barnsley college business guide

7/28/2019 Barnsley College Business Guide

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Contents

Disclaimer

This information is intended to give an overview and

introduction to the subject. Any legal information is

provided for guidance only and should not be

regarded as an authoritative statement of law.

Barnsley College cannot be held responsible for

any actions taken as a result of this guide.

Our offer

Your Idea

Business Planning

Finance

Legislation

Social Enterprise

Marketing Plan

Contacts

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9-13

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Barnsley College has an array of support to help you start your business.The Enterprise Department is here to help you realise your dreams

and turn your ideas into reality.

Whether you have products ready to sell or have a brilliant idea for

a business you want to explore, come and have a chat with us.

The support on offer includes:

Workshops on starting a business, finance and legislation

1 to 1 support with a Business Adviser

Access to Industry Specialists

Opportunity to test trade your product or service

Financial Support

Our Offer

/ezonebarnsley

@ezonebarnsley

www.barnsley.ac.uk/Enterprise

[email protected]

01226 216 840

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Before you launch into setting up your business you should consider:

How strong is your idea?

Who else is doing it?

Is it a niche market?

Are you able to offer a quality product/service?

If it hasnt already been done and nobody is doing it, why?

Is it something you enjoy doing?

If you are going to be doing it 24/7 will you remain positive about it?

What do you want to do?

What can you make?

What will people buy?

What services can you offer?

Not everyone has to have the next big thing. Its a case of looking

at your skills and working out how you can use them.

Your business will centre on an idea, a product or service

which you believe has commercial value.

Your Idea

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A business has to be involving, it has tobe fun, and it has to exercise

your creative instincts.-Richard Branson


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All good businesses take time to sit

down and look at where they are

heading, what their future looks like

and to ensure that they remain

relevant to the industry they are

operating in and continue to provide

a service that is what their customers

are looking for.

With the current economic climate as

it is, it is more important than ever that

those looking to start a business and

those with established enterprises

take time to plan in order to move the

venture forward.

Business Planning

There are a number of other reasons why a business

would look to write a business plan, these can include:

Raising finance for the business

Securing investment from a third party

In order to tender for a piece of work

Whatever the reason is for the plan being produced you should always

consider firstly who is going to read it and tailor it to their individual needs.

For example if you are applying to the bank for a loan they will want to see

financial figures throughout the plan and will want these to be based on

research and accurate forecasts.

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Executive SummaryThe executive summary should be the last part of the business plan which is

written but becomes the first page in the business plan which is read. This is

because it should summarise the business plan on one page in a concise

manner enticing the reader to want to know more.

It should set out an agenda for the business plan and touch lightly on all

aspects including setting out the proposition to the reader of what you are

asking them for, be it finance or investment. As it is a summary of the plan itmakes sense that until you have completed writing the business plan you

wouldnt know what to include in the summary. You should also consider

here the markets or industries that your product is aimed at, for example,

young people, women or individuals with disabilities.

Description of the Business

The description of the business is probably the best place to start when

writing a business plan. This is your opportunity to explain what it is that you

as a business are going to offer. You can also use this space to explain why

you are different to other people offering a similar service. This is called your

Unique Selling Point (USP). This could include any number of factors which

differentiate you from your competitors including:

A better quality service or product

A fast service

Lower prices

A new innovative product or service

Business Plan Contents

Innovation distinguishes betweena leader and a follower.

-Steve Jobs

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Market Analysis

Once you have explained what your business is going to offer, and to which

markets, you should then look at the market you are entering.

Who are the key people in the industry?

Who will your main competitors be?

You should look at how you differ to them and list their strengths andweaknesses. Local competitors will only form a small part of your industry.

What is the rest of the industry doing, nationally and globally?

This is your opportunity to explain how you are going to overcome issues

that are facing the industry as a whole and show that you understand how

your industry is represented in the local area.

Service or Product

Now that we have looked at the industry you are entering, and what the

business will look like, it is your opportunity to discuss the products and

services that you are going to offer.

If it is a singular offer, for example you are manufacturing one product or

a range of similar products then you should consider talking about the

suppliers who are going to provide you with the materials to manufacture

your product to show that you have researched the supply chain.

Retail businesses should discuss the range of products that they are

going to sell and group them by type but providing enough detail so

that the reader can envisage the products.


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Marketing and Sales

Before you can talk about how you are going to advertise your product or

service, you need to show that you understand who it is you are aiming

your product at. Not everyone will want to buy from you for one reason

or another and so you need to show that you have thought about who is

most likely to want the product or service.

One way of doing this is to create a profile of your ideal customer or the

person you believe your product is best aimed at. This can include gender

and age, but can also look at their social circumstances for example

whether they are married, have a professional career or are parents.

You do not just have to have one profile for your product as there may

be a variety of different groups who would want to buy from you

for different reasons.

For each profile you create you can then

do a number of things with the information:

1. Start to understand the profiled group by looking at the following areas:

a. What do they base their decision to buy on? Eg. time, price or quality

b. How do they buy products? Eg. Online or through retail outlets

c. Where do they look for a service? Eg. Yellow Pages

2. You can decide how it would be best to advertise your product or

service so that the message of the advertising best reaches your targeted

customers. For example if your product or service is targeted towardsfemales - would there be any point in putting up a poster in a barbers shop?


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Marketing continued

Now that you have customers interested in your offering, how will you make

sure the sale takes place? If you will be selling face to face, customer service

becomes a high priority to get right so that people remember you and want

to come back to you for custom. Knowledge of your product or service,

politeness and not being too pushy go a long way to instilling confidence

in your customer that you are the right person for them to buy from.

If you are selling through a website, you have to be clever about how

you complete the transaction to instill the same level of confidence.

Good communication, an easy purchasing process and polite text can go a

long way to convince a person to buy. One thing to bear in mind is that by

not being present at the time of the transaction, how can you answer any

questions that the customer might have?

This is why retailers add Frequently Asked Questions to their websites.


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Money is the life blood of a business, if you arent making money, this can

put the business in jeopardy.

Knowing your business finances from how much stock you are holding, how

much products and services cost to knowing the profit margin on each item

is imperative to ensure that the business is run properly.

If the purpose of your business plan is to raise finance to start your

business there are several key pieces of information that any lender will

look for:

Survival Budget How much it costs you as an individual to live a basic

lifestyle including rent / mortgage, utilities, food etc.

Start-up Costs How much money do you need to raise in order to start thebusiness? Including equipment / space / product and the amount of funding

you already have in place whether from personal savings, family or from

lenders.

Price and Cost The price it will cost to buy / create the product / deliver the

service and how much you will then charge the customer.

Cash flow Forecast A 12 month (can be 24) forecast looking at the runningcosts of the business against your predictions for sales on a month by

month basis.

Profit and Loss Forecast Similarly to the cash flow forecast it should look

at 12 months but whereas the cash flow forecast deals with money in and

money out, the profit and loss looks at the value of the business taking into

account for example value of stock held and assets within the business.

Finance

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Business typesBefore you start trading you need to make a decision as to what legal form

your business is going to take. This decision will affect who monitors your

business, what tax you will pay, what level of control you have over the

business and your personal liability regarding the venture.

There are three main forms in the United Kingdom which are:

Sole Trader This is a business owned by one person who has

registered with Her Majestys Revenue and Custom (HMRC) to undertake a

self-assessment. The business has no dealings with Companies House, and

all profits made belong to the self-employed owner. Tax at the normal

income tax rate is paid on profits made by the business, but all debt held

against the business also sits against you as an individual. Please see here

for further details: https://www.gov.uk/set-up-sole-trader

Partnership If you are starting the business with someone else, you may

want to consider setting up a partnership. In effect a partnership is where

two or more sole traders are working together under a formal partnership

agreement. Individuals are still liable for their share of profits and debts

within the partnership and pay tax as per a sole trader above. Please see

here for further details:https://www.gov.uk/set-up-business-partnership

Legislation

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Business types continued

Private Limited Company A Limited Company is a formal separate entity

from your personal finances. This means that the debts the business holds

stay with the business and do not encroach on your personal finances.

In effect as director of the business you are an employee but can retain

the rights to govern the business.

The business will be registered with Companies House and subject to their

standards and practices. As an employee of the business you will pay

income tax on your wages; however there are other tax efficient ways of

removing monies from the business.

The company will also be subject to corporation tax.

Please see here for further details: https://www.gov.uk/limited-company-

formation & http://www.companieshouse.gov.uk/

There are various other forms of business which can be set up including:

Private Limited Company by Guarantee

Private Unlimited Company

Public Limited Company

For Information on the above go to:

https://www.gov.uk/business-legal-structures/limited-company

Limited Liability Partnership

Limited Partnership

For information on the above partnership style forms go to:

https://www.gov.uk/business-legal-structures/limited-

partnership-and-limited-liability-partnership

Unincorporated Association

For information on an unincorporated association go to:

https://www.gov.uk/business-legal-structures/unincorporated-association

Legislation

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FinancialAlongside managing your day to day cash flow and finance as a trading

business in the United Kingdom you are duty bound to pay certain taxes

based upon the finances of the business.

You will need to pay and declare tax on your income and profits however

this will depend on the type of business you start up, if you have any staff

and depending on your revenue whether you need to register for VAT.

Income Tax Taxable income from employment and self-employment.

With self-employment the amount paid is based upon your self-assessment

of how much profit you have made after all business related expenses have

been paid.

National Insurance Paid to build up entitlement to certain State benefits

including the State Pension. The amount paid is based upon the amount of

income.

Corporation Tax Tax paid on a limited companys taxable profits.

Value Added Tax (VAT) VAT is a tax paid on most goods and services

supplied in the UK, paid by companies that are VAT registered.

Legislation

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Financial continued

Other taxes which you as an individual or your business may have to pay

include:

Stamp Duty

Capital Gains Tax

Importing and Exporting Duties

All of the above taxes are paid to Her Majestys Revenue and Custom

(HMRC); for further information on rates of tax, which taxes you are obliged

to pay and for guidance have a look at: www.hmrc.gov.uk

Business Rates - As a trading venture operating in your local area you may

also have to pay business rates which are paid to help pay for local services.

You would most likely have to pay business rates if you use a building or part

of a building for non-domestic purposes. Unlike the other taxes mentioned,

business rates are paid to and managed by the local council where your

business is based.

For further information on business rates please look here:

https://www.gov.uk/introduction-to-business-rates/overview

Legislation

Your most unhappy customers areyour greatest source of learning.

-Bill Gates

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InsuranceAs in day to day life, we have to protect ourselves and our businesses

against unforeseen circumstances. There are several insurance products

available to business owners to protect themselves and the continual

trading of their businesses against the unknown.

In some industries it is a requirement for you to have certain insurance and

so it is always wise to check with your regulating body as to their opinion.The most common insurance policies taken about by businesses are as

follows:

Public Liability Insurance Protects the business against compensation

claims and legal action against the business.

Professional Indemnity Insurance Covers the cost of compensation to

clients if your professional advice has caused them to lose money or

business.

Product Liability Insurance Covers the cost of compensation to anyone

who is injured, or whose property is damaged because of a fault in a product

that you manufacture or supply.

There are many other insurance products which may be useful and are

sometimes targeted towards specific industries. Also dont forget if you are

using your personal vehicle for trading purposes it should be covered by

business insurance.

For details about insurance policies you can purchase for your business and

to talk through your requirements, speak to an insurance broker:

http://www.biba.org.uk/CustomerHome.aspx

Legislation

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Not all businesses are set up with the sole aim of creating money for their

owners and shareholders. Social Enterprises are businesses which are

created with social aims where the profits are used for charitable, social or

community purposes as opposed to going to shareholders. These differ from

ordinary businesses that have social aims as Social Enterprises are governed

to ensure that they stay true to their purpose.

One of the key things to remember with a social enterprise is that first and

foremost they are a business and so have to be viable and able to trade in

order to support their social activities.

Social Enterprises have their own designated structures which are similar to

those of an ordinary business:

Community Interest Company Set up to benefit the community ratherthan the shareholders, registered through Companies House, you create

an asset lock which is a legal statement allowing the companys assets

to only be used for social objectives.

Company Limited by Shares Not specifically designed for Social

Enterprises but can be adapted. Again set up through Companies House.

Company Limited by Guarantee These do not have shareholders, instead

they have members. As the members are guarantors not shareholders,

they cannot benefit from any increased value of the company.

For more information on setting up a social enterprise see here:

http://www.socialenterprise.org.uk/

Social Enterprise

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In your business plan you would have discussed your marketing and

advertising. It is often advisable to create a separate more thorough

marketing plan to compliment your business plan. Marketing is what draws

people into your brand and your business and moves them to buy from you.

Without marketing and advertising your business may as well be hidden

from sight, begging the question how do people find out about you?

Drawing on what we discussed earlier regarding identifying who it is you

think is most likely to buy from you, you can create a full campaign across

12 months which shows how you envisage targeting potential buyers.

Marketing Plan

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Information and Regulation

Her Majestys Revenue and Custom (HMRC)

Information, advice and regulation of sole-traders, partnerships,

taxes and National Insurance for all UK based enterprises.

www.hmrc.gov.uk

Companies House

Regulatory body which incorporates and dissolves limited companies,

stores and examines information in relation to the Companies Act and

makes this available to the public.

www.companieshouse.gov.uk

Intellectual Property Office

Official government body for responsible for Intellectual Property (IP) in the

United Kingdom.www.ipo.gov.uk

Support organisations

The Princes Trust

Practical support for young people in need of it most around

skills development, confidence and motivation.

www.princes-trust.org.uk

Prime

Supports mature entrepreneurs (Over 50) to set up their businesses.

www.prime.org.uk

Sheffield PATLIB Centre

Intellectual Property and Business Information advice

[email protected]

Useful Contacts and Links

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Support organisations continued

Business and Patent Information Services; Leeds Library

Business and Intellectual Property advice

www.businessandpatents.org

Social Enterprise Yorkshire

Organisation for individuals and groups exploring setting up

a social enterprise.

www.seyh.org.uk

UK Trade and Investment

UK Trade and Investment (UKTI) work with British businesses

to ensure their success in overseas markets.

www.ukti.gov.uk

Finance and Professional Services

Finance Yorkshire

Finance Yorkshire offer seed-corn finance, business loans and equity-linked

finance from 15,000 to 2 million for businesses in Yorkshire and Humber.

www.finance-yorkshire.com

Yorkshire Association of Business AngelsYorkshire association of Business Angels (YABA) are an organisation who put

private equity investors in touch with businesses looking for finance.

www.yaba.org.uk

Institute of Chartered Accountants for England and Wales

Register of accountants.

www.icaew.com


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Finance and Professional Services continued

British Insurance Brokers Association

Register of Insurance brokers for all forms of cover.

www.biba.org.uk

Lawyers for Your Business

Scheme run by the Law Society offering businesses

half an hour free legal consultation.

www.lawsociety.org.uk/lfyb/

Membership and Networking Organisations

Barnsley & Rotherham Chamber of Commerce

Membership organisation for businesses in the Barnsley and Rotherham

areas offering support to its members.

www.brchamber.co.uk

Doncaster Chamber of Commerce

Membership organisation for businesses in the Doncaster

area offering supports to its members.

www.doncaster-chamber.co.uk

Leeds and North Yorkshire Chamber of CommerceMembership organisation for businesses in Leeds, York and North Yorkshire

offering support to its members.

www.yourchamber.org.uk

Mid Yorkshire Chamber of Commerce

Membership organisation for businesses in Huddersfield, Halifax

and Wakefield offering support to its members.

www.mycci.co.uk


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Membership and Networking Organisations

Sheffield Chamber of Commerce

Membership organisation for businesses in Sheffield

offering support to its members.

www.scci.org.uk

Federation of Small Businesses

Membership organisation offering support, networking opportunities

and discounts to its members.

www.fsb.org.uk

Women in Rural Enterprise

Membership organisation offering support to women

who are running enterprises in rural areas.

www.wireuk.org

Forward Ladies

Membership networking organisation for ladies in

business offering support and advice.

www.forwardladies.com


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Our greatest weakness lies in giving up.The most certain way to succeed isalways to try just one more time.

-Thomas A. Edison


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Notes


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/ezonebarnsley

@ezonebarnsley

www.barnsley.ac.uk/Enterprise

[email protected]

01226 216 840

barnsley college business guide

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