Creating a start-up is as much about instinct as it is about knowledge. It's true that anyone who wants to be an entrepreneur will need a certain amount of business acumen to lean on, but they also need passion, drive, energy and adaptability in equal amounts.
That being said, starting a business cannot proceed without a clear and comprehensive checklist in mind. It may sound trite when your head is racing a hundred miles an hour between branding, product design, networking, and financing, but it will prove to be one of the most central documents you need to deliver in those first weeks, months, and years.
Here are the essentials to include in your startup checklist.
Write a business plan
You may feel like you know your business idea backwards, but when it comes time to put it into words (clearly and eloquently) to potential investors, banks, lenders or expert advisors, the only way to make sure your pitch it will really be done to have a strong business plan written.
Passion and enthusiasm go a long way, but not when you're stumbling over your words, drooling and getting lost in your own whirlwind of ideas.
Select a structure
Do you want to be an LLP or a sole trader? What about a limited liability company? Your decision will have a significant impact on your future tax obligations, so carefully considering each option is a very important step.
Get your head around finances
It's possible for self-funded startups to succeed, but many entrepreneurs find that to get started, they need to invest time and research to garner a healthy interest from investors or lenders. In addition to start-up costs, you need to consider how you will manage your day-to-day running costs before you start making a profit, as well as your own personal income.
Find the right facilities
This should be high on any entrepreneur's list. You need to decide where your business will operate from – not only for your own benefit, but also for tax purposes. If, for example, you are setting up a business as a sole trader, you will need to give HMRC a trading address. There are benefits to running your business from home, but the increased financial expense of renting or owning commercial space may well be worth it if you want to meet clients or customers or produce products in-house.
Consider what licenses and permits you need
This will look a little different for everyone, depending on the nature of the business in question. This is just one of the things a corporate lawyer can advise you on, and it is far wiser to work with a professional from the outset than to try to manage this side of business ownership yourself.
Are you going to employ a team?
You may have plans to do this much further down the line, or you may need to start onboarding team members as soon as possible. Becoming an employer, even if you only employ one or two people at the moment, is a very big step and you need to be fully compliant with employment law from the start – and make sure you and the business are protected. Again, this is something that only an experienced attorney can help with.
Create a marketing plan
You could offer the best products or services in your industry, but without a strong marketing effort, it's unlikely your business will ever take off. This should be one of your top priorities, but many entrepreneurs overlook this step and assume that a strong business will always stand out to customers.
Withhold your taxes/bills immediately
This is so important no matter what business you start. As mentioned above, the structure of your business will dictate what your tax liabilities will be, but the importance of knowing what those liabilities are is broadly the same.