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Understanding and anticipating what those early days could look like can help you feel more confident and avoid some common pitfalls we see when working with new founders.
This roadmap walks you through the key stages: setting up correctly, making those all-important initial sales, learning and adapting, navigating your first year-end and planning for the future.
Too many founders rush the essential first stage of setting the foundations of their business, which leads to problems later.
Key tasks in this stage include:
Sole trader or limited company? Both have pros and cons. Your decision will affect your tax responsibilities and how you pay yourself.
Ensure you’re correctly registered for Self Assessment, Corporation Tax (if applicable) and other obligations.
Keeping personal and business money separate is an essential part of your compliance.
Pick something simple you’ll actually use – there are plenty of accounting software systems available, such as Xero, FreeAgent, QuickBooks and Sage Cloud.
Income Tax, Corporation Tax, allowable expenses, VAT thresholds and Making Tax Digital (MTD) requirements can sound confusing but the earlier you understand the basics, the easier it is to ensure you’re on track with your deadlines.
Many founders don’t yet realise how much of the business journey depends on getting these early steps right. Once the admin is under control, the fun bit can start – making sales and building your brand!
Once you’re legally set up and have good financial habits in place, your attention naturally shifts to the exciting part of starting a business: making sales!
In this stage, you should expect:
Some weeks you’ll feel unstoppable, others will feel eerily quiet. That’s normal.
You’re still figuring out exactly what your ideal customer actually wants – not what you think they want.
Sending your first invoice, writing your first proposal or pitching your first pitch all feel strange as you work out how to make your offer land. It gets easier!
You’ll start to recognise which activities bring results and which drain your time.
This is also the stage where you’ll realise that admin takes longer than expected. Client onboarding, creating invoices, chasing payments and responding to enquiries all eats into your week. Find out what system works for you, whether it’s blocking off your Monday mornings or doing little and often every day, and stick to it.
By this point, you’re settling into a rhythm and have identified patterns.
Expect to:
Most new founders under-charge at the beginning. Around this time, many adjust their prices to reflect demand, costs and value.
You might drop services that haven’t taken and focus on what customers actually want.
Templates, workflows and software help you save time and look more professional.
You’ll begin seeing when money enters and leaves your business each month.
If you’re not sure what a cashflow should look like, download our free template here.
Your network grows, you get referrals and familiar names support your journey.
Financially, you should be:
Consistency in this phase helps you feel more in control of the business and confidence is palpable!
Reaching your first year-end is a major milestone. It can also be a time of panic for first-time business owners, but it doesn’t need to be stressful if you’ve built good habits.
Here’s what to expect:
Your accountant will need accurate income and expense records. If you’ve kept up with this during the year, the year-end process is much more manageable.
If you need a free budget template, download ours here.
Your first year gives you a huge amount of data:
Use this review to plan for your second year.
If you decide to take on an employee, you’ll need a PAYE scheme, a workplace pension scheme and to follow employment rules.
Here are three signs you’re ready to hire:
You do have options when it comes to taking on workers:
Before hiring, make sure you understand the cost, legal obligations and processes involved.
By now, you should be able to:
Stop guessing and base your decisions on data and evidence.
Year 2 planning typically includes:
Most importantly, you’re thinking long-term rather than just surviving month on month.
Your first 500 days of business will be full of growth, trial and error, small wins and meaningful developments.
No two journeys look identical so don’t compare yourself too much.
The good news is that you don’t need to figure it out alone. In your early stages of trading, we can help you understand your financial and compliance obligations.
At Thickbroom Enterprise CIC, we help you to navigate the legal and financial responsibilities of establishing and maintaining a business in the UK, without the price tag.
We provide:
Learn what to expect when starting a tech or AI-powered business.