Step by step guide to becoming self employed
1. The Business Plan
Going in to Business is a big decision and therefore it is important to plan ahead.
The below information from the Princes Trust can help you to create a business plan.
Be concise
It’s really important that potential investors can understand what your business is all about from a quick glance at your plan.
Be specific
Being specific is just as important as being concise. The details will help you drill down into how you will actually deliver your plan.
Know your market
A big part of knowing whether your business will be successful is understanding your audience. Make sure your plan is clear about your target market – who will you be selling to and how many other companies are already selling similar products?
Know your finances
The other essential part of a business plan is the finance section. If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit. Use it to your advantage – your plan will be incredibly useful when it comes to securing loans and investment, but that’s not its only use. It’s also a personal tool to help you understand your objectives.
Useful Links
2. The Business Structure
You must choose a structure for your business. This structure will define your legal responsibilities, like:
- the paperwork you must fill in to get started
- the taxes you’ll have to manage and pay
- how you can personally take the profit your business makes
- your personal responsibilities if your business makes a loss
- You can change your business structure after you’ve started up if you find a new structure suits you better.
Types of business
The main types are:
- sole trader
- limited company
- business partnership
- You can form an ‘unincorporated association’ if you’re setting up a small organisation like a sports club or a voluntary group and don’t plan to make a profit.
You can use other structures for businesses that help people or communities, e.g. ‘social enterprises’.
For more information please use the link below:
3. Research
Businesses can fail because ultimately they have not researched enough before setting up.
Research is essential in ensuring your business can be a success!
Start by googling your competitors and gain an understanding of their presence online.
Using sites such as yell.com can help you to analyse your competitors style and how current they may be.
Look at social media accounts for businesses, such as on facebook or twiiter as well as advertisements in the newspapers and magazines, which can help you to understand information on their activity as well as a gaining a feel for their budget spend on advertising.
Research your local area
Use the following link to gain essential research in your local area.
See link:
http://www.neighbourhood.statistics.gov.uk/
Secondary research is a great way of understanding your business idea, as it is easily accessible but what about primary data?
Using online surveys could be a way of helping you research and gain immediate feedback.
Looking for the right people to fill out your survey?
Visit SurveyMonkey home to millions of qualified respondents ready to take your surveys and give you the feedback you need to make better decisions.
By using https://www.surveymonkey.co.uk or a google form, you could send this to local people and gain an understanding of what they think of your idea or how to run your business.
4. Find the right business premises
If your business requires as a premises, ensure you research properly.
In Blackpool you can use the below link to help you with your research:
http://blackpoolunlimited.com/property-locator
Things to think about:
- Legal information
- Location
- Decoration / furniture requirements
- Getting connected with internet/ phone
Other useful links include:
http://startups.co.uk/finding-premises/
http://www.rightmove.co.uk/commercial-property-for-sale.html
Always research; always seek legal advice, before you enter into a lease or agreement.
5. Licensing
Premises may be required to be registered by the Local Authority?
Be safe, not sorry...
http://www.licensingexpo.com/licensing-expo/education/what-licensing
Licensing is the process of leasing a legally protected (that is, trademarked or copyrighted) entity – a name, likeness, logo, trademark, graphic design, slogan, signature, character, or a combination of several of these elements.
The entity, known as the property or intellectual property, is then used in conjunction with a product. Many major companies and the media consider licensing a significant marketing tool.
Licensing is a marketing and brand extension tool that is widely used by everyone from major corporations to the smallest of small business. Entertainment, sports and fashion are the areas of licensing that are most readily apparent to consumers, but the business reaches into the worlds of corporate brands, art, publishing, colleges and universities and non-profit groups, to name a few.
Licensing can extend a corporate brand into new categories, areas of a store, or into new stores overall. Licensing is a way to move a brand into new businesses without making a major investment in new manufacturing processes, machinery or facilities.
In a well-run licensing program, the property owner maintains control over the brand image and how it’s portrayed (via the approvals process and other contractual strictures), but eventually reaps the benefit in additional revenue (royalties), but also in exposure in new channels or store aisles.
Useful Links
6. Trading Standards
Business advice- from Blackpool Council
To ensure you stay on the right side of the law (and also receive a fair deal yourself), trading standards are here to help you. If you are a Blackpool business, please contact us for information concerning any of the following areas:
Age restricted sales
Street trading
Misleading business practices
Counterfeit or unsafe goods
For anything else, to make a report or for more individual advice, please feel free to give us a call on 01253 478375.
Throughout the year, trading standards offer training events. These events are free and aimed at building mutually beneficial links with the business community.
For more information please use the following links:
https://www.blackpool.gov.uk/Business/Business-support-and-advice/Trading-standards.aspx
7. Health and Safety
It is important to ensure your business adheres to Health and Safety regulations.
For help in creating a Health and Safety policy for your business.
Please access the below link:
HOWEVER...
In 2011, the Löfstedt Review link to external website recommended that those self-employed whose work activities pose no potential risk of harm to others should be exempt from health and safety law. This recommendation was accepted by Government.
So, from 1 October 2015, if you are self-employed and your work activity poses no potential risk to the health and safety of other workers or members of the public, then health and safety law will not apply to you.
We estimate that health and safety law will no longer apply to 1.7 million self-employed people like novelists, journalists, graphic designers, accountants, , financial advisors and dress-makers, where their work does not pose a risk to the health and safety of others.
8. Data Protection
If you handle personal information about individuals, you have a number of legal obligations to protect that information under the Data Protection Act 1998.
You must follow rules on data protection if your business stores or uses personal information.
This applies to information kept on staff, customers and account holders, e.g when you:
- recruit staff
- manage staff records
- market your products or services
- use CCTV
This could include:
- keeping customers’ addresses on file
- recording staff working hours
- giving delivery information to a delivery company
- For information on direct marketing, see marketing and advertising: the law.
Data protection rules
You must make sure the information is kept secure, accurate and up to date.