Use this checklist to make sure you have completed all the essential planning steps before you start trading. Work through each section in order — later steps depend on earlier ones being complete.
1. Validate your idea
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Be precise about who has this problem and how you solve it differently from existing options.
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Speak to strangers in your target market, not friends and family.
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Research their pricing, strengths, weaknesses, and customer reviews.
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Validate with real customers willing to pay real money, not just stated interest.
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Calculate how many sales you need to cover all costs. Is that volume realistic?
2. Plan your finances
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Use a free template from Start Up Loans or the British Business Bank.
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Include equipment, stock, premises, insurance, marketing, professional fees, and working capital.
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Personal savings, Start Up Loans (£500-£25,000), bank loans, grants, or investors.
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Monthly breakdown of personal living costs to calculate minimum drawings needed.
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Show lenders you understand risk and have planned for different outcomes.
3. Write your business plan
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Executive summary, personal summary, concept, products, market analysis, competitive analysis, marketing strategy, operations, management, financials, back-up plan, appendices.
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Supplier quotes, competitor benchmarks, market research data, or existing sales.
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Contact your local Growth Hub for free business planning support.
4. Choose and check your business name
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Use the free name availability checker if forming a limited company or LLP.
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Check at gov.uk/search-for-trademark that your name does not conflict with existing trademarks.
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Register domains before incorporating to prevent others taking them.
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Reserve handles on major platforms even if you will not use them immediately.
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Certain words require prior approval. Check the sensitive words list on GOV.UK.
5. Choose your business structure
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Each has different tax treatment, liability, and administrative requirements.
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Sole traders pay Income Tax and Class 2/4 NI. Ltd companies pay Corporation Tax plus personal tax on dividends.
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If unsure, speak to an accountant. Many new businesses start as sole traders for simplicity.
6. Register your business
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Sole traders register for Self Assessment. Ltd companies register for Corporation Tax.
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Costs £100 online (£124 by post). Takes 24 hours online, 8-10 days by post.
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Required for ltd companies. Strongly recommended for sole traders to separate business and personal finances.
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Mandatory if your taxable turnover exceeds £90,000. Voluntary registration possible below this threshold.
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Check the licence finder at gov.uk/licence-finder for your specific business activities.
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Employers' liability insurance is legally required if you have employees. Public liability and professional indemnity are recommended for most businesses.
Working through this checklist
Tick each item as you confirm it. Ticks are not saved when you leave the page, so print or save the page if you want a record of where you have got to.
Your local Growth Hub offers free business planning support, including help with your cash flow forecast and business plan. Find yours through the Business Support Helpline.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.uk