Welcome to …… www.enterpriseforlondon.com First Steps to Start Up

Domestic / Health & Safety Fire Toilets Tea and coffee No smoking Mobile phones Any concerns? 2

Aims for today….. Understand the different types of Business Structure Understand Business Viability Prepare a survival budget Prepare a start up costs document Commence market research activities Understand the different types of Business Structure Naming your business Learn and Enjoy!

Why do businesses fail? Why? Over 50% of small traders go out of business within 3 years Most of them fail within the first 12 months Why?

Businesses fail because they.. Do not make enough sales Cannot survive overdue payments/bad debts Fail to cover costs Fail to meet customers’ needs Depend on ONE customer Fail to set targets / monitor Take BIG risks Lose focus Suffer Illness/Accident/Death

6 advice property finance training 6 6

Business Viability How much do I need to make? How much do I need to start? Is there demand for the product/service? Competition? Also Consider:- Professional Occupational Competence Self Employment Skills

Personal Survival Budget Your first year in business:- Estimated personal expenditure (a) Less estimated other income (b) (a) – (b) = Personal Survival Budget

Start up Costs Capital Expenditure Costs = (a) Revenue Costs = (b) Total Start up Costs = (a) + (b)

Sales / Turnover £70000 Less cost of sales (£30000) Gross Profit £40000 Rent (£10000) Rates ( £5000) Advertising (£500) Wages - Insurance (£500) Stationery (£500) Interest - Cleaning (£1000) Clothing (£200) Travel (£800) Gas Water Elec (£500) Telephone (£600) Professional Fees (£400) TOTAL OVERHEADS (£20000) Net Profit £20000

The Village Store Turnover needed = £200,000 50 weeks a year = £4000 per week 7 days a week = £571 per day 8 hours a day = £71 per hour /12 = £5.90 every 5 mins Average spend = £3.50 per customer 1.7 customers every 5 mins

Market Research Secondary Research Primary Research Interviews Newspaper articles Company reports Government statistics Market Reports Keynote Internet Primary Research Interviews Observation Street survey Questionnaire Focus group Test trading

Business Structures Sole Trader Partnership Limited Company HMRC www.hmrc.gov.uk 08459 15 45 15 Companies House www.companies-house.gov.uk 0870 33 33 636

Business names Business names

Business names Avoid names that are too specific/general Unless you are sure they will work if the business expands or diversifies Avoid similarities with existing businesses You may lose (or gain) business if people are confused Avoid trendy names, jokes and slang They could offend or undermine your reputation or credibility

Also consider……. Does your name conflict with any registered trade marks? www.ipo.gov.uk Check availability of domain names www.123reg.co.uk or ww.netnames.co.uk www.start.biz

Running your own business What responsibilities will you have ? Finance Health & Safety Insurance Legislation Licences & Permissions Accounts & Administration

Thank you…… www.enterpriseforlondon.com /