First, that's fantastic news that you are looking to set up your own business - and even taking the first step by writing a business plan. It sounds as if it will be quite a challenge, but the rewards are well worth it. It also seem as if you are going into a field which interests you and will, in the long-term, be fun as well as rewarding, with other like-minded people to work alongside you.
However, you are in a bit of a conundrum over what it will mean to your benefits if you start your own business, which is understandable. Most likely the benefits you receive now would be Universal Credit - while of course you also get child benefit, which will not be affected no matter how much you earn in your own business.
If you start working without generating any income you should still qualify for Universal Credit, as well as housing benefit, if you get it now. Your best bet is to talk to your Status Officer at your Tax Office (HM Revenue & Customs) to determine whether – or when - you will have to register as self-employed, and what this will mean as far as benefits and National Insurance payments etc will mean. If you earn less than a specific amount, your other benefits should not be affected anyway.
You may qualify for specific grants, low-cost loans and other financial help, depending on your age and the type of business. The Prince's Trust, for example, can provide some incentives.
The New Deal for Lone Parents (NDLP) programme ended in 2011. It can help provide you with necessary training, point you in the direction of business advice, and – perhaps more importantly – give you money/grants to help pay for childcare and transport.
The government website GOV.UK can help with advice on getting grants, loans and other forms of financial assistance. See www.gov.uk for details, and see if you could qualify to receive loans under the Government's Growth Guarantee Scheme. Borrowing from friends and family is also a way some people start up on their own, perhaps giving them a share in the business in return.
Finally, finish up your business plan. It sounds as though you could have a very interesting new career ahead of you!
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