starting a business - the basics' - business in focus presentation slides
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Julie Walters BA(hons)
Business Adviser, Business in Focus
Starting your own Business
The basics
0870 950 90 90 www.businessinfocus.co.uk
Business in Focus – who are we?
• Business support company dedicated to helping
businesses to start and grow
• Formed in 1983
• Part-funded through Welsh Government
• Most services at no cost at point of delivery
• 2 offices in Swansea –Fforestfach & DTC
0870 950 90 90 www.businessinfocus.co.uk
Who am I?
• Business Adviser with Business in Focus• Self Employed for 20 years in my own consultancy
– online business and face to face raising of funds. Owned a managed workshop
• Management accountant for a large plastic recycling firm and a Waste transfer station
• Currently Studying a Masters in ICT and Leadership
Some Statistics
• 526,446 businesses were registered with Companies House in 2013, beating the 484,224 businesses recorded in 2012, and 440,600 in 2011. The number of active business in the UK has reached 2.82m,
• 95% of all businesses are micro-businesses less than 10 employees• ⅓ of new businesses fail in 1st year• Improved survival rate for those that seek
support and guidance
0870 950 90 90 www.businessinfocus.co.uk
The Reality
Starting a Business – The Basics
Advantages
Financial rewards
Personal satisfaction
Freedom Sense of achievement
Flexibility Being in control
Rising to the challenge
Job security
Disadvantages
Long unsociable hours
Financial pressure
Stress Responsibility
24/7 – no escape
Fluctuating income
Juggling everything
Facing the unknown
0870 950 90 90 www.businessinfocus.co.uk
Developing my business idea
• Use your skills• Spot a gap in the market• Turn a hobby into a business• Buy in a product• Create a product or service• Take up a franchise• Buy an existing business
THINK HOW YOU CAN DEVELOP YOUR BUSINESS
Starting a Business – The Basics
0870 950 90 90 www.businessinfocus.co.uk
• Key ingredients to start your own business?
The idea Customers Suppliers
Finance
Location
The Business Plan
legalLegal
Starting your own business – the vital ingredients - MAIR
0870 950 90 90 www.businessinfocus.co.uk
The business plan• A written business plan sets out broadly:
– What you are going to do (Business idea)
– How you are going to do it (Sales/Marketing)
– Where you are going to do it (Legal status)
– What you want to achieve (Products/Service)
– When you are going to do it (Forecasts)
0870 950 90 90 www.businessinfocus.co.uk
Your business idea• Have you clearly defined your proposal?• Will your idea translate into a viable business?• What do you know about your competitors?• How are you different from the competition?• There is always going to be competition !!
0870 950 90 90 www.businessinfocus.co.uk
Legal issues to consider• Legal structure of your business venture
• Taxation, National Insurance & Value Added Tax
• Licences
• Various Insurances
0870 950 90 90 www.businessinfocus.co.uk
Legal status of your business cont.
Options
• Sole Trader
• Partnership
• Limited Company (Shares/Guarantee)
• Limited Liability Partnership (LLP)
• Co-operative/ Social Enterprise
It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• Sole TraderOne person is the ownerYou can employ othersNo business registrationKeeping records and
accounts is straight-forward
You keep all the profits
You are personally responsible
Fewer social security benefits
It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• PartnershipTwo or more people own
the businessWorking with someone
who is equally involved in the business
Partners have no financial protection
Jointly and Severally Liable
One partner can make commitments of behalf
of the partnership
It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• Limited CompanyBusiness is a separate
legal entityCompany’s finances are
separate from the owners
You are not liable for the company’s debts
Must be registered with Companies House
Tax advantages; access to finance, etc.
Strict requirements on registration, record
keeping and submission of accounts
Profits belong to the company
0870 950 90 90 www.businessinfocus.co.uk
My Customers
– Who are your customers going to be?– Where do they buy from at present?– Why do they buy?– When do they buy?– More importantly why will they buy from you?
0870 950 90 90 www.businessinfocus.co.uk
Suppliers• Do you have suppliers in place?• Do you know what levels of stock you will require?• Do you know what terms your suppliers will require
for payment?• Where will you keep your stock?
• Example – Figurine client
0870 950 90 90 www.businessinfocus.co.uk
Location
• Where will your business be run from?• Is this the right location for the sort of business
you want?• Do you need premises?• Do you know the complete cost of occupation?• Is working from home a viable option?• Business in Focus property portfolio
0870 950 90 90 www.businessinfocus.co.uk
Finance & money• Do you know how much it will cost to set up your
business?• Will you be investing your own money into the
business?• Will you need to borrow money to commence? • Are you aware of sources of finance / grants?• Have you worked out your minimum survival
income?
0870 950 90 90 www.businessinfocus.co.uk
Types of Finance• Loans • Grants• Your own money• Equity/ Venture Capital• Factoring• Asset Finance
0870 950 90 90 www.businessinfocus.co.uk
Your own money• The best way to fund a project if you can is to use
your own savings and funds i.e no debt• Best way to get through University would be no
student finance –• Reality!• We don’t all have £ under the bed – so we have to
rely on others • Important to show commitment
0870 950 90 90 www.businessinfocus.co.uk
Grants • Next best thing to own money is free money that
is not yours!• Why is this the next best thing?• How long to get a grant• Spend and then reclaim
“A tiny amount of money can start an empire” Richard Branson
0870 950 90 90 www.businessinfocus.co.uk
Grants – different types• Grant funding
– Technology - TSB– Waste Recycling WRAP– Welsh office– Tourism– Young people– Training grants
• Mainly government funds in the economy to boost business and kick start the economy
• Dragon Innovation Partnership
0870 950 90 90 www.businessinfocus.co.uk
Training Grants• Support is available for training and recruitment
and includes the following schemes• Jobs Growth Wales (18 to 24 year olds)• Skills Growth Wales• Go Wales (Graduates)• Workforce Development• ReAct
0870 950 90 90 www.businessinfocus.co.uk
Loans• Bank Loans – business or personal• Government backed loans – Enterprise Finance
Guarantee Scheme• Princes Trust • Start up loan company• A4e Loan funds• Finance Wales / CDFI Loans
0870 950 90 90 www.businessinfocus.co.uk
Campari principles of good Lending• Character• Ability• Margin• Purpose• Amount• Repayment • Insurance
0870 950 90 90 www.businessinfocus.co.uk
Asset Finance and Factoring• Two types of lending • One secured against a fixed asset – normally a
vehicle or a piece of equipment (tends to be short term max 3-5 years high interest)
• The other against the debtor book.• Factoring vs Confidential Invoice Discounting
0870 950 90 90 www.businessinfocus.co.uk
Venture capital• In addition to the owners’ cash equity in a
business, two forms of venture capital are available:
Institutional Venture Capital Private (Business Angel) Venture Capital
Example – If I invested in your business – IT’S PERSONAL
0870 950 90 90 www.businessinfocus.co.uk
Who can Business in Focus help?
• Anyone thinking about setting up a new business (Pre-start contract)
• Anyone running an existing business (Post-start contract) either via Business in Focus or Business Wales
0870 950 90 90 www.businessinfocus.co.uk
DID YOU
?KNOW
0870 950 90 90 www.businessinfocus.co.uk
Life is Life is about…about…
0870 950 90 90 www.businessinfocus.co.uk
Listening to Listening to your heartyour heart
Taking Taking calculatedcalculated risksrisks
Creating Creating ValueValue
Realising Realising your your
aspirationsaspirations……….
0870 950 90 90 www.businessinfocus.co.uk
So isSo is
EntrepreneurEntrepreneurshipship
0870 950 90 90 www.businessinfocus.co.uk
Why
are
Entrepreneurs
Unique ??
0870 950 90 90 www.businessinfocus.co.uk
Some Some defineddefined their lives..their lives..
0870 950 90 90 www.businessinfocus.co.uk
0870 950 90 90 www.businessinfocus.co.uk
Some Some changedchanged the the world…world…
0870 950 90 90 www.businessinfocus.co.uk
0870 950 90 90 www.businessinfocus.co.uk
Some are in Some are in school… …
0870 950 90 90 www.businessinfocus.co.uk
Anshul Samar
Age: 13
Does homework regularly
Plays computer games
Fights with his sister
0870 950 90 90 www.businessinfocus.co.uk
……also an also an entrepreneurentrepreneur
Anshul SamarAnshul Samar
CEOCEO, Elementeo, Elementeowww.elementeo.comwww.elementeo.com
0870 950 90 90 www.businessinfocus.co.uk
Some are in Some are in college… …
0870 950 90 90 www.businessinfocus.co.uk
Mark Zuckerberg
Age: 22
Hangs out with girl friends
Stays in a rented apartment
Drives a cycle
0870 950 90 90 www.businessinfocus.co.uk
……also an also an entrepreneurentrepreneurMark ZuckerbergMark Zuckerberg
CEOCEO, Facebook, Facebookwww.facebook.comwww.facebook.com
0870 950 90 90 www.businessinfocus.co.uk
Some sold Some sold rubbish…
Still became Still became millionaires…millionaires…
0870 950 90 90 www.businessinfocus.co.uk
Szaky
Age: 23
CEO, TerraCycle (www.terracycle.net)
Selling Plantfood taken from rubbish
Revenue: ~$5 million
0870 950 90 90 www.businessinfocus.co.uk
Some started at Some started at Home …
0870 950 90 90 www.businessinfocus.co.uk
Jared Isaacman
Age: 22
CEO, United Bank Card
Revenue: $58 million
Manages 45,000 clients daily
0870 950 90 90 www.businessinfocus.co.uk
So what
NeXt ??
0870 950 90 90 www.businessinfocus.co.uk
Do You Want To Join
elite league
of
Entrepreneurs ??
the
If so..
0870 950 90 90 www.businessinfocus.co.uk
Keep
‘em
Open
0870 950 90 90 www.businessinfocus.co.uk
Plan
Organise
0870 950 90 90 www.businessinfocus.co.uk
Or Else.. Join the league
ofDSMJFY*
or
NJOG*
DSMJFY: Doing the same monotonous job
for years.
NJOG: No Job only gaming
0870 950 90 90 www.businessinfocus.co.uk
Business in Focus
Committed to your future
0870 950 90 90 www.businessinfocus.co.uk
Presentation by:
Julie Walters
Business in Focus
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