Beginner’s Guide on Starting a Digital Tech Business in the United Kingdom
Technology makes business processes simple and efficient. In the United Kingdom, most businesses have implemented technology in one way or another. Starting a digital tech company in the United Kingdom gives you an unlimited customer base, and depending on the services you offer, a chance to help others grow with you.
What Is a Digital Tech Company?
A Digital tech company helps other companies with digital transformation. Digital transformation means the integration of digital technology into the business to improve the processes and products. In other words, a digital tech company helps its clients make the best out of technology based on the client’s budget and needs.
Different companies have different digital needs. For example, a grocery store may just need a small computer, while an enterprise may require an in-house server, high-end computers, digital marketing, financial software, etc. Based on its expertise, a digital tech company helps to recognize and install the right digital platforms on various businesses.
As a digital tech company, your job is to let your clients understand the best technology-related services they need and provide them with the services. Later, you will have to follow up regularly to check if the IT system is working and help them fix any issues that may have occurred.
Industry Trends: What Services Do Digital Tech Companies Provide?
The services of digital tech companies depend on the current needs of the market. These are the current industry trends for technology:
Website and Application Development
The number of websites and applications is on the rise. Customers are always looking for an easy way to buy products or services, and with an app or a website, they can get that in the comfort of their own hands. Furthermore, websites and applications also help to improve customer interaction. Therefore, one of your primary jobs as a digital tech company is to help your clients with the app and web design and development.
Owing to security and storage issues, companies are reluctant to store a lot of data on their premises. Cloud computing is becoming a popular concept, which allows companies to store their data on various servers on the internet. Cloud computing also consists of software that businesses don’t need to install on their computers and access from any browser. Especially with the pandemic and most of the tasks being home-based now, expect a lot of your clients to ask you about cloud storage and software.
Process automation through artificial intelligence is another digital tech trend for the coming years. Companies are looking for better software and systems that minimize human efforts. A simple example of artificial intelligence could be chatbots, which provide automated message replies to inquiries on websites or social media. Some companies have gone a step further to introduce robots in the workplace.
Big Data Analysis
With big data analysis, companies can understand their customer behaviors and performances in depth. It includes studying large amounts of data to find hidden patterns and correlations that affect the product and the business processes. Big data analysis allows for cost reduction, better decision-making, and the creation of new software.
Digital Marketing means using the internet for marketing your products and brand building. Of course, not a lot of companies still use leaflets, but the trends of digital marketing have been changing rapidly. Keeping up with the updates of Google Algorithms and Website/ Social Media trends isn’t feasible for companies that have their own products and customers to focus on. Many IT companies exclusively provide digital marketing services.
Increased Computing Power
Applications and software are becoming more resource-intensive. Computers that were deemed high-end some years may struggle to run some basic software now. As a digital tech business provider, especially if you are working in industries such as finance, engineering, or graphic designing, you may regularly have to help your clients choose the best new computing hardware for their needs. Furthermore, you may also have to install new systems such as 5G based on their needs.
Steps for Starting a Digital Tech Business
The process of starting a digital tech business is just like any other business. You research the market, decide on a company type, register your company, and get the licenses. Furthermore, you can consult a United Kingdom company incorporation services to make the process quick. Here is how you can start a digital tech business:
Find Your Niche
‘Digital tech’ is a broad term. If you don’t already have a lot of budget to hire a lot of employees or even outsource, you won’t be providing everything under the sun. It’s a great idea to limit your services to a specific niche when you are just starting. You can increase your service offerings gradually with the growth of your employees and resources.
Research the Market
In other words, choose where you want to be based on. Look for a location where there already aren’t a lot of companies and where you see that businesses can really make use of your services. To make it more specific, you can also decide to help specific kinds of companies at first. For example, you may be a digital marketing company that only offers services to trekking agencies.
Choose the Type of the Company
You have three options; sole proprietorship, partnership, and a limited liability company. A sole proprietorship is a one-person company, while multiple individuals open a partnership. In both of these cases, your company won’t stand as a separate legal entity.
A limited liability company is the best option for a digital tech business. Your company stands as a legal entity, and your personal funds are protected from the company funds. However, you need to hire a director and at least a shareholder and need a registered address.
Choose a Company Name
A company name can’t be vulgar, sensitive, or offensive. Moreover, you can’t have the same name as other companies. Some names may be trademarked as well. You have to choose a name that is easy to remember and pronounce. Come up with at least three names, so you can use the alternative if one is not available.
Register Your Company
You can register your company yourself or with a company registration services provider. Choosing the latter saves you a lot of time, as registering a company yourself can be a lot of hassle. You will have to produce the required documents and also register for the taxes and the licenses. For more information, here is a guide to UK company registration.
Get the Licences
The business sector is highly regulated in the United Kingdom. Thus, you need to get all the licenses before you can start performing business activities. The licenses are based on the nature of your operations, and also your location and other factors, for example, CCTV cameras. You should consult a lawyer or a United Kingdom corporate service provider to be completely sure regarding the licenses you need or alternatively, we discuss some of the commonly issued licenses for United Kingdom tech companies.
Licenses Required for Starting a Tech Company in the United Kingdom
Here are some licenses you may require for starting your own tech company.
- Licenses to play background music if you want to play background music in the workplace.
- Notify the Information Commissioner’s Office (ICO) if your company processes anyone’s personal data, including customers, clients, etc., in an automated form.
- Public space surveillance (CCTV) license to install CCTV cameras in your premises.
- Financial Services Authority (FSA) authorization for regulated financial activities or to offer credit to your client.
- You need the Consumer Credit Licence.
- Goods vehicle operator license if you operate a goods vehicle; for example, for moving IT equipment.
- Scaffolding and hoarding license for scaffolding.
- Pavement or street display license for putting advertising signs on the road or pavement.
A Digital Tech business isn’t just like any other business. You won’t only make money but also help other companies grow by helping them maximize their potential with innovation. However, starting a digital tech business also requires you to go through the registration process, which could be confusing if you don’t have prior experience.
You can contact 3E Accounting if you want help registering your company in the United Kingdom. We are a team of qualified and competent business and legal experts who will help your business up and running in no time with minimum fuss and cost.