Liverpool has long been a city of innovators, creators, and entrepreneurs. From its historic trading routes that built its global reputation to its modern-day creative, digital, and life sciences boom in areas like the Knowledge Quarter, the city offers a unique blend of heritage, culture, and opportunity. With a supportive local ecosystem and a cost of living significantly lower than many other major UK cities, Liverpool is a prime location to turn your business idea into a reality.
But where do you begin? A great idea is the spark, but turning that spark into a successful business requires a clear plan, local knowledge, and an understanding of the landscape.
This guide provides a comprehensive, step-by-step framework for starting your business in Liverpool, complete with links to the essential local resources you’ll need along the way.
Step 1: Validate Your Idea & Research the Liverpool Market
Before you register a business name or spend a single penny, you need to answer one critical question: do people actually want what you’re selling?
- Talk to Potential Customers: This is the most important research you will ever do. Don’t just rely on feedback from friends and family. Get out and speak to your target audience in Liverpool. If you’re opening a coffee shop, spend a week visiting other cafes in your chosen neighbourhood, observe customer behaviour, and ask people what they feel is missing. If you’re launching a B2B service, use LinkedIn to connect with local business owners and offer them a free coffee in exchange for 15 minutes of their time. Ask them about their problems, what they currently do to solve them, and what they would be willing to pay for a better solution.
- Analyse Your Local Competitors: Who is already serving your target market in Liverpool? Go beyond a quick Google search. Create a simple spreadsheet and list your top 3 competitors. For each one, analyse their website, social media, and Google reviews. What are their customers complaining about? That’s your opportunity. What do their best reviews praise? That’s the standard you need to beat. Google reviews are a goldmine of information, often revealing common complaints or service gaps. Identifying a niche is your key to success. For example, perhaps there are many general accountants, but none who specialise in helping Liverpool’s creative and digital start-ups navigate project-based finances. That gap is your opportunity.
Step 2: Create Your Business Plan
Don’t let the words ‘business plan’ intimidate you. This isn’t a homework assignment; it’s your roadmap to success. It doesn’t need to be a 100-page document. Its purpose is to force you to think critically about your idea and create a clear, actionable plan. Key sections should include:
- Executive Summary: A brief, compelling overview of your entire plan.
- Company Description: What your business does, your mission, and your chosen legal structure.
- Market Analysis: A summary of your research from Step 1, detailing your target audience and competitive landscape.
- Products & Services: A detailed description of what you will offer and your pricing strategy.
- Marketing & Sales Strategy: How you will attract and retain customers. For instance, a local B2B service might focus on LinkedIn networking and attending Chamber of Commerce events, while a vintage shop on Bold Street would prioritise Instagram and local influencer outreach.
- Financial Projections: Your startup costs (e.g., rent deposit, initial stock, website development, insurance), funding requirements, and realistic revenue forecasts for the first 1-3 years.
Step 3: Access Funding & Support in Liverpool
One of Liverpool’s greatest strengths is its supportive and collaborative ecosystem for startups. There are numerous local organisations dedicated to helping new businesses succeed.
- Liverpool City Region Growth Company: This should be your first port of call. It is the city region’s primary agency for business support, offering free, impartial advice, workshops on everything from finance to marketing, and signposting to various funding opportunities. Visit their website at growthplatform.org.
- Local Grants & Funding: Keep a close eye on the funding opportunities listed on the Growth Platform website. These can range from small startup grants to larger funds for specific sectors like digital and creative industries. Securing a grant can be a game-changer for your cash flow.
- BIPC Liverpool: The Business & IP Centre, located in Liverpool’s magnificent Central Library, offers a wealth of free resources that would otherwise cost thousands. You can access market research databases, attend business workshops, and book one-to-one advice sessions on topics from intellectual property to business planning. Learn more at BIPC Liverpool.
Step 4: Handle the Legal & Registration Side
Getting the legal structure right from the start is crucial as it impacts your taxes, personal liability, and administrative requirements.
- Choose Your Structure: The two most common options for new businesses are Sole Trader (you are the business, with full personal liability) or a Limited Company (the business is a separate legal entity, protecting your personal assets). Each has different tax and liability implications. The official GOV.UK website offers a simple tool to help you decide and officially register your business.
- Understand Local Regulations: Depending on your business type, you may need specific licenses or permits from Liverpool City Council. This is particularly important for businesses dealing with food (food hygiene ratings), alcohol, public entertainment, or even something as simple as putting an A-board on the pavement. Always check the Liverpool City Council website for detailed information to ensure you operate legally from day one.
Step 5: Find the Right Workspace in Liverpool
Your business address is a key decision, but a long, expensive lease is no longer the only option. Liverpool offers a range of flexible options.
- Co-working Spaces: Ideal for freelancers, startups, and creative businesses, co-working avoids the risk of a long-term lease while providing a professional address. Hubs like Avenue HQ, Clockwise Liverpool, and the many dynamic spaces in the Baltic Triangle offer flexible desks, networking opportunities, and a vibrant community atmosphere.
- Serviced Offices: These offer a private office with shared facilities like reception and meeting rooms, providing a professional environment without the upfront cost and commitment of a traditional lease.
Step 6: Build Your Digital Foundation
In today’s market, your online presence is your most important asset. Before you even open your doors, you need a professional digital front door that builds trust and credibility.
- Secure Your Domain Name: Your website address is your piece of the internet. Make sure it’s professional, easy to remember, and secures your brand name.
- Launch a Professional Website: A basic, professional website is non-negotiable. It’s the central hub for all your marketing efforts and the first place potential customers and partners will look to verify your legitimacy. Our Digital Launchpad package is designed for this exact purpose, providing a one-page starter site for a fair price.
- Establish Your Social Media Presence: You don’t need to be on every platform. Choose 1-2 social media platforms where your target customers spend their time and create professional profiles. A restaurant or fashion brand will thrive on Instagram, while a B2B consultant will find more value on LinkedIn.
Step 7: Network and Connect with the Liverpool Community
Liverpool’s business community is famously collaborative and supportive. Building your network is essential for finding mentors, suppliers, partners, and future customers.
- Attend Networking Events: Organisations like the Liverpool Chamber of Commerce and other local groups regularly host networking events. Go with a mindset of helping others, not just selling.
- Connect Online: Engage with other local business owners on platforms like LinkedIn. Join relevant local Facebook groups (like the Baltic Triangle or Independent Liverpool communities) and contribute to the conversation in a helpful, non-spammy way.
A Final Word of Advice: 3 Common Pitfalls to Avoid
Starting a business is tough, and it’s easy to make mistakes. Here are three common pitfalls we see Liverpool startups make:
- Underestimating Startup Costs: Be realistic about your budget. It’s not just about the rent or stock; remember to factor in costs for insurance, professional services (like an accountant), marketing, and a small cash buffer for unexpected expenses.
- Trying to Be Everything to Everyone: Don’t be afraid to niche down. It’s better to be the #1 choice for a small, specific group of customers in Liverpool than the 10th choice for everyone.
- Neglecting Marketing Until It’s Too Late: Marketing isn’t something you do once you’re busy; it’s what you do to get busy. Start building your online presence and talking about your business from day one.
Conclusion
The journey from a simple idea to a thriving Liverpool business is challenging, but it is also incredibly rewarding. It’s paved with research, planning, and hard work, but you don’t have to do it alone. By taking a structured approach and tapping into the fantastic resources and collaborative spirit available right here in Liverpool, you can build a strong foundation for long-term success.
Your digital presence is a critical part of that foundation. If you’re ready to create a website that builds trust and wins customers from day one, we’re here to help
