How to start a business
in Blackpool, step by step

Test the idea before you spend money

The cheapest stage of any business is the one before you commit to costs. Use it well. Write down, in a sentence, who you are selling to and why they would choose you. If you cannot do that yet, keep talking to potential customers until you can.

Then test it in the smallest way you can. Sell a handful of items online. Take a table at a craft fair. Do three jobs for friends of friends at a fair price and ask for honest feedback. You are looking for proof that people will pay, not just that they like the idea.

• Work out your price per item or per hour, including materials and travel.
• Check what similar businesses on the Fylde coast charge.
• Note how long each sale or job really takes you.

Blackpool has a strong visitor economy as well as a local resident market, so ask yourself which one you are serving. The answer changes when you will be busy and how you will find customers.

Choose how you will trade

Most new small businesses start as a sole trader or set up a limited company. A sole trader is the simplest: you and the business are legally the same, and you pay income tax on your profits through Self Assessment. A limited company is a separate legal entity registered with Companies House, with more paperwork and more formal duties.

There is no single right answer. Our guide to choosing between sole trader and limited company sets out the practical differences. If you are going into business with someone else, a partnership is another option, and GOV.UK explains each structure.

Register with HMRC at the right time

If you trade as a sole trader, you need to tell HMRC and register for Self Assessment once you are required to. GOV.UK explains that small amounts of trading income can be covered by the trading allowance, and that you must register if your income goes over it. The deadline to register is 5 October after the end of the tax year in which you started, but registering earlier is easier and means you will not forget.

If you set up a limited company, you register it with Companies House. Since November 2025, directors need to verify their identity with Companies House as part of that process. The company then has its own tax responsibilities, including Corporation Tax.

VAT is separate. You only have to register once your taxable turnover passes the VAT threshold, though some businesses choose to register voluntarily. Check GOV.UK for the current figure rather than relying on what you heard from a friend a few years ago.

Set up simple records and a separate account

Good records save you money and stress at tax time. You do not need complex software to begin, but you do need a system you will actually use.

1. Open a separate accountKeep business money apart from personal spending. It makes your figures obvious at a glance.
2. Keep every receiptPhotograph paper receipts the day you get them. Allowable expenses reduce the profit you pay tax on.
3. Log income as it arrivesDate, customer, amount and what it was for. A spreadsheet is fine at the start.
4. Put tax asideMove a share of each payment into a savings pot so the tax bill is never a shock.

If you hold customer names, phone numbers or addresses, you are handling personal data. The Information Commissioner's Office (ICO) explains whether you need to pay the data protection fee, and many small businesses do.

Protect yourself and your customers

Think about insurance before you start trading, not after something goes wrong. Public liability, product liability and cover for your tools or stock are common for small firms, and employers' liability insurance is a legal requirement once you employ people. Our small business insurance guide explains each one in plain English.

Health and safety applies to the self-employed too, especially if you use tools or have clients visit. Our guide to health and safety in a small unit scales the HSE basics down to a one-person business.

Some activities also need a licence or registration, such as selling food or trading on the street. Blackpool Council's licensing pages list what applies locally.

Decide where you will work

Many businesses start at the kitchen table, and that is fine. The question is when home stops working. Common signs are stock in every room, tools you cannot use because of noise, or clients you would rather not invite into your house.

When that happens, compare your options honestly. A shop gives you passing trade but usually a longer lease. Coworking gives you a desk but rarely somewhere to keep stock. A small unit gives you space, privacy and access at any hour. Our comparison of units, shops and coworking goes through the trade-offs.

At The Rock Factory, ground-floor units start at 150 sq ft for £65 a week, which is about £282 a month, with lighting, electricity and Wi-Fi already connected and rolling monthly terms. If you are not sure what size you need, the unit comparison page lays them out together.

Find your first customers

Early customers usually come from people who already know you, then from people who can find you easily. Cover both.

• Tell everyone you know what you do, in one clear sentence.
• Set up a Google Business Profile with a proper address so you appear in local searches.
• Ask happy customers for a review straight away, while the job is fresh.
• Try face-to-face selling at Blackpool markets and events if your product suits it.
• Join local business groups online and offline, and offer help, not just adverts.

Before you act on this

This is general information, not legal, tax or financial advice. Registration rules, allowances and thresholds can change, usually from the start of a new tax year. Check the GOV.UK pages listed below for the current rules, and talk to an accountant if your situation is anything other than straightforward.

Questions

Sources and official guidance

• Working for yourself (GOV.UK)
• Set up as a sole trader (GOV.UK)
• Tax-free allowances on property and trading income (GOV.UK)
• Register for Self Assessment (GOV.UK)
• Set up a limited company (GOV.UK)
• Verifying your identity for Companies House (GOV.UK)
• VAT registration (GOV.UK)
• Data protection fee (ICO)
• Business and trading licences (Blackpool Council)

Prices are subject to availability. Minimum rental term: one month, then one month’s notice to leave. Electricity usage is charged separately at the supplier rate, with no markup. Business use needs prior approval. Car storage is not permitted.