Starting a Business in Manchester

Manchester is famously a city built on the hard work of its people, symbolised by the iconic worker bee.

Over the past century, Manchester has had to overcome numerous challenges. Once a powerhouse of the Industrial Revolution, the city has continually adapted to survive. Today, the ‘warehouse city’ has transformed into one of the fastest-growing cities in the UK and boasts the second-largest economy, just behind London.

But what makes Manchester so special? In this blog, we’ll explore all the reasons you should consider Manchester as the perfect location to start your small business. From its robust economy to a steady inflow of talent and infrastructure paving the way for a resurgence, Manchester is quickly reclaiming its status as a powerhouse city.

 

Economy

Let’s begin with what’s most important to any small business: the stability of the local economy. If you’re considering starting a small business in Manchester, you’ll be pleased to hear that the city’s economic growth is projected to exceed the national average of 2.2% between 2024 and 2027.

One of the biggest players in Manchester’s growth is the information and communication sector which is expected to expand at 0.5% faster than the national average in the city.

It’s challenging for small business owners, with over half of new businesses not reaching the three-year mark. However, setting up in a thriving city like Manchester gives your business the best chance of long-term success.

 

Infrastructure

If you’re worried about getting around and finding a place to start in Manchester fear not. Manchester is home to one of the best transport networks in the UK thanks to the Bee Network.

Whether by bus, car, tram, or train, Manchester has made it as convenient as possible to navigate the city. Not far from the city centre is Manchester Airport, the second-largest airport in the UK and known as “the gateway to the North.” This connectivity makes Manchester and London excellent choices for businesses with international operations.

Additionally, Manchester is host to a huge amount of office space with plans for many more happening over the next year, giving business owners plenty of choices.

Put simply, with lots of options for office space, and developments underway, paired with an excellent transport network across the city and county, Manchester provides plenty of options for starting a business.

 

SME Resources

Businesses in Manchester also have access to many vital resources to support them on their journey. For example, the growth company is a training provider that supports small business owners in areas such as finance, international trade, innovation, recruitment, workforce development, leadership and mentoring, relocation support, and organisational development.

Another example is the Open SME business course run by the University of Manchester Alliance Manchester Business School. It’s a free course that aims to bring like-minded small business owners together to discuss finances, digital presence, marketplaces and people.

The Greater Manchester leadership hive is another popular choice for small business owners by offering small business owners a place to learn and meet like-minded people. The hive also provides a place for SME owners to take part in short courses to improve how they run their businesses.

 

People

Manchester, aside from being a competitor to London, is also regularly ranked as one of the best places to live in the UK. As mentioned in this blog, the excellent transport network and high-quality job opportunities make it highly appealing.

Ranked 15th on TimeOut’s list of the best cities in the world, Manchester is celebrated for its legendary music scene, two world-famous football teams, and iconic food and drink spots.

Manchester’s cost of living is relatively low compared to other major UK cities, which is another reason it consistently ranks among the most livable cities in the UK.

All these positive factors have caused people from all over the UK to flock to Manchester to live and work. Therefore, if you’re looking to start a small business in Manchester, you won’t have to look far for the right talent.

If you plan on hiring in the future, Manchester is home to one of the largest student populations in the UK. This ensures a steady stream of talented graduates, making Manchester a great city for hiring skilled professionals.

 

How to start a business in Manchester

Now we’ve covered why you should start a business in Manchester, and now let’s cover how you should go about it.

 

Decide your company structure

First off you’ll need to choose your company structure, here you’ll have a few choices, they are:

• Sole trader

• Partnership

• Limited liability partnership

• Private Limited liability company
• Public Limited liability company

We’ll quickly break them down for you.

 

Sole Trader

A sole trader is an individual who is considered self-employed. If you choose to be a sole trader you’ll need to file self-assessments for HMRC.

If you’re a sole trader, you ARE your business, with your income and debts being the same. Being a sole trader means you get to keep all profits but you will have to pay personal income tax on them.

 

Partnership

A partnership is like a sole trader but with two people, both having equal responsibility over the business. As with a sole trader, profits are shared and taxed as the personal income of the partners.

 

Limited Liability Partnership

A limited liability partnership allows two people to run a business together but offers more protection against their finances in case the business starts to struggle.

 

Private Limited Liability Company (Ltd)

Private limited companies will allow you to separate yourself from your business. By doing this your business’s profits, losses, liabilities and assets won’t have any impact on you. To earn from your business through this process you will have to withdraw cash from your business.

 

Public Limited Liability Company (PLC)

Public companies are similar but private limited companies but are instead traded publicly on the stock market, meaning anyone can invest in the business.

It’s up to you which road you decide to go down when starting a business, but if you’ve decided to create a company for the many tax benefits, we can help you get set up! Form a company now!

 

Get a business bank account

Once you’ve gone through the company formation process you’ll need to get yourself set up with a business bank account.

Business bank accounts are vital as they separate your personal income and expenditure from your business. If you were to operate your business out of the same account you operate your personal finances, you may be liable to pay income tax on your business’s earnings.

Check out the current best bank accounts on the market.

 

Pick the right location

Location, location, location. Depending on what business you’re thinking of starting there will be a place to start it, but it’s up to you to find it.

Looking for an office space to start your business? You’ll be able to pick from big names such as Regus, Bruntwood, Spaces, MediaCity and many more.

If you want to set up a new media company, Media City may be perfect for you. Looking at opening a new restaurant? You should look at setting up in the northern quarter.

As any marketer will tell you, ‘place’ plays a very significant role in the 7p’s of marketing. To get the most out of your business, you need to be where your customers already are, nobody’s, going out of their way for a startup (unless you’ve become trendy on TikTok).

 

Pick the right accountant

Running a business can be tough, so you should pick an accountant who’s proactive with your numbers and works to see you succeed.

Our team of finance and tax experts are on hand to support you when you need it.

Not only that, but you’ll also have access to a legal team to support you with essential legal work that comes with running a business.

And best of all, we’re experts in Manchester. Our local industry experience means we can help you make the most of the unique opportunities that come with operating in Manchester, contact us today to learn more.

 

Final Thoughts

Whether you’re based in the North or relocating, Manchester is an excellent choice to launch a business.

Manchester has some of the best transport links in the UK, whether by bus, car, tram, train or aeroplane. Manchester’s rapidly growing office spaces make finding a place to separate your work and home life easy.

Couple this with a historic reputation and bustling cultural scene that’s given birth to many great artists, along with a local football rivalry that goes back years, it’s easy to see why the city attracts people from all over the world.

All of these factors have combined to give Manchester one of the strongest local economies in the UK as the city looks to reclaim its title as a powerhouse.

But it takes a lot more than a good location to run a successful business. If you’re ready to launch your business in Manchester, contact us for expert financial and business guidance tailored to your success in this vibrant city.

If you’d like to learn more about starting and running a business check out some of our other resources below:

• Small Business Financing Options
• How to start a business in London
• Sole Trader Tax and Ways to Reduce It
• How Much Can You Earn on a Side Hustle Before Paying Tax?