Everything you need when starting or running a business
This page includes helpful content on starting a new business, running the day-to-day operations and staying ahead of costs.
Starting and running a business can be exciting, but it can also be incredibly stressful and time-consuming. Long hours, financial pressure, and constant decision-making are just the tip of the to-do list.
At Uswitch, we’re here to help clear the confusion. Whether you’re an established business owner or looking to start a new business, we have all the latest products, information and expert advice to help provide practical, time-saving solutions.
What costs are needed to start a business?
One of the first things to consider when taking your first steps with a new business is the costs involved. According to a study by Hewlett-Packard, the average cost of starting a business in the UK is £22,756.
Typically, when planning your startup costs, you will need to consider some of the following:
- Register a new business
Sole traders: If you’re looking to earn more than £1,000 from your business or side-hustle, you should notify HMRC to ensure that you’re legally compliant.
Limited company: If you plan to set up a limited company, you need to register your business’s details with Companies House, which costs £50 online and £71 by paper. It is also worth noting that once you become a limited company, it is a legal requirement to have a business current account.
- Insurance and legal costs
Ensuring your business is covered is essential for any business owner. Employers’ liability insurance is the only type of business insurance you would be legally required to obtain, but it is best practice to identify any potential business risks and make sure you’re covered for those, too.
- Office and utilities
Whether you’re a small business starting out from a living room or looking to expand to a bigger location, you will need to consider running costs such as utilities.
- Equipment
It’s important to make a concise list of all the equipment you will need to run your business. This could include anything from machinery or software to card payment solutions and office supplies.
After planning your overall starting costs, you might want to consider various finance options. A suitable current account is essential to separate business finances from personal finances. Equally, a business credit card is beneficial for having quick access to credit.
That’s why we provide comprehensive information on a range of factors related to switching providers, including:
Business current accounts
A business bank account is used for the income and outgoings connected with the business you run.
It can be used by anyone who wants to keep their business finances separate from their personal current account bank account.
Business credit cards
Business credit cards can be useful for tracking company spending, paying for expenses, and accessing short-term credit if needed. Similar to a personal credit card, business credit cards allow you to spend now and pay off the money you spend later.
But if you don’t pay off the balance in full each month, you will usually be charged interest. The credit limit amount available will be based on the business's status and accounts.
Business loans
A business loan is different from a personal loan in that you will need to provide information about your business, its turnover and its profit.
Business loans can be short-term or long-term, but all involve paying a set amount of interest on a lump sum borrowing amount.
Different loans are available for different circumstances, so it helps to have a clear idea of exactly what you need the money for before you compare business finance loans.
Card payment solutions
Payment providers help your business accept payments from customers online and in person.
The majority do this through credit and debit cards, but some also offer alternative payment methods such as open banking and buy now, pay later.
Already a business owner? Here are some cost-saving tips
Whether you’re a long-time business owner or you have just started your small business, cost-saving strategies can help you manage your finances during last-minute changes or save for future expansion projects.
“Energy bills are one of the biggest ongoing costs for many businesses, but there are straightforward ways to reduce them. Whether it’s switching to a better tariff, upgrading to more energy-efficient lighting or equipment, or improving insulation, small changes can lead to big savings over time. With new government support on the horizon, now is a great opportunity for business owners to take control of their energy use.”
"Every business operates differently, so it’s worth reviewing your current setup to see where improvements can be made. Tracking your energy usage, speaking to your supplier about cost-saving options, and working with an energy broker to find the most suitable tariff can all help lower your bills and free up money to reinvest in your business.”
Here are some other practical areas where you can actively seek significant savings:
- Review your regular expenses: Annually review your utility bills and ensure you’re getting the best deal on the market. This includes your gas, electricity, and broadband.
- Optimise supplies & equipment: Assess all your supply needs beyond office stationery. Consider bulk purchasing, explore reputable refurbished equipment, and acquire only essential items to reduce unnecessary expenditures.
- Condense and cut any unnecessary tech and software: Review all software subscriptions and cancel any unused services, investigate more cost-effective alternatives, or look to consolidate platforms to reduce monthly outgoings.
- Relocating workspaces: If you’re moving offices at any point, ensure that you’ve let your previous energy provider know, as well as if you’re on a deemed contract in your new location, you run a comparison to make sure you’re getting the best deal. These are often priced higher than negotiated contracts.
- Streamline operations: Identify and address inefficiencies within your business processes. Looking into implementing automation for repetitive tasks or refining workflows can save valuable time and reduce waste.
- Proactively shop for better deals: Don't passively accept renewal terms. Regularly review all your business expenses, from business bank account fees to business insurance premiums. Comparing deals for services like broadband and energy providers using Uswitch.com can save you time and money when looking for simple and easy to use quotes.
By rigorously reviewing these costs and adopting a proactive approach to financial management, you can improve your business's financial health and build a stronger foundation for sustained growth.
Our top guides for business banking and funding:
How to apply for a business loan
UK businesses borrowed £477 billion in 2022, according to IBIS World - here's our guide on how to ..
How to choose a business credit card
With so many business credit cards available — and a range of costs to weigh up — it’s important to know how ..
Why is business insurance so important for your business?
Having the right insurance helps protect your business, employees, ..
Business FAQs
What is a sole proprietorship?
A sole proprietorship is usually the easiest way to run a business if you’re working for yourself. You’re the sole owner, and there’s no legal difference between you and your business. You get to keep all the profits, but that means you’re also personally responsible for any losses or debts. It’s a popular choice for freelancers, consultants, and self-employed tradespeople because it’s simple to set up and gives you full control over how you work.
What is a limited company?
A limited company is its own legal entity, separate from the people who own it. That means the company — not you personally — is responsible for any debts. You can sign contracts, own property, and hire staff in the company’s name, while your personal finances are usually protected. This setup is popular with small businesses that want a bit more structure, a clear separation between personal and business money, and often more credibility with clients and lenders.
Can I get business broadband at home?
If you find yourself working or operating your business from home more often, it might be more beneficial to look into upgrading to a business broadband package, which can offer higher speeds and stronger security.
