Financing your business

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Presentation made to the Surrey Business Link - November 2005

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  • There are grants that are given for a specific project or purpose, and are often linked to business development. Many are cheap or free loans, not gifts, so you need a plan to pay them back. Getting financial support can be tough from government. Loads of competition, and the criteria are stringent. You stand most chance asking for a project award - and these projects can not have started at the time of the application or the time of the award (you should only be able to do the project with the money!). If the grant is a ‘gift’ you may still need to repay the money, if you are found to have broken the rules. Most grants are ‘fund matching grants’ - I.e. you put x in and they will match it. You can get grants from: The Government The European Union Regional Development Agencies Local authorities/councils or development agencies Through business links Chambers of commerce County Enterprise boards You can also find grants through colleges and the Learning & Skills Council. Grants can be awarded for: Research & Development Access to knowledge Training (Learning & Skills Council) Employing/training unemployed (New Deal) Youngster start-ups (Prince’s Trust for 18-30 year olds) - expand Economic regeneration (within assisted areas) - see Dti There are also private sector agencies that offer to get you grants, but they do not/cannot guarantee success, and can be expensive.
  • You can locate your business in another county, or city if it means you get grants, but remember, assisted areas normally have problems. Rural areas don’t have the level of services, etc. SME grants are for companies of less than 250 employees. Some grants are only for companies with a certain level of proven turnover, and some for companies who employ others, so not for sole traders! The industrial sectors that are limited from receiving grants by the EU are: Retail (exceptions do exist) Motor Vehicles Synthetic fibres Shipbuilding - not a problem in Fernhurst, I feel! Coal & steel Agriculture and food processing Transportation - air, maritime, road, rail and inland waterway Grants are often awarded for purchasing specific machinery, improving offices (health & safety), or developing export markets. Check the grant bodies for compatibility with their goals
  • Always ask for feedback if your application has been declined./
  • Business are most vulnerable when they are young, and many fail. Accurate market data will prevent you being over-optimistic with your forecasts about your market share. Brainstorming with others can help your business, and can help develop your business. Get clues as to competitors activity from advertising, recruitment, press releases, trade fairs, etc BUT remember, your competitors could also be a channel to your market if you import and need retail outlets. Suppliers need money from you within a set number of days. You should be as ruthless with your customers - the law is on your side. Do credit checks, check bank references, give discounts for early/prompt payment, etc Stock control errors could mean you have old stock that is unsaleable, damaged, etc. Use JIT (Just in Time) to limit your exposure. Stock costs money to hold and to store. Don’t over invest in fixed assets - you can lease or hire purchase. Your employees are the key to your success - you need to know when to start hiring, and what qualities you are looking for. Don’t be put off hiring someone better than yourself, they can be an asset. You will gradually do less and less of the core work anyway - doing more management and top level sales (perhaps on the Golf Course). Delegate responsibility to the best employees!
  • You must ensure your business plan is sound, and then use it to 1) attract and secure the funding you need, and 2) to track your business’ activity against the plan. You may need to tweek the plan every now and again. A contingency plan allows to plan for possible problems. Lack of customers, stock, interest rate rises, other cashflow problems. How long can you survive without customers, stock or cashflow, or if interest rates rise, say 2%? Accountants, mentors and consultants are a useful source of professional help. Talk to them. Buy an hour of their time - it will pay you back. Financially, accountants and independent financial advisors can help you find the most effective borrowing and money managing opportunities. Over optimistic forecasts can be a problem. You can have challenging forecasts, but if your financing plans are based on a certain cashflow, you may come unstuck. My rule is to try to keep spending down to 25% of your income plans. This excludes start-up costs. In subsequent years you can spend your ‘reserves’ or pay them out as bonuses. If you are a self-employed sole trader, keep at least 30% of all your income for tax. You need to pay National Insurance monthly, but keep your ‘tax’ payments in a high interest bank account - it could be a great bonus at the end of the year. You can always grow sales volume or market share by reducing the price, but this squeezes your profit. JEL example . Geographic or market diversification may be tempting, but this will stretch you. Keep a clear focus on the core business, and diversify when you can fund it internally, without risk to your core business. Plan, plan, plan! Business Plan, Marketing Plan, Sales Plan, Supplier Plan, Contingency Plan. And revisit them - they can guide your business and remind you why you are in business!
  • If you do not have any of these skills (or you are not confident of them), you need to budget to buy them in. Financial Management: Cashflow planning; Credit-management; bank & accountant relationships. Product development: Long-term plans,; People; Materials; Processes; Competitor activities; Customer Needs People Management: Recruitment; Resolving disputes; Motivating Staff; Managing Training Business Planning: Strengths & Weaknesses of your company; Maintaining the plan Marketing Skills: Sales & Marketing Operations; Market Analysis/Research; Selling Points; Marketing Plan; Advertising; Sales Customer/Supplier Relationship Management: Identify suppliers; manage relationships
  • Very few entrepreneurs can claim to be strong in all areas of this checklist, You need to pull in the expertise as needed, and to learn new skills.
  • If you borrow from family & friends, you need to agree (preferably in writing) if there is interest payable, timescales for repayment, and what involvement the family member/friend wants in your company (passive or active partnership). Manage their expectations - don’t let them think they are active just to get their money - you can make enemies of them and they can demand their capital back. If you have been refused elsewhere, don’t then go to your family/friends. Your business idea may not be viable, and you will lose their money. Revisit your business plan and expectations, & tell them who and why other refused you money - be open. Banks can provide start-up loans, or loans for equipment. You can agree overdraft facilities. But they have strict terms & conditions and are not very flexible. NEVER use unauthorised lenders - if in doubt, contact the FSA Specialist Lenders: Prime - for people over 50 setting up a business Prince’s Trust - for 18-30 year olds setting up in business Industrial Common Ownership Finance (ICOF) - for co-operatives, employee-owned business and social enterprises Muslim banks - complying with Shariah law on interest.
  • Clue - find local Business Links Chambers of Commerce County Enterprise Boards Charities/Trusts SEEDA
  • Ordinary shares offer the highest financial gains, but associated with the highest risk - MedSol eg. A company cannot issue redeemable only shares
  • Who can help?
  • Financing your business

    1. 1. Financing Your Business How do you run your business and ensure you have enough money to run it
    2. 2. Agenda <ul><li>What do you do? </li></ul><ul><li>Grants </li></ul><ul><li>Start-up finance </li></ul><ul><li>Other financing options </li></ul><ul><li>Business plans </li></ul><ul><li>Who can help? </li></ul><ul><li>Internet </li></ul><ul><li>What next? </li></ul>
    3. 3. Why am I here? <ul><li>18 years experience around Europe in blue chip businesses </li></ul><ul><li>Run my own business for 6 years </li></ul><ul><li>Business mentor for small companies </li></ul><ul><li>Holder of the individual Chartered Marketer status </li></ul><ul><li>Author of ‘Play It By Trust - a guide to ethical e-marketing’ </li></ul><ul><li>Trustee of the Fernhurst Internet Cafe </li></ul>
    4. 4. What Do You Do? 1
    5. 5. What do you do? <ul><li>The level of financing needs depend on the type of company you are: </li></ul><ul><ul><li>Consultancy </li></ul></ul><ul><ul><li>Importing / Exporting </li></ul></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Service </li></ul></ul>
    6. 6. What do you sell/make? <ul><li>What do you sell or make? </li></ul><ul><li>Physical products </li></ul><ul><li>A service (physical, virtual or supportive) </li></ul><ul><li>Knowledge </li></ul><ul><li>Processes </li></ul><ul><li>Skills </li></ul>
    7. 7. Your needs <ul><li>What do you need to run your business? </li></ul><ul><ul><li>Computer </li></ul></ul><ul><ul><li>Fax </li></ul></ul><ul><ul><li>Office </li></ul></ul><ul><ul><li>Warehouse </li></ul></ul><ul><ul><li>Vehicle </li></ul></ul><ul><ul><li>Website </li></ul></ul><ul><ul><li>Personnel (accountant, sales, delivery, etc) </li></ul></ul>
    8. 8. Grants 2 Not ‘free’ money
    9. 9. Grants <ul><li>Not common </li></ul><ul><li>Not massive amounts </li></ul><ul><li>Lots of paperwork </li></ul><ul><li>BUT… </li></ul><ul><ul><li>Young entrepreneurs </li></ul></ul><ul><ul><li>Women </li></ul></ul><ul><ul><li>Ethnic minorities </li></ul></ul>
    10. 10. Grant eligibility <ul><li>These factors could affect your eligibility for grants: </li></ul><ul><li>Location of your business </li></ul><ul><li>Size of your business </li></ul><ul><li>Your industrial sector </li></ul><ul><li>Purpose of the grant </li></ul>
    11. 11. Applying for Government grants <ul><li>Before you apply: </li></ul><ul><li>Make sure you meet the conditions of the scheme </li></ul><ul><li>Are you ready to put some of your own money in </li></ul><ul><li>Check you need the money for a specific purpose </li></ul><ul><li>Don’t start the project before you get an agreement </li></ul><ul><li>When you’ve identified the scheme, you will need: </li></ul><ul><li>Detailed project description </li></ul><ul><li>Explanation of the potential benefits </li></ul><ul><li>Detailed work plan with full costings </li></ul><ul><li>Details of own relevant experience (+ staff) </li></ul><ul><li>Complete all application forms fully, where stipulated </li></ul>
    12. 12. Assessment criteria <ul><li>Most reviewers will assess your proposal by using the following criteria: </li></ul><ul><ul><li>Significance </li></ul></ul><ul><ul><li>Approach </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Their assessment of your expertise </li></ul></ul><ul><ul><li>Your need for the grant </li></ul></ul><ul><li>Be prepared to wait between a few weeks and a year for a decision. Local applications are often quicker. </li></ul>
    13. 13. Grant application pitfalls <ul><li>Common reasons for rejection: </li></ul><ul><li>The area of research/work is not relevant to the body awarding the grant </li></ul><ul><li>The explanation of how research ideas will be translated into an achievable plan of action is unsatisfactory </li></ul><ul><li>The proposal or application makes statements that are not backed up with supporting facts </li></ul><ul><li>The research plan is unfocused and lacks clarity </li></ul><ul><li>There is an unrealistic amount of work </li></ul><ul><li>The impact of the work on the wider community/ industry has not been effectively communicated </li></ul><ul><li>Information provided is not up-to-date </li></ul><ul><li>It has not been made clear how important the funds are to the project’s success or failure </li></ul><ul><li>Applicant unable to prove they can match the funding </li></ul>
    14. 14. Start-up considerations 3
    15. 15. Launching a business <ul><li>Common mistakes </li></ul><ul><ul><li>20% fold in 1st year </li></ul></ul><ul><ul><li>50% fold in their first 3 years </li></ul></ul><ul><li>Poor or inadequate market research </li></ul><ul><li>Lack of in-depth market research </li></ul><ul><li>Lack of trust in others who could help </li></ul><ul><li>Lack of understanding of the customers/marketplace </li></ul><ul><li>Taking your eye off the competition </li></ul><ul><li>Poor supplier / customer controls </li></ul><ul><li>Poor stock / asset management </li></ul><ul><li>Hiring the wrong people </li></ul><ul><li>Weak financial planning … </li></ul>
    16. 16. Financial problems <ul><li>Weak financial planning </li></ul><ul><ul><li>Lack of capital </li></ul></ul><ul><ul><li>Lack of a contingency plan </li></ul></ul><ul><ul><li>Reluctance to seek professional advice </li></ul></ul><ul><li>Setting your sights too high </li></ul><ul><ul><li>Over-optimistic forecasts about market size </li></ul></ul><ul><ul><li>Focusing on sales volume or size, not profit </li></ul></ul><ul><ul><li>Diversifying too soon </li></ul></ul><ul><ul><li>Poor planning </li></ul></ul>
    17. 17. Are you committed? <ul><li>Day-to-day reality check </li></ul><ul><li>Personal sacrifice </li></ul><ul><li>Pressure on close relationships </li></ul><ul><li>Isolation </li></ul><ul><li>Financial insecurity </li></ul><ul><li>Loss of company perks </li></ul><ul><li>Entrepreneurial Quality Check </li></ul><ul><li>Self-confidence </li></ul><ul><li>Self determination </li></ul><ul><li>Self-starter </li></ul><ul><li>Good judgement </li></ul><ul><li>Commitment </li></ul><ul><li>Perseverance </li></ul><ul><li>Initiative </li></ul>
    18. 18. Business skills checklist <ul><li>Financial Management </li></ul><ul><li>Product/Service Development </li></ul><ul><li>People Management </li></ul><ul><li>Business Planning </li></ul><ul><li>Marketing Skills </li></ul><ul><li>Customer/Supplier Relationship Management </li></ul>
    19. 19. Have you got what it takes? <ul><li>Prepared for the personal demands </li></ul><ul><li>Can you handle uncertainty </li></ul><ul><li>Got a positive attitude </li></ul><ul><li>Prepared to take a chance and gamble your ideas </li></ul><ul><li>Have the key qualities of an entrepreneur </li></ul><ul><li>Have an absolute determination to succeed </li></ul><ul><li>Can bounce back from setbacks/rejection </li></ul><ul><li>Able to delegate </li></ul><ul><li>Have core business skills </li></ul><ul><li>Prepared to carry out in-depth market research </li></ul><ul><li>Have sufficient funds to set up the business </li></ul><ul><li>Willing to draw on expert help when needed </li></ul>
    20. 20. Start-up considerations <ul><li>Own money </li></ul><ul><li>Loose change </li></ul><ul><ul><li>Keep full control </li></ul></ul><ul><ul><li>Only you lose, no-one else gets ‘hurt’ </li></ul></ul><ul><ul><li>How much do you have </li></ul></ul><ul><ul><li>Can you afford to lose it </li></ul></ul><ul><li>Win/Inheritance Windfall </li></ul><ul><ul><li>As above </li></ul></ul><ul><ul><li>Reduces your winning with a gamble </li></ul></ul><ul><li>Redundancy </li></ul><ul><ul><li>As above </li></ul></ul><ul><ul><li>How long can you survive if no money comes in? </li></ul></ul>
    21. 21. Start-up considerations 2 <ul><li>Investors </li></ul><ul><li>Friends/family </li></ul><ul><ul><li>Raise capital </li></ul></ul><ul><ul><li>Share the success </li></ul></ul><ul><ul><li>Share the failure </li></ul></ul><ul><ul><li>Alienate friends & family </li></ul></ul><ul><li>Business angels </li></ul><ul><ul><li>As above </li></ul></ul><ul><ul><li>Expert help </li></ul></ul><ul><ul><li>Loss of control </li></ul></ul><ul><li>Venture capitalists </li></ul><ul><ul><li>As Business angels </li></ul></ul><ul><li>Bank </li></ul><ul><ul><li>As above </li></ul></ul><ul><ul><li>Need security </li></ul></ul>
    22. 22. Start-up considerations 3 <ul><li>Grants </li></ul><ul><li>Government (local, national, European) </li></ul><ul><ul><li>Some are not repayable </li></ul></ul><ul><ul><li>Paperwork & other bureaucracy </li></ul></ul><ul><ul><li>Some obligations </li></ul></ul><ul><li>Charities/organisations </li></ul><ul><ul><li>As above </li></ul></ul><ul><li>International </li></ul><ul><ul><li>As above </li></ul></ul><ul><ul><li>More competition </li></ul></ul>
    23. 23. Start-up tax advantages <ul><li>Capital allowances (IR206) </li></ul><ul><li>Tax relief on computers lent to employees (up to £2,500) </li></ul><ul><li>Tax relief & credits for R&D (up to 150%) </li></ul><ul><li>Stamp duty exemptions in disadvantaged areas now discontinued, but watch the website for similar </li></ul><ul><li>Enterprise Investment Scheme - for unquoted companies </li></ul><ul><li>VAT can be claimed for up to 3 years prior to application if ‘business expenses’ </li></ul><ul><li>Use your accountant or IFA </li></ul>
    24. 24. Small Firms Loan Guarantee <ul><li>A joint venture between the DTi & approved lenders </li></ul><ul><li>The main features of the SFLG are: </li></ul><ul><ul><li>Guarantee covering 75% of the loan amount </li></ul></ul><ul><ul><li>Loans of up to £100,000; or for businesses trading for 2 years or more - up to £250,0000 </li></ul></ul><ul><ul><li>Available to UK businesses with an annual turnover of up to £3 million & for manufacturers, up to £5 million </li></ul></ul><ul><ul><li>Many business activities are eligible * </li></ul></ul><ul><ul><li>Loans available for most business purposes * </li></ul></ul><ul><li>The guarantee costs 2% per year on the outstanding loan. </li></ul><ul><li>The loan must be approved in the normal way by the bank. </li></ul>* Restrictions and exclusions apply.
    25. 25. Project <ul><li>Do a search for grants and business funding opportunities/organisations </li></ul><ul><li>You have 25 minutes </li></ul>
    26. 26. Other financing options 4
    27. 27. Sell shares <ul><li>Shares represent ownership of a company </li></ul><ul><li>Venture capitalists (see later) will want ‘shares’ </li></ul><ul><li>Shares pay dividends of the company profits </li></ul><ul><li>You are responsible for running the business on behalf of the owners </li></ul><ul><li>You can sell shares to: </li></ul><ul><ul><li>Raise new finance </li></ul></ul><ul><ul><li>Buy out founding investors </li></ul></ul><ul><ul><li>Mechanism to trade shares </li></ul></ul><ul><ul><li>Make a market valuation of the company </li></ul></ul><ul><ul><li>Staff incentive </li></ul></ul><ul><ul><li>Acquisition currency for take overs/buy-outs </li></ul></ul><ul><ul><li>Raise your business’ profile </li></ul></ul>
    28. 28. Other financing options <ul><li>Private limited company (Ltd) </li></ul><ul><ul><li>Raises capital </li></ul></ul><ul><ul><li>Protects personal assets </li></ul></ul><ul><ul><li>Accountancy costs </li></ul></ul><ul><ul><li>Paperwork </li></ul></ul><ul><li>Public limited company (plc) </li></ul><ul><ul><li>Raises loads of capital & awareness </li></ul></ul><ul><ul><li>Excessive legislation </li></ul></ul><ul><ul><li>Can lose control of your company </li></ul></ul>
    29. 29. Share issues <ul><li>Shares are issued in a document called Memorandum of Association </li></ul><ul><li>You need to be registered at Companies House </li></ul><ul><li>Your business is limited in liability to it’s share capital 1,000 shares x £1 = £1,000 share capital </li></ul><ul><li>Types of shares: </li></ul><ul><ul><li>Ordinary - standard shares with no special rights or restrictions </li></ul></ul><ul><ul><li>Preference - preferential rights are awarded for dividends, and wind up pay outs </li></ul></ul><ul><ul><li>Cumulative Preference - dividends will be carried forward if they cannot be paid out one year </li></ul></ul><ul><ul><li>Redeemable - come with an agreed buy-back at a fixed date or some date in the future. </li></ul></ul>
    30. 30. Other ideas <ul><li>Barter </li></ul><ul><ul><li>For services </li></ul></ul><ul><ul><li>For products </li></ul></ul><ul><ul><li>For profit (give a percentage of future profits) </li></ul></ul><ul><ul><li>For shares (give or receive shares for work) </li></ul></ul><ul><li>Commission </li></ul><ul><ul><li>For associated work </li></ul></ul><ul><ul><li>At times of overload </li></ul></ul>
    31. 31. The business plan 5
    32. 32. The business plan <ul><li>A business plan can help you: </li></ul><ul><li>Organise your business and cashflow </li></ul><ul><li>Organise your funding </li></ul><ul><li>Organise external funding </li></ul><ul><li>Open bank accounts/get bank loans </li></ul><ul><li>Apply for grants </li></ul>
    33. 33. Cashflow 1 <ul><li>Cash is the oxygen for a business. You can be profitable, have loads of customers, but without cash, you will drown </li></ul><ul><ul><li>Cash is KING </li></ul></ul><ul><ul><li>It is not long-term deposits, long-term borrowing, money owed, stock </li></ul></ul><ul><ul><li>Cash inflows: </li></ul></ul><ul><ul><li>Payments </li></ul></ul><ul><ul><li>Receipt of loans, grants, etc </li></ul></ul><ul><ul><li>Interest </li></ul></ul><ul><ul><li>Shareholder investments </li></ul></ul>
    34. 34. Cashflow 2 <ul><li>Cashflow outflows </li></ul><ul><ul><li>Purchase of stock, raw materials or tools </li></ul></ul><ul><ul><li>Wages, rent & daily operating expenses </li></ul></ul><ul><ul><li>Fixed asset purchases (PC, machinery, furniture) </li></ul></ul><ul><ul><li>Loan repayments </li></ul></ul><ul><ul><li>Dividend payments </li></ul></ul><ul><ul><li>Taxes </li></ul></ul>
    35. 35. Improve your cashflow <ul><li>Ask your customers to pay sooner </li></ul><ul><li>Use factoring </li></ul><ul><li>Ask for extended credit terms with suppliers </li></ul><ul><li>Order less stock , but more often </li></ul><ul><li>Lease rather than buy equipment & other fixed assets </li></ul>
    36. 36. Group project <ul><li>Can we agree what a good business plan must contain? </li></ul><ul><ul><li>You have 20 minutes </li></ul></ul>
    37. 37. The business plan <ul><li>Should contain: </li></ul><ul><li>Executive summary </li></ul><ul><li>Definition of your business activity </li></ul><ul><li>Current status of the business </li></ul><ul><li>External market conditions/competition/positioning </li></ul><ul><li>Definition of your core objectives </li></ul><ul><li>Development of a strategy to achieve your core objectives </li></ul><ul><li>Identification of risks and opportunities </li></ul><ul><li>Indication of strategy to limit risks & exploit opportunities </li></ul><ul><li>Project costs, revenues, cashflow </li></ul><ul><li>Contact details </li></ul>
    38. 38. In detail - 1 <ul><li>Introduction </li></ul><ul><ul><li>Contact information </li></ul></ul><ul><ul><li>Document control (quality process) </li></ul></ul><ul><ul><li>Professional advisers </li></ul></ul><ul><ul><li>Definitions/glossary </li></ul></ul><ul><li>Executive summary </li></ul><ul><li>Current situation </li></ul><ul><ul><li>Basic corporate information </li></ul></ul><ul><ul><li>Vision, mission, values </li></ul></ul><ul><ul><li>History (if any, or personal qualifications) </li></ul></ul><ul><ul><li>Business organisation </li></ul></ul><ul><ul><li>Products/services </li></ul></ul><ul><ul><li>Core competencies </li></ul></ul>
    39. 39. In detail - 2 <ul><li>External environment </li></ul><ul><ul><li>The economy </li></ul></ul><ul><ul><li>Market analysis </li></ul></ul><ul><ul><li>Competitor analysis </li></ul></ul><ul><ul><li>Competitive advantages </li></ul></ul><ul><li>Strategy & plans </li></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Business strategy </li></ul></ul><ul><ul><li>Operating plan </li></ul></ul>
    40. 40. In detail - 3 <ul><li>Financial analysis </li></ul><ul><ul><li>Breakeven analysis </li></ul></ul><ul><ul><li>Sales projections </li></ul></ul><ul><ul><li>Capital spending </li></ul></ul><ul><ul><li>Operating costs </li></ul></ul><ul><ul><li>Profit & loss account (if applicable) </li></ul></ul><ul><ul><li>Balance sheet (if applicable) </li></ul></ul><ul><ul><li>Cashflow & funding requirements </li></ul></ul>
    41. 41. In detail - 4 <ul><li>Risk analysis </li></ul><ul><ul><li>Overview </li></ul></ul><ul><ul><li>SWOT - strengths, weaknesses, opportunities & threats </li></ul></ul><ul><ul><li>Limiting factors </li></ul></ul><ul><ul><li>Critical success factors </li></ul></ul><ul><ul><li>Alternative scenarios </li></ul></ul><ul><ul><li>Specific risks & solutions (!) </li></ul></ul><ul><li>Conclusions </li></ul>
    42. 42. Business plan audience <ul><li>Your Bank : </li></ul><ul><li>How you intend to repay a loan/overdraft </li></ul><ul><li>What you are going to do with the money </li></ul><ul><li>How the loan will help the business grow </li></ul><ul><li>What other loan/debt commitments you have </li></ul><ul><li>Potential investors : </li></ul><ul><li>What are you going to do with the money </li></ul><ul><li>When/how you are going to pay it back </li></ul><ul><li>The expected return </li></ul><ul><li>Your other sources of funding </li></ul><ul><li>Your management/business track record </li></ul>
    43. 43. Business plan audience - 2 <ul><li>To shareholders : </li></ul><ul><li>The prospects for the share price </li></ul><ul><li>How they may be able to sell their shares </li></ul><ul><li>What dividends they can expect on their shares </li></ul><ul><li>Your management/business track record </li></ul><ul><li>What say will they have in the business </li></ul><ul><li>Reasons for failure: </li></ul><ul><ul><li>A weak management team/experience </li></ul></ul><ul><ul><li>A flawed marketing plan </li></ul></ul><ul><ul><li>Unrealistic forecasts </li></ul></ul><ul><ul><li>Incomplete and poor presentation </li></ul></ul>
    44. 44. Who can help? 6
    45. 45. Who can help? <ul><li>Business Angels </li></ul><ul><ul><li>www.angelinvestmentnetwork.co.uk </li></ul></ul><ul><ul><li>www.bacventures.co.uk </li></ul></ul><ul><ul><li>www.winsec.co.uk </li></ul></ul><ul><li>Venture capitalists </li></ul><ul><ul><li>www.vcwhitepaper.com </li></ul></ul><ul><ul><li>www.bvvca.co.uk </li></ul></ul><ul><ul><li>www.3i.com </li></ul></ul><ul><li>Professional organisations </li></ul><ul><ul><li>Charities </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Foreign investors </li></ul></ul><ul><ul><li>www.fsb.org.uk </li></ul></ul>
    46. 46. What people can help? <ul><li>Mentors </li></ul><ul><ul><li>www.business-mentors.org.uk * </li></ul></ul><ul><li>Accountants </li></ul><ul><ul><li>www.icaew.co.uk </li></ul></ul><ul><li>Solicitors </li></ul><ul><ul><li>www.solicitors.co.uk </li></ul></ul><ul><ul><li>www.lawsociety.org.uk </li></ul></ul><ul><li>Consultants </li></ul><ul><ul><li>www.consultants-register.co.uk * </li></ul></ul>* Coming soon
    47. 47. The internet 7
    48. 48. The internet <ul><li>Sales channel </li></ul><ul><li>Funding channel </li></ul><ul><li>Virtual company (employees/specialists) </li></ul><ul><li>Suppliers </li></ul><ul><li>Research </li></ul><ul><li>Advertising medium </li></ul><ul><li>Communications medium </li></ul><ul><li>Shop </li></ul><ul><li>Customer support </li></ul>
    49. 49. Summary 8
    50. 50. Summary <ul><li>BUSINESS PLAN </li></ul><ul><li>Marketing plan </li></ul><ul><li>Cashflow plan </li></ul><ul><li>Get expert help </li></ul><ul><li>Use the tax assistance on offer </li></ul><ul><li>There is no such thing as easy money </li></ul><ul><li>Getting grants/loans is hard work </li></ul><ul><li>Surround yourself with good people </li></ul><ul><li>Do your homework - market, competitors, costs </li></ul><ul><li>BUSINESS PLAN </li></ul>
    51. 51. Thank you [email_address]

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