Start-up Cornwall Presentation 2013

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Please find below a link to the slides presented at our Start-up Cornwall 2013 event.

Feedback so far has indicated that the event was very well received.

We hope that those of you in attendance had and took the opportunity to instigate discussions with us and / or fund administrators about specific funds that were applicable and of interest to you in your development plans. If not contact details are on the slides attached.

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Start-up Cornwall Presentation 2013

  1. 1. Start Up Cornwall14 May 2013Ivan Burnard - Partner
  2. 2. www.francisclark.co.ukAgenda and presenters Start Up Loans Funding Tax Legal Business Support Competition
  3. 3. COMPANY OVERVIEWInspiring a generation of entrepreneursPresented by Tim SawyerMay 2013
  4. 4. The Start-Up Loans Company is a private company, that helps18-30 year olds develop their business ideas with the help ofaccessible, unsecured, low-cost loans coupled with businesssupport in the form of a mentor.Backed by government, with a budget in excess of £112million, The Start-Up Loans Company will help create 25,000businesses throughout England across all industry sectors inthe next 3 years.WHAT IS THE START-UP LOANS COMPANY?
  5. 5. WHO RUNS THE START-UP LOANS COMPANY?James Caan was appointed the Chairman of the Start-UpLoans Company in June 2012 by Lord Young of Graffham,the Enterprise Advisor to the Prime Minister.The Start-Up Loans Company is run by CEO, Tim Sawyer.The Start-Up Loans Company reports to the Departmentof Business, Innovation and Skills.
  6. 6. WHY HAVE THE START-UP LOANS COMPANY?Young people typically cannotaccess funding to start a businessfrom a bank. With little or no track-record and often no security toguarantee a loan, they arerepeatedly turned down bytraditional lenders.The Start-Up Loans Companyprovides opportunities to anyonewith a good idea together with abusiness plan and passion tomake it work.“If the UK was asentrepreneurial as the US, wewould have 900,000 morebusinesses in this country.”Lord Young
  7. 7. HOW DOES THE START-UP PROCESSWORK?The Start-Up Loans Company has anational distribution network of deliverypartners who operate across England.They work with entrepreneurs to developtheir business ideas into a feasiblebusiness plan to increase their chances ofsuccess.Once the entrepreneur is approved for aloan, they work closely with a businessmentor in their chosen industry andregion, who will help and guide them tomake the right decisions for theirbusiness.123
  8. 8. HIGHLIGHTS AND SUCCESSES TO DATEUnder budget on cost, yet over budget on target! Over 3,000 businesses funded since September2012 Over £13M of lending approved Achieving a current daily run-rate of 40 businesses Over 45 Delivery Partners signed up Average loan size £5,000 from £2,500 Fantastic corporate partnerships with Regus, Intuit,eBay, Paypal, and Magento Go Extensive media and press coverage with supportfrom The Prime Minister and HRH Prince Andrew
  9. 9. METRICS SO FAR• Gender ratio shows that more loan recipients are male at66%, than female at a lower 34%.• Age split is fairly even between 18-24 year olds who makeup 47% of all loan recipients vs. 25-30 year olds at 53%.• Ethnicity breakdown illustrates that 67% of loan recipientsare white British while 33% are Black, Asian and minorityethnic.• Regional breakdown indicates the largest number of loanshave been delivered in Greater London, followed by theNorth West, and Yorkshire and Humber. There is a fairlyeven spread across the rest of the country.• Industry categories that are the most popular arewholesale and retail, IT, fashion, e-commerce, food anddrink and building and construction.
  10. 10. PRESS COVERAGEThe Start-Up Loans Company has appeared in hundreds ofpublications across the country, from national to regionaltitles. Journalists have an insatiable appetite not only for theStart-Up Loans story, but also for our loan recipients andmentors.Regular features on The Start-Up Loans Company andentrepreneurs can be found in The Sunday Express, TalkBusiness, The Sun and The Guardian.Radio stations have profiled businesses backed by TheStart-Up Loans Company, providing a great platform toshowcase our entrepreneurs.
  11. 11. OUR DELIVERY PARTNERSThe Start-Up Loans Company operates in England through anetwork of organisations. These bodies:- Work with young people- Are able to provide business guidance for budding entrepreneurs- Provide quality mentoring for start-ups in all industries- Can credit assess business plans for fundingOur Delivery Partners:Ariadne CapitalArts ThreadBEFBiz BritainBricks and BreadBright Ideas TrustBusiness Finance SolutionsBusiness Support and DevelopmentCDFACDFA NewcastleCloudspeed (Springboard)Dreamstake LtdEast London Small Business CentreElevation NetworksEnterprise Loans East MidlandsEnterprise4AllEntrustFashion AngelFive LampsFoundation EastFrederick‟s FoundationGLE GroupHackney Business VenturesHull Business Development Fund LtdKaleidoscopeKent Foundation for Young EntrepreneursLancashire Community CentreLet‟s Do BusinessMSIFNACUENorth London Community FinanceNWESOriginal UpstartsPinetreePNEPositive InclusionsPrinting.comRiverside Credit UnionRockstar YouthSchool for Startups LtdSFEDISheffield City CouncilSouth London BusinessSouth West Investment GroupSpring to ActionThe Bright Side TrustThe Prince‟s TrustTrainE TraidETransmit ConsultingUALVirgin UniteWSXYoung BritainYorkshire Coast EnterpriseYouth Enterprise
  12. 12. OUR GLOBAL PARTNERSThe private sector is actively engaged with The Start-UpLoans Company, providing business products and servicesto entrepreneurs, giving them the tools they need tosucceed. 24 months free access to QuickBooks Online Simple Start (Cloud-basedaccounting software)Free website for 6 months, with e-commerce capabilitiesDiscounted PayPal rate of 1.4% + 20p per transaction for 6 months(usually 3.4%)Free eBay store for 3 months6 months free use of Virtual Office, giving a business address, mailhandling and administrative support, a Businessworld Gold Card anddiscount on all other Regus products and services
  13. 13. TO ACHIEVE BY MARCH 2015• Administer over £112 million worth of loans to 18-30 yearolds living England• Start over 25,000 businesses in all industry sectors• Create thousands of additional jobs• Strengthen the SME sector in England• Make young people more employable in the future• Ensure entrepreneurship is a standard career path for all• Create entrepreneurial role models for young people• Inspire 18-30 year olds with confidence to be their own bossby equipping them with the skills needed to succeed inbusiness• Make The Start-Up Loans Company a household name
  14. 14. FREQUENTLY ASKED QUESTIONSWhy are Start-Up Loans only available to those living in England?From a policy perspective, enterprise is a devolved issue. Wales, Ireland and Scotlandare all encouraged to replicate the Start-Up Loans model.Why are Start-Up Loans only available to 18-30 year olds?The Prime Minister announced an increase from 18-24 to 18-30 as there is a reporteddifficulty for this age group to access start-up funding from normal lending routes,therefore this scheme aims to address the gap.What interest is being charged on the loan?The interest rate is 3% over RPI, and is capped at 6% for applicants applying beforeMarch 2013.The entrepreneurs are able to take up to 12 months interest repayment holiday if theirbusiness needs it.Why is mentoring mandatory for all entrepreneurs who get a loan?Mentoring is as important as the funding, especially when starting your first business,and want to give all of our entrepreneurs every chance at success.How much can people borrow?The loan amount is wholly dependent on the business. The average loan value is£4,500, however we are able to lend up to £10,000 and have lent as low as £500.?????
  15. 15. CONTACTYasmina Siadatan, Head of Media:ys@hbpe.comAnooshe Mussarat, Marketing Assistant:anooshemussarat@startuploans.co.uk
  16. 16. South West Investment Group“Community Development Finance Institutions(CDFIs) lend money to businesses, social enterprisesand individuals who struggle to get finance from highstreet banks and loan companies. They offer loans andsupport at an affordable rate to people who cannotaccess credit elsewhere”Presented by John Peters
  17. 17. South West Investment GroupHQ TruroSince April 2012we have lent:£1,266,138to 142 Start-Up businesses
  18. 18. Start Up LoansSince November 2012Low cost loans alongside business support18-30 year oldsDelivered in partnershipSouth West region-wide coverage
  19. 19. Start Up LoansTo date we have lent:£412,200to 69 young entrepreneurs£2,000,000 available this year
  20. 20. Start Up Loans
  21. 21. Start Up Loans
  22. 22. Start Up Loans
  23. 23. Start Up LoansDavid Forsyth, Driftwood Surfboards
  24. 24. IT ALL BEGAN IN THE SHED
  25. 25. OUR PROCESS
  26. 26. ALWAYS LEARNING
  27. 27. COLLABORATION
  28. 28. diversification
  29. 29. LOOKING FORWARD
  30. 30. David Bullen -Corporate Senior AssociateFunding Start UpSMEs.. And a little bit onfinancial management
  31. 31. www.francisclark.co.ukFunding: potential sources• See Finance in Cornwallfactsheet• Grants: Eligibility?• PWGF2, BIG and AssistedAsset Purchase scheme• Equity• FFF, Business Angels andCrowdfunding? SEIS and EIS• Companies only• Debt: peer to peer?UnderstandyourrequirementsUnderstandfundingoptions andfundersrequirements
  32. 32. www.francisclark.co.ukInvestment ready• General• Business Case• Funding gap?• Business plan and projections• YOU…• Grants – eligibility and conditions• Debt – security and ability to service• Equity – „return‟ and valuationUnderstandyourrequirementsUnderstandfundingoptions andfundersrequirements
  33. 33. www.francisclark.co.ukThe banks...• „Open for business‟• Still provide c 92% of funding toSMEs• New businesses• Security and Ability to repay• “Equity proposition”• Your money• De-risk• match funding?• Different business model e.g., sub-contractmanufacture or licence technology?UnderstandyourrequirementsUnderstandfundingoptions andfundersrequirements
  34. 34. www.francisclark.co.ukFinancials: Management Accounts and Projections• Why?• Facilitate delegation/ Performance management• Proactive cash management• Investment ready• What?• Avoid “paralysis by analysis”• KPIs• Standardise format of production• How?
  35. 35. www.francisclark.co.ukOther assistance?• MAS• UKTI?• Growth Accelerator• Mentoring• Leadership (subsidized assistance with projections forexample)
  36. 36. Introduction to CrowdfundingPhil Geraghty, Managing Director
  37. 37. About us
  38. 38. Whats the problem?“Small business funding needs new mechanisms”
  39. 39. 2013 : £3.3bn CrowdfundedGrowing 90% each yearReuters 2013
  40. 40. Types of CrowdfundingEquity- Dragons Den- CrowdcubeRewards- CrowdfunderDonation- Just givingEquity- DragonsDen- CrowdcubeLoans- Fundingcircle- KivaRewards- CrowdfunderDonation- Just giving
  41. 41. FundingThe benefits of crowdfundingValidationMarketing Advocates
  42. 42. Crowdfunding in Cornwall• Crowdfund Cornwall is a campaign to get over 100projects launched and funded within Cornwall.• Bringing Cornish communities together to makegreat ideas happen• Stimulating Cornwall‟s economy and entrepreneurialand social initiatives.
  43. 43. Get InvolvedWe are looking for…Projects100 projects all overcornwallPartnersOrganisations that wantto help others, and helpus spread the word.
  44. 44. Rewards basedCrowdfundingPhil Geraghty, Managing Director
  45. 45. About us
  46. 46. IDEAS COMMUNITYPASSIONIDEAS COMMUNITYPASSION
  47. 47. The Crowdfunder wayLots ofpeopleAll putin smallamountsThe greatidea happensRewardsAre fulfilled
  48. 48. FundingWhy the Crowdfunder wayworksValidationMarketing Advocates
  49. 49. Describe your projectSet your targetDefine your rewardsMake your videoBuild a teamPromote to your networkSocial mediaEmailWord of mouthNewpapers, radio, blogsUpdates to your backersStatus updatesDeliver rewardsRelax and celebratePre-launch Campaign SuccessRunning a SuccessfulCampaign
  50. 50. Got an idea to beCrowdfunded?
  51. 51. START UP CORNWALL: Contracts and structuresGavin Poole, partnerThe Lighthouse Cinema 14th May 2013
  52. 52. OUTLINE• Structures, contracts, governance and other realities• Seven and a half minutes - fantasy!• Lots to say – an overview of the key issues• A lot of common sense• You will learn something!• Venue• Compelling case/case study
  53. 53. Contracts and business structures: outlineFrom this……to this……to this!Start up/first customerSME/more customersGroup structures/manycustomersYou will learn: the meaning behind “Bohemian Rhapsody”
  54. 54. THE VISION• Why start up a business?• Positive reasons• Negative reasons• Capture the vision• But keep feet on the ground:• Careful planning• Consider your markets• Consider the long termIs this the real life?Is this just fantasy?Caught in a landslideNo escape from realityOpen your eyesLook up to the skies and see…..
  55. 55. ECONOMY• Failure!• Business Plan• Key assets in a tougheconomy:• Money• Time• Partners/advisorsIm just a poor boy, I need no sympathyBecause Im easy come, easy goA little high, little lowAnyway the wind blows, doesnt reallymatter to me, to me
  56. 56. STRUCTURES• Sole traders• Partnerships• Companies• Limited Liability Partnerships• Others• Growth/incorporation• External perceptions/contractsMama, just killed a manPut a gun against his headPulled my trigger, now hes deadMama, life had just begunBut now Ive gone and thrown it all awayMama, oooDidnt mean to make you cryIf Im not back again this time tomorrowCarry on, carry on, as if nothing reallymatters
  57. 57. EXIT • Succession planning –strategies to maximise value• How and when?• Truth: mortality/naturallifecycle of a business• Psychology and stress foryou…and the family?Too late, my time has comeSends shivers down my spineBodys aching all the timeGoodbye everybody - Ive got to goGotta leave you all behind and face thetruthMama, ooo - (anyway the wind blows)I dont want to dieI sometimes wish Id never been born at all
  58. 58. START UPS • Spectre of a business isbecoming a reality• Celebrate your “brilliantexploit”• Plenty of activity• With enough planning,shouldn’t be frighteningI see a little silhouetto of a manScaramouch, scaramouch will you do thefandangoThunderbolt and lightning - very veryfrightening me
  59. 59. TAX• Repetitious reminder• Science• EIS• SEIS• GrantsGallileo, Gallileo,Gallileo, Gallileo,Gallileo Figaro – magnifico
  60. 60. REDUCING RISKS• Compliance and “monstrosities”• Limits of liability• sole trader and partnerships• companies and LLPs• Other regulation• Licences• Landlord covenants• Planning• Insurance• Registrations• Practical measures• Ts and CsBut Im just a poor boy and nobody lovesmeHes just a poor boy from a poor familySpare him his life from this monstrosityEasy come easy go - will you let me goBismillah! No - we will not let you go - lethim goBismillah! We will not let you go - let him goBismillah! We will not let you go - let me go
  61. 61. OTHER RISKS andPROTECTIVE MEASURES• Financial arrangements• Covenants• Conditions• Restrictive covenants• Shareholder/partnershipagreements• Directors• Employees• Personal guaranteesWill not let you go - let me go (never)Never let you go - let me goNever let me go - oooNo, no, no, no, no, no, no -Oh mama mia, mama mia, mama mia letme goBeelzebub has a devil put aside for mefor mefor me
  62. 62. SUCCESS!• Setbacks (…threats?)• Market and other opportunities• Business Plan• Resilience and flexibility• Exit• Retirement yacht!So you think you can stone me and spit inmy eyeSo you think you can love me and leaveme to dieOh baby - cant do this to me babyJust gotta get out - just gotta get right outtahereOoh yeah, ooh yeahNothing really mattersAnyone can seeNothing really matters - nothing reallymatters to meAnyway the wind blows...
  63. 63. Summary• Business planning• Structures• Exit• Tax• Limiting risks• Protective measures• Measuring success• Learnt something new!
  64. 64. Premier South West Law firmLegal Week Regional Law Firm of the Year 2011Nationally recognised for our sector expertiseDepth and breadth of capability in over 25 areas of lawOver 350 staff including 250 lawyers and 50 partnersTop 100 law firmOffices in Truro, Plymouth, Exeter, Taunton, Bristol
  65. 65. THANK YOUGavin Poole01872 243344gavin.poole@footanstey.com
  66. 66. Tax…14 May 2013Ivan Burnard - Partner
  67. 67. www.francisclark.co.ukBusiness Taxation "The only things certain in life are death andtaxes." Benjamin Franklin Business taxes, include: On profits Income tax (and NI) or Corporation Tax On sales – VAT On capital disposals – Capital Gains Tax On capital additions (some) – Stamp Duty/ SDLT On death – inheritance tax On remuneration – Income tax and NI Rates and limits etc – see “2013/2014 Tax Card”
  68. 68. www.francisclark.co.ukTaxation of profits and extraction of funds Sole trader or partnership Profits (or cash) in Accounting Period Your share taxed as income Irrelevant how much you have extracted Taxed profits are „yours‟ Class 2/4 National Insurance Tax paid 31 January (and 31 July)
  69. 69. www.francisclark.co.ukTaxation of profits Limited Company Profits in Accounting Period Company profits taxed at Corporation Tax rates Corporation Tax paid 9 months after Profits „locked in company‟ Extraction: salary and/or dividends Your salary is a deduction against profit PAYE/ NI on your salary
  70. 70. www.francisclark.co.ukTaxation of profits Cash = profit Profit = taxable profit Capital Allowances AIA, ECAs, WDA Advance or postpone capital spend to maximiseAIA for capital allowances. R&D Tax Credits Patent Box (10% Corporation tax rate)//
  71. 71. www.francisclark.co.ukOther tax saving opportunities(for a later day perhaps) Salary sacrifice to save NIC- Childcare vouchers- Pension contributions etc.- Bikes to work Share options instead of bonuses
  72. 72. www.francisclark.co.ukOther business taxes Capital Gains Tax- “10% rate”: Entrepreneurs Relief- EIS / SEIS – attractive for investors? VAT Care re transactions in land and buildings.. Flat rate schemes
  73. 73. www.francisclark.co.ukSome administration points HMRC notification < 3 months of starting to trade Self Assessment Tax Returns by 31/1 RTI for PAYE schemes VAT registration/ deregistration quarterly returns and tax paid by month following Corporation tax returns due 12 months after ARD Penalties and interest for missing deadlines etc
  74. 74. 77Kate McEwen, Head of OutsetOperations - South West
  75. 75. 78
  76. 76. Pauline DaviesSpecial Guardian Support and Therapy Services
  77. 77. Presented by Chris Phillips
  78. 78. We invite the best business talent to Cornwall to share their experiences, challenges and insight,giving delegates:- a handful of tips to take away and apply to your business- motivation and (maybe) a spark of inspiration- the opportunity to meet our Enterprise Heroes and learn from their experiences in business- new connections with like-minded peers in the Cornish business community- and some time away from your desk to work on your business not in your business.Enterprise HeroesWe run four per year, for an audience of at least 100 delegates, often in partnership with public andprivate sector organisations. Our aim is to welcome 3000 delegates from 1500 businesses to theseevents, and we have already have seen over 500 delegates attend.
  79. 79. A unique support package including potential financialinvestment, training and mentoring for graduates looking to setup a business in Cornwall.For: Graduates who have a business idea through to businesses(set up by a graduate) who have been trading for less than ayear. NB. Graduates must have graduated in the last 10 years.Chris Phillips,Graduate BusinessStart-Up ProgrammeManagerGraduate BusinessStart-up
  80. 80. IGNITE 2013Alan StreetOxford Innovation
  81. 81. IGNITE 2013• A business plan competition• Prize fund worth more than £100K.• Open to pre- and early start businesses based in Cornwall andIoS• Must have been trading for less than 12 months on17 September 2013
  82. 82. The Process• Attend Ignite Experience Workshops• Submit 3 minute ‘video’ pitch• Judges select finalists• Finalists submit written business plan• Judges select winner
  83. 83. Looking for....?A plan for a good businessmore than a.....A good business plan
  84. 84. Looking for....?• Originality• Scalability• Employment• Uniqueness (USP)• Tested concept and / or market• Strong Entrepreneur
  85. 85. Winners Ignite 2012– RCH Marine Renewables
  86. 86. Ignite Experience Workshops• Person – The entrepreneur• Proposition – Business idea• Plan – ‘Lean’ business process and plan• Pitch – ‘Sell’ your idea
  87. 87. Key Dates• Ignite Experience Workshops – June / July / August• Closing Date – 17th September• Announce Finalists – 9th October• Submit Business Plan – end of October• Winner Announced – 14th November
  88. 88. How?Learn more and register your interest:www.ignitecornwall.com
  89. 89. Follow us:@Ignite_CornwallIgnite Cornwall
  90. 90. Presented by Chris Hassall
  91. 91. Eita, Secretary of Public Works for theKiribati Government - a thoroughly nicechap! We look forward to working withthe government in the future.
  92. 92. Start Up Cornwall2013Ivan Burnard - Partner
  93. 93. www.francisclark.co.ukSummary• SMEs – the country needs you• Cornwall a great place to do business• Some great businesses in Cornwall• Confidence?• Funding and support – options• Thank you
  94. 94. www.francisclark.co.ukPresenters and other participants…and many more
  95. 95. www.francisclark.co.uk(c) copyright Francis Clark LLP, 2013You shall not copy, make available, retransmit, reproduce, sell, disseminate, separate, licence, distribute, store electronically, publish, broadcast or otherwise circulate either withinyour business or for public or commercial purposes any of (or any part of) these materials and / or any services provided by Francis Clark LLP in any format whatsoever unless youhave obtained prior written consent from Francis Clark LLP to do so and entered into a licence.To the maximum extent permitted by applicable law Francis Clark LLP excludes all representations, warranties and conditions (including, without limitation, the conditions impliedby law) in respect of these materials and /or any services provided by Francis Clark LLP.These materials and /or any services provided by Francis Clark LLP are designed solely for the benefit of delegates of Francis Clark LLP. The content of these materials and / orany services provided by Francis Clark LLP does not constitute advice and whilst Francis Clark LLP endeavours to ensure that the materials and / or any services provided byFrancis Clark LLP are correct, we do not warrant the completeness or accuracy of the materials and /or any services provided by Francis Clark LLP; nor do we commit to ensuringthat these materials and / or any services provided by Francis Clark LLP are up-to-date or error or omission-free.Where indicated, these materials are subject to Crown copyright protection. Re-use of any such Crown copyright-protected material is subject to current law and related regulationson the re-use of Crown copyright extracts in England and Wales.These materials and / or any services provided by Francis Clark LLP are subject to our terms and conditions of business as amended from time to time, a copy of which is availableon request.Our liability is limited and to the maximum extent permitted under applicable law Francis Clark LLP will not be liable for any direct, indirect or consequential loss or damage arisingin connection with these materials and / or any services provided by Francis Clark LLP, whether arising in tort, contract, or otherwise, including, without limitation, any loss of profit,contracts, business, goodwill, data, income or revenue. Please note however, that our liability for fraud, for death or personal injury caused by our negligence, or for any otherliability is not excluded or limited.Disclaimer & copyright

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