How to Start a Small Business: A Step-by-Step Guide for Beginners
Starting a small business is one of the most searched topics on YouTube and Google… and for good reason. Thousands of people dream of working for themselves, but the path from idea to execution can feel overwhelming. What do you do first? How do you know if your idea will actually work? And how can you set yourself up for long-term success?
This guide breaks down the exact steps you need to take to start a small business confidently. Whether you’re looking to launch a side hustle, a service-based business, or a product brand, these strategies will help you go from idea to action.
Step 1: Validate Your Business Idea
One of the most common mistakes new entrepreneurs make is falling in love with an idea without testing it. I mean just because you think EVERYONE wants a pig farm yoga retreat or a bar that only serves green drinks doesn’t mean it’s actually a viable business idea. Validation is about making sure your business solves a real problem and that people are willing to pay for it.
Here’s how to validate your idea:
Do Market Research: Look at your competitors. Who are they targeting, and what are they offering? A competitive market shows demand exists, but it also gives you a chance to spot gaps you could fill.
Collect Feedback Early: Share your idea with potential customers before you spend money building it. Use social media, networking groups, or even casual conversations. Ask what they like, what they don’t, and what would make them buy.
Run a Pilot Test: Instead of a big launch, try offering a “beta” version of your product or service. You’ll quickly see whether people are interested enough to commit.
Free tools that make validation easy:
Google Trends – See if people are actively searching for your product/service idea.
Surveys – Use free tools like Google Forms, Surveymonkey or Typeform to gather structured feedback.
Social Media Polls – Ask your audience directly what they’d pay for, or which version of your idea excites them most.
Validating upfront saves time, money, and frustration. If the idea doesn’t resonate, you can adjust early instead of learning the hard way.
Step 2: Write a Business Plan
You don’t need a 50-page document. It’s not war and peace. A lean business plan gives you direction and clarity. Think of it as your roadmap, it shows you where you’re going and how you’ll get there.
Your plan should cover:
Your Mission: Why your business exists and what problem you solve.
Your Target Market: Who you’re serving and what they care about.
Your Offer: What you’re selling (product, service, or both).
Revenue Model: How you’ll make money.
Costs: The expenses you’ll need to run your business.
This plan isn’t just for banks or investors it’s for you. It keeps you focused and helps you make decisions with confidence. Need help with it? There’s an editable Business Plan Download in our Shop.
Step 3: Set Up Your Finances
Financial mistakes are one of the top reasons small businesses fail. Don’t let money become your blind spot, get organised from the start.
Key steps to take:
Open a Bank Account: ALWAYS Keep your personal and business finances separate
Track Expenses and Income: Use apps like QuickBooks, Xero, or even a spreadsheet (downloadable template in our shop) if you’re just starting out and don’t want to pay for a bookkeeping system yet
Plan Your Budget: Know how much money you need each month to cover costs, and what revenue you’ll need to break even (yep we have a template for this too)
Plan for Taxes: Set aside money for VAT, corporation tax, or self-assessment so you’re never caught short, remember you don’t need to register for VAT until you hit the threshold (currently set at £90,000 in taxable turnover over any rolling 12-month period 25/26)
Pro tip: Even if you’re small, act like a bigger business. Good financial habits early on will save you a lot of headaches as you grow.
Step 4: Build Your Brand and Online Presence
Today’s customers will Google you or ask AI about you before they buy from you. That means your brand and online presence matter from day one.
Start with the basics:
Choose a Strong Business Name: Memorable, relevant, and easy to spell (TOP TIP - Check for available domains, social handles and any copyright or trademark conflicts before deciding on your name)
Create a Simple Logo: Don’t overthink it, clarity beats creativity
Build a Basic Website: A one-page website with your services, pricing, and contact details is enough to start
Get on Social Media: Pick 1–2 platforms where your customers hang out. Show up consistently with useful content
Branding isn’t about being fancy, it’s about building trust. Even a simple, professional presence can set you apart from competitors who haven’t bothered.
Step 5: Launch with a Lean Marketing Strategy
Marketing doesn’t have to be expensive to work. In fact, some of the most effective strategies are free or low-cost.
Smart ways to market your small business:
Content Marketing: Share tips, insights, and value through blogs, videos, or social posts
Email Marketing: Start building a list from day one, email is still one of the best tools for sales
Networking: Word-of-mouth is powerful. Attend events, join online communities, and connect with other business owners
Customer Reviews: Ask happy customers to leave reviews, social proof is gold for small businesses.
The trick is to test small, learn what works, and double down. You don’t need to be everywhere, just where your ideal clients are.
Step 6: Use YouTube as a Growth Tool
One of the fastest ways small businesses are growing today is by using YouTube. Why? Because it’s the second largest search engine in the world and people actively search for business solutions there.
Here’s how you can leverage YouTube:
Create “how-to” videos (e.g., “How to choose the right [product/service]”).
Share behind-the-scenes content to build trust and connection.
Use YouTube SEO optimise your titles, descriptions, and tags with the same phrases people search for, like “how to start a small business” or “small business tips.”
Repurpose your blogs and social posts into short videos for double impact.
You don’t need fancy equipment your phone and good lighting are enough to get started. The key is consistency.
Final Thoughts
Starting a small business doesn’t have to feel overwhelming. With the right steps; validating your idea, creating a simple plan, getting your finances in order, building your brand, and marketing lean you’ll be ahead of most new entrepreneurs. And by using platforms like YouTube to amplify your reach, you can grow faster without massive budgets.
are you ready?
💡 Ready to take the leap but need expert guidance? At L8six, we specialise in helping small business owners like you turn ideas into reality. From strategy to operations, finances, and marketing, we’ll give you the clarity and tools to launch with confidence.
👉 Book your free consultation today and let’s start building the business you’ve been dreaming of.