Starting a Business in the UK

Some say that a down turn is the best time to start a new business. And now that we are facing one of the worst recessions of all time, one finds a host of initiatives being offered to entrepreneurs to come out with business ideas. The initiatives include easy to pay loans, business grants as well as general support and guidance in running a business. So, for anybody with a business idea and some start up capital, there is no better time than now to take the plunge. However, besides a creative idea, businesses also need to have knowledge of legal implications, hiring staff, computer services and a host of other details which are unique to their country where they want to start a business.

Business Start-Up Packs

Especially created for small businesses, these start up packs can contain everything from information, support infrastructure to a complete marketing toolkit that can help you kick start your communication efforts. These are cost and time effective compared to sourcing the individual items. Some of the things that you should look out for are given below:

1. Essential Marketing Products: Customised as per your brief, these should include basic stationery with logo, business cards, direct mail campaign and a website address. These can get you started almost immediately even from your own home. What's more you require minimum investment.

2. Office Infrastructure: Computers, cabling, furniture and other basics are offered as per your requirement. These are usually optional and can be expanded later.

3. Legal and other information: It is necessary to have an idea of all legislation relating to your industry type along with necessary phone numbers, websites for additional questions that you may have.

You should also consider if you need insurance, financial aid or any other specific support. In fact, it is best to make a list of all your requirements before you approach a supplier. Then you can work collaboratively to include his / her suggestions on what you need to start your business.

Grants And Aid

U.K. has been touted as one of the best places to start a new business given the kind of funding support available from the government. Even if you have some funds of your own, it will be beneficial to explore the different kinds of government grants you may be eligible for. Basically financial aids can be categorized as below:

1. Non repayable grants - In these you do not owe back any sum to the government or funding agency. These usually come with a lot of restrictions since they are meant to promote some specific objective.

2. Soft loans - With little or no interest, these will need to be paid back but on very flexible terms making them better than ordinary bank loans.

3. Repayable Grant - Similar to loans, the amount needs to be returned after a pre -determined period unless the business fails in which case the amount is forfeited.

4. Equity Finance - This is like venture capital but without the expectation of a profit from the investor. So in effect the funding agency becomes a part owner of your enterprise.

Apart from these, there is an option of accessing third party resources at a subsidized cost or even getting consultancy support on various aspects of the business.