Many people would love to quit their day job and start up their own business. Leaving the rat race behind you can be one of life’s most exhilarating experiences but why do some people still shy away from setting up their own small business?

The main reason is fear of failure and the worry of not being able to support one’s family if the business fails to deliver. With careful consideration and planning it can be reasonably straight forward in starting your own small business – so let’s get started and answer the first important question: “How to start a small business?”.

What Business Do You Want to Start Up?

To start with, think about what skills you currently posses and this can either be based from your current job or maybe even a hobby or sport. These base skills will help you decide on what you want to do with your small business.

Once you have a basic idea on what you think you could be good at then it is time to start thinking about writing down a business plan which at this stage just needs to be some general notes which should include: business idea, your skills and the initital setup costs.

Make sure you take your time on deciding what you want your new small business to do. This planning period could make or break your new venture so it is worth discussing with family, friends and even talking to someone who already runs their own business as they are the most qualified to give you honest and accurate answers to your business questions. A good small business idea can make all the difference on whether the business will have a viable future.

Business Regulations

Once you decide to take the plunge and start your own business then it is required by UK law to inform HMRC (tax man) of your new business affairs. This must be done within the first 3 months of trading and if you fail to do this you could be fined at least £100.

The HMRC are quite helpful these days in making sure you are up to speed with what you should be doing with regards to tax and there are plenty of advice guides on the HMRC website.