AGENDA Introduction Successful Household brands Kingsfleet Wealth Group Session Beatons Group BreakQuestions Time & Business Quiz Q&A Summary in Buzzwords Success StoriesContact Details and Useful Links
Introduction• Introducing Colin and Andrew• What are they here for today? Well hopefully their expertise will help direct you all in establishing hurdles and goals. Helping you to understand that the small steps are fundamental to achieving the long term goals.• The purpose of today’s workshop is to take the ideas that you have come up with or have in mind regarding business start ups and try to make sense of it all.• Hopefully you will leave with a better understanding of what isinvolved when looking to start your own business.
Successful businesses over the years that have become householdbrands...
Introduction:• Colin Low – my story• From Kingsfleet•To Kingsfleet Wealth
Group Session What are your worries about starting up a business?• For example:- where do I start?- Do I need to register the company with Companies House?- Who do I notify when setting up a company and when?• For the next 10 minutes in groups identify and list your concerns.• Then we will spend a further 10 minutes consolidating your ideasfrom each group into ONE list.• Q&A
Knowing how to price your goods or services is vital
Introduction:• Who is Andrew Diver ?• Beatons Group – brief company overview• The role of an accountant/tax advisor in starting up a business and the importance of getting this right from the word go.Areas of concern when starting up a new business:• Structures:• Sole Traders/Partnerships (and VAT threshold)• Banking & finance• Limited Company – Ltd Plc• Legal Risks• Employing people• Tax/NIC• Filing Obligations
Questions on Financial Ratios•Gross profitA company purchase 500 garden chairs for £5000 on the 1st of themonth.During the month it has sales to the value of £6000At the end of the month is has 200 garden chairs left in stock.What was its gross profit in the month?What was its gross profit % in the month?•Net ProftThe same company had overheads of £2400 in the month.What was its net profit?What was its net profit % in the month?•Break EvenAssuming its overheads are £2400 per month and the prices and costsremain as above how many garden chairs does the company need tosell to break even?
Quiz Questions on Cash Flow/Balance Sheet• Assuming all of these transactions were cash what would be the cash flow inthe month?• If the sales were all due for payment in the following month what would thecash flow be in the month?• Taking the assumptions in question 1 and assuming the owner put in £7400capital to pay for the initial stock and the first months overheads what wouldthe Balance Sheet look like at the start of trading and at the end of month 1?• Assuming the payment delay as in question 2 and the other assumptions asin question 3 what would the Balance Sheet look like at the start of tradingand at the end of month 1?
Summary in Buzzwords “Turnover for show, “Cash is king! you can make Profit for dough” wonderful book profits and still go out of business”“Constantly review,learn from your “get your pricing right,successes” you might be working very “operate in the right structure, it can save you hard only to stand still” thousands in taxes/NIC as well as reduce risks”“have a plan, but planning isjust guessing, be flexible tochange.” “test the market, don’t spend time & resource on your product only to find there is no demand”
From Small Acorns...• Innocent was founded by three Cambridge graduates - Richard Reed, Adam Balonand Jon Wright.• The three were friends at St Johns College, Cambridge and at the time they wereworking in consulting and advertising.• They spent six months working on smoothie recipes and £500 on fruit.• In 1998 the trio sold their drinks from a stall at a music festival in London.• People were asked to put their empty bottles in a yes or no bin depending onwhether they thought the three should quit their jobs to make smoothies.• Results - the YES bin was full, with only three cups in the NO bin• They went to their work the next day and resigned and the three had a lucky breakwhen Maurice Pinto, a wealthy American businessman, decided to invest £250,000.• And now? ......as we all well know, Innocent is a household brand.
From Small Acorns...• bet365 was founded in 2000 in a portacabin in Stoke-on-Trent by Denise Coates.• Denise developed a sports betting platform and trading team to launch thebusiness online in March 2001.• The business borrowed £15 million from RBS against the familys betting shopestate which had been started by Peter Coates in 1974 and had been run by DeniseCoates as Managing Director from 1995.• bet365 sold its betting shop chain in 2005 for £40 million and paid off its loan toRBS• bet365 has grown into one of the world’s largest online gambling companies withits reported figures to March 2010 showing amounts wagered on Sports at £5.4billion, revenues of £358 million, and an operating profit of £104 million.
From Small Acorns...•The first Starbucks was opened in Seattle, Washington, on March 30, 1971 by threepartners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer GordonBowker.•The three were inspired by entrepreneur Alfred Peet (whom they knew personally) tosell high-quality coffee beans and equipment.•The name is taken from Moby-Dick; after Pequod was rejected by one of the co-founders, the company was named after the first mate on the Pequod, Starbuck.• Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55countries, including over 11,000 in the United States, over 1,000 in Canada, over 700in the United Kingdom, and over 150 in Turkey.• In the 1990s, Starbucks was opening a new store every workday, a pace thatcontinued into the 2000s.
Contact DetailsColin Low IMC, APFSChartered Financial PlannerKingsfleet Wealth01206 322992www.kingsfleetwealth.co.ukEmail: email@example.comTwitter: @DedhamValeIFAAndrew Diver CTA, ATTHead of TaxBeatons Group01394 279692www.beatons.co.ukEmail: firstname.lastname@example.orgTwitter: @BeatonsGroup Useful Links• www.hmrc.gov.uk• www.businesslink.gov.uk• www.startups.co.uk• www.startupdonut.co.ukLink to this presentation: