Testing and validating your business ideas UK-wide

Business planning checklist

Checklist covering all the pre-trading planning steps from validating your idea through to registering your business.

Guide summary

Work through this checklist in order before you start trading. Validate your business idea, plan your finances, write a business plan, choose and check your business name, pick your structure, then register with HMRC and Companies House if needed.

  • Validate your idea with customer research and competitor analysis
  • Test demand with a minimum viable product before scaling
  • Plan finances with cash flow forecast and break-even calculation
  • Write a business plan with all 12 sections based on evidence
  • Check your business name on Companies House, trademarks, and domains
  • Choose your business structure: sole trader, partnership, or limited company
  • Register your business with HMRC for all structures
  • Register with Companies House only for limited companies and LLPs
  • Open a business bank account and get any needed licences
  • Allow 4-12 weeks to validate your idea before investing
On this page

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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

  1. 1

    Identified a specific problem your business solves

  2. 2

    Conducted customer research (10-20 interviews or 100+ survey responses)

  3. 3

    Analysed 5-10 competitors (direct and indirect)

  4. 4

    Tested demand with a minimum viable product

  5. 5

    Confirmed financial viability (break-even calculation)

2. Plan your finances

  1. 1

    Created a cash flow forecast (Year 1 monthly, Year 2 quarterly, Years 3-5 annual)

  2. 2

    Calculated total startup costs

  3. 3

    Identified funding sources

  4. 4

    Created a Personal Survival Budget (if sole trader)

  5. 5

    Built three financial scenarios (base, optimistic, pessimistic)

3. Write your business plan

  1. 1

    Completed all 12 sections of your business plan

  2. 2

    Based every financial figure on evidence

  3. 3

    Had your plan reviewed by a mentor or adviser

4. Choose and check your business name

  1. 1

    Searched Companies House for identical names

  2. 2

    Searched the UK trademark register

  3. 3

    Checked domain name availability (.co.uk and .com)

  4. 4

    Checked social media handle availability

  5. 5

    Checked for restricted words (if applicable)

5. Choose your business structure

  1. 1

    Understood the differences between sole trader, partnership, limited company, and LLP

  2. 2

    Considered tax implications of each structure

  3. 3

    Decided on your structure

6. Register your business

  1. 1

    Registered with HMRC (all businesses)

  2. 2

    Registered with Companies House (Ltd companies and LLPs only)

  3. 3

    Opened a business bank account

  4. 4

    Registered for VAT (if applicable)

  5. 5

    Obtained necessary licences and permits

  6. 6

    Arranged business insurance

  1. 1

    Download this checklist

    Print or save this page to track your progress through each step.

  2. 2

    Contact your local Growth Hub

    Get free business planning support from your local Growth Hub. Find yours at gov.uk/business-support-helpline.

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