Starting a business is a bold step. It's one that can bring freedom, creativity, and opportunity, but also a whole host of practical challenges. Whether you're launching a side-hustle or committing full-time to a new venture, these are some of the key considerations every entrepreneur should keep in mind.
Funding your business
As the survey of business owners found, access to capital is one of the biggest hurdles. Many founders rely on personal savings, while others seek support from friends, family, or external investors. If you're planning on self-financing your business, it means that you need to do everything you can to improve your financial situation. Building and maintaining a good credit rating will help when applying for a business loan easier, should you choose to go down that route in the future. Government-backed loans and grants are also worth exploring, particularly for businesses that are innovating or contributing to local economic development. Taking these steps will also teach you the skills and discipline to plan and budget to keep your company's finances in order.
Choosing the right structure
The legal setup of your business will shape everything from tax obligations to personal liability. Sole traders, partnerships, and limited companies each come with their own pros and cons, and selecting the right one from the start can save time, money, and stress down the line. It also impacts how you secure investment, take on employees, or handle profits.
Tune up your business knowledge
Building a successful business isn't just about having a great idea. It's about how to take that great idea, run with it, and grow it. Tuning up your business knowledge is one of the smartest investments you can make as a founder, especially if you're new to entrepreneurship.
Money will often be tight when starting out, so you're going to have to wear many hats as having the cash to hire experts right away will be unlikely. This means getting to grips with key concepts like budgeting, pricing strategy, cash flow management, and basic accounting, which are all essential for keeping your business financially healthy. But it doesn't just stop there. It also means sharpening your understanding of marketing, operations, and customer behaviour so that you can make informed decisions as almost every aspect of business feeds into another. Make the most of free online resources, for example at Markel Direct, policyholders are provided with full access to a business hub which offers extensive tips and advice. Utilise local enterprise programmes, short courses, podcasts, and mentorship schemes, as these can all help fill knowledge gaps and build confidence.
So, while you don't necessarily need to have a business degree to succeed, the more commercially aware you are, the better equipped you'll be to navigate challenges, seize opportunities, and make your vision sustainable in the long run.
Understanding and navigating compliance
Depending on your industry, you may need to register with a professional body, meet health and safety standards, or apply for licences. There are also broader responsibilities, from data protection and GDPR compliance to understanding employment law, should you plan to hire. Getting these factors wrong can carry reputational and financial risks, so it's worth investing in professional advice.
Protecting what you build
Once your business is up and running, protecting what you've built is just as important as growing it. That's where business insurance comes in. Whether you're a startup founder or running a growing company, the right cover can shield you from costly setbacks. For many, small business insurance starts with the basics. That's usually includes getting a few public liability insurance quotes, as this type of insurance is essential if you interact with clients, suppliers, or the public, as they cover claims for injury or property damage.
If you offer advice or services, professional indemnity cover can protect you from legal costs if something goes wrong or a client isn't happy with your work. And if you employ anyone, even on a part-time basis, getting an employer's liability insurance quote isn't just useful, it's a legal requirement to ensure your staff are protected if they're injured.
Additionally, having comprehensive insurance can not only give you peace of mind, but set you apart from your competition. It builds your credibility as a business, especially when working with clients or partners, as you're fully equipped to handle any potential issues that may arise.
Preparing for the unexpected
Starting a business means that stepping into the unknown and having the ability to adapt can be just as vital as a great idea. Unexpected events like market downturns, supplier issues, or tech issues, can derail progress without warning. Understanding that starting and running a successful business is going to come with challenges and being prepared to pivot while building resilience from day one is essential. This means putting contingency plans in place, setting achievable goals with room for adjustment, and being financially prepared for bumps in the road.
Please note this is for information purposes only and shouldn't be solely relied upon with making significant business/life decisions. Always consult a suitably qualified professional.
-
Methodology
The surveys
The business leader survey was conducted by Censuswide, among a sample of 251 Business Leaders (aged 29+). The data was collected between 14.03.2025 - 17.03.2025. The Gen Z survey was conducted by Censuswide, among a sample of 1,001 Gen Z (age 17-28) that have aspirations to start a business in the next 5 years. The data was collected between 14.03.2025 - 17.03.2025.
The best start-up locations index
The index combine data from various government data sources: Business closures, active businesses, 5-year business survival rates were all taken from Business Demography UK, released in November 2024: https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/datasets/businessdemographyreferencetable
The following tables were used:
- Table 2.1d - Count Of Deaths Of New Enterprises For 2021, 2022 and 2023 by District, Counties And Unitary Authorities Within Region And Country
- Table 3.1d - Count Of Active Enterprises For 2021, 2022 and 2023 by District, Counties And Unitary Authorities Within Region And Country
- Table 5.1a - Survival Of Newly Born Enterprises District, Counties And Unitary Authorities Within Region And Country By Births Of Units In 2018 And Their Survival
Gigabit capable broadband data was taken from: https://www.ons.gov.uk/explore-local-statistics/indicators/gigabit-capable-broadband
Average annual growth of GDHI was taken from https://www.ons.gov.uk/explore-local-statistics/indicators/gigabit-capable-broadband using the following table:
- Table 5: GDHI local authority by ITL1 region: annual growth in total GDHI, percentage
Contains public sector information licensed under the Open Government Licence v3.0.
Licence: http://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/University founders' data
This data was collected manually from LinkedIn during February 2025, taking the following information from University alumni pages:
- University
- University town/city
- Listed alumni on LinkedIn
- Listed 'founders' alumni
- Founders that studied a business degree (Business Admin & Management & Business/commerce general)
- Listed 'Owners' alumni
- Owners that studied a business degree (Business Admin & Management & Business/commerce general)
Universities with the most students studying business and student start-ups
This data was taken from HESA:
- Student start-ups: https://www.hesa.ac.uk/data-and-analysis/providers/business-community/table-4e.csv
- Student start-ups- Table 4e - Intellectual property: Spin-out activities by HE provider: https://www.hesa.ac.uk/data-and-analysis/providers/business-community/table-4e.csv
- Students studying business- Table 49 - HE student enrolments by HE provider and subject of study: https://www.hesa.ac.uk/data-and-analysis/students/table-49.csv
- Table 52 - HE student enrolments by subject of study and permanent address: https://www.hesa.ac.uk/data-and-analysis/students/table-52
Creative Commons Attribution 4.0 International Licence
Gen Z business leaders
This data was obtained through an FOI request. The data shows the total number of companies incorporated between 01/04/2018 and 31/03/2024 that had a Gen Z director (born 1997-2012) appointed on the day of incorporation.
Privacy policy | Terms of use | Acceptable use policy | Cookies statement | Modern Slavery Statement | Complaints | Site map | Cookie Settings
Markel Direct is a trading name of Markel International Insurance Company Limited who is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Financial Services Register reference number 202570). Registered office address, 20 Fenchurch Street, London EC3M 3AZ.
© Markel Direct. All rights reserved 2026