build your enterprise. Creating content In recent years, content creation has become a popular and competitive field. In fact, there are over 200 million content creators in the world , making it a thriving industry to be a part of. But there is more to content creation than meets the eye - it requires a solid strategy and a commitment to regular posting to get your content seen. There are numerous forms of content you may choose to create for profit, from YouTube videos to social media posts. It’s important to note that like many things in life, content creation requires patience and time. Try as you might, it’s unlikely that you’ll become a household name overnight. But by regularly posting and engaging with your audience, there’s no reason why you don’t have a chance of success waiting for you. Conduct research When you start an online business, it can be all too easy to get ahead of yourself with the excitement of it all and forget to plan ahead. A key element of planning your business is research - in fact, research is vital at every stage of your business journey. Research lays the foundations for your decision making, and can help you to mitigate risks and make the most of any opportunities that come your way. By identifying the needs of your customers and market demands, you can cater your product or service to appeal to your customers’ needs and stand out against your competitors. Research the market you plan to enter and who your competitors are. Identify their strengths and weaknesses so you can differentiate your service or product accordingly. From there, you can get to know your potential customers, determine their needs and preferences and market your product or service to appeal to them. Find the perfect product or service Deciding on the product or service for your business is a major decision that requires consideration of several factors, such as market demand, your background and your career goals. Here are some tips to consider when deciding on the right product or service for your business: Identify your expertise or passion: Bring it back to basics. Consider your interests, skills and values and try to choose a product or service that reflects them. After all, you’ll want to enjoy the work you do and truly care about the product or service you’re selling. Market research: Carry out market research to help you spot opportunities and demand for certain products or services. Is there a demand for a product that isn’t available, that you could introduce? Consider trends, competition and profitability. Your resources: Assess the resources you have available, including your finances, skills and time. Make sure you choose a product or service that fits with your resources, so you can put your plans into action. Do you have the budget to make your business idea happen? Can you rely on your network for support? USPs: Decide on your unique selling proposition (USP) which is what makes your product or service unique and better than your competitors. This will play a pivotal role in your branding and marketing too. Your business model: As mentioned above, once you’ve decided on your product or service, you’ll need to choose the most appropriate business model. From dropshipping to consulting, make sure your business model aligns with your goals and resources. Stake your claim by registering your company Once you’ve fleshed out your online business idea, you’ll need to officially form your company. While the idea of registering your company may sound complicated, once you get your head around the process, it should feel straightforward. You’ll need to form your new business with Companies House, which maintains the register of companies in the UK. You can do this yourself for a £50 incorporation fee, or trust a company formation agent to take care of the registration process for you. With SUAZ, your company formation is completely free. We’ll cover the £50 incorporation fee (no catch!) and you’ll have our advice and support to hand whenever you need it. We’d love nothing more than to help you on your road to success. Take a look at our company formation packages to get started. Consider the legalities There are more legal considerations to be aware of than company formation. Make sure you cover all legal bases when forming your business, and consider any insurance or certifications you’ll need to have. Taking out business insurance can give you the peace of mind that if disaster were to strike, you’ll have a helping hand there to pick up the pieces. If you’re planning to hire employees, you’ll need to take out employers’ liability insurance to protect your business should a member of staff become injured or fall unwell as a result of working for you. While not a legal requirement, you may also choose to take out public liability insurance for financial protection, should a third party claim to have suffered injury or property damage because of your company. Build your website You can think of your website as your digital headquarters, where all your interactions, transactions and operations take place. As an online business, investing time and money into your website is vital. Your business’ website is a valuable marketing tool to showcase not only your products or services, but your company’s mission and message. If you’re looking for a web hosting provider to get your website up and running, why not browse the BSC marketplace? Our partner site, BSC, can connect you with a variety of professional web hosting providers to get you online, at a price that fits your budget. Increase your odds of success The online business market is a highly competitive space to navigate. With an uncountable amount of online stores, content creators and service providers looking to stand out, you’ll need a solid strategy to give you the best chance of success. Here are some tips and tricks to help your business stand out from the crowd, in such a competitive market. Identify your USP to clearly define what sets your business apart from your competitors. Maybe you pride yourself on your excellent customer service, or a unique product that will take the market by storm. Make sure your website is optimised for SEO and user experience (UX). This means ensuring your site is mobile-friendly and has a user-first interface that’s easy to navigate. Prioritise high-quality content that addresses your audience’s needs. From blog posts to podcasts, make sure your content is engaging, promotes your brand and is optimised for SEO. Try to attend industry events, such as conferences or webinars, to build connections and keep up-to-date with industry trends. How SUAZ can help There’s no downplaying it - starting your own business can feel complicated. But it doesn’t need to be. With our company formation service, you’ll have the support you need to approach each stage of your journey with confidence. Form your company with SUAZ today. Recommended Readings

If you are wanting to start a business but unsure of where to begin, our step-by-step checklist shows you everything you need to get started. Explore here. What Do You Need to Start a Business? 8 min read Company Formations Table of Contents Categories Why do you want to start a business? Things you need to start a business A solid concept A foundation of knowledge An understanding of your chosen industry A plan for financing An idea of who your audience is Plan for the future What are the easiest types of business to start? Ready to get started? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Starting your own business can be a life-altering decision. You’ll be your own boss, set your own working hours and have the freedom to run things however you like. There’s no denying that becoming an entrepreneur is exciting, but without proper preparation you can run into problems that may threaten your chances of success. So, what do you need to start a business? From generating a strong idea to putting together a financial plan to make sure your dream is realistic, there’s a lot to consider. But don’t worry, our complete list of things needed to start a business will cover everything you need to feel prepared. Why do you want to start a business? So, why do you want to start a business? What are your motivations? From financial independence, to simply sharing your passion with the world, having a reason for your work can give you the motivation to succeed. After all, starting a business requires you to step into the unknown and take a risk, so having a purpose can help you push through obstacles that may come your way. Some possible motivations for starting your own business include: Following your passion: Forget working a 9-5 for a company that doesn’t interest you. By starting your own company you can work in a field that you care about. Support non-profits: You may choose to set up your company to support non-profits, charities or the local community. Achieve financial independence: While getting your business off the ground can take hard work and patience, the financial rewards are potentially huge. With determination, you can build a valuable asset that continues to grow. Gain work-life balance: Say goodbye to the regimented working week. Starting your own business can give you a super-flexible lifestyle. You may choose to work from home, say no to meetings on Fridays or work a four-day week. As well as focusing on the reasons to start your own company, it can be worth acknowledging the potential risks and challenges you could face too. What could go wrong with your business and how would you resolve it? From financial struggles to employee retention, anticipating potential obstacles with a plan for how you’d resolve them can help you prepare for the unexpected. Things you need to start a business You can’t rush into the practical side of things like registering your company until you understand the legal requirements to start a business. Here, we’ll cover everything you need to have ready, from coming up with an idea to brushing up on your industry knowledge. A solid concept It all starts with an idea. Maybe you’re the artistic type and have been told your graphic design skills could easily make you money. Or perhaps you’ve found a gap in the market for a product you’re sure will be a hit. It’s important to know what business you want to run and why you want to run it. If you like the sound of being your own boss but you’re struggling for ideas, try bringing it back to basics. What interests you? Note down your hobbies and passions and brainstorm potential business ideas from them. For example, if you’re an animal lover you may want to start a dog-walking service, or open a cat cafe. Or maybe you’ve recently come across a business that you felt could be doing things better. To get yourself in the right headspace, try immersing yourself in the business world. You could read biographies from inspirational entrepreneurs to see where their bright ideas came from. Or you could ask your family and friends what they think you’re good at, to see if your strengths are something you could build on. Inspiration is sure to strike when you least expect it! A foundation of knowledge You can’t jump head-first into managing your own company without knowing the ropes, right? A great way to prepare for starting a business is to brush up on your knowledge. Read up on the legal terms often thrown around like limited liability so you aren’t left feeling out of your depth when your company is formed. You could attend seminars from business experts, take a management course to broaden your knowledge and even reach out to entrepreneurs through platforms like LinkedIn to ask questions. Alternatively, there are a wide range of free resources across the web to help you develop your expertise. An understanding of your chosen industry Depending on the type of business you choose to start, you may have to adhere to certain legal requirements, so it’s important you understand the ins and outs of your industry beforehand. For example, if you’re looking to start your own restaurant and are planning on serving alcohol, you may require an alcohol licence. Want to start a hairdressing business? There’s certain legislation that hairdressers must adhere to, including the Control of Substances Hazardous to Health law which applies to the use and storage of hazardous substances, such as peroxide. Being clued up on the legal requirements surrounding your chosen industry means you won’t be caught out or left unaware of certain regulations in your field. For example, as soon as you become an employer you need to take out employers’ liability insurance. This is to cover your business should a staff member claim they’ve suffered illness or injury from working for you. If you weren’t aware of this and weren’t insured, you could be fined £2,500 for every day you go unprotected. With this in mind, it’s important to be aware of industry regulations to avoid a fine or prosecution. A plan for financing It may be early days, but having an idea of how you’re going to fund your business can save you some stress further down the line. There’s no denying that starting a company can be expensive, but you shouldn’t let that stop you from chasing your dream. Planning ahead can help you work out if your business idea is affordable. Here are some options to consider to help you finance your company: Business loan: A business loan works similarly to other types of loans. You’ll apply for it through a bank and repay the amount through regular, usually monthly, repayments - with interest added. It’s important to make sure you can afford to take on the debt and that you’ll be able to keep up with your repayments. Start Up Loan: You could apply for the government-backed Start Up Loan of £500 to £25,000 to help you start or grow your company. You’ll be charged for your borrowing at a fixed interest rate of 6% per year. Crowdfunding: You could try crowdfunding to raise money for your business. This involves you getting others to fund your business. Different types of crowdfunding include donation-based funding where contributors donate money without receiving anything in return. With debt-based funding, your contributors will be repaid with interest. Your savings: Financing a business with your own money may sound impossible, but with time and determination, it can be achievable. Set yourself a savings goal, hold yourself accountable and cut back on your spending. Check out our guide on how much it costs to start a business for more information. An idea of who your audience is Understanding your ideal customer can help you grow your business and retain your customers long-term. To do so, you’ll need to identify your target market - the specific group of customers who are most likely to interact with and buy from you. They’re likely to share certain characteristics such as age, income, behaviour and gender. And they’ll usually have a problem that your business can help them solve. As you haven’t yet started your business, identifying your target market may feel tricky. A great place to start is looking at your potential competitors. What brands would you like your company to mirror? Where do they advertise and what messaging are they using? From there, you can understand who your competitors are targeting, to then go on to target the same group in a better way. Plan for the future You’ve not even started your business yet, so us telling you to think about what will happen to it in the future may sound irrelevant right now. But having an idea of the future of your new venture can help you feel prepared. Is this new business your planned career for life, or are you aspiring to start multiple companies? How will you measure success? Are you looking to eventually gift your business to your children? Try to break down your goals by time. Where do you want your business to be in two years time? Then map out your goals for the next five and ten years. Having an idea of what your company’s future will look like can keep you motivated to succeed. What are the easiest types of business to start? Some types of business are naturally easier to start than others. Those that have low startup costs and require little training are easier to get going than a company that needs a lot of investment and supply management, for example. While starting any business isn’t a walk in the park, using a platform like eBay or Etsy (or Business Support Club if you’re looking to sell to other businesses) to get your venture going can keep costs down and give you less to think about. Using an online marketplace costs very little upfront so if you decide your business idea isn’t working out, you won’t be left out of pocket. Looking to test the waters before you commit to your business full time? You could consider trialling your idea as a side hustle alongside your current job. This could mitigate the risk of failure further down the line, as you’ll be able to see if you’re making enough money to commit to it full time. Once you know your business is performing well, you can make the move to expand it by hiring employees, growing your brand and being your own (full time!) boss. Ready to get started? Once you’ve ticked off all the above, chasing your dream shouldn’t feel too far away. Feel ready to get your company off the ground? Our guide to starting a business will cover all the next steps you’ll need to take. Starting your own business is a lot to get your head around and it’s easy to be left feeling overwhelmed. But you don’t need to do it on your own. Our company formation service can take care of the tricky stuff, like forming your business with Companies House, so you can focus on your exciting new start. Apply to form your company with us today. Recommended Readings A Guide to Starting a Dog Walking Business in 2024 Read More How Much Does it Cost to Start a Business in the UK? Read More What Do You Need to Start a Business? Read More

Learn how to find freelance work and respond to inquiries with our comprehensive guide. Use our step by step advice to help set yourself up for success. How to Find Freelance Work & Respond to Enquiries 12 min read Beginner's Guide Table of Contents Categories Six tips for finding freelance work in 2024 1. Speak to everyone you know 2. Build a website and showcase your work to help with others share your services 3. Use social media to build connections and your business brand 4. Explore the best freelance jobs and websites 5. Go out and meet people 6. Embrace cold pitching 7. Schedule time to build your freelance base of contacts What is the best way to respond to freelance enquiries? 1. Ensure you understand the project 2. Craft a winning proposal 3. Negotiating with prospective clients 4. Following up with your prospective client Continuing your freelance journey with help from SUAZ Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office If you’re looking to turn your passion into cash, freelancing could be the solution you’re searching for. The promise of flexible working, a better work-life balance and diverse projects is encouraging more and more professionals to take the leap into the freelance world. But the success of your freelance business relies on regular clients and a steady income, which can be tough to secure early on. Trying to find freelance work in the UK? With our tips and tricks, your next client could be just around the corner. We’ve put together this complete guide on how to find freelance work, so you know where to score the best opportunities and build your network. We’ve even asked freelancers for their thoughts too, so you have advice from those who have been in your shoes. Six tips for finding freelance work in 2024 Knowing how to effectively search for and secure freelance jobs is a crucial trick of the trade. Wondering how to find clients as a freelancer? We’ve put together our six top tips on how and where to find freelance work and how to keep clients coming back to you time and time again. 1. Speak to everyone you know Make sure you use your own network to your advantage. Tapping into both your professional and personal network can encourage word-of-mouth marketing. Your connections can spread the word of your expertise and recommend your services to their own network, which can help expand your client base. Why not reach out to friends and family, or even former colleagues to get your name out there? Those who know you best can shout about your successes, and you may find opportunities you otherwise wouldn’t have known about. Freelancing is built on trust and reputation, so having others speak about your talents to their network can be a valuable asset to grow your freelance career. Freelance Copywriter & Content Consultant Jess Peace says, “Comment and show up for fellow freelancers in your field. It costs absolutely nothing to be nice. You gain valuable insights from people doing what you do. And the more people get to know you and what you're about, the more likely you are to be referred to and remembered when someone needs a freelancer.” 2. Build a website and showcase your work to help with others share your services Your website is your online portfolio, there to showcase your skills and shout about your successes. But as a freelancer, your website is also a valuable, accessible tool for attracting work. With strong testimonials and examples to browse, your website can demonstrate your expertise and build trust with potential clients. A key element of your website should be testimonials, which provide social proof of your skills and experience. They serve as endorsements from others who have worked with you, which can go on to persuade others to do the same. If your testimonials are limited, here are some tips on how to ask for recommendations from others: Time it right: Ask for a testimonial from your client when you’ve just completed a project, so your work is at the front of their mind. This ensures their feedback is specific, genuine and relevant. Be specific: If you’re looking to get a certain message across on your website or highlight a particular talent, request testimonials that highlight this. For example, you could ask your client to focus on how well you meet deadlines or your creative approach to projects. Provide a template: Creating a feedback form or template that your clients can fill in can speed up the process. You can ask them specific questions and make it easier for them to provide specific feedback. 3. Use social media to build connections and your business brand Social media is now the top sales generator for one in four small businesses in the UK, making it a powerful tool for growing your freelance business and brand. Using social media platforms strategically can boost your brand visibility and help you build connections within your industry. Freelance Content Specialist, Jessica Hodkinson says, “Networking on LinkedIn has been a big part of my technique to finding contracts and building connections with people. A recent example is that I started doing a small amount of work for someone who then introduced me to two people - the conversations that we had then turned into winning projects. Commenting on posts that raise topics of interest and joining groups and posting on a regular basis can help you build your own personal brand.” Here are just some of the ways social media can help you find freelance work online: Visibility: You can use social media as your business’ voice, to showcase your skills and knowledge on a global scale. You can promote your services on platforms like LinkedIn, share updates and industry insights to keep your name on the top of your clients’ or potential clients' radar. Networking: Social media is a great way to connect with potential clients, participate in industry discussions and keep in the know about the latest advancements, events and trends in your industry. Your reputation: Actively participating in industry groups and discussions can help position you as an expert in your field. You can use social media to share your knowledge and enhance your credibility, in the hope that potential clients will come across your posts and view you as a knowledgeable professional. 4. Explore the best freelance jobs and websites A more traditional approach to finding freelance jobs is searching freelance platforms and freelance job boards. Freelance platforms are essentially marketplaces that focus on freelancing as a whole. Platforms such as Fiverr and Upwork allow you to create a profile, showcase your work, bid on projects, message clients directly and manage payments. Whereas freelance job boards are more straightforward, listing available freelance jobs without the extra features. You can browse job boards like Indeed to find freelance gigs and negotiate rates, but it’s likely you’ll have to manually handle processes like payments yourself compared to using a freelance platform. Being active on both freelance platforms and job boards can offer you the best chance of finding new freelance opportunities. Freelance platforms tick all the boxes and can make your job feel simpler, including being able to manage client relationships through built-in messaging options and payment systems. Whereas, job boards offer a wider range of job listings you may otherwise miss if you were to rely on freelance platforms alone. 5. Go out and meet people A simple but often underrated way to find freelance work in the UK is by meeting people face to face. It may sound like an obvious one, but many rely on searching online for freelance gigs and forget the benefits that come with meeting potential clients face to face that may not be available online. Ray Saddiq, Founder of The Social Diary , says, ‘It’s good to turn up to events relevant to your industry or your clients’ industries. Meeting people face-to-face is so powerful. Networking, sitting down and talking to potential clients, and openly discussing the services you can offer. Solving problems on the spot when you meet them can be incredibly effective.’ Here are some key benefits of how in-person interactions could benefit you as a freelancer: New relationships: In-person interactions can help you build a closer, more authentic relationship with your clients or potential clients. You can show your professionalism and personality firsthand which may encourage others to want to work with you. Networking: Events such as conferences and industry meetups can introduce you to like minded professionals in your industry. These interactions may lead to freelance opportunities such as partnerships, referrals or even new clients. Local opportunities: Meeting face-to-face may open the door to local opportunities you wouldn’t have found online. Events can introduce you to local business owners who may benefit from your expertise. 6. Embrace cold pitching While the idea may sound intimidating, cold pitching can be an effective way to get your name out there and find freelance opportunities you’d otherwise miss. Cold pitching is a way to demonstrate your passion and confidence in your craft, by proposing services and solutions to businesses directly. Instead of waiting for a job ad to appear, you’re showcasing your skills to potential clients in the hope they’ll take a chance on you - you may even be offered a job that otherwise wouldn’t exist. Senior Freelance SEO Copywriter, Kiri Nowak-Smith says “My best piece of advice with cold pitching is not to give up. Keep doing it. Keep doing it even when you’ve got work because you need a steady flow of leads to come in. You want to be proactive rather than reactive. Don’t just message people in a blind panic when the work dries up. Stay one step ahead of the game and keep cold-pitching people even when you’re fully booked with work. Just adapt your pitch so that you’re aiming to make people aware of what you do rather than asking to work together. Set yourself daily targets. For example, today I am going to research ten contacts and send them a cold message (that appears to be very warm!).” Before reaching out to potential clients, make sure you thoroughly research each individual or business you’re looking to contact. Understand their pain points so you can specifically outline what your services will offer them and the benefits they’ll gain. While finding work is a priority, make sure you only pitch to companies whose mission and values align with your own. This improves your chances of a successful client-freelancer relationship and makes your pitch sound genuine too. 7. Schedule time to build your freelance base of contacts Scheduling regular time to build your freelance network can help you maintain a steady income and in turn, make the process feel less overwhelming. You could dedicate a specific time each week to reach out to companies, browse job boards or freelance platforms and focus on networking. A proactive approach ensures you stay informed with the latest trends in your industry, expand your freelance contacts and boost your reputation as a result. What is the best way to respond to freelance enquiries? There is no one size fits all approach when it comes to responding to freelance enquiries. Each potential client you come in contact with will have unique pain points and their own communication style, so tailoring your responses accordingly is key to building strong relationships from the start. If you’re looking to answer freelance enquiries effectively, the following tips can help guide your responses. 1. Ensure you understand the project Before committing to a new project, it’s vital that you understand the full scope of work and feel confident that you’re the right person for the job. Knowing exactly what is expected of you will ensure you can respond to the potential client confidently. Here are some questions you could ask the prospective client to ensure you have all the information you need: What are the key deliverables? What is the budget for the project? Can you give me a list of deadlines I need to meet? What are the project’s goals and objectives? Who is the target audience or key buyer personas for the project? 2. Craft a winning proposal Your proposal is your chance to show potential clients what you’re made of. A well-crafted proposal should demonstrate that you understand your client’s needs and how you plan to fulfil them. Detail your approach to solving the client’s pain points, your experience and how you’ll bring value. First, summarise the client’s objectives to make it clear you understand what they’re looking to achieve. From there, you can detail how you plan to meet those goals, as well as your former experience and skills. 3. Negotiating with prospective clients As a freelancer, negotiating with potential clients is a valuable skill that can help you manage your workload and expectations and in turn, remind you of your worth. Key aspects you may find you need to negotiate include rates, deadlines, scope of work and payment terms. When it comes to pricing, make sure you understand the client’s budget beforehand and have evidence to hand of the value your work delivers. That way, should you need to negotiate on price you have the evidence to justify your rates. With deadlines, make sure you have a clear picture of when work is due and have deadlines in writing to cover yourself. Remember to be confident in your worth, listen to clients’ needs and be open to compromising on deadlines and cost without devaluing your services. 4. Following up with your prospective client Once you’ve sent off your proposal or had an initial chat with a potential client, there’s no doubt you’ll be eagerly waiting for a response. Don’t be afraid to follow up with them - in fact, doing so demonstrates your genuine interest in working with them as well as your passion and professionalism. Following up with them gives you the chance to answer any questions you may have as well as confirming you have everything you need to get to work on the project. Typically speaking, a good timeframe to follow up is within 5-7 business days, following your last interaction. Continuing your freelance journey with help from SUAZ The freedom and flexibility that comes with freelancing are truly unbeatable, but finding work can feel tricky to begin with. We’re hoping our tips above will give you the confidence to share your passion with the world and score some great opportunities. If you need some extra support to get things going, there’s no better place to start than SUAZ. Our company formation service can help you start your freelance business, with professional advice and guidance whenever you need it. Apply to form your freelance business today . Recommended Readings Sizing up freelance roles Read More A Guide to Writing Contracts as a Freelancer Read More How to Set Up a Freelancer Business in 2024 Read More

There are a large number of considerations when starting a business, from finances to time investment and unforeseen circumstances. Read more 5 Things to Consider When Starting a Business 15 min read Company Formations Table of Contents Categories Understanding the basics of starting a business 1. Having a plan 2. Having the right support in place 3. Understanding legal requirements and regulations 4. Understanding the financials for your business 5. Preparing for launch Knowing when to ask for help Our formation packages Are you ready? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Starting a business can be as exhilarating as it is challenging. The journey from concept to fully functional enterprise is full of uncertainties - some of which may be exciting, but many of which can seem daunting without the proper prep. Among the factors to consider when starting a business are legal requirements, financial responsibilities, and the complexity (and, ultimately the achievability) of your vision. If you’re ready to make your business dreams a reality and you’re starting to devise your to-do list, here are 5 factors to consider when starting a business you can’t afford to miss. Understanding the basics of starting a business Even if you’re brand new to the world of entrepreneurship, it doesn’t mean that starting a business is a far fetched dream - you just need to understand a few fundamentals. Consider this foundational knowledge the bedrock upon which you’ll build your business. 1. Having a plan A business plan isn’t just something you pin on your wall and look at longingly - banks and potential investors will want to see a comprehensive business plan before deciding whether or not to contribute towards your enterprise. Your plan is important - for the first draft, you can focus on these areas. Don't know how to write one? We've got a comprehensive guide on how to write a business plan here . Having a good business idea Does your business idea involve offering people something new? Or offering something familiar in a new way? Whatever it is, you need to feel confident that your business will draw enough customers to guarantee a good return on your investment, and stand out in the current market. If you haven’t got an idea yet, take some time to research. We have a handy guide on finding new business ideas . Understanding the time and money investment Speaking of investment - you need a rough idea of how much money it will take to get your business up and running, and keep it running before you start to earn that money back. This might involve taking out loans or convincing investors to help get you off the ground. Whichever method you choose, you’ll need to detail how you’re going to get the money together. You also need a timeline for how long you expect all of this to take. Keep in mind, it can take a few years for a business to become profitable - do you know how much money you’ll need to support yourself if you won’t make a profit for 24 months? What if an unexpected delay throws a spanner in the works and delays your launch? While having belief in your business is paramount to making your dream a reality, it’s also useful to prepare for the worst-case scenario, especially when time and money are involved. Knowing yourself and your customer It’s fine for your plan to be ambitious, but it should also be within your limitations. Set goals that you know you will be able to achieve with the right amount of hard work, and outline exactly how you will get there. This will make your plan more appealing to banks and investors. This also extends to identifying your customer base. In an ideal world, the whole world would want to be your customer, and the money will be piling high before you know it. However, realistically, there aren’t any services or products that will appeal to everyone across the board. Honing in on an ideal customer profile will also make your business easier to market, as you’ll know exactly whose attention you’ll want to grab. 2. Having the right support in place While opening your own business might feel like striking out on your own, in reality it will involve the input of lots of other people. This will range from friends and family, to mentors and professional services. You’ll also need to have the right knowledge to be able to support yourself, which might involve undergoing training in preparation for starting your business. Will you need anyone to help in the business? You might be planning to enlist the support of your family or partner to get your business going, or you might need to hire employees and external professionals such as accountants or consultants. Whatever kind of team you need, try to figure out the roles you’ll need to fill as soon as possible, as they’ll need to be detailed in your business plan. Considering your own strengths and weaknesses is a good way to identify the gaps you may need to fill with the help of others. However, you might be able to fill in some of these gaps yourself with the appropriate training. Skills gaps and training required Depending on the nature of your business you may need to seek out some courses or qualifications to bolster your business-running abilities. You might feel like you need to improve your leadership skills, or deepen your understanding of marketing. Knowledge is power, and the more you learn, the more your business will benefit. Attending seminars and webinars where experienced entrepreneurs share their experiences and insight can also be useful - not just for gathering information and research, but also for networking. Connecting with individuals on a similar journey to yourself will help to make starting a business feel less daunting. Having the right space If you intend to run your business from your home you may think that you’ve already sorted your business space - but do you know the rules and regulations that surround operating a business from your premises? It may seem more achievable than being able to afford a separate space, but that doesn’t mean there aren’t permissions and licences involved. Your home might not be suitable for the type of business you want to run, so you may have to look for an office or shop space. Consider these questions: What kind of place will you be able to afford? Home might be the only option for now, but what about in the future? What legal requirements will you need to be aware of for any space that you occupy? Will a physical space see enough foot traffic to draw interest while you’re getting your name out there and can bring customers to you? Having the right equipment Most enterprises require some form of specialised equipment, whether you’re a dog walker or a cleaner , there will be tools of the trade you’ll need to have to get your business started. Consider these questions: How much will this equipment cost? How will you strike a balance between high-quality equipment, and equipment you can realistically afford? Will members of your team need training to be able to use this equipment? When is your equipment likely to need replacing? 3. Understanding legal requirements and regulations Starting a business involves navigating a complex web of legal requirements and regulations. Failing to comply can result in fines, which may then lead to legal action and ultimately the closure of your business, so it’s important to do your homework on legal considerations. Registering your business Whether you want to operate as a sole trader or opt to register as a limited company , you’ll need to go through the appropriate registration process. The way in which you register your business will have important implications for your finances. For sole traders, there is no legal distinction between your personal finances and your business’ - be it amazing profit or potential loss, it is all your responsibility. You and you alone are responsible for your business, even if you have employees, and you are technically self-employed. If your business is a limited company you will be liable for only the amount you’ve invested, as your business will be considered its own legal entity. You’ll have to register with Companies House and will need: the name of your company (which must be unique); your business’ address; and the details of both directors and shareholders. By forming your company with SUAZ , we’ll take care of the hard work for you. We’ll register your business with Companies House on your behalf and even cover the £50 filing fee. Obtaining necessary licences and permits There may be a variety of licences and permits required to run your business. Failure to acquire the right licences might result in fines, so it’s important to think carefully about what you might need to obtain permission for. Examples of some of the licences and permits associated with businesses include: Business licence - to operate your business in accordance with government guidelines. Personal alcohol licence - to be able to serve alcohol. Street display licence - to place advertisements on the street outside your premises. Environmental permits - permits relating to anything that may impact the surrounding environment, e.g. waste disposal. Music or entertainment licences - allowing you to use copyrighted material and host live performances. Building permits - to allow any renovation or construction work that might be needed for your business. Understanding your tax obligations Again, your tax obligations as a business owner will depend on how you choose to register your company. If you operate as a sole trader you will have to fill out your own self employment tax return, and as a limited company you will need to register for Corporation Tax. Keeping on top of your finances, staying compliant with tax laws and hitting all of the required deadlines will stop you from running into legal issues. If this sounds like a lot of work to you and like something you’ll need help with, you might consider enlisting the help of a specialist. This will then be a further cost to consider, but might be able to save you valuable time and headspace. 4. Understanding the financials for your business Financial management is a key part of running a successful business. Ultimately, do you know how your business will make its money? Are you confident that this will be enough to (eventually) cover your running costs? Do you have a budget with estimated income and expenses? Are your bookkeeping skills up to scratch? Hopefully all of these questions have occurred to you, but if not you still have time to consider them. Let’s take a look at some of the ways in which you can source funds to get your business started. You can take a look at our business financing guide here for more detail . Bootstrapping your business To bootstrap your business means to fund it entirely yourself, with minimal reliance on outside sources. Whether it’s your hard-earned savings or a sudden inheritance, it means you’ll have more control over your finances and keep you free from debt. For many people bootstrapping simply isn’t possible, but for those with the necessary capital it can lead to healthier long-term financial stability, and encourage financial discipline. Applying for business loans Most people looking to start their own business will be considering applying for business loans. They’re a traditional way to finance a business that involve you borrowing money from a lender and paying it back over an agreed period of time, with interest. The two main categories of business loans are secured loans and unsecured loans . The difference between the two is that with secured loans there is some form of asset the money is borrowed against - usually property. Unsecured loans don’t need an asset as security, but will typically have higher interest rates. To apply for a business loan from a lender or a bank you will need to pass some eligibility checks - many of which you can gauge the likelihood of passing online beforehand. You will also need to present your business plan, to illustrate your business’ potential and paint a picture of how you intend to run your enterprise. Seeking business grants Grants are a great way to help fund your business as they don’t typically need to be paid back. Depending on your circumstances you may be eligible for a variety of different grants. Here are some of the pros and cons of this form of funding: Pros Cons Not having to worry about repayment You may not meet every grant’s eligibility criteria There are lots of grant opportunities available Applying for grants is highly competitive They give your business a level of recognition which is great for customers and investors alike to see Filling out applications may be time-consuming and difficult Grants reward creativity and innovation, not just profitability One grant isn’t likely to be enough to fund your business You don’t have to give up any equity in your business to receive a grant Some grants will dictate how the funds they allocate can be used Attracting investors If you don’t have a problem with sharing ownership of your business, acquiring investors might give you the boost you need to get started. In order to attract investors you’ll need to do the following: Develop a compelling pitch that highlights your business and products’ unique selling point (USP). A pitch needs to make investors feel like passing up on involvement in your business would be missing a big opportunity. Attend networking events that might put you in the same rooms as potential investors, and make sure you’re making the most of online platforms that can connect you to helpful people. Look into appropriate angel investors - investors who, as well as contributing their own money towards new businesses for a small stake, will provide mentorship and guidance. Utilising crowdfunding Creating an engaging campaign to launch on a crowdfunding platform can convince total strangers to part with their money in support of your vision. It’s a popular and easily-accessible way to raise money for a variety of causes, including businesses. With crowdfunding it’s especially important to tell the story of how your business idea came to be, as people reading about your cause will want to be able to relate to your journey. You can even offer rewards based on your business for different levels of donation e.g. if you’re hoping to open a bakery, people might be able to donate in return for baked goods. You get cash, they get cake, and early access to your amazing products - everybody wins. 5. Preparing for launch If your business currently only exists in the form of an idea, getting ready for launch might seem like a lifetime away - but you can never be too prepared. A successful launch can set the tone for the rest of your business’ life, so it’s a good idea to take it seriously. Here are some things you’ll need to have ready well before your launch date in order to set sail as smoothly as possible. Creating your brand identity First impressions matter. How do you want your business to come across to potential customers? Friendly and down to earth? Slick and authoritative? You want your business to be able to stand out in a sea of competitors, and one way of ensuring that is by having a strong brand identity. Everything down to the fonts used on your website and the colours in your logo will help to make up your brand identity - so choose wisely! Setting up your business website You have to be at least a little bit tech savvy to launch a business these days - even if that savviness means you know you’ll need to hire someone to create your website! Your website should be attractive, easy to navigate, and anticipate the thoughts of potential customers who visit it. Are they looking for contact information? For details on your history and your products? Or maybe to place an order? Deciding to sell your products or services via your website is a wise choice, even if you operate out of a physical space as well. The UK has the most advanced e-commerce market in Europe , leaving only a tiny percent of the population who don’t buy anything online at all. Don’t miss out on that market! People can visit your business from the comfort of their own homes. Developing your marketing strategy Speaking of markets and marketing - people can’t support your business if they don’t know it exists, and if you wait to advertise your business until after it has launched then you’ve already missed the boat. Decide which channels will be best for marketing your business - this will depend on the demographic of your target market. For example, if your ideal customers all tend to be very active on Instagram, don’t waste money advertising in newspapers - meet them where they are. Pick marketing tactics that will complement your business, and put a strategy in place well before you’re even thinking about launch day. Navigating your business launch There are lots of ways to approach launching your business. You don’t necessarily have to dive straight into hosting a nerve wracking and expensive grand opening event. Why not try a soft launch or beta phase, where you can work out any kinks in your operations and gather feedback from your first customers. This can provide you with valuable information to make any last-minute improvements before a full-scale launch. There are two things (well, lots of things, but let’s focus on two in particular) that are important to consider during your launch: Customer support You’re a new business - people will want to ask questions, and may need more information to understand your product, services, or website. Be prepared to provide exceptional support straight from the offset and you will be rewarded with loyal customers. Plan for continual improvement If you can see that something clearly isn’t working in your business plan, you don’t need to stick to it. Be prepared to accept feedback and embrace change based on market trends - adaptability is key. Knowing when to ask for help There are many advantages and disadvantages to starting a business - the pros include the flexible lifestyle and development of personal skills, and the cons mean the potential for financial risks and excess stress. One way to mitigate these risks is to know when to ask for help. Help might come in the form of family and friends to lean on, or legal counsel to help calm your fears about contracts and intellectual property. Entrepreneurship is challenging, so when you realise that you can’t go it alone and find yourself seeking help, don’t think of it as a failure - think of it as taking the next step towards achieving your goals. Our formation packages Consider forming your company through SUAZ. You’ll have the support of our experts and the power of their combined knowledge to help handle the more complex parts of starting a business. Our formation packages can fit businesses of all shapes and sizes, and will make your dream of starting a business feel even more achievable. Are you ready? We’ve given you plenty to think about. Let us take some things back off your mind. Why not form a company with SUAZ today? Recommended Readings The best buy-to-let locations for starting a business Read More Can You Start a UK Business While on Benefits? Read More A Guide to Starting a Food Business in 2024 Read More

When starting a business, often coming up with an idea is the hardest part. We've gathered X ideas, and some tips on how to come up with the perfect one. Want to start a business but have no ideas? Here’s some inspiration 12 min read Company Formations Table of Contents Categories How to come up with a business idea on your own Mistakes to avoid when looking for good business ideas Business ideas for you to consider How do you know if your business idea is a good one? What happens now you have your business idea? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Perhaps you’ve always wanted to start a business, or maybe entrepreneurship is a goal you’ve only recently added to your bucket list. Whatever your circumstances, scoring a good business idea is the first step in your journey. If the words, ‘I want to start a business but have no ideas’ have played on your mind, we like to think we’ve got you covered. After all, a winning business idea may be just under your nose - you just need to find it. In this blog, we’ll cover how you can find ideas for starting a business to kickstart your new adventure. From reflecting on your strengths and weaknesses, to common mistakes you should avoid, our tips will help you uncover a business idea that aligns with your interests and makes the most of your skills. You’ll be saying ‘eureka!’ in no time. How to come up with a business idea on your own Have you ever wondered what is a good business to start? Perhaps being an entrepreneur has always been your dream but self-doubt has crept in. Or maybe you’re simply stuck for an idea that you truly care about. After all, your business is likely to take up a lot of your time, so you’ll want to feel passionate about it. Try to choose something you care about, not just what you think will make the most profit. A successful business idea is often generated by market awareness, some creativity and identifying your interests and skills. We’ve put together some considerations to help you find your business idea below. Reflect on yourself: What can you offer? Self-reflection can not only help you with your business idea, it can also allow you to identify your motivation for starting a business too. Why exactly do you want to start a business? Try to picture yourself in those entrepreneurial shoes and think of what motivates you. Maybe it’s to help others, become financially independent or fill a gap in the market. Having this self-awareness can guide you towards a business concept that aligns with your values and aspirations. Maybe you’re an avid cook, or try to live as sustainably as possible - your passions could be the building blocks of a business idea that takes the market by storm. Next, assess your skills and background - we’re not just talking about your education or qualifications, but the skills you have in your personal life too. Would your friends describe you as a good listener? Maybe you’re great at giving advice, and mentoring others for a living could be your calling. Your skills could open the door to new opportunities when you least expect them. Are there any hobbies that you can monetise? Your business idea may be closer to home than you initially thought. You may have a hobby that fills you with joy in your personal life, that could be the perfect business opportunity. Some hobbies that may have earning potential include: Crochet: Crocheting is a creative way to calm your mind, with 78.5% of people reporting that crocheting helps them to relax . But have you ever thought of the earning potential of crocheting? Your talent could earn you a loyal customer base, and you could get paid for doing what you love. Writing: Been praised for your way with words? If magic happens when you put pen to paper, starting a writing business could be your calling. Perhaps you’ll help businesses market their products as a copywriter, or help others improve their writing as a proofreader or editor. The options are endless. Baking: If the kitchen is your happy place, why not make your apron your uniform? Starting your own baking business will put your skills to good use and you’ll get to taste test your hard work! Sounds pretty good to us. Photography: Prefer to see life through a lens? If capturing the perfect shot makes your heart sing, starting a photography business could tick all the boxes. What skills do you have? Make a list of your key skills, and any expertise you possess, even if you doubt your ability. Has a colleague praised your problem-solving skills? Maybe you’re great at communicating with others and getting your message across. Once you’ve put your list together, you can research the market to identify gaps or problems that your skills could solve. Maybe you’re a skilled programmer or developer, and you’ve noticed a gap in the market for a particular tool - what’s stopping you from building that tool yourself? If you’re currently working a side hustle, an additional job you do for some extra cash, have you considered the possibility of making this your full-time occupation? This could work especially well if you currently have freelance clients, as you’ll already have several customers who know you and the value of your work. Think about common problems you could solve Your new business could be the solution to several problems across the market. Here are just some examples of how solving a problem can secure your business growth in different industries: Technology: Such as offering tech support to local businesses, developing software or an app to improve efficiency, or building websites to help brands grow online. Health: Introducing fitness classes to the local area, starting a counselling or mentoring service to support those struggling with their mental health, or creating natural toiletry products to reduce skin irritation. Retail or Ecommerce: Introducing a certain product or service online that isn’t currently available or using AI to offer personalised shopping experiences. Finance: Building a budgeting app for a specific age group, offering financial advisory services in your local area, or becoming a finance writer whose blog offers financial advice. Trade: Offering skilled workers in craftsmanship or fixing people’s homes such as plumbing and installation. If you’re considering starting a business in a trade, be sure to check out our guide on the best trade to start a business . Remember the key to solving customer problems is market research. Asking your target market or potential customers about their circumstances can ensure you develop a product or service that resonates with them and meets their needs. Think about what’s trending right now. Could you do it better? Look, we’re not saying create a direct replica of a product or service that already exists (the last thing you want is to be labelled a copycat!). But there may be something that’s trending right now that you could capitalise on. After all, if there’s already high demand for a particular product or service, you may find it easier to attract customers. Is there a popular product or service out there that you could do better? Maybe you’ve found a way to offer something similar for a cheaper price or better quality. Do your own research If you’re stuck for a business idea, research could unlock ideas you hadn’t even considered. Getting to grips with the market, your potential competitors and market niches and trends can prepare you for life as an entrepreneur. You’ll gain an understanding of your target market so you can identify customer needs and address them. You can also identify what others in your potential industry are doing well, and what they’re missing for you to develop your own competitive advantage. You could read books written by entrepreneurs, attend conferences to introduce yourself to the industry, or even explore online courses - many of which are free. Brushing up your knowledge doesn’t need to break the bank! You may stumble across a business idea when you least expect it. Learn from others Don’t be afraid to reach out to like-minded people - those successful entrepreneurs you admire were once in your shoes. Perhaps you have a mentor, colleague or local business owner that you look up to - why not reach out to them? Soak up their knowledge and ask how their business journey evolved. There’s no harm in brainstorming business ideas with someone you trust - they may think of something you haven’t, or offer their advice on how to make your concept even better. Mistakes to avoid when looking for good business ideas So, we’ve covered what you should do when searching for good business ideas. But what about the mistakes you should look to avoid? Considering 35% of failed businesses went wrong due to a lack of market need, and 19% failed due to a flawed business model, you’ll want to set yourself up for success from the get-go. Here are some common mistakes you should watch out for when deciding on your business idea: Don’t rush your idea What good ever came from rushing? You wouldn’t buy a house without going to see it first! Taking the time to research your industry, understand the needs of your potential customers and weigh up the pros and cons of each idea could save you significant time and money in the long run. Not only does rushing often lead to unnecessary stress and anxiety, but the more you’re prepared, the better chances you have of success. Take the time to get to know your industry, flesh out your idea and learn as much as possible. Don’t steal from others While other businesses may inspire you, try not to overtly copy them or steal their ideas. The business may spot your efforts to replicate their work, and customers are likely to see it too - which won’t show you in a good light! Don’t be afraid to ask those you admire questions about their business for inspiration, but make sure you avoid copying what they do. Your own ideas are just as special, so try not to doubt yourself! Perfectionism While it’s often easier said than done, you should try to avoid striving for perfection when fleshing out your business idea. Perfectionism could even cost you a winning business idea, due to self-doubt. One way to avoid perfectionism when it comes to trialling different business ideas is to seek feedback from your network early. Share your business ideas with your most trusted friends, family or even potential customers. From there, you can make changes to your idea from the valuable insights you gain, with the reassurance that others responded well to your business model. Above all, learning to let go is all part of the process of becoming an entrepreneur. Mistakes do happen, and instead of dwelling on them, you can use them as opportunities to make your business idea the best it can be. Not starting One of the biggest mistakes when it comes to business ideas? Not following through with your idea and making your business come to life. With 43% of aspiring entrepreneurs not believing they’ll set up their business, you’re not alone in feeling apprehensive. Many people get to the research stage of their business idea, but fail to get their business started, often due to a fear of failure. Remember, if you’ve got your business idea mapped out but are hesitant to press ‘go’, our friendly team are always at hand to help you, whether you need to voice your ideas or simply have a question about how company formation works. Business ideas for you to consider Feeling stuck for inspiration? We’ve put together a list of potential business ideas for you to explore. Start a dropshipping business When selling goods online, the seller is usually responsible for sourcing the products, as well as renting a warehouse space and then shipping the products to customers. With dropshipping, the seller uses a third-party supplier to ship the product instead - allowing you to cut the costs of storing your products. In some cases, the dropshipper also takes care of handling your inventory and stock-taking, so you can focus on the fun stuff like taking care of your customers, improving your products and building your brand. By starting a dropshipping business you can usually get your business up and running quicker than other types of businesses. You won’t need to keep products in stock or worry about your inventory. Instead, you’ll sell your products and pass the order on to a third-party supplier, who ships the order to your customer. The downside to consider, however, is the low profit margins that are often associated with dropshipping. You’ll likely have to put a lot in to keep your business running and generate profits, as a lot of the money you make will go to the supplier. It can also be tricky to differentiate your products from others also being sourced from third parties. To stay competitive, you may choose to lower your prices, but this can threaten your ROI. 2. Start a dog walking business You’re sure to wake up every morning feeling paw sitive as a professional dog walker. Not only will you get paid for taking care of precious pups (the dream, right?), starting a dog walking business will also keep you fit and active. While there aren’t any qualifications you’re legally required to have to start a dog walking business, there are several costs to keep in mind. You’ll need to have dog walking insurance in place, to protect not only your reputation but to cover the cost of your equipment and the cost of medical treatment should a dog face injury or death while you’re working. You’ll also need to factor in the cost of branding and getting your business’ name out there - you may choose to set up a website to boost your professionalism. 3. Start a cleaning business There are around 66,500 cleaning companies in the UK, making it a popular industry to be a part of! If you’re looking for a rewarding career that offers flexible hours and financial freedom, starting a cleaning business may be right for you. Of course, there are some safety considerations to keep in mind such as slipping over and potentially hazardous cleaning products, but provided you keep safe, it’s a job you’re sure to love. 4. Start a crafting business from home Always been the creative type? Let your imagination run wild and get paid for it by starting a crafting business. First, you’ll need to identify your craft. Perhaps you’re a natural with woodwork, love making jewellery or decorating spaces for parties. Whatever you’re drawn to, there’s nothing stopping you from monetising your talents. Be sure to research your target market to understand who your potential customers are, their pain points and how much they’d pay for your service. From there, you can get to work bringing your crafting business to life. Even better? Provided you have the space, you may be able to work from home. 5. Start a gardening or landscaping business Put your green fingers to work by starting a gardening or landscaping business. If you feel most at home when you’re outdoors, this could be the perfect business idea for you. You’ll experience the joy of bringing your customer’s gardens to life, as well as the financial freedom being your own boss brings. Perhaps you’ll specialise in a certain area such as lawn care or landscape design, or maybe you’re versatile enough to offer all types of gardening services. Make sure you invest in quality equipment and take out the right insurance to protect you and your business’ reputation. How do you know if your business idea is a good one? So, you’ve found a business concept that you feel passionate about - how do you know if it’s a good one? To make your business the best it can be, critiquing your idea and asking for feedback from others is vital. Use your market research to gauge the demand for your product or service to assess its profitability. Also ensure you have a unique selling proposition (USP) to give your business a competitive edge. But as well as profitability, you’ll need to ensure you have the passion and drive to succeed. Does your business idea make you excited for the future? Is it something you could see yourself doing long term? Ultimately, a thorough assessment of your business idea, along with others’ opinions, can help you decide if your plans have the potential for success. What happens now you have your business idea? Ready to turn your business idea into a fully-fledged company? We believe you have what it takes to thrive. Starting your own business can be truly lifechanging. All you need is some self-belief, a great idea and the determination to get you where you want to be. Once you’re ready to form your company, our professional company formation service is there to guide you through the process. What are you waiting for? Form your company today with SUAZ. Recommended Readings Pricing your dog walking business Read More Can a Student Start a Business Whilst at University? Read More A Guide to Starting a Buy to Let Property Business Read More

Learn how to start a pet shop business in the UK with our comprehensive guide. Discover essential steps, tips, and strategies for success with SUAZ. How to Start a Pet Shop Business: A Complete Guide 12 min read Beginner's Guide Table of Contents Categories Is it profitable to enter the pet business market? Steps to starting a pet business Step 1: Consider your brand and positioning and find your niche Your branding Step 2: Consider legal requirements and regulations Am I allowed to sell pets? Step 3: Create a solid business plan Step 4: Choose a solid business location Step 5: Come up with a marketing strategy Step 6: Have a plan for financing and funding How much does it cost to start a pet shop business? Create your pet shop business with SUAZ Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office It’s estimated that pet owners in the UK spend more than £8 billion annually on supplies for their furry friends. During the pandemic, it’s thought that 3.5 million dogs were purchased , which means annual spending is only likely to increase. Needless to say, with so many pet owners in the UK, there’s a huge demand for pet shops. If you have the love, passion, drive, experience and animal know-how, it’s a wonderful time to start a pet shop business in the UK. In a world where it’s easy to order pet supplies at the click of a button, pet shops still play an important role. Unlike online retailers, pet shops offer a personalised service and can help owners and potential owners with questions and concerns and offer advice. This helps build trust with your customers and ensures they keep coming back to you again and again. Today, pets aren’t just a part of a family – they are family – and owners will often go to great lengths to make sure they’re well looked after. If being a pet shop proprietor sounds like something you’d be barking mad to pass up, then this article is for you. We’re going to explain how to start a pet shop business in the UK, so you can take the first steps to making your dreams a reality. Is it profitable to enter the pet business market? Before you start, you need to answer, is a pet shop a good business to open right now? It’s thought that between 2022 and 2031, the pet shop market will increase by 5.2% . In the past 20 years, the amount we spend on our pets has increased by more than 150% . This shows that the boom in pet ownership isn’t showing any signs of slowing down and there’s plenty of money to be made by pet shops. It is, of course, a competitive market – just like any other business. High-street pet supply chains and supermarkets offer a wide range of pet products and services, but they often lack that personal touch and expertise. That’s where your pet shop can step in to raise the bar for pet care. Whether you’re looking to open a general pet shop or a niche pet shop (such as a shop focusing on exotic animals such as reptiles or tropical fish) so long as you approach it carefully and thoughtfully, it can absolutely be profitable. Steps to starting a pet business Ready to become the next hottest thing in pet supplies? Here’s our step-by-step guide for how to start a pet shop business in the UK. Or, for more general information, we also have a complete guide to starting a business . Step 1: Consider your brand and positioning and find your niche As any business owner will attest, there’s a lot of competition out there. You may have the skill, knowledge and passion, but it doesn’t count for much unless you stand out from the crowd. The first thing to do is think about what your pet shop business will do differently. What will stop pet owners from heading to the supermarket or a high-street brand and choosing to walk in through your doors instead? Maybe you’ll start selling trendy dog accessory and clothing for the fashion-savvy fur parents. Maybe your pet shop will specialise in cats. Maybe it will have the biggest selection of dog food in the UK. Maybe you’ll theme it to look like customers are trekking through the jungle. Or what if you have a king cobra on display in the back (so long as you have a dangerous wild animal licence, of course)? Your unique selling point (USP) should revolve around what you do best. What are you passionate about? What do you know loads about? What pet-owning pain point do you want to solve to ensure customers keep coming back? Because you’re interested in opening a pet shop, you presumably know a thing or two about pet care already. Think about the types of questions pet owners ask, the products they buy most regularly and the problems they face, and focus your USP around those. It’s also important to back this up with market research. Data can help you identify gaps in the market and show you how you can fit in to make your business a success. But, however you choose to position yourself, the most important thing is to do it well. Your branding Once you know more about what your niche and brand values are, you can start thinking about branding. This includes: A name A logo A mission statement Your vision Your tone of voice and messaging If you have experience with these you can work on them yourself, or lean on professional help by hiring a branding consultant or a freelancer. Make sure you have a very clear idea of what you want your business to look like so you can accurately brief designers who can help bring your vision to life. If you’re not very creative, there are ways to come up with pet shop business name ideas that are unique and memorable. Here are just a few: Use alliteration: e.g. Peter’s Pets Use puns: Barking Mad Pet Shop Lean into your niche: Reptile Ssssupplies Use a name generator, like the one offered by Shopify Take a name from literature, mythology or history These are just a few suggestions. Don’t hold back and let your creativity run wild! Step 2: Consider legal requirements and regulations There are several strict requirements and regulations to abide by when setting up your pet shop business. Firstly, there are the laws every business owner must comply with, including those related to paying tax. If you plan to employ staff, you must have employers’ liability insurance and it’s recommended that you at least have public liability insurance too. The last thing you want is for someone to accuse your store of causing illness or injury and you don’t hold a valid policy. It’s recommended that you register your business as a limited company to protect yourself and your business – here at SUAZ, we can help do that for you . If you plan on selling pets you must also obtain a licence from your local authority. If you're considering transporting animals as part of your pet shop business, be sure to check out our guide on how to start a pet transport business for essential information on licensing and regulations. This authorises you to legally operate your business and it mu st be renewed every one, two or three years. If you don’t have a licence, you can be fined and even face imprisonment. To be granted a licence you must make sure that: Animals are kept in suitable housing Animals receive the food and water they need Mammals aren’t sold when they’re too young Animals are visited and offered exercise regularly Effort is made to prevent pain and stop the spread of diseases There’s an appropriate plan in place in the event of an emergency Staff are trained to properly care for the animals It’s also vital that you don’t sell an animal to any customer under the age of 16. This is a criminal offence in the UK. And while it’s not a particularly exciting regulation, data protection and privacy laws must be adhered to at all times. So, when you collect and process customer data, ensure you comply with all regulations. Am I allowed to sell pets? Whether or not you choose to sell pets at your pet shop is entirely up to you, but you can only do so if you obtain a licence from your local authority. A licence allows you to sell animals such as rabbits, guinea pigs, gerbils, non-venomous reptiles, insects, and hamsters. However, there are certain considerations to be aware of, as a pet shop license doesn’t mean you can automatically sell any type of animal. Restrictions include: You can only sell puppies and kittens if you’ve bred them yourself Mammals cannot be sold if they’re under eight weeks old You cannot sell venomous or dangerous animals (this requires a separate licence) There are many ethical considerations to think about when making the decision to sell pets at your pet shop. Only if you’re able to properly house, feed and look after them should this be something you consider. Not only from an ethical point of view, but if you don’t meet satisfactory standards you may fail to be granted a licence and you could face receiving a fine. Step 3: Create a solid business plan You know where you want to position your business and you know the legal requirements, so now it’s time to get a solid understanding of your business’ goals and how you’re going to achieve them. Writing a business plan is tough, but it’s an essential part of the process. It’s something you can turn back to again and again to make sure you’re on track. It’s also imperative if you’re going to seek investors, as it tells them how you’re going to make sure you don’t lose their money. We’ve covered how to write a business plan before, so you should have a full read of our guide before you pick up a pen or open Word. But, here’s a condensed version so you have a good idea about where to start: Your executive summary – this is a summary of around one page that’s designed to tempt people into reading the rest. It should include the key points around your goals, stakeholders and opportunities for growth. Company description – Highlight your business, values and what’s important to you. It’s a chance to tell your story. Analyse the market – outline your market research and understanding of the pet supply industry, your competitors and your target audience. This shows why you’re the one to open this pet shop and how you’re going to sell your products to your customers, including marketing strategies. Your structure – This outlines your team and structure and what everyone’s responsibilities and experiences are. Your products and services – This explains what you’ll offer your customers, including your USPs, and how you fill a gap in the market. Financial plan – This outlines how your business will make money. It’s the main section investors will look at so you understand how your business will grow. SWOT analysis – This outlines your strengths, weaknesses, opportunities and threats - aka SWOT. Appendices – This includes additional information and documents that are relevant and add value. Step 4: Choose a solid business location Choosing where to base your pet shop is vital. You need to strike the right balance to ensure customers can easily get to you, the space itself and the cost. When looking for a location, you should ask the following questions: Is the space big enough for all your products and the services you want to offer? If you plan on selling animals, is it suitable so that you’ll get your pet shop licence without any problems? Does it comfortably fit within your budget (also ask about hidden costs)? Is there any competition in the area? Is there vehicle access? Is there a high level of foot traffic? Are there any regulations to be aware of? What is the condition and are there any maintenance issues to be aware of Is there room to grow? What are the terms of the lease? Does it meet health and safety requirements? Only when you have satisfactory answers to all of your questions that align with your business plan should you go ahead with your chosen location. This is one of the biggest stages in starting your pet shop business, so consider it carefully and go with your head, not your heart. Step 5: Come up with a marketing strategy Once you’ve chosen your location, it’ll hopefully have a high amount of passing foot traffic, which will naturally draw customers to you. But, this and the subsequent word of mouth aren’t likely to be enough, no matter how low your prices are or how amazing your service is. That’s why you need to come up with a marketing strategy that will tell your customers who you are and why you’re the one to help them overcome their problems, whether that’s by offering the products or services they need, low prices, a wide selection or something else. The only thing is, marketing takes time or money – and often both. The first thing you need to do is define your audience. What type of pet owners are your ideal customers? Look at age, gender, interests, lifestyle, values, income… the more specific you can be, the more targeted you can make your marketing. You should set yourself clear SMART goals, which are specific, measurable, achievable, relevant and timely. You should always refer to these to make sure your marketing efforts are on target and you’re not wasting your resources. Next, based on your target audience, choose the most relevant marketing channels. This could include: Social media Website Email marketing Online advertising Print media Networking Collaborations If you also have a website and sell products through it, you can help increase its visibility with an SEO and content marketing strategy, too. When it comes to marketing, there’s no magical winning formula and for newcomers, it can involve a lot of trial and error. You’ll be in a great position to do some marketing yourself, such as social media, but other forms can be tricky and time-consuming. It can be worth hiring a marketing agency or freelancer to do some of the more difficult marketing tasks for you, but this will, of course, come at a cost. However, this is a key part of starting a business, because it helps customers find and spend their money with you. Make sure to monitor spend and return on investment (ROI). When you know about what strategies work best for converting customers, focus your efforts on doing more of that. Step 6: Have a plan for financing and funding Starting a pet shop can be a hugely fruitful and rewarding experience, and if you have the right level of expertise, experience and dedication, you can no doubt make it a success. The only issue is, to get to that stage, it can be expensive. Some services can help keep costs down, like company formation packages , but there are still lots more to be aware of, including everything from deposits to insurance. Unless you have savings or you’re an entrepreneur with assets you can sell to pursue your next venture, you need a plan for securing financing and funding. There are several ways you can secure funding: A business loan Investors Crowdfunding Grants Not all options will be available to you, but to give you the best possible chance you’ll need to have followed the previous steps in this guide, specifically about writing a business plan. The only way to receive a business loan or the interest of an investor is by having a solid business plan with financial figures that shows them you know what you’re doing. Because if your business fails, they lose out, so they’re not ones to take risks. You always need to keep a close eye on your finances. Don’t be reactive – be proactive. Make adjustments to your financial plan when necessary and make sure you do what you can to stick to your budgets. For more detailed information, read our guide to startup loans and business financing . How much does it cost to start a pet shop business? The cost of starting a pet shop business can vary depending on a huge range of factors, but according to data, it will be approximately between £10,000 and £50,000 . This includes costs related to: Legal fees Insurance Deposits Licences Stock Leases Renovations Utilities Equipment Marketing Staff Create your pet shop business with SUAZ Opening a pet shop won’t be easy, but it can be rewarding and lucrative. If you have what it takes, then you absolutely can make your business a success and fill a gap in the market to attract a legion of loyal pet-owning customers. With the number of pets in the UK still on the up, now’s the time to follow through on your idea and open your dream pet shop. Ready to go? Forming a company with SUAZ is easy. Form a company for free, or view our packages for more information. Recommended Readings Pricing your dog walking business Read More A Guide to Finding a Dog-walking Business Name Read More Are dog walkers in demand? Read More

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Read our annual small business report to find out the latest small business trends, including which industries and locations are thriving this year. The UK small business report - the small business ecosystem and trends 13 min read Written by Lucy Hancock Business Trends Table of Contents Categories What is the definition of a small business? How many small businesses are in the UK? How has the business landscape changed over time? Small business survival rates in 2023 Fastest growing industries for UK small businesses The UK locations where the most small businesses were started Conclusion Methodology Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office The business world is constantly evolving. A major change, particularly in the last 20 years, has been digital transformation - the integration of digital technologies in a business to improve productivity, efficiency and overall growth. Digital transformation is no longer just an option or a luxury for businesses, but a necessity to remain relevant to their customers and stay competitive in their industry. Other key shifts for businesses include globalisation which has led to an increase in world trade, deindustrialisation and austerity - the government’s efforts to save money. With all these changes considered, the UK’s business landscape could be compared to an ecosystem. With ecosystems consisting of organisms that are connected and feed off each other, so too does the business landscape. Many businesses and industries rely on and support one another, so when one succeeds, so do others. But the same can also be applied when there are struggles or challenges. If you’re looking to start your own business , you’re in for a real adventure. As a new business owner, or someone who is looking to step into entrepreneurship in the near future, it’s important you’re clued up on the latest insights and developments in the business world - as what’s going on in the wider industry could benefit or impact your new venture. This knowledge can give you the confidence boost you need to make informed decisions as a business newbie. We’ve put together this small business report as a point of reference, covering small business numbers, survival rates across the UK and trending industries. With this insight, you should feel better equipped to embrace entrepreneurship and prepared to make the right decisions on next steps for your small business. What is the definition of a small business? As for a small business definition, typically speaking a small business is a corporation, sole proprietorship or partnership with a small number of employees and often a lower average annual revenue than larger businesses. According to the government, an SME is an organisation that has fewer than 250 employees and a turnover of less than €50 million , or a balance sheet total of less than €43 million. How many small businesses are in the UK? The UK certainly isn’t short of small businesses, in fact, SMEs account for 99.9% of the UK’s business population, with approximately 5.54 million registered SMEs on Companies House in 2023. It might be surprising to some that most businesses in the UK are very small, with 74% of registered SMEs running with no employees. We’ve delved further into the latest data from Companies House, looking back over the last 10 years to evaluate how the business landscape has changed over time. How has the business landscape changed over time? We looked at both VAT registered and unregistered businesses to give a clearer picture of the landscape - before we dive into the data, we’ll explain the difference. You’ll need to register for VAT if your total VAT taxable turnover for the last 12 months was over £85,000, or if you expect your turnover to go over that amount in the next 30 days. If this applies to you, you can register for VAT online . Of the 5,555,100 businesses on Companies House in 2023, there are 2,914,100 businesses (with 0 employees) not VAT registered, and 1,196,000 businesses (with 0 employees) VAT registered - seeing fewer small businesses with a VAT taxable turnover than not. Since 2013, the UK has seen year-on-year increases in the number of businesses registered, almost every year, highlighting a growing business landscape. Only three of the past 10 years saw percentage decreases in the number of businesses vs the previous year - 2018, 2021 and 2022. The dip experienced in 2018 appears relatively small at -0.5%, but equates to the UK being home to 27,000 fewer businesses. This is very likely due to the impact of the stock market index suffering its worst year in a decade , with a number of economic worries concerning investors, which hit companies with 1+ employees more than those with no employees. The number of UK businesses in 2020 saw a year-on-year increase of 1.9% from 2019, with non-VAT registered companies with no employees seeing the biggest growth (2.6%), likely influenced by the Covid-19 pandemic which saw a spike in startups. One reason for this rise in entrepreneurship was due to an increasing demand for medical supplies during the pandemic, with June 2020 seeing a 400% month-on-month increase in the number of new startups offering ‘disinfecting services.’ 2021 saw the biggest decline year-on-year, with 6.5% fewer businesses operating compared to 2020. The largest decrease was seen in the number of businesses with no employees, which weren’t VAT-registered - the businesses with smallest turnovers. It’s well known that a number of industries struggled to make it through the pandemic , with the restrictions enforced by the government, changes to travel and shopping habits having significant impact on businesses. 2022 saw a fall in the number of businesses by 1.5% compared to the previous year. This slight decrease may be influenced by the rising cost of living in the UK, with factors such as the Covid grant schemes coming to an end , and increased energy bills and rising inflation affecting budding entrepreneurs. For instance, 41% of trading businesses reported a rise in the price of goods or services bought in December 2022, compared to November. But before you let any doubts slip in, it’s important to note that there has been a notable increase in the number of businesses in the past year, with a year-on-year change of 0.8% between 2022 and 2023, or 46,200 more registered businesses (looking at business numbers as they stand in October 2023) - a rise for the first time since 2020. This rise has been led by the number of businesses with no employees that are not VAT-registered, which increased by 2.9% in the past year. With this in mind, you could be choosing a good time to make your business dreams come to life. It’s worth noting, there’s always going to be a risk; keep an eye on what’s going on in the current economy, including any projected impact from the government’s budgets to help you decide when the time is right for you, to maximise chances of small business survival. Small business survival rates in 2023 According to research by Fundsquire, around 20% of businesses fail within their first year, and 38% of startups fail due to running out of funds. But rather than letting these statistics put you off chasing your dream, why not use them to motivate you? We know you have what it takes to succeed. In fact, of the 531,312 businesses set up in 2013, 30% are still thriving in 2023 - a whole decade later! And while it’s said that just over a third of UK startups make it beyond five years , when looking at businesses formed in 2018, an impressive 47% of those companies still exist today. It appears that survival rates are on the rise in the early stages of business life too, with 88% of businesses set up in 2022 still operating in October 2023 - up from an estimated 80%. This could be due to the ever-evolving digital world providing resources and opportunities, to reduce risk, as well as the industries entrepreneurs have been choosing to opt for. Fastest growing industries for UK small businesses Knowing which industries have the highest business growth rate could steer you in the right direction, especially if your business idea isn’t yet set in stone. We’ve explored the fastest growing industries in the UK to offer some inspiration for which industries to research further to help solidify your decision. Whether that’s capitalising on a growing industry itself, or through seeing similar patterns in another industry and predicting its advancement to come. When looking at which industries are growing longer term, over the past five years, the manufacture of other non-metallic mineral products came out on top, with an impressive 172% increase in the number of businesses in the UK. This covers a broad range of manufacturing from construction and architecture supplies, to ceramic and clay goods or even packaging supplies. Other contenders for the fastest growing industry include wholesale trade (excluding motor vehicles and motorcycles) with a 70% increase over five years. As the retail trade industry sees growth, wholesalers and manufacturers will also benefit, to supply these businesses with stock. The manufacturing of chemicals and chemical products industry is also a top industry for growth, experiencing a 60% increase in the number of businesses over the past five years. This is quite a broad category too which includes everything from cleaning products, to essential oils, paints and dyes, fertilisers and industrial gases. Whilst some of these divisions are quite broad, it appears retail and manufacturing industries are seeing positive signs in the number of entrepreneurs starting new ventures - which could be a hint that these are ones to explore. If you’re interested in exploring these categories further, you can find all of the government SIC codes here and explore which businesses come under each category using the database search on Companies House . It’s important to remember that growth and demand can change year-on-year, depending on a range of factors. Take for instance ‘Residential Care Activities’, this industry saw a 54% rise in the number of businesses registered over the last five years, however, in the last year there has been a 14% decline. The need for residential care is still evident , but the economy, lack of government funding and cost of living might be having an impact on survival rates over the past year, showing how multiple factors can come into play. Looking specifically at the last year, the travel agency, tour operator and other reservation service and related activities industry has seen the biggest growth in terms of the number of businesses registered, at 12%. Despite the disruptions to travel experienced over the past few years, the industry is growing again, and with over half of people in Britain planning to spend more on travel in 2024 , this might continue to be an area in which we see more new businesses over the coming years. Sewerage was the industry seeing the second highest growth in business numbers over the past year with 11% growth, followed by companies in manufacturing of coke and refined petroleum products at 8%. Advertising and market research also made the top 10, with a 5% increase in the number of businesses registered in the past year, aligned to the steady growth being seen in advertising this year, and predicted for next year too . The UK locations where the most small businesses were started Wondering where in the UK is seeing the largest growth in small businesses? We’ve analysed Companies House data on a regional level to see which areas have seen the most small businesses (with a company size of 0-49 employees) formed over the last decade. Before jumping into the findings, it is important to note that as we live in a digital age, depending on the industry they operate in, some businesses could be serving customers further afield, not just in their local area. Outside of London, the East Midlands has seen the largest growth in the number of small businesses. In 2013, the East Midlands saw 313,100 small businesses registered, and 378,800 in 2023 - a 21% increase over this 10 year period. This impressive growth may have been influenced by the UK government’s Levelling Up initiative, which has invested over £1.2 billion in projects for locals and businesses across the East Midlands. Other top-performing regions for the number of small businesses include the North East and West Midlands, which have both seen an increase of 16% over the past 10 years. To delve further into the UK hotspots for new businesses, we’ve explored which local authorities have seen the highest business survival rates over the past 10 years. This data should shine a light on which locations may offer you a stronger chance of success for your new venture. Edinburgh takes the top spot with a 51% survival rate for businesses started in 2013, and a 59% survival rate for those started five years ago, in 2018. This higher than average survival rate could be due to a number of factors, such as the graduate pool from the city’s four universities, including one of the world’s top universities, the University of Edinburgh, as well as the city’s innovation and local support for businesses. Herefordshire came out second with a 49% 10 year survival rate. The local council in this part of the UK holds quarterly business briefings and six-monthly face-to-face business meetings to support local businesses which could be paying off. Winchester rounds out the top three with a 46% 10 year survival rate for businesses registered in that local authority area. Just like in Herefordshire, Winchester council has an offering to support small businesses too, with training, networking, mentoring and one-to-one business advice. It’s worth looking into what your local council has on offer for businesses, and considering how this could support the success of your venture, in whichever industry you choose to pursue. Fastest growing industries for UK small businesses by region The most common industries that have encountered the most growth across regions over the last three years are retail trade and real estate. In 2023, retail trade has been the most popular industry for newly registered companies across the majority of the regions. However in the East Midlands, East of England, North East and South East, real estate took the top spot as the most common industry - unsurprisingly, given the vital role that real estate plays in the UK’s economy. In 2022 alone, the real estate industry generated a turnover of over £65 billion . However, when looking at the most distinctly popular industries - the industries seeing regional growth at a rate above the national average - there largely appears to be a shift depending on location. In 2022, crop and animal production took the top spot for the most distinctly popular industry, in both the South West and East Midlands. In the East of England, the farming industry produced a total income of £1.1 million - an impressive 82% increase since 2018. Considering over four in 10 Britons said they’re more likely to buy British produce as a result of Brexit , there may be an increased demand for local farming across Britain. As an upcoming business owner, keeping an eye on the news and economic change can help you prepare your business should it be impacted by world events and changes to consumer preferences. In both the West Midlands and North West, postal and courier activities were the most distinctly popular industry for new businesses in the past year. The rise in demand for couriers has significantly increased following the Covid-19 pandemic, with many shoppers turning to online shopping for the first time. And despite the current cost of living crisis, 63% of businesses surveyed by YouGov reported the demand for delivery services increased in October, November and December 2022. This increased demand allows businesses to fulfil the needs of their customers, who are likely seeking the convenience, faster delivery and advanced tracking of their orders that online delivery services deliver. Keeping an eye on consumer trends will help you adapt your business, target your customers’ needs and join an industry which is set to grow. Conclusion Starting a business takes hard work and commitment, but the rewards are second to none. If you’re looking to make your mark on the business world, we hope our small business report has shed some light on the latest trends and insights across the UK. Here are some key takeaways to bear in mind, as a budding entrepreneur: Keep an eye on consumer trends and political change, so you can tailor your business offering accordingly to meet the needs of your customers. Look out for local government support to give your business a boost, such as Levelling Up, in which the UK government is investing £13 billion in local businesses across the country. If you haven’t yet decided on the industry you’re going to operate in, it may be worth exploring industries that are in high demand, particularly those in your region or city. Ready to step into those new boss shoes? We believe you’ve got what it takes. If you’re ready to form your business, check if your business name is available and we’ll help you get started. If you’re setting up a limited company or limited liability partnership (LLP), we’ll also register your company with Companies House, completely free of charge (it usually costs £50), so you have less to worry about. Methodology The data was gathered from Business Population Estimates statistical series and Companies House . Business survival rates were estimated based on the number of companies registered in a given year that remain active and/or open (as per Companies House search filters), compared to the total number of companies incorporated in that year. Company counts by industry correspond to the number of companies registered under a given Standard Industrial Classification (SIC) code, aggregated to the level of Division. Most common industry among newly registered companies represents the industry division with the highest number of companies registered in a given year and location. Most distinctly popular industry among newly registered companies was calculated using location quotient – a measure of how much more popular a given industry is in a given region, rather than nationally. Industries that had the highest share of businesses in a given region compared to the national average were deemed the most distinctly popular. For example, 2% of all businesses registered in Wales in 2023 were in the Accommodation industry - 2.8 times higher than 0.7% of businesses that were registered in that industry in the UK that year. Accommodation's location quotient was, therefore, 2.8 and as that figure is the highest of all industries in Wales, it was deemed the most distinctly popular industry in Wales in 2023. Data was collected in October 2023. Author bio Lucy Hancock is an experienced finance writer, having previously worked for Staysure Travel Insurance before working at MoneySuperMarket where she specialised in all areas of personal finance, from credit cards and loans to pensions and retirement planning. Having worked in digital marketing for several years, she’s passionate about the value small business marketing can bring to those looking to grow their businesses. She has written extensively across all areas of business and personal finance, to help business owners like you make informed financial decisions. Recommended Readings The UK’s most entrepreneurial universities Read More The best buy-to-let locations for starting a business Read More