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Start business unit 1

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  • 1. Information• Fire & Safety procedures• Toilets• Refreshments• Mobile Phones 1
  • 2. Aims of Module 1• Outline the advantages and disadvantages of self-employment• Identify reasons for small business failure• Consider your motivation for starting a business• Provide a framework for analysing your personal skills• Describe networks of support• Provide information on sources of finance for a business• Provide information on the legal aspects of starting a business• Provide an overview of business planning, particularly to market research and assessing start up finance that you require.• Help you describe your business idea and preparation for producing a business plan 2
  • 3. Introductions• Who am I ?• Who are you? • Name? • You Business Idea? • When do you intend to start trading? • What’s your motivation? 3
  • 4. Assessing Self-EmploymentAdvantages Disadvantages• Personal satisfaction • Worry• Financial Rewards • Instability• Flexibility • Unsocial Hours• More Time • Financial Pressure• Independence • Long Hours• Chance of Success • Risk• Sense of Achievement • Change in Lifestyle• Own Boss • Stress 4
  • 5. Assessing Self-Employment Why does a business fail?• Little/No Planning • Wrong Location• Lack of Market • Poor Credit Control Research/Planning • Poor Financial• Over Estimating Management Demand • Poor Management• Understanding • Lack of Sales Expenses • Staff Problems• Lack of initial Capital • Lack of Experience • Unplanned Expansion 5
  • 6. Reasons for starting your own business Positive Negative• You want to be your • You can’t find a job own boss • You’re tired of being• You want to work from unemployed/employed home • You don’t know what• You want flexibility else to do• You’ve spotted a good • You don’t want to business opportunity work for a boss any longer• You want more independence • The job centre suggested it to you 6
  • 7. Some of the qualities you need • Determination • Sociable • Organised • Have vision • Positive outlook • Common sense • Creative thinker • Open to new ideas • Motivation • Perseverance • Flexibility • Listening skills • Patient • Decisive 7
  • 8. Exercise - Assess Your Personal SkillsComplete this questionnaire to evaluate your personal qualities and suitability to running your own business. Page 9 8
  • 9. Exercise - Assess Your current business skillsComplete this questionnaire to evaluate your current business skills and create an action plan . Page 11 9
  • 10. Your Networks of Support Formal Informal• Local enterprise agency • Family• Fundraisers e.g. Bank/investors • Friends• Accountant/solicitor • Colleagues• Department for Work & Pensions • Ex-employers• HM Revenue & Customs • Other local businesses• Business advisors• Trade associations• ACAS• Chamber of Commerce• Local Authorities• Visit Wales• Finance Wales• Networking Organisations• Business clubs• Health and Safety Executive 10
  • 11. Funding your businessAsk yourself… How much money do you need to start your business? How much money do you have to start your business? 11
  • 12. Sources of Finance• Own investment • Leasing • Asset finance• Family/friends • Hire purchase• Business partners • Credit cards• Private investors • Factoring 12
  • 13. Sources of Finance cont…Loans and Overdrafts Grants – some possible sources• Banks (loans/overdrafts) • Graduate Bursary (Welsh Assembly Government)• Credit union • Local Authorities• Building society • Prince’s Trust• Family/friends • Contact Welsh Assembly Government for details of• Finance Wales current grant schemes• Enterprise Finance Guarantee Scheme 13
  • 14. Exercise – Financing your businessUse the table below to help identify the sources of finance you will be applying for and the actions required. Page 18 14
  • 15. Legal Status of Your Business• Sole trader• Partnership• Limited Liability Partnership (LLP)• Limited company• Co-operative• Domain / Company names / Business name 15
  • 16. Tax/NIC/VAT: Legal ObligationsYour optionsTax• Register your details within 3 months using CWF1 formVAT• You must register your details if your turnover exceeds the VAT threshold• VAT registration can be applied for voluntarily if the correct circumstances exist in your business.Visit www.hmrc.gov.uk for further information 16
  • 17. InsurancesTypes of cover available• Public liability • Theft• Employers liability • Employment protection• Product liability • Credit insurance• Professional indemnity • Glass/window insurance• Buildings and contents • Plant “all risks”• Vehicle insurance • Key man insurance• Goods in transit • Personal insurance• Money in transit • Car insurance 17
  • 18. Examples where planning permission may be required• Changing the use of your building• Displaying large signs• Planning external building workPlanning Permission•• Building new premises Extending your premises• Making structural alterations• Putting up new fences or walls• Creating disability accessContact your Local Planning or Building Control Office formore information. 18
  • 19. Licences and Registration Examples where licences/registration may be required• Selling tobacco & alcohol • Providing betting or gaming• Providing driving instructions services• Operating as a street trader • Handling food• Providing childcare • Providing a financial service• Providing taxi or private car hire • CRB checks for working with• Running a residential or a nursing home children and vulnerable• Scrap metal dealing or adults processing • Technology/software licences 19
  • 20. Other Legislation• Employment law • Advertising Regulations• Health & Safety law • Trade Descriptions Act• Property law • Price marking order• Consumer Protection Act • Contracts• Food Safety law • Partnership agreements• Data Protection Act • Financial Services Act• Sale of Goods Act • Environmental law• Business Names Act • Trade Marks/Copyright law• Disability Discrimination Act • Patents/Design• COSHH Regulations Registrations• Equality & Diversity • WEEE Regulations Regulations (Waste, Electrical & Electronic Equipment) 20
  • 21. Protect Your Intellectual Property Please complete exercise on page 25• Trade Marks• Patents• Copyright• Design registration• Intellectual property rights (www.ukipo.gov.uk)• Know how (trade secrets) 21
  • 22. Exercise – Legal requirement action plannerUse the table below to help identify the legal aspects of setting up your business and the actions you need to carry out to meet your legal requirements and regulations. Page 26 22
  • 23. Market ResearchMarket research is an essential part of the businessplanning process and should cover the following in detail:• Who are your potential customers?• What do you know about them?• What are they looking for?• Who else is selling in this market?• What price should I charge?Why will customers buy from me rather thansomeone else? 23
  • 24. Business Planning – An Overview In broad terms your business plan should include the following:• Introduction / background• Market & competitors (modules 2&3)• Sales & marketing strategy (modules 2&3)• Operations (modules 4&5)• Financial data & forecasts (modules 6&7)• Appendices 24
  • 25. Business Planning – Specific stagesIntroduction/BackgroundMain points to consider for your business plan:• Business idea/background• Business details• Legal status• Owner/management details• Product/service details• Financial overview 25
  • 26. Business Planning – Specific stages Please complete exercise on page 29Describing Your Product or ServiceMain points to consider for your business plan:• Technical specifications• Features and benefits• Unique selling points• Design• Packaging• Future development plans 26
  • 27. Business Planning – Specific stages Please complete exercise on page 30 Features and Benefits Feature Benefit• Wooden floor • Easy to keep clean• Last Longer • Saves you money• Guarantee • Peace of mind• High in protein • Good nutrition• Economical • Saves you money 27
  • 28. Business Planning – Specific stages Unique selling points (USP’s) • After sales service • Competitively priced • Quality product / service • Free delivery / home delivery • Guarantees • One to one attention • Reliability Exercise: What are the USP’s of your product or service? Page 31 28
  • 29. Business Planning – Specific stages The Sales and Marketing PlanMarket & Competitors Sales & Marketing Strategy• Market overview • Marketing objectives• Customers / target • Target market markets • Sales forecast• Market size / trends• SWOT analysis• Competitor analysis 29
  • 30. Business Planning – Specific stages Operations• Premises • Systems & Processes• Equipment • Legal aspects• Suppliers • Health & Safety• People / staff • Quality control• Production processes 30
  • 31. Business Planning – Specific stages Financial information • Details of expected sales • Set up & operational costs • Funding requirements • Sources of finance • Cash flow forecasts • Profit & Loss account • Balance sheet 31
  • 32. Business Planning – Specific stages Appendices • Portfolio of previous work/references • Photographs • Letters of potential customers/firm orders • Evidence of market research • Legal documents • Sample promotional materials, e.g. flyer • CV’s of key workers/staff 32
  • 33. What Next?1. Ensure that a market exists for your product or service. Do your market research and be sure there is a sustainable market, i.e. questionnaires & surveys2. Work out how much money you think you will need to get started and how you plan to raise it?3. Complete as much of the business plan as you can from what you’ve learnt in today’s session and ensure that you bring it along for module 2 or when you meet with an advisor4. Proceed direct to training modules after completion of 1,2 & 3 above. 33
  • 34. ANYQUESTIONS? 34