Starting up a business is both challenging and exciting, but it can be hard to know where to begin. You may have a great idea but how do you progress to the next stage? What preparation will you need to do before you take the first step towards setting up your business?

Are you ready to start?
The success of your business will partly depend on your attitude and skills. This means being honest about a range of issues: your knowledge, financial status, support network and the personal qualities that you can bring to your new business. A checklist is the best way to decide if you have what it takes. During the start-up phase it can be easy to make overly optimistic forecasts, however there can be serious consequences for your business if your projections are not realistic. Obtaining accurate market data will help prevent falling into this trap. Once you've carefully considered everything, you'll then have a better idea of whether starting a business is right for you.

Getting organised
If you've decided you're ready to start up, you'll need to identify the next steps and prioritise. Tools like the business start up organiser on Businesslink.gov are useful. By filling out a short questionnaire online you are provided with a list of recommended tasks and timelines with help on completing each one.

Writing a realistic business plan is also essential. This is a working document that describes the business, its objectives and strategies, the market it is in and its financial forecasts.

Choosing a legal structure
For a business to start on a proper footing with HM Revenue & Customs (HMRC) and other authorities, new companies must make sure that they have the right legal structure. It's worth thinking carefully about which structure best suits the way that you do business, as this will affect:

• The tax and National Insurance that you pay
• Records and accounts that you have to keep
• Your financial liability if the business runs into trouble
• Ways your business can raise money
• The way management decisions are made about the business

There are several structures to choose from, depending on your situation. You could become a sole trader, a limited liability partnership or a social enterprise. Whatever kind of business you go for, you must have a separate, designated business account. It's a legal requirement for limited companies and recommended for sole traders to keep personal and business financial activities separate. A solicitor or accountant is best placed to offer advice on the best legal structure for your business.

Once this is agreed, it's time to decide on a company name and there are different rules for different legal structures of business. Many businesses invest time and money in developing new company names and identities for new products only to find that others have legal rights to the names. You can now check prospective company names and trademarks simultaneously against Companies House and the UK Intellectual Property Office registers online.

Your business name will need to create the right impression and work well wherever you use it: on your website, on the phone, on stationery and in your logo. You'll also need to make sure your name and structure suit your business in the long-term. For example, do you plan to diversify? If so will the business name still be appropriate or do you need to come up with something broader to keep your options open in the future?

The right environment
Choosing the right premises is a key business decision. These must be conducive in helping you operate effectively without excessive costs and you also need to make sure your premises will suit you in the future as your business develops.
Working from home is a good option if all you need is a small office space. However, some prefer to keep their work and home life separate and may choose to rent premises or buy a property outright. The first step is assessing this is to list your requirements, such as how big you need the premises to be, where it needs to be located, and the facilities you will need.

If working from home is not for you, you'll need to start hunting for suitable premises. One of the best ways to do this is by drawing up a specification which clearly sets out your requirements, then circulating this to likely sources of premises such as commercial agents who act as estate agents for commercial premises. Local surveyors who can assess the condition and value of premises may know of suitable properties in the area. Your local authority, Chamber of Commerce and your trade association may also be able to help.

Conclusion
With recent research showing that half of office workers in the UK want to start their own business, it is clear that entrepreneurial spirit is still alive and well in the UK. By being organised, ensuring that accounts are in order and implementing strategies to maximise sales, there is no reason that the new businesses of today can't become the success stories of tomorrow.