Our Business Startup Checklist for 2025 – Launch your New Company

If you're considering launching a new business in 2025, you're not alone. According to the Office for National Statistics, 2023 saw a record high for new business registrations, and numbers continue to rise. With many employed workers feeling disillusioned with wages that haven’t kept up with the soaring costs of living, more and more people are channelling their entrepreneurial spirit and setting up businesses. If you’re one of the plucky Brits looking to take charge of their financial future, give yourself the best start with our new business checklist.

Fail to prepare, prepare to fail

One of the biggest problems faced by those starting a new business is overwhelm. With so many hoops to jump through and decisions to make, it is easy to become confused and disheartened. A business startup checklist helps you work through all the necessary steps methodically, tick all the requisite boxes regarding legal requirements and pay due diligence in market research, financial planning, and insurance.

Our checklist for a startup business offers a natural flow, starting with the steps that are logical to take early in the process. Remember, each industry has its own unique set of rules and regulations, so take the time to research the requirements thoroughly.

Our 20-point business startup checklist

1. Market research

You've got a great business idea – but is it viable? The truth of the matter is that your business may look good on paper, and you may have all the experience and attributes it takes to run the company well, but if there isn't a market for that business in your chosen area or if the market is already saturated, your business may fail.

With your current business idea in mind, research the local market. Is there a demand for what you offer, and has this demand been growing or declining in recent years? Who are your potential customers? Where are they, how much would they be willing to spend on your product and service, and where do they currently go for these?

Who are your competitors? How are their businesses doing? What do they do well? Where are they lacking?

2. Assess your strengths and weaknesses

Following your market research, it is important to analyse your strengths and weaknesses or those of the team who will lead your business. You need to work out what you can do better than your competitors and what they do better than you. Power is knowledge, and it helps you leverage your strengths and counter your weaknesses.

3. Choose your USP

Your unique selling point will help you stand out from your competitors. It's what will make certain people more likely to choose your business over someone else's. Market research and analysing your strengths and weaknesses will help you choose a USP with a sharper focus.

You should be able to describe your USP clearly and succinctly in just one sentence. If you can't, go back to the drawing board because it's vital that you can quickly and easily communicate your USP to potential customers. Great USP's include being the more environmentally friendly option, the faster option, the more flexible option, the more bespoke option, or the safer option.

4. Choose your business name

Many people come up with a business name long before they take the first few steps of our starting a business checklist, however, you might prefer to fine-tune your USP and really understand your target client base before finalising that name.

A business name is a powerful tool. It can set the tone of your business and sometimes tell customers exactly what you do. Spend some time thinking about the spelling of your business name, making sure it'll be easy for people to search online and simple to pronounce. Check that other local businesses aren't using the same name or similar ones, and check for trademarks in case another business has that name registered.

5. Secure your website domain

Even if you’re not quite ready to add content to a website yet, register the domain for your business name so that no other entrepreneur can pip you to the post.

6. Register trademarks

While not every small business will want or need to do this, it's useful to know that there are multiple elements relating to your business that you could protect with a trademark. These include your business name, logo, slogan, and even unique colour combinations and fonts in your branding. If you're entering a particularly competitive industry, consider taking the time to register key trademarks. This process can take a little time, and you may need legal advice to get the paperwork right, which is why you'll find it near the top of our starting a company checklist.

7. Calculating the costs

Whether you're funding the business set-up yourself or will need to seek funding, you must crunch the numbers. Estimating your startup costs is an important part of this process. These costs will include:

• One-time costs – such as deposits and certain licenses
• New business costs – including new equipment, stock, and digital products
• Running costs – the overheads that you’ll pay month after month, such as utilities, insurance, wages, rent or a mortgage, interest and repayment on loans, and new stock

8. Write your business plan

Writing a business plan is a valuable exercise because it keeps you organised and encourages you to think like a businessperson. Your plan should include:

• A mission statement
• Overview of the company, concisely stating what products or services you’ll supply and the USP
• Business structure
• Market analysis
• SWOT analysis
• Financial statement, including set-up and running costs, funding, and projected income
• Marketing plan
• Operations plan for the daily running of the business

9. Secure funding

If you need a cash injection to get your new business venture off the ground, you'll need to write a thorough business plan before you turn to potential investors or financiers. If you don't have the savings to finance all the set-up costs, you have several options, and it is a matter of personal preference which you choose.

You could ask friends or family to invest. This takes careful consideration as you don't want your business activities to sour your relationship with them. Think carefully about the terms of the investment. Will they become a shareholder or a partner? What will the repayment terms be? No matter how close you are with them, always draw up a contract to protect both parties and safeguard your long-term personal relationship.

It is becoming more common to turn to private investors, whether that’s through an individual, business angels, or crowdfunding. Again, it’s important to draw up solid contracts and to feel comfortable with any profit or share levels you agree to.

A business loan from a bank or building society is one of the most popular avenues for the entrepreneur. The terms of the loan will be clear, and you may be able to secure a higher figure than you would through friends and family.

10. Define your business structure

In the UK, the most common business structures are:

• Sole trader - a self-employed individual who holds sole responsibility for their business debts. Multiple sole traders can run a business by forming a partnership.
• Limited company – which can be owned by one person or a group of people, and because it is considered a separate legal entity from its owner(s), it offers them greater protection against business debts. It also usually offers greater tax efficiency than the sole trader structure.
• Limited liability partnership – an LLP is a company run by a partnership of individuals, where each is better protected against business liabilities than they would be in a sole trader-style partnership.

To summarise, under the sole trader structure, you and any business partners may have to use your personal assets to pay for business debts. With a limited company or limited liability partnership, your personal assets are protected.

11. Register your business

As a sole trader, you will need to register your business with the HMRC, complete a Self-Assessment tax return before January 31 each year, pay income tax on your earnings, and make the relevant National Insurance contributions.

To register a limited company, you need to incorporate the business at Companies House. The incorporation process requires your business name, the details of your directors and shareholders, and your SIC code (which details your company's business activities), and you must nominate a registered office address. You must also go through Companies House to register a limited liability partnership.

12. Obtain licenses and adhere to regulations

Your local council will be able to provide you with all the information you need about licenses and local regulations relating to your new business. Your industry and associated governing bodies may also have stipulations about licenses and levels of insurance.

This is an important step on the business startup checklist because not having the right documentation could leave your business vulnerable to fines. In some instances, you may not be legally obligated to hold a certain certificate, qualification, or type of insurance, but doing so could benefit your business by making it more attractive to potential customers.

13. Set up bank accounts

Even if you're a sole trader, it's a good idea to set up a business account to keep your company finances separate from your personal finances. Many UK entrepreneurs are pleased to find that their bank or building society offers additional help and guidance for business owners, so it's worth making a face-to-face visit when setting up business bank accounts. Remember, a profitable business benefits a bank, so see what perks they might be able to offer alongside the account.

14. Bookkeeping

Bookkeeping is one of the most important tasks you'll complete within your business. It's not just about getting your tax return and VAT calculations right; it's also a way to spot and manage financial issues (such as cash flow problems, late payments, and overspending) and leverage your existing finances for growth.

You can outsource your bookkeeping, keep track of your own accounts in a ledger or on a spreadsheet, or you can use one of the popular bookkeeping apps.

15. Branding

From small businesses that serve their local communities to larger companies with national or international reach, branding matters. Strong branding makes your business instantly recognisable and can quickly communicate key information about your products or services.

Have a clear vision of your branding before you start adding to your website and socials and before you print product labels or sign-write your work vehicles. Once you're happy with your branding, conduct some market research to see if members of the public "read" your branding the way you hope. It is especially easy to miss the mark with logos and font. Therefore, investing in a graphic designer may be worthwhile if creativity and brand communication aren't your wheelhouse.

16. Launch your website

Earlier in the new business checklist, you thought about registering your website domain as early as possible. As you get closer to launching your business, you can get your website up and running, showcasing your business branding.

In 2025, one of the key benefits of a website is search engine optimisation, which allows potential customers to easily find you when they're looking for your product or service online. Use SEO keywords specific to what you offer and related to your target locations.

If you're a service-based business, build a concise website that details what services you provide, where, and for how much. Add images of before and after-style shots relating to your service and include customer reviews when possible.

Focus on the user experience for an e-commerce website. Make it easy for users to navigate to the products they want, and make your descriptions brief, informative, and aspirational.

17. Set up your socials

Social media platforms are an excellent way for a new business to communicate with its target market, and they allow people to discover you through tags and shares. Post interesting content about your business that gives people a clear idea about what you sell or do, using a tone of voice that aligns with your business and chosen branding. Spend some time learning about trending hashtags to understand how to caption your posts best for the widest audience reach.

18. Securing business premises

If your business can be run from home, don’t forget to create a space where you can fully focus on your work, ideally separate from the areas where you rest and relax, for a clear work-home life divide.

For businesses that require premises, add this step to your starting a company checklist and think very carefully about the location, the type of space you need (a commercial building, an office, or a warehouse), the amount of space you need, and how much you can budget for rent or a mortgage if you intend to buy.

19. Make your business purchases and hire staff

If your new business sells physical products, you'll need to take the time to source reliable manufacturers and suppliers to buy stock, working hard from the very beginning to build a strong working relationship. You may also need to purchase business applications for your PCs, laptops, and devices, for invoicing, risk assessments, and safe data storage.

If you need to hire staff for your new business venture, you will feel the pressure of making the right choices. These are the people who will help you build your reputation, so you need to give them the incentive to share your passion and give your business the strongest start. Look for people with strengths that counter your skillset weaknesses, and when choosing staff at the start of your journey, understand the value of hands-on experience.

20. Take out business insurance

Business insurance is an umbrella term for a range of covers that help protect a business against the most commonly encountered risks. You can take out business insurance as soon as you start investing your money in the business – even before it officially launches.

Key areas of cover you might need for your business include:

• Public liability – to deal with claims made against you by members of the public for injury or personal property damage that occurred on your premises or as a result of your business activities.
• Product liability – in case a product you supply causes injury or personal property damage.
• Employer’s liability – to deal with claims made against your business by members of staff.
• Commercial buildings and contents – to prevent financial losses in incidents of flooding, fire, storms, accidental damage, theft, or vandalism.
• Professional indemnity – for scenarios where a customer claims your work or advice caused them harm or financial losses.

If 2025 is your year to start a company, keep our new business startup checklist handy and get in touch to see how Park Insurance can keep your finances safe every step of the way.