The first year of your new business is possibly the most rewarding and memorable time of being an entrepreneur. After all your dreaming and planning, you finally get to test your ideas on the market and see whether customers like what you have to sell.

That means it’s also a time of make-or-break pressure. If you plan to run your business for the long term, it’s essential to get these early days right.

Thankfully, the UK’s favorite company formation agent, 1st Formations, is here to explain the six steps to take to survive your first year in business. Follow our guidance to navigate the oncoming challenges and keep your business on the right track.

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1. Start with a solid business plan

It is essential to write a business plan that thoroughly maps the direction you want your company to go in. This should include information about your target market, what market research you’ve done, and how much you project to spend and earn.

Not only will this guide your decisions, but it will also be crucial if you need to secure funding. It’s the first thing investors will ask for to make sure you are a commercially viable business.

Your plan doesn’t have to be set in stone, but it should be a working document that evolves as you learn more about your industry, customers, and finances. Regularly reviewing and adjusting it over time will help keep you on the right path.

2. Keep a close eye on your finances

One of the biggest reasons businesses fail in their first year is simply because they run out of money. That’s why it’s essential to keep a close eye on your cashflow: you need to know exactly how much money is coming in and going out.

Create a budget and stick to it as closely as possible to ensure you don’t accidentally overspend. Try to always keep a financial buffer in your account for unexpected expenses.

Also, separate your personal and business finances by setting up a business bank account. You will thank yourself for getting this in place early when it comes to filing your taxes later down the line.

Accountancy software like QuickBooks can save you time and cut down on human errors. Or if you want more technical support, you could seek the help of an accountant.

3. Register your company

One of the most important steps you can take in your first year is to officially register your company with Companies House. Having a registered company name ensures that no one else can use it, giving you exclusive rights and a stronger brand identity.

It is also legally beneficial, as forming a limited company makes your business a separate legal entity. This means your personal assets are protected if the business falls into debt or legal trouble.

Financially, you may end up paying less tax, as your profits will become subject to Corporation Tax, and you can pay yourself at least partially in dividends, which have more favourable tax rates than income tax. You may also be able to claim business expenses.

If you haven’t registered your business yet, 1st Formations makes the process quick and easy, helping you get set up and ready to trade for as little as £52.99.

4. Create a marketing plan

If people don’t know about your business, they can’t buy from you. Having a strong marketing plan will help you promote your brand and attract customers.

It doesn’t have to cost a fortune, either. Platforms like Instagram, Facebook, LinkedIn, and Twitter offer free and low-cost ways to reach an audience. If budget allows, try running targeted ads to bring in quick results from your specific market.

You may also choose to build an email list for existing and prospective customers. By sending regular updates and offers directly to their inboxes, you can keep people engaged. And above all these suggestions, create a professional website so curious customers have a place to go to find out more about what you do.

5. Prioritise customer service

Good customer service is extremely influential in building customer loyalty and generating word-of-mouth referrals.

So always go above and beyond to solve customer problems so they gain a positive experience working with you. If they provide you with feedback, act on it, and follow up to let them know you have taken their words on board. This level of care will set you apart from your competitors.

Over time, this will build up your reputation and gain you positive reviews online, which is another great source of marketing. Potential customers are much more likely to choose and trust a business with great reviews.

6. Take care of yourself

Running a business can be stressful, and burnout is common among new entrepreneurs. Looking after your mental and physical health is just as important as managing your business.

Though it’s tempting to work all hours developing your business, try to set boundaries between work and personal life to maintain some kind of balance. Regular breaks are necessary to clear your mind and show up refreshed.

A healthy and well-rested business owner is far more productive and effective than one who is constantly exhausted.

Enjoy the journey

The first year of running a business is full of challenges, but it’s also an incredible learning experience. Remember to take time to reflect on your progress and celebrate your successes. We hope you enjoy the journey.

And don’t forget, for support starting and running your growing new business, turn to 1st Formations. Not only do we make company formation quick and simple, but we also offer other helpful extras like a Registered Office Address Service.

This allows you to officially register your business with our prestigious central London address in Covent Garden, keeping your home address private while enhancing your business image. We will also forward all official mail for free by scan and email, ensuring you never miss important updates. Visit our website today to find out more.