Is there ever a right time to start a business? It’s a question that goes through the heads of most entrepreneurs on the brink of starting a new venture.
Many people will tell you that there’s no such thing as a sweet spot, referencing businesses that boomed in what were generally considered to be bad times and those that flunked in prosperous years.
However, there are a few things to bear in mind when choosing to launch your new business that could definitely get you off on the right foot. Here are seven major ones to consider.
1. Factor in the UK tax year
You’ll have to pay your taxes no matter what time of year you start trading, but choosing a launch date that aligns with tax deadlines can make company admin a little ‘neater’.
If you’re a sole trader, your accounts will usually run from 6th April to 5th April the following year.
If you are registered as a limited company, your tax deadlines will correspond to the time you start, but it could still be helpful to launch at a time when tax is a hot topic, so you don’t forget about it.
2. Think about peak holiday periods
August and December are generally considered slow times for businesses that aren’t connected to seasonal occurrences like holidays and Christmas celebrations.
Thousands of Brits take holidays in August, leading to decreased footfall and online activity for many companies.
In December, meanwhile, consumer spending is focused on the festive season, diverting money away from less seasonal businesses.
These down periods are reflected in company formation data.
In an analysis of Office for National Statistics data, UK financial services provider CMC Markets found that fewer companies were incorporated in August and December than at any other time of year.
The quiet nature of these two periods, though, could make them the perfect opportunity for a soft launch, giving you time to perfect your operations before things get busier in September or the New Year.
3. Consider spring as a good time to launch
A study of thousands of business decision makers across the UK, The Ardmore Future Attitudes report has found that businesses that launch in spring tend to do better than companies launched during other seasons.
There are several explanations for this. The first is that consumers tend to have fewer distractions and fewer demands on funds in spring. Secondly, spring is a popular time for networking events and trade shows. What’s more, spring coincides with the start of the new financial year, meaning there are new government grants available and investors’ budgets are renewed.
4. Check the current business climate
A quick glance at the business confidence levels might help you decide whether to launch today, three months, six months, or a year down the line.
Business confidence (BC) stats are readily available through the research website Statista.
Recent figures indicate that BC is lower than it was in late 2021, but still far higher than when it plummeted in June 2020.
5. Assess your own business readiness (and confidence)
You’ll already appreciate that running your own business takes a lot more than turning up to work at 9am and clocking off at 5:30.
Ask yourself if you’re ready to work the extra hours it takes to start up, if you are in the right frame of mind to deal with possible rejections, set-backs, and challenges, and if you have the organisational skills required to be your own boss.
If you’re not 100% sure, don’t worry, there are lots of ways to build your personal confidence levels. These include:
- Identifying who your support network will be if things get tiring or tough. Can you communicate with a family member or perhaps you need to get a business mentor – there are some government-subsidised mentor schemes out there that can put you in touch with a trusted advisor, including the Help to Grow: Management Course from Small Business Charter.
- Take a course in organisation – there are courses out there, with learning portals like Udemy, that start at as little as £14.99.
- Network – joining a community of people who are going through the same challenges and experiences as you will carry you through any times of hesitancy and also help you tap into resources.
6. Make sure you’re financially prepared
Running out of cash is often cited as one of the top reasons why start-ups fail.
A general rule of thumb is that you should have enough savings to cover at least six months of living expenses when starting a business.
You should work out your start-up costs as part of your business plan. It goes without saying that you need to have a full understanding of what your initial investments, operating expenses, revenue projections, and cash flow are going to be.
In the UK, there are lots of sources of funding and support for start-up businesses.
Not least, as part of its new Business Growth Service, the UK government has committed to the following…
- Providing 69,000 start-up loans – visit the Government’s start up loan’s website to apply for between £500 and £25,000 to start or grow a business.
- Giving a £3 billion boost to the British Business Bank to help lenders offer more small business loans.
- Launching the Business Growth Service website, where you can search for small business funding opportunities using your postcode.
When you’re defining your market and audience, don’t forget your domain name plays a role too. A local domain, like .co.uk or .uk, shows that you’re a UK-based business — helping you stand out to customers and compete with others in your space.
For more, check out: .com vs .co.uk – Which Domain is Best for Your British Business?
Starting a successful business begins with the right name. Find and register your .co.uk or .uk domain today with 123 Reg – or choose from hundreds of options, from .ai to .xyz.
7. Pay attention to market demand
A lack of market need for a product or service is listed in many studies as one of the top two reasons why start-up businesses fail.
You can’t just start a business on a whim, you need to carry out thorough market research to ensure there is real and long-lasting demand for your product.
Your market research will help you…
- Identify your target customer
- Gauge the market size
- Understand your competitors and what separates you from them
- Articulate your value proposition
- Understand what customers are willing to pay
Common sources for conducting market research include…
- The Office of National Statistics
- Gov.uk for market reports and industry trends
- Mintel, Statista, and IBISWorld for market reports and industry trend insights
- Trade associations and chambers of commerce
- Competitor websites to research product offerings, customer reviews, and pricing
- Google Trends for search interest in products/services
- Online survey tools like SurveyMonkey
- Social media profiles
- Interviews
- Focus groups
Don’t forget your professional email address
Once you’ve settled on your business idea and sorted the basics, it’s worth thinking about how you’ll present yourself to customers. Having your own professional email address with a unique domain name (you@yourbrand.co.uk) doesn’t just look smart – it shows clients and customers you really mean business.
For more, check out: Why Every Business Needs a Professional Email Address
Wrap up
Deciding when to start a business in the UK can feel daunting, but a few key factors can guide your timing:
✓ Factor in the tax year – launching in April can make admin easier.
✓ Look at seasonal trends – spring often sees strong performance, while August and December may suit a soft start.
✓ Check your readiness – financial stability, confidence, and support all matter.
✓ Do your research – confirm demand and understand your competition.
✓ Explore support and funding – government schemes and loans can give you a boost.
Trying to start out with little or no cash in the bank? Take a look at our guide: How to Start an Online Business (Without Any Money)
