Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Setting Up, Running and Funding your Business in the UK

616 views

Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

Setting Up, Running and Funding your Business in the UK

  1. 1. UK as Europe’s innovation hubSetting up, running and funding your business14 July 2012
  2. 2. Table of Contents 1. Setting up your business • Tech Clusters • Advantages offered by the UK • Legal issues 2. Running your business • Digital media • Sales and marketing analysis • Legal issues 3. Funding your business • Company valuation • Financial considerations • Legal issues • Fundraising strategy • Investment incentives: SEIS, EIS • Gearing up for Venture Capital [2]
  3. 3. Tech clustersAdvantages offered by the UKLegal issuesSETTING UP YOUR BUSINESS [3]
  4. 4. Setting up your businessTech clusters• London Tech City (Silicon Roundabout)  Mind Candy (Moshi Monsters)  Tweetdeck  Last.fm• Silicon Fen (world class tech-hub in Cambridge)  ARM ($7 billion valuation)  Advanced RISC Machines• Silicon Glen (tech –hub in Scotland)  Rockstar North (creators of GTA)• Bristol  ICERA [4]
  5. 5. Setting up your businessAdvantages offered by the UK• The small business rate relief• New immigration routes for entrepreneurs Tier 1 Entrepreneur visa Applicant must either have access to £200,000 or to £ 50,000 + Conditions Tier 1 Graduate Entrepreneur visa Does not apply if applicant is outside UK at time of application• Small businesses get capital gains tax breaks for their first £10m of profit• R&D tax credits of up to 200 per cent (increasing to 225 per cent in 2012)• Access to UK Trade & Investment’s export services [5]
  6. 6. Setting up your businessLegal issues (1)• Intellectual property e.g. patents, copyright, trademarks and design rights• IPR exploitation as a revenue stream• Contracts and other agreements• Legal structures for enterprise in UK  Unincorporated association  Limited Company  Limited Liability Partnership  Community Interest Company [6]
  7. 7. Digital mediaSales and media analysisLegal issuesRUNNING YOUR BUSINESS [7]
  8. 8. Running your businessDigital media• Search engine optimisation• Mobile and Social media:• Online reputation management• Viral Marketing [8]
  9. 9. Running your businessSales and marketing analysis• Sales funnel• The buying cycle: AIDA• 4Ps: Product, Price, Place and Promotion• Competition and risk analysis: SWOT & PESTLE [9]
  10. 10. Running your businessLegal issues (1)• Taxation  Corporation Tax  Capital Gains Tax  National Insurance  Income Tax VAT [ 10 ]
  11. 11. Running your businessLegal issues (2)• Corporation Tax Rate 2012 values Small profits rate 20% Small profits can be claimed by qualifying ₤300,000 companies with profits at a rate not exceeding Marginal relief lower limit ₤300,000 Marginal relief upper limit ₤1,500,000 Standard fraction 1/80 Main rate of corporation tax 25% Special rate for unit trusts and open-ended 20% investment companies [ 11 ]
  12. 12. Running your businessLegal issues (3)• Capital Gains Tax Rate 2012 values Rates for individuals 18% / 28% Rates for trustess and personal representatives 28% Annual exempt amount for individuals and ₤10,600 personal representatives Annual exempt amount for most trustees ₤5,300 Rate on gains subject to Entrepreneurs’ Relief 10% Capital Gains Entrepreneurs’ Relief 2011-2012 values Entrepreneurs relief lifetime limit of gains ₤10,000,000 [ 12 ]
  13. 13. Running your businessLegal issues (4)• National insurance contributions (1) Employee and employer rates and thresholds 2012 values £ per week unless stated Lower Earning Limits for class 1 NICs £102.00 Upper Earnings Limits for Employees’ Class 1 £817.00 NICs Upper Accrual Point £770.00 Primary Threshold £139.00 Secondary Threshold £136.00 Employee’s (Primary) Class 1 contribution rates 2012 values 2011 – 2012 weekly earnings from £139.01-£817.00 12% 2011 – 2012 weekly earnings above £817.00 2% [ 13 ]
  14. 14. Running your businessLegal issues (5)• National insurance contributions (2) Employee’s contracted out rebate 2012 values For both salary-related (COSR) and money 1.6% purchase (COMP) schemes between LEL & UAP Married women’s (primary) Class 1 contribution 2012 values rates 2011 – 2012 weekly earnings from £139.01-£817.00 5.85% 2011 – 2012 weekly earnings above £817.00 2% Employer’s (secondary) Class 1 contribution 2012 values rates 2011 – 2012 weekly earnings from £136.00 13.8% [ 14 ]
  15. 15. Running your businessLegal issues (6)• National insurance contributions (3) Employer’s contracted out rebate 2012 values Employer’s contracted out rebate – salary related 3.7% schemes (COSR) between LEL and UAP Employer’s contracted out rebate – money 1.4% purchase schemes (COSR) between LEL and UAP [ 15 ]
  16. 16. Running your businessLegal issues (7)• Income tax Income tax band Income tax rate on Income tax rate on Income tax rate on non-savings income savings dividends £0 - £2,560 Not available 10% Not applicable – see Starting rate for basic rate band savings £0 - £35,000 20% 20% 10% Basic rate £35,001 - £150,000 40% 40% 32.5% Higher rate Over £150,000 50% 50% 42.5% Additional rate [ 16 ]
  17. 17. Running your businessLegal issues (8)• VAT (1) Category VAT rate Exempt supplies: education, finance, insurance, 0% and the services of doctors and dentists Food (but not restaurant or takeaway meals), 0% children’s shoes and clothing, prescriptions, books and newspapers, new house sales and prescriptions Reduced rate: includes fuel and power used in 5% homes and by charities Standard rate: goods not falling in the above 20% Paid quarterly if annual turnover exceeds £73,000 Can be claimed back on some goods/services e.g. office supplies, vehicle servicing, fuel [ 17 ]
  18. 18. Running your businessLegal issues (9)• VAT (2) – Optional flat rate scheme Allows businesses with up to £187,500 turnover to make a flat-rate calculation for VAT payments based on turnover, rather than having to record the VAT of every sale and purchase The flat rate varies by sector e.g. 2% for retailing food, confectionery, tobacco, newspapers or childrens clothing 11.5% for labour-only building or construction services, Computer and IT consultancy or data processing, lawyer or legal services, computer repair services, management consultancy, lawyers & legal services [ 18 ]
  19. 19. Company valuationFinancial considerationsLegal issuesFundraising strategyInvestment incentives: SEIS, EISGearing up for venture capitalFUNDING YOUR BUSINESS [ 19 ]
  20. 20. Funding your businessCompany valuation• What is my company worth?• Equity: how much should I give away?• Capital injections: how do they affect my company valuation?• What do investors look for? [ 20 ]
  21. 21. Funding your businessFinancial considerations (1)• Sources of finance (debt and equity):  3 Fs: Family, Friends, Fools  Banks, Angels and VCs  Crowd Funding: crowdcube  Incubators : Google Campus, Imperial Innovations, Springboard, The Difference Engine, Techhub, General Assembly  Government Agencies: Technology Strategy Board, KTP• Financial instruments that need to be understood• Forecasts and accounting• Exit Routes i.e. the Investor’s Perspective e.g. MBO, IPO, Sale [ 21 ]
  22. 22. Funding your businessFundraising strategy• Proof of Concept/Market• Structure the team• Choose Investment Strategy• Investment Documents• Negotiation• Transaction [ 23 ]
  23. 23. Funding your businessInvestment incentives• Seed Enterprise Investment Scheme (SEIS)  50% Income Tax relief on ₤100,000 limit  Capital Gains Tax exemption upon share sale  Balance sheet gross assets ≤ £200,000• Enterprise Investment Scheme (EIS)  30% Income Tax relief on ₤1m limit  Capital Gains Tax exemption upon share sale  Balance sheet gross assets ≤ £15m before & £16m after investment [ 24 ]
  24. 24. Funding your businessGearing up for venture capital• Golden rules and common misconceptions• The investment process including key points and time scales• Deal structuring: entrepreneur/investors point of view• Post-investment focus [ 25 ]
  25. 25. Summary• Services offered to entrepreneurs by Amoo Investment readiness Financial control Management consulting IP-Skim™• Events organised or sponsored by Amoo Amoo Booster Series Meet VCs, Patent Attorneys and fellow entrepreneurs place4BRICs Holds events with Amoo to explore topical themes within the start-up community [ 26 ]
  26. 26. Managing Director Nzube Ufodike Investment Director Alexey Buditskiy Supported byAmoo Venture Capital Advisory Suite 84, 77 Beak Street London W1F 9DB +44 7 830 143 489 www.amoo.co.uk contact@amoo.co.ukwww.twitter.com/amootweets [ 27 ]

×