Pre-start-up financial checklist: 10 tips for new businesses

How do I get started with my business idea? 

If you are currently employed but have a great idea you want to turn into a business, now is the time to think through that big next step and decide if it’s the right idea at the right time for you.

Before handing in your notice, it’s essential to ensure your finances are in order, to give your business the best chance of flying high rather than suffering an abortive take-off.  

Our checklist of 10 steps will help you understand your cashflow from your capital, and transition confidently from employment to business owner. 

1. Assess your current financial situation

Take a bird’s eye view of your personal finances. Look at all your sources of income, if you have more than just your monthly salary. Include: 

Do the same for your outgoings, such as expenses, savings and debts. Include: 

Create a simple spreadsheet or use budgeting apps to track everything. If you are a visual learner, choose an online bank account or financial app which allows you to create pots for different spending, saving or expenses. 

Use comparison sites to ensure you have the best value products when contracts expire. Set online or phone calendar reminders to help you keep on top of renewal dates. 

2. Review your employment benefits 

Review the benefits you receive at your current job. What can you not manage without? Can you provide them for yourself, and how much will they cost?  What can you do without short term, or even long term? 

Think about pensions, healthcare, insurance products, share schemes, childcare, transport and anything else you currently receive.

3. Create a rainy-day fund 

Build up a pot of money to cover three to six months of essential living costs in case your business takes time to generate income. This reduces financial pressure and may prevent you from being drawn towards short-term decision making driven by cashflow needs. 

4. Understand business start-up costs

Estimate how much capital you’ll need to start and run your business for at least the first year. Consider equipment, software, premises, marketing and legal costs. 

Do you need any qualifications, training, certifications or permissions to run a business in your chosen trade, profession or industry? Build in both the time and cost required to get these in place.  

What kinds of insurance does your business need? Business insurance such as professional indemnity, public liability and employer’s liability can safeguard you against risks and legal costs. Insurance is needed across many industries, including professional services, house cleaning, catering, consulting and everything in between. 

5. Write a business plan with realistic projections 

A solid business plan with cash flow forecasts, projected income, and break-even analysis will help you assess feasibility, pinch-points and help you attract third-party funding if required. 

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6. Set up a separate business bank account

Keeping business and personal finances separate improves clarity and simplifies tax reporting. Most UK banks offer dedicated business current accounts. Taking your business plan (see step 5) with you when talking to the bank will help them tailor products, and any support they may make available to business founders, to you. 

7. Decide on your business structure

Agreeing on your business structure (sole trader, limited company, etc.) can seem an overwhelming decision to make. The simplicity and ease of being a sole trader contrasts with the potential tax efficiency and legitimacy that a limited company wrapper lends to a business. Remember that it isn’t a once and done decision. Many business founders start off as sole traders and then incorporate later in their growth journey when the advantages begin to outweigh the extra admin burden of a company. 

 8. Register with HMRC and other authorities 

Whichever structure you choose, you will need to register for self-assessment tax as well as possibly VAT, corporation tax and Companies House. Learn the relevant filing deadlines, tax rates, limits and bands to ensure you don’t get any nasty surprises when it comes to paying tax or filing accounts. 

Keep all your receipts from day one to make sure you maximise your expenses and deductions. 

If this all seems too much to handle on top of the hard graft of your current day job and producing the goods or services your new business delivers, consider hiring an accountant to help ease the burden. 

9. Explore funding options and grants

Look into Government-backed loans, grants, British Business Bank and alternative funding sources like crowdfunding or angel investment. 

Advice and signposting can be sought from local  business growth hubs in England, Scottish Enterprise, Business Wales and My New Business in Northern Ireland. 

For more options on how to fund your fledgling business, see TaxAssist’s guide to small business funding here. 

10. Networking 

Don’t underestimate the value of support and connections gained through building up your business network. Throughout the UK, local chambers of commerce are a great place to tap into the local business community, alongside networks specific to the business sector you work in or your own characteristics e.g., local networks of copywriters, booksellers, childminders, or groups of business owners of specific gender, ethnicity or disability. 

Ready to launch your business? 

Starting a business and preparing to leave your job are big steps but with the right financial preparation, you can give yourself the best chance of success. 

Contact our team at TaxAssist Accountants Bletchley today here. 

Last updated: 1st August 2025