So you want to start a business……. Teaching and learning material B2.1, B2.2 and B3.1 Introductions and domestic arrangements. Package prepared for each delegate that includes handouts and workbook

So you want to run a business… Aims: To give an overview of personal and legal requirements Objectives: To identify the pros and cons of self employment To consider what experience and strengths will be needed

So you want to be your own boss Who start their own business? Anyone who has.... A Positive Attitude Skills &/or Experience Organisational skills Up to date knowledge of business area Ability to cope under pressure Ability to deal with change.

So you want to be your own boss Discussion True or false? You need a lot of money to start a business. Reasons on a flipchart

Important Note Having premises can be prohibitive Have you considered: Sub-contracting? Mobile? Events – weddings, parties?

Is it right for YOU?…. Have you considered the ‘pros’ and ‘cons” You will need a Business Plan Look at Statutory Regulations What funding will you need? Is there training / advice.

Pros and Cons of self employment Irregular salary No sick or holiday pay Hours to suit YOU Terms and conditions laid out by YOU Full control of income and expenditure ALL profit kept my YOU YOU are responsible for Tax and NI Regular salary Minimum statutory sick and holiday pay Hours to suit your employer Terms and conditions laid out by your employer Control of income and expenditure by employer Profit share controlled by employer Employer handles Tax and NI

Support available There is support out there: Princes' Trust – if you are 30 or under NEA – helping you if you start from unemployed Business Wales – on going support to help business growth and development

1. Is running a business right for you? I am considering business start up because..... My personal qualities include..... My current skills include...... Questionnaire / self quiz that highlights positive / negative reasons for wanting to start a business Focus on centre idea of business – peripheral issues listed separately Family / friends. Financial if necessary. Other advisory services, e.g. Business Eye, Business in Focus Complete a SWOT based on own business idea

2. The Business Plan You – SWOT, support, time available, problems Marketing and Advertising Financing – start up, income, outgoing Contingency Plans . Working through the sections of the business plan – not completing it now but becoming aware of the requirements, why a business plan is needed, what info must be included

3. Statutory Requirements Inland Revenue – tax, national insurance VAT Public Liability / Professional Indemnity Insurance / product liability Health & Safety Limited / Sole trader / Partnership. Introduction to the ‘officialdom’. How these departments and people will affect our business and why we must work with them Must register as self employed within 3 months Must register for VAT if turnover is expected to exceed £73,000 per annum Public liability – usually about £100, covers for accidents caused by working practice Professional indemnity – H&S must meet legal requirements – ignorance no defence, research own industry. Must provide policy if 5 or more employees.

How to access necessary funding? How to source funding? What businesses will attract funding?. How the business can be funded, Are there any grants available/loans. What will be needed to convince funders that your business is worth their risk

5. Advice and Training Training courses available and how to take advantage of them On-going help and advice Networking groups. Training courses that are available – free and costed. Eg Inland Revenue, Business in Focus, Newport and Gwent Enterprise. Business support agencies

Summary Is self employment right for you? The Business Plan Statutory Regulations Funding Available training / advice.

You need to consider: Explore The Business Idea Start Your Market Research Build Credibility & Promote Word of Mouth Recommendations Why would people buy from you and not the established competition? The more you know about who your competitors are, the easier it will be for you to find what is unique about your business.. Someone else’s- a bought, borrowed or adapted idea. The personal- an idea based on what you know/what you have learnt to do. The inventive- a genuinely new concept. Finding out about your competitors and potential customers. Assessing if your product/service is in demand.

How will you market your business Leaflets Yellow pages Exhibition Establishing the unique selling point of your product/service. Deciding on the best marketing approach for your business and which marketing tools you will use. Finding the most cost effective methods of marketing. How to measure the success of your marketing. Twitter Web site Local advert Aims and objectives- flipcart Social networks Word of mouth

Business Planning Have you got the finances to start up? If not, where can you access support? Do you have a credible business idea that can support you financially? Do you know your personal survival budget?. Aims and objectives- flipcart

Business Planning The Business Plan Document Essential that a business plan is put together. This will help identify that your business is viable. Aims and objectives- flipcart

Administrative committments

Running your own business You must register with HMRC (Her Majesty’s Revenue & Customs) Registering as self employed Organising your tax and National Insurance contributions.

Managing expectations So what must you commit? Research the information to produce a viable business plan that potentially provides a sustainable business and income. Be honest and open to new ideas. , Aims and objectives- flipcart