University of Essex

1. 16/11/11
“It’s all About The Money”

2. AGENDA
Introduction
Successful Household brands
Kingsfleet Wealth
Group Session
Beatons Group
Break
Questions Time & Business Quiz
Q&A
Summary in Buzzwords
Success Stories
Contact Details and Useful Links

3. 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 is
involved when looking to start your own business.

4. Successful businesses over the years that have become household
brands...

5. Introduction:
• Colin Low – my story
• From Kingsfleet
•To Kingsfleet Wealth

6. 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 ideas
from each group into ONE list.
• Q&A

7. Knowing how to price your goods or services is vital

8. 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

9. Questions on Financial Ratios
•Gross profit
A company purchase 500 garden chairs for £5000 on the 1st of the
month.
During the month it has sales to the value of £6000
At 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 Proft
The same company had overheads of £2400 in the month.
What was its net profit?
What was its net profit % in the month?
•Break Even
Assuming its overheads are £2400 per month and the prices and costs
remain as above how many garden chairs does the company need to
sell to break even?

10. Quiz
Questions on Cash Flow/Balance Sheet
• Assuming all of these transactions were cash what would be the cash flow in
the month?
• If the sales were all due for payment in the following month what would the
cash flow be in the month?
• Taking the assumptions in question 1 and assuming the owner put in £7400
capital to pay for the initial stock and the first months overheads what would
the 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 as
in question 3 what would the Balance Sheet look like at the start of trading
and at the end of month 1?

11. 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 is
just guessing, be flexible to
change.” “test the market, don’t spend time
& resource on your product only to
find there is no demand”

12. From Small Acorns...
• Innocent was founded by three Cambridge graduates - Richard Reed, Adam Balon
and Jon Wright.
• The three were friends at St John's College, Cambridge and at the time they were
working 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 on
whether 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 break
when Maurice Pinto, a wealthy American businessman, decided to invest £250,000.
• And now? ......as we all well know, Innocent is a household brand.

13. 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 the
business online in March 2001.
• The business borrowed £15 million from RBS against the family's betting shop
estate which had been started by Peter Coates in 1974 and had been run by Denise
Coates as Managing Director from 1995.
• bet365 sold its betting shop chain in 2005 for £40 million and paid off its loan to
RBS
• bet365 has grown into one of the world’s largest online gambling companies with
its reported figures to March 2010 showing amounts wagered on Sports at £5.4
billion, revenues of £358 million, and an operating profit of £104 million.

14. From Small Acorns...
•The first Starbucks was opened in Seattle, Washington, on March 30, 1971 by three
partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon
Bowker.
•The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to
sell 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 55
countries, including over 11,000 in the United States, over 1,000 in Canada, over 700
in the United Kingdom, and over 150 in Turkey.
• In the 1990s, Starbucks was opening a new store every workday, a pace that
continued into the 2000s.

15. Contact Details
Colin Low IMC, APFS
Chartered Financial Planner
Kingsfleet Wealth
01206 322992
www.kingsfleetwealth.co.uk
Email: colin@kingsfleetwealth.co.uk
Twitter: @DedhamValeIFA
Andrew Diver CTA, ATT
Head of Tax
Beatons Group
01394 279692
www.beatons.co.uk
Email: andrew@beatons.co.uk
Twitter: @BeatonsGroup
Useful Links
• www.hmrc.gov.uk
• www.businesslink.gov.uk
• www.startups.co.uk
• www.startupdonut.co.uk
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