How to plan a startup business in 2025

Are you planning on launching a startup this year?

There are a huge number of benefits to owning your own business, from managing your own schedule to doing something you truly love—but it’s a far from easy endeavour.

If your new business is going to be successful you’re going to need to invest a lot of your own time and money, hire the right people and get a little lucky along the way, but whatever it is you do, there are some things that every startup needs to consider.

In this blog we’re going to look at six essential steps for starting a business in 2025.

 

6 steps for starting a business in 2025

Starting your own business is exciting and a little bit scary, but it also requires a huge amount of time and hard work. The following six steps provide an overview of the sorts of things you’ll need to do in order to be successful, but are certainly not an exhaustive list.

1. Identify whether or not you have a viable business idea
2. Choose a business name
3. Create a business plan
4. Choose a legal structure and register your business
5. Acquire funding (if necessary)
6. Secure essential business services

 

Identify whether or not you have a viable business idea

Before you commit time and money to a new business idea, it’s important to work out if it’s actually viable. Start by being honest with yourself about whether there’s a real need for your product or service. Research your market carefully by looking at who your potential customers are, what they want and whether they are already getting it elsewhere. You’ll also need to check out your competition and think about what makes your business different.

Talking to people who are in the same industry can also make a big difference, while it’s also worth asking friends, family, or even potential customers what they think of your idea. Remember, it’s important to be open to feedback, even if it’s not what you want to hear, as it’s better to find out about any problems now rather than later.

Next, spend some time working out your costs and what you would need to charge to make a profit. A simple business plan can help you stay organised, setting out what you will sell, how you will sell it and how much you expect to earn and spend. Testing your idea on a small scale—for example, running a few trial sales—can also give you a clearer sense of whether your business is likely to succeed.

 

Choosing a business name

Choosing a business name is an exciting step, but it’s also really important to get it right. After all, a strong and clear name can help make a lasting first impression on your target market.

Your name should be easy to remember, easy to spell and give people a sense of what your business is about, so avoid anything too complicated or too similar to other businesses, as this can cause confusion.

It’s a good idea to check online to see if the name is already being used and whether a matching website address is available. You can do this via the government’s company name availability checker.

 

Creating a business plan

Creating a business plan might sound daunting, but it’s simply about setting out what your business will do and how it will succeed. A business plan helps you stay focused and can be important if you need to apply for funding.

Start by clearly describing your product or service and who your customers will be. Think about why people would choose your business over others and what makes you different.

You’ll also need to include some basic financial information, so work out what your start-up costs will be, how much you’ll charge and what you expect to earn and spend in the first year. It doesn’t have to be perfect, but having realistic figures will help you plan properly.

Your business plan should also cover how you’ll find customers, whether through social media, local advertising, word of mouth, or other channels.

Keep your business plan simple and clear. It’s better to have a short, practical plan you can actually use than a long one that gathers dust. As your business grows, you can update your plan to reflect what you’ve learned and where you want to go next. It’s best to think of your business plan as a living document that will help guide you through the early stages and beyond.

 

Choosing a legal structure and registering your business

When launching your startup you need to decide on how you want to structure the business. This defines how you need to register yourself with HMRC and Companies House.

Your options are:

• Sole trader — the easiest way to get started, although the downside of being a sole trader is that you are wholly liable for all business debts. You need to register with HMRC for self assessment, but not Companies House.
• Partnership — you’ll need to register with HMRC as a partnership if you’re working as a self-employed person with someone else, and you want to share responsibility for your business and its debts. Although the business will not be a separate entity from either partner, you still need to choose a name and a ‘nominated partner’ when registering.
• Limited Liability Company (LLC) — a limited liability company is considered a separate legal entity from the business owner, and needs to be registered with HMRC as well as Companies House. As the owner of an LLC has reduced financial responsibility, and your personal assets (for example your house) are protected in the event of company insolvency. An LLC must have at least one director and one shareholder, although both can be the same person.
• Limited Liability Partnership (LLP) — the number of partners in an LLP isn’t limited, but at least two partners must be ‘designated members’ responsible for filing annual accounts. Like with an LLC, the personal assets of the partners are protected.

The structure of your business will also affect how you can pay yourself. As a sole trader you will pay standard income tax and National Insurance rates on all profits above your personal allowance. However, as the director of a limited company you can also take dividends which are taxed at a lower rate.

Note that you can get started as a sole trader or Partnership, and register as an LLC or LLP further down the line. To find out more about company formations, or which business structure is right for you, get in touch with our expert team.

 

Getting funding

There are several ways to get funding for your new business, and the best option depends on your situation and how much money you need. Many people start by using their own savings or borrowing from friends and family and, although this can be quicker and more flexible, it’s important to be clear about any agreements to avoid misunderstandings.

You might also consider a small business loan from a bank or credit union. You’ll usually need a solid business plan and may have to provide security or a personal guarantee. Another option is a start-up grant, which doesn’t need to be paid back — these are often available through local councils or business support organisations.

If you have a strong idea and a clear plan, you could also try pitching to investors or using crowdfunding, where lots of people each contribute a small amount. Whichever route you choose, make sure you understand the risks and responsibilities involved.

 

Securing essential business services

There are a wide range of business services you’ll need to invest in when you get started, but here are four of the most important priorities.

Accounting and bookkeeping

Unless you’re starting an accounting and bookkeeping business, it’s likely that you’re not an expert on the financial responsibilities of running a business. However, the costs of making a mistake when it comes to your annual accounts can be high, whether that’s in the form of penalties or paying more tax than you need to.

Working with professional accountants ensures you’ve got everything covered, and allows you to focus on what you’re best at—delivering fantastic services to your customers.

Business bank account

Opening a business bank account keeps your company finances separate from your personal finances, making it easier to keep track of incomings and outgoings.

Business insurance

The type of business you operate will determine what sort of business insurance you need.

Public liability insurance is important if you deal with customers in person, as it covers accidents or damage. If you sell products, product liability insurance can protect you if something you sell causes harm. Employers’ liability insurance is a legal requirement if you have staff. You might also want to cover your equipment, stock, or premises against theft or damage.

While it’s an extra cost, the right insurance can save you from bigger problems and help your business stay secure.

 

Here at Warr & Co we’ve been working with startups and small businesses for years, offering a wide range of business accounting services for companies of all sizes.

To find how we can help you get off the ground, book your free consultation today.