Starting A Business - The Basics

Starting a
Business:
the basics
a
Leeds Library and Information Service
© Leeds Library and Information Service April 2008
Although we have tried to make sure that the information in this booklet is as accurate as possible, Leeds Library and Infor-
mation Service cannot accept any responsibility for any errors or omissions. Leeds Library and Information Service does not
accept responsibility for loss caused by any person acting or refraining from action as a result of any information supplied in
this booklet. This information is issued to provide users with general background only. Appropriate professional help should
always be sought.
Contents
Starting a business? 3
turn your dreams into reality!
Business support and information 5
Your business name 9
Legal status 11
Your business plan 12

a vital document . . .
Customers and competitors 14

the importance of market research
Marketing 19
the art of attracting and keeping customers
Financing your business 24

where are you going to get the money from?
Tax matters 30
Finding premises 32
Regulations 37
Starting a business: the basics Leeds Library and Information Service www.businessandpatents.org
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3
Starting a business?
turn your dreams into reality . . .
Thousands of people dream about setting up in business, but only a small proportion
will actually do so because it can seem so daunting. Self-employment is certainly not
an easy option. Being your own boss requires marketing and selling skills, raising fi-
nance, doing the book-keeping, collecting debts, paying bills and endless other tasks.
And then there are the inevitable worries – ‘Am I in over my head?’ - ‘Will I make it?’
Some businesses fail because they don’t spot something that they ought to have fore-
seen. Others fail because they run out of funds or don’t do enough research to make
sure there’s actually a market out there for them. Some people discover that, had
they given more thought to the potential difficulties, they would never have started
down the self-employment road in the first place!
So, before you start a business, you need to ask yourself some searching questions:
• Do I have the skills and enthusiasm to make it work?

• Am I hard-working and committed – with lots of ‘get up and go’?
• Am I organised and responsible?
• Am I good at getting things done?
• Am I quick to grab opportunities and
ready to take risks?
• Am I prepared to work long and unso-
ciable hours?
• Could I keep going despite setbacks?
• Would I thrive under pressure?
• Could I cope with financial insecurity?
• Am I willing to learn new skills and to
take advice?
• Do I know who I’m aiming my product
or service at?
• Am I good at communicating and get-
ting my point across?
• Am I able to sell?
Ask your family and friends for their honest

assessments of your strengths and weak-
nesses and compare notes. Talk to people
who are or have been involved in running a
4
business and question them about their experiences, what they think it takes to suc-
ceed and what you should be prepared for.
You are more likely to succeed if you do some detailed market research on possible
customers and competitors (see page 16) and seek advice before launching a busi-
ness (see below). You must be clear about your business idea and you must be
sure that it is viable. Of course you will be taking a risk, but that does not mean you
need be foolhardy. Information, advice and planning are the keys to reducing
risk. As the saying goes - ‘Few businesses plan to fail, but many businesses fail to
plan.’
Fortunately, there’s a lot of information available and organisations that can help.
This booklet looks at many of the things you need to consider, but you should not use
it as your only reference. At various points you’ll notice that you are referred to
sources of FURTHER INFORMATION – such as agencies, associations, library re-
sources, websites and books.
5
Business support and information

The library service provides a comprehensive range of information resources and services to
answer your business enquiries.
At Leeds Central Library and on the library’s websites, you can find resources to help you
increase your knowledge about customers and competitors, find suppliers and manufacturers
and check on companies before you do business with them.
Information Centre
2nd Floor
Central Library
Calverley Street
Leeds LS1 3AB
Tel: 0113 247 8282
businessandresearch@leedslearning.net
www.leeds.gov.uk/libraries
The library’s Business and Patent Information Services can also advise you about applying
to protect your products and services by registering them as intellectual property. There are
four main types of intellectual property:
• trade marks for branding

• patents for products which work in a new way
• registered designs for products where appearance is important
• copyright for written material or artistic works
Please phone 0113 247 8265 and see www.businessandpatents.org > Protect your ideas
and www.bapisleeds.blogspot.com
The library’s catalogue can be searched at www.leeds.gov.uk/catalogue
Members of the Library can use COBRA - the Complete Business Reference Adviser. This
online resource includes over 350 Business Opportunity Profiles which look at developing
various business ideas in different sectors and cover such issues as:
• Are you suited to this type of business?
• What formal training do you need?
• Who are your customers likely to be and who will you be competing against?
• What are the key issues affecting the market?
• How can you promote this enterprise?
• What start up costs can you expect?
• What are the legal issues to consider?
The Business Information Factsheets (BIFs) included in COBRA cover key start up topics.
Titles include:
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• BIF098 Could You Run Your Own Business?

• BIF059 20 Tips to Help You Choose a Business Idea
• BIF004 Business Plan—A Guide to Writing a
• BIF017 Business from Home—A Guide to Running a
• BIF341 Regulations when Starting Up—An Introduction to Business
• BIF329 Starting Up—A Guide to Organisations You Must Contact When
• BIF279 Common Reasons Why Small Businesses Fail
• BIF433 Business Support for the Over-50s—A Guide to
• BIF430 Business Support for the Under 30s— A Guide to
• BIF428 Business Support for Ethnic Minorities—An Introduction to
• BIF423 Women in Business—A Guide to Support for
The UK Market Synopses in COBRA are guides to what is happening in different markets
and can help with initial market research. The Business Legal Library provides short sum-
maries of business regulations in force in the UK.
COBRA is available on the computers in Leeds public libraries and from your home or work via
the link at www.leeds.gov.uk/onlineresources using your Leeds Library membership num-
ber. It’s free to join the library - join online at www.leeds.gov.uk/libraries, by phone on
0113 395 2313 or join in person at any Leeds public library (proof of id and address is re-
quired).
A further series of Business Factsheets is available on the Business and Patent Information
Services’ website at www.businessandpatents.org Titles include:
• Start-Up Briefing—Forming a business
• Start-Up Briefing—Writing a business plan
• Start-Up Briefing—Financing your business
Business Link Yorkshire

Business Link Yorkshire delivers independent and impartial business advice, information and a
range of services to help those trying to start up new businesses. It operates in partnership
with other business support organisations including the Chambers of Commerce, Local Authori-
ties and universities of Yorkshire. Advice is offered over the telephone, via the website and at
workshops and seminars. If appropriate, you can arrange to meet an adviser.
Business Link Yorkshire
1 Capitol Court
Capitol Business Park
Dodworth
Barnsley S75 3JR
Customer Information Centre: Tel: 08456 048 048 (8.30am—5.30pm, Monday to Friday)
info@businesslinkyorkshire.co.uk
www.businesslinkyorkshire.co.uk
Business Link also publish The No-Nonsense Guide to Starting a Business which will help
you understand everything you need to think about before setting up. This can be viewed or
ordered for free online at www.businesslink.gov.uk/no-nonsense
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Leeds City Council: Business and Enterprise Service

Leeds City Council’s Business and Enterprise Service can run searches on their database of com-
mercial property to help you identify suitable premises.
LCC Business and Enterprise Service
Floor 1, White Rose House
28a York Place
Leeds LS1 2EZ
Tel: 0113 220 6350
info@locateinleeds.co.uk
www.leeds.gov.uk/business
Leeds Chamber of Commerce

Leeds Chamber can provide start-up companies with access to expert advice on tax, employ-
ment law, insurance and financial matters. They can also provide targeted databases, market
research and advice on specialist training programmes
Leeds Chamber of Commerce
White Rose House
28a York Place
Leeds LS1 2EZ
Tel: 0113 247 0000
info@leedschamber.co.uk
www.leedschamber.co.uk
Other useful organisations and websites

Sharing the Success
Sharing the Success is the title for the Leeds Local Enterprise Growth Initiative (LEGI). This pro-
gramme has been created using government funding to help regenerate disadvantaged areas of
Leeds.
The programme involves more than 20 partners who are delivering a number of creative pro-
jects using enterprise to help boost prospects, create jobs and help develop new and existing
businesses in Leeds.
www.sharingthesuccess.co.uk
Enterprise Leeds
Entrepreneurs and companies in Leeds can now access business advice and support through
Enterprise Leeds - a single 'gateway' which brings together the broad range of business support
services available in the city.
www.enterpriseleeds.co.uk
ABDN Minority Ethnic Enterprise Network

Assists in the development of Asian and minority ethnic businesses through an active network
that shares best practice, creates access to opportunities and represents its members at the
highest level
www.abdn.org.uk
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West Yorkshire Social Enterprise Link

Social enterprises are set up primarily to meet a social objective, rather than to make money for
their owners
www.wyselink.co.uk
Leeds Media
Works to develop and promote the city's media, marketing and e-business sectors
www.leedsmedia.co.uk
Connect Yorkshire
Supports the creation and development of technology businesses
www.connectyorkshire.org
Leeds Metropolitan University

Business support services
www.lmu.ac.uk/business
KnowledgeRICH
Connects businesses with a technical challenge to the network of experts in the region's universities
www.knowledge-rich.com
BBC—Start a business
Includes sections on research, planning and legal know-how
www.bbc.co.uk/consumer/start_a_business
Prime
A national organisation helping people aged over 50 set up in business
www.primeinitiative.org.uk
WebLinks
Further links can be found at Leeds Library and Information Services’ virtual reference library
www.leeds.gov.uk/weblinks
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Your business name

Finding a good name is an important part of setting up in business. Your name must
give your business a positive image. It will be the name you use when answering the
phone and the name people see in your advertising and on your business cards and
stationery. It will be how they will remember your products and services and recom-
mend you to others. This is all part of branding, which involves developing a distinc-
tive name, logo, colours and packaging, and registering all this to prevent others from
copying it (see below).
Your name should:

• be easy to remember
• be easy to find in the phone book and other directories
• not cause confusion with other businesses, especially ones which are local
• make it easy for customers to understand what you do
You should check phone books, trade directories, relevant trade journals or magazines
and search for it on the internet to try to make sure that no other business is already
using the name you have in mind. There are some useful online business directories
at:
• www.yell.com
• www.thomsonlocal.co.uk
• www.netparkone.co.uk
• www.applegate.co.uk
The Companies House website includes a database of all registered companies

(i.e. those businesses which are incorporated as ‘limited liability companies’ – see
page 13). You can use this database to check whether a name is already being used
by a registered company at www.companieshouse.gov.uk/info
It is also a good idea to check at www.whois.net to see if the name you are consider-
ing has been registered as a website address (also called a domain name). Indeed,
you may also be considering setting up a website of your own. Information on this
can be found at www.businesslink.gov.uk/websites
You also need to make sure that your proposed business name doesn't conflict with a
registered trade mark. A trade mark is a distinctive sign of some kind which is used
by a business as part of its branding, to identify itself and its products or services to
consumers, and to set the business and its products or services apart from those of
other businesses. Trade marks are protected by the law and problems can arise with
the owners of a mark if a business name is judged to be ‘confusingly similar’ to their
trade mark. Your proposed name does not have to be absolutely identical with a trade
mark to cause possible conflict. For further advice on trade marks and business
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names get in touch with Business and Patent Information Services at Leeds
Central Library (see page 7). The website of the Trade Marks Registry at
www.patent.gov.uk/tm includes a searchable database of trade marks.
There are certain rules and regulations about the kind of words/phrases you can
include in a business name. These fall into five main groups: words that suggest your
business is of national importance (e.g. British, Scottish, National, European); words
that suggest a special status (e.g. Association, Authority, Council, Institute); words
that suggest a particular function (e.g. Charity, Insurance, Trust); words that suggest
a specialised activity (Architects, Chemists, etc); and words that suggest connections
with government or royalty.
Different regulations apply depending on the legal status you choose for your busi-
ness, i.e. whether you intend to trade as a sole trader, as a partnership, or as a lim-
ited company. (There’s more on legal status in the next section.) A limited company
will not be allowed a name that is the same as one which is already registered. Sole
traders are not allowed to include the word Limited in their names. There are also
rules about when and where it needs to be displayed. Please consult the Companies
House Guidance Booklets GBF2 Company Names and GBF3 Business Names at
www.companieshouse.gov.uk/about/guidance.shtml
Further information
Business Information Factsheets (BIFs) available on COBRA (see page 4) include:
BIF368 Business Name—A Guide to Choosing and Registering a
BIF048 Business Names Act 1985— A Guide to the
BIF096 Internet Domain Name— A Guide to Registering an
Business Factsheets available at www.businessandpatents.org include:
Directors’ Briefing—Creating a brand
Useful websites
Business Link Yorkshire—Choose the right name for your business
www.businesslinkyorkshire.co.uk > Starting up > Business names & structures
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Legal status
There are three main ways to trade when in business:
• A sole trader is a business owned and operated by one person. If you run
into difficulties, you are personally responsible for any debts, which you would
have to meet from your own assets
• In a partnership two or more people jointly run the business and are jointly
liable for any money the business owes. If you do go into partnership with oth-
ers, you need to get binding agreements to prevent arguments over who has
contributed the most effort and money for materials, etc. If you are successful,
you will probably need to employ an accountant to complete tax returns for
you.
• Liability is the reason why many businesses are registered as limited liability
companies. This means that your liability for any debts is limited to the
amount you invested in the business in the form of shares purchased by the
director’s of the company. In other words, as a director and a shareholder your
personal assets are protected in the event of the company’s bankruptcy, but
you will lose the money (capital) invested in your shares. Your company will be
registered with Companies House and financial accounts must be sent there
each year - see www.companieshouse.gov.uk You will need the help of a so-
licitor or accountant to form a limited company.
Further information
Business Information Factsheets (BIFs) available in COBRA (see page 4) include:
BIF032 Legal Status for your Business—Choosing the Right
BIF363 Sole Trader—A Guide to Setting up a Business as a
BIF167 Private Limited Company—A Guide to Setting up a Business as a
BIF028 Partnership—A Guide to Setting up a Business as a
Useful website:
Business Link Yorkshire—Business names & structures
www.businesslinkyorkshire.co.uk > Starting up
Companies House—information on company formation, legal status and names
www.companieshouse.gov.uk
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Your business plan

a vital document . . .
You need to put together a business plan to show that you, your ideas and your
business have the potential to succeed. This will help you:
• clarify your ideas and communicate them to others - e.g. to attract finance
• minimise the risks of failure – a properly constructed plan will present your
market research on customers and competitors to show demand for your
product or service and the reasons why you think you can compete successfully
set out your marketing strategy to show how you’ll promote your business and
stand out from the competition
• set sales and financial targets so that you can monitor your business' per-
formance and make adjustments where necessary
• predict future problems so that, if they do arise, you can sort them out before
they threaten to ruin your business
• address any regulations you must comply with (see page 40)
• detail any training or qualifications required for your type of business
• focus on where you want to go and how you're going to get there
• turn your dream into reality!
SUMMARY
Start with an overview of the key points of your entire plan. Include highlights from
each section of the document - from the key features of your business idea, your
product or service and its benefits to the customer and your advantages over the
competition, why you have an opportunity in the market and your track record to
date, through to the main elements of the financial forecasts and funding require-
ments. Although it appears at the beginning of the plan it will be written last and
should be no more than two pages in length. Bear in mind that many potential finan-
cial backers will make judgements about your business based on this section of your
plan alone.
BUSINESS DESCRIPTION
What exactly will your business do? If you want other people to invest in your busi-
ness you must be specific about the kind of business that you are starting and the
market you want to sell to.
13
Describe your big idea:
• say how long you have been developing it

• describe what you have done up to this point
• provide any relevant history - for example, if you’ve bought the business, who
owned it originally and what they achieved with it
• say what you intend to do next to drive the business forward
• who will run it? Highlight any relevant experience, training, qualifications
and interests you have (include your CV as an appendix)
• starting a business needs a range of skills. If you have been on, or plan to go
on, any business training courses (such as bookkeeping or sales and market-
ing) make sure you add this information
• state the name and the proposed legal status of the business (i.e. sole trader,
partnership or limited company)
• say whether you hold or are applying for any patents, trade marks or design
rights?
What will be sold? Give details about your product or service:
• what will make it stand out from the competition?

• why will customers buy it?
• what benefits will they gain from buying it?
• outline how you will be able to develop your business to meet customers’
changing needs in the future
• it is important to cover any disadvantages or weak points you feel the busi-
ness may have at the moment. Be honest about these - it shows that you are
dealing with them
Explain some key features of the industry:
• for example, any special regulations, whether the industry is dominated by a

few large companies or any major changes in technology
Remember that some of the people who will read your plan may not understand your
type of business and its products, services or processes as well as you do, so it's a
good idea to get someone who isn't involved in the business to read a draft of your
plan to see if they can understand it easily.
Further sections of the business plan are covered in the following pages.
Further information
BIF004 Business Plan—A Guide to Writing a
Useful websites:
Business Link—Prepare a business plan www.businesslink.gov.uk/businessplan
The Prince’s Trust—Writing a business plan www.tinyurl.com/34mfzs
Look at some examples of business plans at www.bplans.co.uk
A business plan template is available at www.businessandpatents.org.uk
14
Customers and competitors

the importance of market research . . .
The next section of your business plan needs to answer the question - ‘What do
you know about the market you’re entering?’
No matter how brilliant your business idea seems, before you spend time and money
developing and promoting it you must do some market research to see if there’s
actually a market out there for you. You need to find out:
• who will want what you have to sell?

• how many of these potential customers there are?
• how much they will pay?
• how often they will buy?
• what the competition is like
• if there’s room for more competition
• if there’s room for you!
Finance for new business ventures is very difficult to obtain. Unless you can back up
your answers to these questions with some solid market research and present it in
your business plan, no banks or funding organisations will consider helping you.
You must prove that you really understand the marketplace into which you will be sell-
ing your product or service, your target customers and the competition.
Present your research as follows:
MARKET OVERVIEW
• market size - the overall size of the market and how it has developed over
recent years
• market trends - the trends which are currently affecting or are likely to affect
this market and how you can take advantage of them
• market opportunities and gaps – for example, sections of the market that
are currently ignored, or have not yet been noticed, by other businesses
CUSTOMERS
You need to build up a profile of your potential customers:
• who are they?
• where are they?
• how many are there?
15
• how much do they spend?

• why do they need your product or service?
• when and how often will they need it?
• what price will they be prepared to pay?
• how will you sell your product or service to them?
• above all, how do you know they will be interested in buying from you?
For individuals, describe them using characteristics like age, gender, occupations,
income, locations and lifestyle. Are you planning to target a particular segment of the
market - for example, local customers or a particular age group? Describe any cus-
tomers you have already lined up and any sales you have already made.
If your customers are likely to be other businesses, provide details such as type of
business, location, numbers of employees, public or private sector, and turnover.
COMPETITORS
The amount of competition in a market indicates how difficult it will be to gain a
large enough share of that market to make your business viable. Describe your com-
petitors – the businesses that offer products or services which are similar to yours – in
terms of:
• their number and location - Also consider if there are any companies that
might enter the market in the future
• their products and services - What do they sell and how do they sell it? Are
their products and services the same as yours? Do your competitors provide
something that you don't?
• their customers - Who and where are their customers? Are your competitors
targeting the same customers as you? Describe how what you have to offer
will be different and why people will stop buying from them and buy from you
instead
• their share of the market - How large is it? Could you take some of it and
how might they react?
• how well they are doing – Their strengths and weaknesses (think about their
growth, performance and market share)
• how they do business: what have you learnt from their strategies for grow-
ing, marketing themselves and pricing their products? What about their facili-
ties and stock? How much do they charge for delivery for instance? What af-
ter-sales service do they provide? Can you do it better?
• how long has the company been in business?
• how many employees does it have?
• what are its latest projects and plans?
• what issues and developments are affecting and shaping the industry or sec-
tors in which the company operates? Show that you are aware of any likely
16
changes in the market and how you expect you and your competitors to react
to them
You must be able to show that your business will be able to attract customers despite
the competition.
HOW TO SEARCH FOR THIS INFORMATION

Desk Research
Are there many businesses already operating in your chosen field of activity? An obvi-
ous first step to finding the answer is to look through the Yellow Pages. Look at
adverts in local newsagents, newspapers and trade journals. Check websites,
such as:
• www.yell.com
• www.thomweb.co.uk
• www.netparkone.com
Make use of your library service!: There are directories, databases, market
research reports, newspapers, journals and press cutting services which you
can use in the Information Centre at Leeds Central Library (see page 7) to find
information on customers, markets, industries and companies.
There is a listing of the newspapers and journals you can consult at
www.leeds.gov.uk/journals
Articles and statistics on particular companies and markets can also be retrieved at the
Information Centre by searching online databases. The turnover and profit figures,
and the number of employees, for example, may give you an idea of how well these
companies have been doing over the past few years.
NewsUK is an online database which allows you to search for information across a
wide range of national and regional newspapers at once. This resource is included in
KnowUK which members of the library (see page 8) can use at www.leeds.gov.uk/
onlineresources
You can also look for brief news items on business sectors and companies at
www.ukbusinesspark.com
In addition to the company and industry news that can be found in the press, infor-
mation may also be found in the market research reports that can be consulted at
the Information Centre. These provide an overview of the market for a particular prod-
uct or service in the UK, focusing on such issues as:
• the structure of the industry

• market size, structure and trends
17
• analysis of the competition among the major companies involved in that market
• consumer profiles
• advertising
• current issues and future forecasts
COBRA (see page 8) includes UK Market Synopses, guides to what is happening in
important market sectors. These can help with your initial market research.
Also check the websites and publications of trade associations in your industry –
look for these at www.taforum.org Some associations have statistics and industry
overviews on their sites.
Further information
Useful website:
www.businessandpatents.org > Company Information
Research the local market

If you are considering setting up a business in Leeds you obviously need to find out
about local trends. Information about Leeds and its economy which can be accessed
at Leeds Central Library and on the internet includes:
• The annual Leeds Economy Handbook includes information on the different

sectors of the Leeds economy, and some of the companies involved. The bi-
monthly Leeds Economy Bulletin contains the most recent information on
developments in the local economy, including news about company expansions
and relocations. These can be consulted in the Information Centre at Leeds
Central Library (address on page 7) and at www.leeds.gov.uk/
economyhandbook
• Social and economic statistics for Leeds and its many neighbourhoods and
communities can be found at http://statistics.leeds.gov.uk and
www.leedsinitiarive.org
• www.neighbourhood.statistics.gov.uk allows you to find detailed statistics
within specific geographic areas, such as electoral wards
• www.upmystreet.co.uk can be used for basic ‘neighbourhood profiles’
Further information
Useful websites:
• www.locateinleeds.co.uk
• www.leedsliveitloveit.com
• www.yorkshirefutures.com
• www.yorkshire-forward.com
• www.blwy.co.uk
• www.leedschamber.co.uk
• www.directories.leedslearning.org
• www.nomisweb.co.uk
• www.statistics.gov.uk
18
• More links to sources of information on the Leeds and Yorkshire economy are included under
'Business and Industry Information' in WebLinks, Leeds Library and Information Service's virtual
reference library, at www.leeds.gov.uk/weblinks
Field Research
Once you’ve got basic market information, do your own field research to add to
your knowledge. Conduct interviews and questionnaires with potential customers in
your target market. (You may need to give these potential customers a detailed pic-
ture of your product range with a leaflet or brochure.) For example, you could ask:
• how often they would purchase the type of product or service

you are thinking of selling?
• what price they would pay for it?
• how they would usually choose such a product or service (e.g.
by looking in a local newspaper, responding to a leaflet or from a
personal recommendation?)
Learn from the feedback. If someone says they're not interested find out why. This
will enable you to refine your sales pitch and overcome their reluctance or to target
other sorts of customer. You should only continue with your plans if enough people
show an interest.
Try to talk to business people in your market, observe your competitors and how they
do business, attend trade shows and exhibitions (see www.exhibitions.co.uk and
www.theenterpriseshows.com)
Remember—the market is always changing. If you conducted research a year ago,

the competition may have changed. Keep up to date with who is doing what. You will
also need to monitor and change and adapt your products and services to changing
customer needs.
Further information
BIF185 Market for Business Start Ups - An Introduction to Researching a
BIF047 Market and Business Information - A Guide to Sources of
BIF001 Market Research Questionnaire - A Guide to Using a
BIF107 Market - A Guide to Profiling Your Target
BIF132 Competitor Information - A Guide to Sources of
BIF441 Public Library Business Information Services - A Guide to
BIF101 Statistical Information - A Guide to Sources of
COBRA’s Local Area Profiles include Leeds, Bradford, Wakefield and York
Start-Up Briefing - Researching Your Market
Useful website:
Business Link Yorkshire – www.businesslinkyorkshire.co.uk > Starting up > Considering start-
ing up? > Research and develop your business ideas
19
Marketing
the art of attracting and keeping customers . . .
Once you have done enough market research to understand your product or ser-
vice, its place in the market and your customers and competitors, you will be able to
develop your marketing plan. This will show how you’ll get your message across
and stand out from the competition.
This section of your business plan must be well thought through as it will have a
major impact on your chances of success. You must have a clear picture of your
product or service and the benefits to be gained from buying it, because it is these
benefits that you must sell to the customer.
Think in terms of the four ‘P’s of marketing - product, price, promotion and
place:
1 Product:
The best product or service in the world won't sell if the customers don't get what’s
in it for them.
Don’t make the mistake of trying to push all its features. To have the right words and
images for a catchy sales pitch you really need to home in on the key benefits to
the customer:
• what do they need and what is it about your product or service that meets
those needs?
• what problems does it solve?
• what makes it stand out from everything else?
What is it that you will do better, or in a different way, than your competitors? For
example, you might:
• offer a something that is of better quality, lasts longer, acts faster

• offer a more reliable service
• be able to respond more quickly to a customer’s order
• give customers who regularly buy from you a loyal customer discount
• excel in customer care
The answers to these questions are your unique selling points (USPs) and must be
highlighted in all of your marketing.
20
2 Price:
Price is another factor - how much will you charge for your product or service? Of-
fering the lowest price for your product or service can be a USP, but there are many
things to consider when working out your pricing policy (see page 26). Always put
yourself in your customers’ shoes and ask yourself:
• Would I respond to this type of approach?

• Am I interested and why?
• Why would I buy this product or service?
• Why would I pay this amount of money for it?
• Why do I need it?
Practice pitching your product or service to your friends and family. Their feed-
back will allow you to refine your marketing messages and to concentrate on your
unique selling points.
Marketing messages must be memorable. The first one to get right is the 'strapline'
- a punchy one-liner that will drive home the key benefit of choosing your business.
The strapline should create a connection between your business and your potential
customer.
Get lots of feedback and get it right, so that you feel good about the overall message
before it is used in your marketing materials, your website or your packaging.
3 Promotion:
Marketing is all about letting people
know about what you have to sell and
doing so in a way that stands out from
your competitors. The trick is to work
out where customers go to buy or find
information on products or services
such as yours. Look at where your
competitors are advertising . . . and
where they aren’t!
In your business plan, you will need to

say how you will promote your service
or product to your customers. How will
you communicate your marketing mes-
sage? There are a number of ways you
might do this:
21
• leaflet drops, posters and brochures - get several estimates for production,
printing and delivery costs. If you are selling something like jewellery, or arts
and crafts your brochures and advertisements will probably need to be stylishly
designed and glossy. But if your business offers a keenly priced window-
cleaning service for example, a simple black-and-white flyer will be sufficient.
• advertising in newspapers, magazines, on the internet, or in business directo-
ries like the Yellow Pages.
• online marketing - you could set up a website of your own to promote your
business and send information to customers by email. Information on this can
be found at www.businesslink.gov.uk/websites In time, you could take orders
and receive payment via your website too. You’ll need to make sure you comply
with direct marketing and online selling regulations.
• direct mail - you can rent lists of consumers and businesses from list brokers
(see www.dma.org.uk/listmanager) to send out targeted sales letters. Lists of
businesses can be purchased from Business and Patent Information Services at
Leeds Central Library (see page 7)
• business cards and other stationery are an important factor in creating your
business image. All your stationery should have the same overall style, with
matching typefaces and design. Letter headed stationery should be used for
letters to customers and suppliers. Compliment slips are useful and economical
for sending brief messages and cover notes. Business cards give customers,
suppliers and other contacts a record of your name and details.
• public relations strategy - prepare a list of media from newspapers and rele-
vant magazines to TV, radio and web sites, to make contact with and send sam-
ples and stories to. When doing your market research (see page 16), try to
find out what your target customers read, watch, browse and listen to. Send
your products to newspaper and magazine editors, invite them to try your prod-
uct or service with no catch. Subsequent coverage can evoke interest from re-
tailers, other media and potential partners, as well as customers.
• exhibitions and trade shows can provide a direct route to customers, par-
ticularly for businesses selling to other businesses. You can collect leads to fol-
low up, make direct sales, promote new products and services, meet customers
face-to-face and find other businesses to work with through showing and net-
work ing at ex hibitio ns. Se e www.exhibitions.co.uk and
www.theenterpriseshows.com
You may have other more unorthodox and innovative marketing ideas in mind.
But whatever you do, you must create marketing materials which encourage those
who look at it to act – to pick up the phone, visit your website, go to your premises,
and become your customers!
Many start-ups may have impressive marketing ideas, but they don't have the cash to
carry them out. But successful marketing is possible even on the smallest of budgets,
particularly if you can get it done by word of mouth.
22
If your product or service is outstanding, your customer service is exceptional and you
deliver on your promises, your customers will do some of your marketing for you by
recommending you to others. Of course, this will only happen if you meet or exceed
your customers’ expectations! Satisfied customers will use you again. Retaining
customers is essential to any business. It’s obviously cheaper and easier than finding
new ones! Market to existing customers by regular newsletters, telephone contact or
a discount scheme. You will need to set up a customer database to store your cus-
tomer details.
Next, in you marketing plan, set out the budget and the timescales you will be
working to in your marketing activities. Divide this up into what can be spent each
month, so that you don’t end up spending your entire budget on just one advertising
campaign. If your business is seasonal – for example, if Christmas is your busiest pe-
riod – you might state that you will spend more on marketing in the months leading
up to it.
It’s important to say how you will monitor results to ensure your target customers
are being reached and influenced by the methods of advertising you are using. Ask
each new customer how and where they heard about you - this will help you identify
the most successful marketing tactics.
Set realistic sales targets to measure your performance against:
• What level of sales do you expect in your first 12 months and what level of
growth are you aiming for thereafter? Calculate how long each sale will take.
Many new businesses underestimate the time involved in winning each order.
At first you could spend most of your time making contacts and selling. Will
you be able to make repeat sales? If not, it will be hard to build up the vol-
ume necessary for your business to survive
• Make sure you know everything your customer might want to know about your
business and its products and services
• Make sure you are sufficiently skilled or trained to deal with each customer
properly and not waste their time
• Remember, every time your business has contact with a customer, you are
marketing your business
Investigate missed targets. Has something gone wrong, or have circumstances

changed? What can you do about it? Continuously review your marketing plan. As
the market changes, so should you. You should adjust your marketing plan and intro-
duce new tactics as you go along.
4 Place:
The fourth ‘P’ of marketing is Place (or method of distribution). What location will you
operate from? Where will your selling be done? How you are going to actually get
23
your product or service to your customers? For example, will you sell face-to-face, by
phone, via a website, mail order, or through retail outlets? Your market research
should have revealed how your target customers prefer to buy your type of product or
service. You must obviously make it is as convenient as possible for your customers to
buy from you.
Further information
BIF453 Advertising in the Yellow Pages—A Guide to
BIF056 Advertising Medium—A Guide to Choosing the Right
BIF073 British Code of Advertising, Sales Promotion and Direct Marketing—A Guide to the
BIF389 Customer Loyalty—Tips for Building
BIF266 Logo—A Guide to Creating a Business
BIF366 Mailing List—A Guide to Building and Using a
BIF044 Marketing Plan—A Guide to Developing a
BIF392 Marketing Strategy for Your Business—A Guide to Creating a
BIF410 Privacy and E-Marketing Regulations—A Guide to
BIF454 Producing Your Own Leaflets and Brochures—An Introduction to
BIF018 News Releases for your Business—A Guide to Writing
Directors’ Briefing - Pricing your product or service
Directors’ Briefing—Research for your marketing
Directors’ Briefing—Planning your marketing
Directors’ Briefing—Advertising strategy
Directors’ Briefing—Writing an advertisement
Directors’ Briefing—Direct Mail
Directors’ Briefing—Writing a mailshot
Directors’ Briefing—Marketing on the Internet
Directors’ Briefing—Effective PR
Directors’ Briefing—Creating a brand
Directors’ Briefing—Building customer loyalty
Directors’ Briefing—Your sales strategy
Directors’ Briefing—Selling technique
Useful websites:
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Sales and marketing
The Chartered Institute of Marketing www.cim.co.uk > Knowledge Hub > Marketing Knowledge
Direct Marketing Association www.dma.org.uk
The Institute of Direct Marketing www.theidm.com
Check the Leeds Library and Information Service catalogue for books on marketing at:
www.leeds.gov.uk/catalogue
24
Financing your business

where are you going to get the money from?
Financial planning and forecasts
One of your biggest problems will be finding the money to start your business and
keep it running. It’s difficult to forecast how much cash you’ll bring in (income) and
spend (expenditure / costs) in the months ahead and it’s easy to be over-optimistic.
Sales may turn out to be lower and slower than expected, getting paid can take longer
and costs can be higher. You will probably spend more than you earn for quite some
time.
Your business plan should include financial forecasts and details of any funding
you might need. Draw up a budget to show your sales forecasts, expenditure and,
most importantly, cashflow (see below) for each month over the next two to three
years. It’s important that your forecasts are realistic. They must be based on the
market research you’ve done to estimate the number of customers you can get and
the effects that your competitors will have (see page 17). This will then help you to
decide how much financing you will require, for what purposes and when.
You need to work all this out carefully and in detail so that you will be able to:
• understand whether your business is viable

• keep track of your finances once you start up
• stand some chance of attracting funding for your business
Pricing policy
Charging too little for your product or service and making little or no profit will make
running your business very difficult. Making a loss will obviously put you out of busi-
ness altogether. On the other hand, charging too much will make it hard for you to
compete and will hinder rather than help your chances of success. So a precise pric-
ing policy is essential.
Costs
In order to work out a good price for your product or service, start by identifying as
many of your expenses / overheads (costs) as possible. Work out what you’ll need to
run your business and get estimates on how much they will cost from suppliers, cata-
logues and websites. This might include:
25
• stock
• equipment
• materials
• stationery
• rent and rates
• insurance
• utility bills
• telephone bills
• postage
• travel and vehicle expenses
• repairs and maintenance
• marketing costs
• legal and professional fees (e.g. for an accountant)
• IT equipment
• licences (if applicable)
• loan repayments (see below)
• employee costs (if applicable)
In business it’s always important to keep costs down, so it might be preferable, at

least at first, to manage with borrowed, second-hand, or hired equipment. Indeed,
you might be able to manage without some things completely until your business
really gets going.
Wages
Next, work out how much you’ll need to pay yourself to cover such things as food,
rent, council tax, utility bills, housekeeping, telephone, insurance, clothing, car and
any family expenses. Take into account any forms of income you have. Put these
estimates into your business plan in the form of a table.
You can then set a realistic price that will cover these costs and make a profit. As
part of your market research (see page 16) you should suss out your competitors'
prices to make sure your prices make you competitive.
FINANCIAL FORECASTS
The forecasts laid out in your business plan should include:
Sales forecast
The amount of money you expect to make from sales of your product or service. As a
new business you will obviously not have last year’s sales figures to use as a basis for
26
this year’s. You will have to make assumptions based on your market research and
whether, for example:
• the market you will be selling into will grow or shrink

• you will spend more or less on advertising
• you might change your location
• you might change your product range
• your competitors become more effective
Cashflow forecast
Once you’ve calculated your costs, personal income requirement and forecast your
sales, you can create a cashflow forecast. This is your expectation of the flow of
money coming in to (cash in) and going out of (cash out) your business each month.
This helps you to see if your business will have access to enough money (working
capital) to survive.
27
A cash flow forecast is usually split into three sections:
• cash in – all monies coming into the business from sales to customers and
loans. A realistic sales forecast is obviously essential for this
• cash out – all monies leaving the business to cover costs (as listed above)
• balances – basically cash in minus cash out. Provide monthly balances and
cumulative balances (adding on to the amount from the previous month)
Make sure that you have considered the key factors affecting cash flow — e.g. the
level and timing of sales and your wages.
Profit and loss forecast

This is a statement of the level of profit you expect to make, given your projected
sales and the costs of providing goods and services, including your overheads. You
can download a combined Sales, Cashflow and Profit and loss forecasts tem-
plate from the Business Link website at www.businesslink.gov.uk/businessplan >
Financial forecasts and a cashflow projection spreadsheet at www.businesslink.gov.uk/
cashflow A Business Link adviser (see page 8) or your bank may be able to help
you with your forecasts.
Forecasts are to help you understand how much of your product or service you need
to sell at a given price to at least cover all your costs i.e. to break even. For each
forecast, state all the key assumptions (e.g. prices, sales volume, timing) on which
you are basing them. Say when you estimate that there will be more money coming
in than going out (i.e. when you will start making a profit). Key figures for yourself
and any backers will be:
£. . . . has been invested into the business already

£. . . . is required to start-up
£. . . . is required to operate monthly
£. . . . is required to break even
£. . . . is forecast in turnover in year one.
£. . . . is forecast as profit in year one
£. . . . is forecast in turnover in year two
£. . . . is forecast as profit in year two
£. . . . is forecast in turnover in year three
£. . . . is forecast as profit in year three
Once you start trading you’ll need to monitor your actual income and expenditure
against your forecasts to see how well you are doing. You can then make changes to
try to keep your finances in good order and avoid problems.
Further information
BIF260 Budget—An Introduction to Preparing a
BIF051 Costs—A Guide to Controlling
28
BIF054 Costing a Product or Service - A Guide to

BIF030 Cash Book—A Guide to Keeping a Manual
BIF058 Cash Flow—How to Forecast
BIF387 Cash Flow Problems—A Guide to Avoiding
BIF236 Sales—How to Forecast
Useful website:
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Finance and grants > Business
planning > Use your business plan to get funding
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Sales and marketing > Pricing >
Price your product or service
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Sales and marketing > Selling >
Forecast and plan your sales
Business Link—Cash flow management: the basics – www.businesslink.gov.uk/cashflow
POSSIBLE SOURCES OF FUNDING

Your forecasts will reveal how much finance your business needs. In your business
plan, give details of any sources of finance you have already, such as:
• Personal savings - Most people starting a new business do so by using their

own savings
• Loans from family and friends – Put the terms of any borrowing in writing in
order to avoid disagreements later on, such as what will happen if the business
fails and they haven’t been fully repaid. They should only lend amounts that
they can afford to lose!
People often have unrealistic expectations about other sources of finance. It can be
difficult, if not impossible, to raise money from banks or private investors. They
tend to be more interested once you’ve been trading for a while and can prove the
viability of your business.
• However, you might be able to arrange a small overdraft on your business

bank account. Overdrafts can be useful for financing temporary cash short-
ages, but exceeding your overdraft limit would be costly.
• If the bank is prepared to make you a loan, both you and the bank make a
commitment to the business, based on your business plan and financial
forecasts. You will need to calculate what your business can afford in terms of
monthly repayments and this will be agreed with the bank. The bank can advise
you on what information is required and how figures and forecasts should be
presented when seeking a loan. The bank will need security if they decide to
lend you money. If you are unable to raise finance because you have insuffi-
cient assets to offer as security you may be able to seek help from the Small
Firms Loan Guarantee Scheme
• The Business Enterprise Fund may lend to businesses turned down by the
banks. It aims to help the unemployed or young people wanting to start up, or
29
established enterprises struggling to find credit www.befund.org
• Leeds Credit Union may be able to help with loans of up to £5,000 in the
Leeds area www.leedscitycreditunion.co.uk
• Private equity (or venture capital as it is often referred to) is the money that
private investors, or groups of investors, may put into a private company in re-
turn for a share in the ownership of that company. This type of finance is there-
fore not available to businesses that operate under the legal status of sole
trader or partnership (see page 13). Investors achieve a profit (or return) on
their investment through the payment of annual share dividends by the com-
pany and by any profit they make on their shares when they are sold. So they
will be looking to invest in companies which they think offer excellent prospects
of growth. The Yorkshire Association Of Business Angels is an association
of private equity investors who may offer finance and business expertise to en-
trepreneurs with new business ideas www.yaba.org.uk
• If you are aged between 18 and 30, unemployed, living in England and have an
idea for a business but can't raise all the cash you need from elsewhere, The
Prince’s Trust may be able to help you get up and running. Call Freephone
0800 842 842 or use the online enquiry form at www.princes-trust.org.uk
• Depending on your circumstances and location, there may be some grants

available, however, there might not be any. Often they require match funding,
too. This is where a grant only meets half of the total amount of money you
need – you will be expected to raise the rest.
• To find out if any financial assistance may be available to your business call
Business Link Yorkshire on 0845 6 048 048 and check the website at
www.businesslinkyorkshire.co.uk > Finance and grants
Further information
BIF040 Finance to Start a New Business—An Introduction to Raising
BIF174 Finance for Small Firms—A Summary of Sources of
BIF415 Small Firms Loan Guarantee Scheme—A Guide to the
BIF062 Private Equity—An Introduction to Financing Your Business with
BIF324 Business Angels—A Guide to Approaching
BIF369 Grants—A Guide to Applying for
BIF419 Grants for Developing New Products
Start-Up Briefing—Financing Your Business
Start-Up Briefing—Overdrafts and Bank Loans
Start-Up Briefing—Grants
Useful websites:
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Finance and grants
Business Link—The No-Nonsense Guide to Small Business Funding www.businesslink.gov.uk/
Finance_files/SBFcomplete.pdf
British Venture Capital Association—Directory of Members www.bvca.co.uk
The Yorkshire Association of Business Angels www.yaba.org.uk
30
Tax matters
Many businesses run into difficulties because they fail to deal with tax in a timely
manner or keep proper financial records.
If you decide to become a sole trader (see page 13), you need to inform HM Reve-
nue and Customs and register as self-employed - see www.hmrc.gov.uk/
selfemployed
As a self-employed person you will be entirely responsible for your own finances.
You need to find out about Business Rates, VAT, Income Tax and National In-
surance:
• Business rates in Leeds are explained at www.leeds.gov.uk > Business > Busi-
ness rates
• You will be subject to the same rates of income tax as if you were employed
by a company. However, you are liable to pay different types of National In-
surance contributions (Classes 2 and 4). For the current rates see
www.hmrc.gov.uk/nic
• You must register for VAT if your business has an annual turnover above a cer-
tain threshold. Check current rates and allowances at www.hmrc.gov.uk/
businesses
• There is a HM Revenue and Customs helpline for the newly self-employed,

where you can register and get help with tax, national insurance and VAT on
0845 915 4515
Record keeping
Keep all receipts and records of sales, purchases and wages in case they are required
for a tax inspection. Book-keeping is something you must keep on top of! You need
to maintain careful records of:
• money paid into the business (e.g. daily cash sales, sales invoices paid by cus-
tomers or the money received from a loan)
• money spent by the business – on stock, equipment, stationery, advertising,
loan repayments, wages, rent, heating, lighting, telephone calls and so on, as
some of this can be offset against tax
• keep bank statements and cheque book stubs
31
This will help you keep track of your budget and expenses but there are also legal
requirements to store certain documents for a minimum period of time. The HM
Revenue and Customs website at www.hmrc.gov.uk has a section on keeping re-
cords and accounts.
Further information
Business Information Factsheets (BIFs) are available on COBRA (see page 4) include:
BIF 015 Tax, National Insurance and VAT - An Introduction to
BIF 234 Value Added Tax (VAT) - An Introduction to
BIF 239 National Insurance - A Guide to
BIF 061 Business Rates, A Guide to
BIF 341 An Introduction to Business Regulations when Starting Up
Business Factsheets available at www.businessandpatents.org:
Start-Up Briefing – Tax and NI
Start-Up Briefing – VAT
Start-Up Briefing – Simple book-keeping
Useful websites:
Business rates in Leeds explained www.leeds.gov.uk > Business > Business rates
Official Government website on business rates www.mybusinessrates.gov.uk
Business Link Yorkshire www.businesslinkyorkshire.co.uk > Taxes, returns and payroll
HM Revenue & Customs—Beginner’s guide to setting up a business www.hmrc.gov.uk/new busi-
nesses
The Prince’s Trust – Understanding Tax www.tinyurl.com/ggubn
32
Finding premises
In your business
plan you will need
to describe the
premises from which
you will be running
your business.
What are the pros

and cons of your
current location?
You obviously need
premises which help
you to operate prop-
erly and without too
many costs. Could
you operate from
home, which is the
least expensive op-
tion, or are separate
premises in a different location, such as a shop, essential for your venture?
WORKING FROM HOME
Operating your business from home will keep costs down, but it is important to try to
make a clear distinction between your home and work space so that clients and con-
tacts, should you need to see them in your home, experience a professional environ-
ment. If possible, your home-office should be a room that is not used by anyone else
on a regular basis. A separate office phone line is probably a good idea, as is a PO
Box number, which can provide a professional look to your address (see
www.access.royalmail.com). Organise a filing system to try to avoid loosing papers
during your first few hectic weeks in business. Information Technology is a key
factor in most businesses, so you will probably need a computer and suitable soft-
ware, as well as email and Internet facilities to help you work more effectively. You
may also want to take advantage of the new business opportunities which IT can of-
fer, such as advertising and trading online.
Remember that if you need to keep information on paper or in electronic form about
33
customers, potential customers, employees, suppliers or other business contacts, what

you can do with it is covered by the law of data protection. Please refer to
www.businesslink.gov.uk/dataprotection
If you are going to run your business from home, you will need to get the permis-
sion of your landlord or mortgage lender. You must also inform your insurance
company, as failure to do so could invalidate your policy. You may also need planning
permission for a ‘change of use’, which could mean having to pay business rates
(see page 32) Your business may be able to claim tax relief on domestic bills for the
areas of the house that are used for the business. Check with the Inland Revenue.
Also consider whether you would be causing a nuisance to your neighbours.
You will have legal responsibility for the health and safety of anyone who may
be affected by your business and its activities, such as visitors to your premises, cus-
tomers and employees. Every business has to carry out a risk assessment by law –
even if you don’t employ anyone or you work from home. Also, businesses of a cer-
tain sort have to be licensed by the local authority or the Health & Safety Executive.
For example:
• Businesses that make, handle, or sell food must comply with hygiene rules to
make sure it is safe to eat
• Childminders, care homes and other businesses which look after people, have
to register with the relevant body
• Businesses which transport goods or people normally need a licence
• Businesses that sell alcohol or provide entertainment usually require a licence
The local authority will tell you whether you need any special licences—see
www.leeds.gov.uk > Business > Licences and street trading You can also pinpoint the
key licences which apply to your sort of business at www.businesslink.gov.uk > Your
type of business
Further information
BIF017 Home—A Guide to Running a Business From
BIF183 Home Office—A Checklist for Setting up a
BIF376 Health and Safety Risk Assessment—A Checklist for a
BIF003 Data Protection Act 1998— A Guide to the
BIF152 Local Authority Business Regulations—A Guide to
Directors’ Briefing— Your firm and the Data Protection Act
Useful websites:
Business Link Yorkshire—Use your home as a workplace www.businesslinkyorkshire.co.uk >
Starting up > Choosing and setting up premises
Business Link Yorkshire—Keeping the workplace safe and your employees healthy
www.businesslinkyorkshire.co.uk > Starting up
The Home Business Alliance—Running a business from home www.homebusiness.org.uk
Official Government website www.mybusinessrates.gov.uk > Using home for business
Business IT Guide www.businessitguide.com
34
Business Link—Data protection and your business www.businesslink.gov.uk/dataprotection

Getting IT Right—A Brief Guide To Data Protection For Small Businesses www.tinyurl.com/39svxl
Information Commissioner’s Office www.ico.gov.uk
RENTING BUSINESS PREMISES

Deciding upon premises and locations to suit your business needs careful consideration:
• How much competition will you face in the area? Some businesses thrive on
being close to their competitors - for example, antiques shops can benefit from
being close to other similar outlets, as this can make the area popular with
tourists and enthusiasts. However, some sorts of business may need to be the
only outlet in the area if they are to attract sufficient customers to be viable.
• Where are your customers located?
• Are the premises accessible for customers and clients?
• Is there car parking nearby and access to public transport?
• Does it have a welcoming ambience?
• Is there enough storage space?
• How expensive is it? Check rents, rates, service fees, utility and insurance
charges. What are the heating and lighting costs likely to be?
• Are there sufficient points for telephones and computers?
With commercial lettings the leases are long-term, with three-year leases often
the shortest you can expect.
If you don't want to commit to a long lease you could consider occupying premises
'under licence', which grants a right to occupancy that falls short of a full tenancy.
The advantage is that you are signing up for a much shorter period than for a lease -
usually months rather than years. The drawback is that it doesn't offer the same pro-
tection granted to leaseholders under law, so you might be required to leave the
premises at short notice.
In addition to providing basic premises, licensed occupancy may offer access to

shared services, such as photocopying, internet and fax connections, switchboard and
reception services, secretarial services, meeting and conference rooms, which can be
used on a pay-as-you-go basis.
Serviced and managed workspaces provide units of varying size specifically de-
signed for small businesses involved in the service sector or light manufacturing.
There may be a limit to how long your business can stay on the site. The main ad-
vantages of this kind of accommodation are an ‘easy in, easy out’ licence which means
that you are usually committed to no more than a month's notice and the fact that
someone else takes care of services such as power, heating, security and internet ac-
cess. In addition, some provide messaging and reception services, or access to office
equipment.
35
Business Incubators are similar to managed workspace, providing premises with

shared facilities and support services. However, business incubation also provides in-
tensive business support and advice. For further information go to:
• www.leedsmet.ac.uk/businessincubator
• www.theunitleeds.co.uk
• www.ukbi.co.uk
FINDING PREMISES IN LEEDS

If you are looking for business premises in Leeds, the online business property
search provided by Leeds City Council at www.leeds.gov.uk/businesspremises may
be helpful. This provides details of business premises and sites which are currently
being marketed by the City Council and commercial property agents in Leeds. The
following may also be helpful: commercial property agents (find them in the Yellow
Pages or at www.yell.com), local business organisations, trade organisations and their
newsletters, property publications, internet sites, personal contacts.
You might consider a unit inside a building with several other tenants or one that is
part of a cluster of business units. Are there shared facilities or any hidden joint
charges, liabilities or responsibilities?
Once you have found premises that look suitable, make sure that they have planning
permission for all your requirements, or that gaining permission would be likely in the
event of an application.
INSURANCE
If you are a tenant, ask your landlord who is responsible for insuring the premises.
Normally this is the landlord. Otherwise take out a suitable insurance policy to ensure
you are covered for damage from a variety of causes.
As a business owner or employer, you have a legal responsibility towards your em-
ployees, customers and the public. You could be held legally liable and risk being sued
if an employee or a member of the public is injured as a result of your negligence or
breach of duty. Public Liability insurance is designed to pay any compensation and
legal costs that occur if you are found to be at fault. You must also change the insur-
ance on your car if you use it for business.
HEALTH AND SAFETY

Health and safety law is there to make sure that your place of work is as safe as it can
be. No matter what type of business you’re planning to run, you will have to comply
with a number of health and safety regulations. Please refer to the Further informa-
tion listed below.
36
Further information
BIF010 Renting Premises for your Business—A Guide to
BIF006 Insurance cover for business—An Introduction to
BIF057 Commercial Premises—A Guide to Choosing
BIF010 Renting Premises for your Business—A Guide to
BIF397 Serviced and Managed Workspace—An Introduction to
BIF002 Health and Safety Regulations—An Introduction to
BIF289 Health and Safety Risk Assessment—A Guide to Carrying Out a
BIF039 Health and Safety Compliance Checklist—A
Start-Up Briefing—Searching for premises
Directors’ Briefing—Choosing office premises
Directors’ Briefing—Renting premises
Directors’ Briefing—Getting out of a lease
Useful websites:
Business Link—Premises www.businesslink.gov.uk/premises
My Business Rates—Official Government website www.mybusinessrates.gov.uk
The Tavistock Directory of Business Centres and Managed Workspace www.tavistockdirectory.com
The Royal Institution of Chartered Surveyors—details of property agencies by location www.ricsfirms.co.uk
Find out more about the neighbourhood you are hoping to set up in at www.upmystreet.com
and www.neighbourhood.statistics.gov.uk
Leeds City Council—Health and Safety www.leeds.gov.uk > Health and safety
Business Link—Health and Safety www.businesslink.gov.uk > Health, safety, premises
Health and Safety Executive www.hse.gov.uk
37
Regulations
When starting a business

there are various rules and
regulations you need to
comply with. You will have
to contact some Govern-
ment agencies and, depend-
ing on the type of business
you are setting up, you may
also have to register with
the local authority.
To pinpoint the key regula-

tions and licences that apply
to your type of business and
to find links to relevant
trade bodies go to
www.businesslink.gov.uk >
Your type of business Also
visit www.leeds.gov.uk >
Business > Licences and street
trading
Rules about choosing a business name are touched on in this booklet on page 11,
the legal status of your business on page 13, health and safety on pages 35 and
37, tax on page 32, intellectual property on pages 7 and 11, licences on page 35
and data protection on page 354. For further information please refer to The No-
Nonsense Guide to Government rules and regulations for setting up your
business from the Business Link at www.businesslink.gov.uk/no-nonsense
TRADING REGULATIONS
There are laws to protect customers from being treated unfairly. Some of these laws,
such as the Trade Descriptions Act, apply generally. Others are specific to particular
trades. The Trading Standards Central website at www.tradingstandards.gov.uk pro-
vides a wealth of information for consumers and businesses. The West Yorkshire
38
Trading Standards Service can give expert advice and guidance on a wide range of
Trading Standards matters: phone 08454 04 05 06 and visit www.ts.wyjs.org.uk
EMPLOYING STAFF
If you get to the stage of needing to employ people, you will have to comply with a
number of laws and regulations, covering such matters as:
• contracts of employment
• the minimum wage
• working time regulations
• eligibility to work in the UK
• annual leave
• maternity and parental leave
• pensions
• discrimination
Further information
Business Information Factsheets (BIFs) available in COBRA (see page 4) include:
BIF341 Business Regulations when Starting Up—A Guide to
BIF329 Starting up—A Guide to the Organisations You Must Contact When
BIF280 Consumer Legislation— An Introduction to
BIF241 First Time Employers—A Guide for
BIF136 Employment Regulations— An Introduction to
The Business Legal Library included in COBRA (see page 4) provides short summaries of busi-
ness regulations in force in the UK
Start-Up Briefing—Employment Law
Useful website:
Business Link—Employing people www.businesslink.gov.uk/people
Useful Publication
The No-Nonsense Guide to Government rules and regulations for setting up your busi-
ness from the Business Link tells you all about the legal and official side of starting up on your
own, including:
• How to form your business
• Sorting out tax and VAT
• Premises and health and safety
• Protecting your ideas
• Operating in a specialised sector
• Trading and data-protection regulations
• Employing people
• Government financial help
• Doing the paperwork
This can be viewed or ordered for free online at www.businesslink.gov.uk/no-nonsense
39
40
Business and Patent Information Services

Central Library
Calverley Street
Leeds LS1 3AB
phone 0113 247 8265
www.businessandpatents.org
www.bapisleeds.blogspot.com
piu@leeds.gov.uk


Starting A Business - The Basics

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Starting A Business - The Basics

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Starting a

Business support and information 5

Your business name 9

Your business plan 12

Customers and competitors 14

Financing your business 24

• Do I have the skills and enthusiasm to make it work?

Ask your family and friends for their honest

Business support and information

• trade marks for branding

• BIF098 Could You Run Your Own Business?

Business Link Yorkshire

Leeds City Council: Business and Enterprise Service

Leeds Chamber of Commerce

Other useful organisations and websites

ABDN Minority Ethnic Enterprise Network

West Yorkshire Social Enterprise Link

Leeds Metropolitan University

Your business name

Your name should:

The Companies House website includes a database of all registered companies

Your business plan

Describe your big idea:

• say how long you have been developing it

What will be sold? Give details about your product or service:

• what will make it stand out from the competition?

Explain some key features of the industry:

• for example, any special regulations, whether the industry is dominated by a

Customers and competitors

• who will want what you have to sell?

Present your research as follows:

• how much do they spend?

HOW TO SEARCH FOR THIS INFORMATION

• the structure of the industry

Research the local market

• The annual Leeds Economy Handbook includes information on the different

• how often they would purchase the type of product or service

Remember—the market is always changing. If you conducted research a year ago,

• offer a something that is of better quality, lasts longer, acts faster

• Would I respond to this type of approach?

In your business plan, you will need to

Set realistic sales targets to measure your performance against:

Investigate missed targets. Has something gone wrong, or have circumstances

Financing your business

• understand whether your business is viable

In business it’s always important to keep costs down, so it might be preferable, at

• the market you will be selling into will grow or shrink

A cash flow forecast is usually split into three sections:

Profit and loss forecast

£. . . . has been invested into the business already

BIF054 Costing a Product or Service - A Guide to

POSSIBLE SOURCES OF FUNDING

• Personal savings - Most people starting a new business do so by using their

• However, you might be able to arrange a small overdraft on your business

established enterprises struggling to find credit www.befund.org

• Depending on your circumstances and location, there may be some grants

• There is a HM Revenue and Customs helpline for the newly self-employed,

What are the pros

WORKING FROM HOME

customers, potential customers, employees, suppliers or other business contacts, what

Business Link—Data protection and your business www.businesslink.gov.uk/dataprotection

RENTING BUSINESS PREMISES