Business Support.

STRUCTURES

Starting Business

SALES MARKETING

SWOT ANALYSE

STARTING A BUSINESS IN THE UK INVOLVES SEVERAL KEY STEPS.

Here’s a general guide to help you get started:

Research Your Idea:
- Assess your business idea for viability.
- Conduct market research to understand your target audience and competitors.
Create a Business Plan:
- Outline your business goals, strategies, and financial projections.
- This will be crucial if you seek funding.
Choose a Business Structure:
- Decide whether you want to be a sole trader, partnership, or limited company. Each has different legal and tax implications.
Register Your Business:
- If you choose to set up a limited company, register with Companies House.
- You may need to register for VAT if your turnover exceeds the threshold.
Set Up Finances:
- Open a business bank account.
- Keep detailed records for tax purposes.
- Consider accounting software or hiring an accountant.
Understand Your Tax Obligations:
- Register for Self Assessment if you’re a sole trader.
- Be aware of Corporation Tax for limited companies.
Get the Necessary Licenses and Permits:
- Check if your business needs specific licenses (e.g., food hygiene for restaurants).
Set Up Insurance:
- Consider business insurance to protect against risks (e.g., public liability, employer's liability).
Market Your Business:
- Develop a marketing strategy to reach your target audience.
- Utilize social media, websites, and other platforms for promotion.
Network and Seek Support:
- Join local business groups or online forums to connect with other entrepreneurs.
- Consider mentorship programs for guidance.
Stay Compliant:
- Keep up with legal requirements, including annual filings and health and safety regulations.
Evaluate and Adapt:
- Regularly assess your business performance and adapt your strategy as needed.

Starting a business can be challenging, but with careful planning and execution, it can also be very rewarding.

SALES MARKET AND CONSUMER/CUSTOMER IDENTIFICATION.
Researching your market to find your customers involves several steps:
1. Define your target audience: Identify who you think your ideal customers are.
Consider demographics (age, gender, income), psychographics (interests, values), and behaviors.
Common segmentation methods include:

Demographic: Age, gender, income level, education, etc.
Geographic: Region, city size, climate, etc.
Psychographic: Values, lifestyle, personality traits, etc.
Behavioral: Purchase frequency, brand loyalty, user status, etc.

Create a visual “portrait” of your customers and their word: their values, the activities and key brands they love and aspire to have and engage with.
2. Analyze the industry: Research your industry to understand its size, growth potential, and key trends. Look for reports, articles, and market analysis relevant to your sector.
3. Analyse competitors: Look at businesses similar to yours. Study their customer base, marketing strategies, and online presence. Tools like SWOT analysis can be useful.
4. Use surveys and interviews: Gather direct feedback from potential customers through surveys or interviews. Ask about their needs, preferences, and pain points.
5. Leverage online tools: Utilize tools like Google Trends, social media analytics, and keyword research to understand what customers are searching for and discussing online.
6. Join online communities: Participate in forums, social media groups, and other online communities where your target audience gathers. This can provide insights into their preferences and needs.
7. Conduct market segmentation: Break down your market into smaller segments based on specific criteria. This helps tailor your marketing strategies to different groups.
8. Test and Iterate:

Launch small-scale marketing campaigns to test your assumptions about your audience. Use analytics to measure success and refine your approach based on the data.
Tap into your network of friends, family and work colleagues to “disaster test” your ideas. Use their knowledge and preferences to gain free and valuable market research.

9. Monitor industry trends: Stay informed about changes in your industry that may affect customer behavior. Subscribe to industry newsletters, follow relevant blogs, and attend conferences.

SWOT ANALYSE.
Importance of Market Understanding.

Continuous Process: Understanding your market is crucial not just at the start of a business, but throughout its lifecycle.

SWOT Analysis: is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.
SWOT Analysis Breakdown.

Strengths: Internal capabilities that enable success.
Weaknesses: Internal factors that hinder performance.
Opportunities: External trends and events that can be leveraged for success.
Threats: External challenges that could impact the business.

Types of Analysis.
1. External Analysis: Focuses on opportunities and threats in the environment (e.g., customers, competitors, technology).

PESTLE Analysis: Examines macro-level trends (Political, Economic, Sociological, Technological, Legal, Environmental).
Industry Analysis: Assesses immediate competitive forces.

2. Internal Analysis: Evaluates strengths and weaknesses (e.g., performance, brand power, employee skills).
Conducting Market Research.

Key Players: Understand your customers, competitors, and suppliers.
Customer Insights: Utilize social media and informal research methods (e.g., polls, surveys) to gather feedback.
Competitor Insights: Study competitors through trade publications and mystery shopping.
Supplier Insights: Conduct regular reviews with suppliers for performance and market trends.

Benefits of Understanding Your Market.

Strategic goal setting: Helps determine and refine business goals.
Opportunity identification: Reveals chances to increase market share and innovate.
Business longevity: Aids in adapting to changes and future-proofing the business.

Regularly reviewing market understanding, including conducting a SWOT analysis at least annually, is essential for ongoing success and adaptation in business.

LEGAL STRUCTURES IN THE UK.

In the UK, several business structures are available depending on the size of the business, the number of owners, the level of liability, and the type of business activity. Here are the most common business structures in the UK:

1. Sole Trader

A sole trader is the simplest business structure, where one individual owns and operates the business. It’s common for freelancers, consultants, and small businesses.

Key Features:
- Full control over the business.
- Unlimited liability (the owner is personally responsible for any debts the business incurs).
- No legal distinction between the individual and the business.
- Profits are taxed as personal income (Self-Assessment tax return).
Advantages: Simple setup, low cost, full control over the business.
Disadvantages: Unlimited liability, harder to raise capital, can be hard to scale.

2. Partnership

A partnership involves two or more individuals or entities running a business together. Partners share responsibility for the business’s operations and liabilities.

Key Features:
- Unlimited liability (unless structured as a limited partnership).
- Shared responsibility for decision-making and management.
- Profits are shared between partners and taxed as personal income.
Advantages: Easier to raise capital than a sole trader, shared responsibilities and expertise.
Disadvantages: Unlimited liability (partners can be held personally liable for business debts), potential for conflicts between partners.
Types of Partnerships:
- General Partnership: All partners share responsibility and liability.
- Limited Partnership: One or more partners have limited liability, while others have unlimited liability.
- Limited Liability Partnership (LLP): Partners have limited liability, meaning they are only liable for debts up to the amount they invest in the business.

3. Private Limited Company (Ltd)

A Private Limited Company (Ltd) is a separate legal entity from its owners (shareholders). It’s one of the most popular business structures for small and medium-sized enterprises (SMEs).

Key Features:
- Limited liability (shareholders are only liable up to the value of their shares).
- Requires at least one director and one shareholder.
- Must be registered with Companies House and follow statutory regulations.
- Profits are taxed at corporate tax rates, and dividends are paid to shareholders.
Advantages: Limited liability, more credibility with customers and suppliers, easier to raise capital.
Disadvantages: More regulatory requirements, more paperwork, costs associated with incorporation and compliance.

4. Public Limited Company (PLC)

A Public Limited Company is a business that can sell shares to the public on the stock exchange. It’s typically used by larger businesses.

Key Features:
- Must have at least £50,000 in share capital.
- Limited liability for shareholders.
- Must comply with more extensive reporting and regulatory requirements.
- Shares are freely transferable and can be listed on a stock exchange.
Advantages: Access to capital through public shares, high public profile.
Disadvantages: More complex and costly to establish, strict regulatory obligations, public scrutiny.

5. Limited Liability Partnership (LLP)

A hybrid business structure combining elements of both a partnership and a limited company. Partners have limited liability, and the business is a separate legal entity.

Key Features:
- Limited liability for partners (they are not personally responsible for the LLP’s debts).
- Profits are shared among the partners and taxed as personal income.
- Must have at least two members.
- Requires registration with Companies House.
Advantages: Limited liability, flexibility in management, tax benefits.
Disadvantages: More complex than a general partnership, needs to file annual accounts.

6. Cooperative (Co-op)

A cooperative is a business owned and run by its members, who may be employees, customers, or suppliers. It operates for the mutual benefit of its members.

Key Features:
- Members share ownership and control of the business.
- Profits are distributed among members or reinvested into the business.
- Must comply with specific legal and regulatory rules depending on the type of co-op.
Advantages: Shared responsibility, democratic decision-making, mutual benefit.
Disadvantages: Decision-making can be slower due to democratic processes, may be difficult to raise capital.

7. Social Enterprise

A social enterprise is a business that exists to address social, environmental, or community issues. It reinvests profits into achieving its social mission rather than distributing them to shareholders.

Key Features:
- Can be set up as a limited company, community interest company (CIC), or other structures.
- Focuses on social impact rather than profit maximization.
- Profits are reinvested into the social mission of the enterprise.
Advantages: Ability to attract social investment, strong public support.
Disadvantages: Legal complexities, less focus on profit.

8. Franchise

A franchise is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand, products, and business methods.

Key Features:
- Franchisee operates a business using an established brand and system.
- Franchisee pays fees or royalties to the franchisor.
- Franchisees must comply with the franchisor’s standards and policies.
Advantages: Established brand and customer base, support and training from the franchisor.
Disadvantages: Franchisee fees, limited control over business decisions, dependence on franchisor’s success.

9. Charity or Non-Profit Organisation

A charity or non-profit is an organisation that is set up for charitable purposes and does not distribute profits to members or shareholders.

Key Features:
- Must register with the Charity Commission if it meets the criteria.
- Profits are reinvested into the organisation’s mission.
- Subject to charity law and oversight.
Advantages: Tax reliefs, potential for donations and grants, social impact.
Disadvantages: Restrictions on activities, significant regulatory requirements.

10. Unincorporated Association

An unincorporated association is a simple, informal group of people who come together for a specific purpose, such as a local sports team or club. It’s not a separate legal entity.

Key Features:
- No formal registration or incorporation required.
- Members are personally liable for any debts.
- Typically used for smaller, non-commercial activities.
Advantages: Easy to set up, minimal regulation.
Disadvantages: Unlimited liability, limited ability to raise funds.

Key Considerations When Choosing a Structure:

Liability: How much personal liability are you willing to take on?
Taxation: How do you want your business to be taxed?
Control: How much control do you want over the business?
Financing: How do you plan to raise capital?
Growth and Scalability: Do you plan to expand the business or bring in partners/investors?

The structure you choose will depend on the size, scope, and nature of your business, as well as the level of liability and tax considerations that are most suitable for your goals.