The ultimate startup checklist for new retail business foundations. These are the business fundamentals that all small businesses need to know when starting out.
Strong business foundations protect you legally, keep your finances organised and make your brand look professional and trustworthy
This ultimate startup checklist covers the essential business fundamentals every small retail business needs when starting out, including contracts, policies, insurance, licensing, invoicing and more.
Whether you’re opening an online shop, selling in-person at markets or completing design work. This guide gives you the core structural pieces you must have in place to build a sustainable retail business.
Contracts & Policies: Protecting You and Your Business
Clear contracts and well-written policies are non-negotiable for a professional retail setup. They outline expectations, protect your rights, and ensure you get paid.
Why contracts matter
A strong contract:
- Defines the rights, responsibilities, and obligations of both parties
- Outlines how and when work or delivery will take place
- Minimises misunderstandings and risk
- Is legally enforceable
- Ensures you get paid on time
- Creates clarity in the working relationship
You’ll need contracts for things like:
- Commissions
- Design work
- Brand collaborations or partnerships
- Wholesale agreements
- Licensing deals (covered below)
Essential business policies
Policies aren’t signed but must be publicly available on your website or marketplace storefront. They help customers understand how you operate and can protect you during disputes.
Key policies every retail business needs:
- Privacy policy
- Terms & conditions
- Returns & refunds policy
- Delivery & shipping policy
- Cookie policy
- Complaints or customer service process
Where to get reliable templates
You can source templates from reputable providers such as:
- Lucy Legal – lucylegal.co.uk
- Shopify templates – shopify.com/legal
- Suzanne Dibble – suzannedibble.com
- Or search for a template specific to your niche
Business Insurance: What Coverage Do You Actually Need?
Business insurance protects you financially if something goes wrong – from accidents to product issues.
Main types of insurance to consider
- Public liability insurance
- Covers accidents involving visitors on your premises (invited or not). Not compulsory, but strongly recommended.
- Professional indemnity insurance
- For anyone offering advice, knowledge or design services. Protects against negligence claims, mistakes, and data loss.
- Product liability insurance
- Essential for all product-based businesses. Covers injuries or damage caused by your products.
- Employers’ liability insurance
- Legally required if you have employees, subcontractors, or work experience placements.
Where to find affordable insurance
- Your business bank account may include coverage
- Axis – axisweb.org/join
- Extremely affordable for startups, around £2.50/month
- AXA – axa.co.uk/business-insurance
- Hiscox – hiscox.co.uk/business-insurance
Invoicing: Keeping Clean Financial Records
Invoices are legal records of your sales. Whether it’s a commission, design service or a one-off piece.
Every invoice should clearly include:
- Invoice number
- Invoice date
- Payment terms
- What the customer is paying for
- Amount owed
- Your business details
- Buyer’s details
- Due date
Free Resource:
I’ve created a free, editable invoice template you can brand with your own logo – no email required, just an instant download.
Licensing: For Artists, Designers & Retail Creatives
If you create artwork, illustrations, patterns or designs, licensing may be a revenue stream worth exploring.
What licensing is
Licensing is a legal agreement where:
- The licensor (you) grants permission
- To a licensee (brand/company)
- To use your design, artwork or intellectual property
- For a specific time period, purpose or product category
Payment can be:
- A flat fee
- A per-product or royalty fee
- A blend of both
Where to pitch your designs
Card companies accepting submissions:
- Whistlefish
- Paintbox
- Paperlink
- Abacus
- UK Greetings
Agencies representing artists:
- Creative Sparrow
- Bright
- Advocate
- Pink Light Studio
- Lovely Bird Design Studio
- Brenda Manley Design
- Inspire Art Licensing
- Patternbank
- Rafale Design
Registering Your Business Properly
Depending on your country, ensure:
- Your business structure is registered (sole trader, limited company, LLC etc.)
- You have a UTR or tax ID
- You understand VAT thresholds or sales tax requirements
Bookkeeping & Accounting for Your Startup Checklist
You’ll need a system to track income and expenses from day one.
Options include:
- Xero
- QuickBooks
- FreeAgent
- Wave (free)
- A simple spreadsheet (early days only)
This startup checklist provides the essential foundations every new retail business needs to operate safely, look professional, and drive long-term growth. With clear contracts, solid insurance, clean financial records and the right systems in place, you’re setting your business up for stability and success.
You’ve now got a strong foundation to build a retail brand that grows with you – confidently, sustainably and creatively.
Need Support With Your Business Start-Up?
Whether you’ve got an idea or are five years in, I can help fast-track your growth from the start-up, growing or scaling phase.
Book a one-off strategy session so you have a personalised strategy and honest advice to help you:
- Develop and price products that actually make you money
- Understand your numbers (so you can make confident decisions)
- Build a sales strategy grounded in data, not guesswork
- Simplify your growth (without burning out)
Because with the right support, your product business can pay you consistently and grow with ease.
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