START YOUR OWN ENTERPRISE Module 6 – Welcome! Tutor:

GROUP AGREEMENT FOR SUCCESSFUL LEARNING : Generated during week 1 - to include: Attend all sessions on time If running late, inform Tree Shepherd office If unable to attend or leaving early, make arrangements with class colleagues to collect homework/handouts and/or access them online Contribute Complete homework tasks Respect others Eat outside of classroom, except during designated breaktimes Keep learning area clean and tidy Observe health and safety and other TS/venue policies and procedures

Handouts provided and/or online resources COURSE ARRANGEMENTS 4.00 finish 11.15 and 2.45 1.00 - 1.45 Handouts provided and/or online resources Off or silent

BASIC FINANCIAL TERMS (see tablet/website session 5 for further financial terms) BUDGET A summary of planned income and expenses COSTS Expenses in producing products or running the business, including the cost of your time FIXED COSTS Expenses incurred whether you trade/work VARIABLE COSTS Expenses which vary according to the amount of work CASHFLOW The movement of money in and out of a business REVENUE How much money you take in from sales before expenses are deducted TURNOVER Same as revenue PROFIT The surplus after you have deducted all costs from sales income

REVIEW HOMEWORK: HW1: To research the specific regulations on food hygiene, health & safety, waste management, trading licenses. May use the following link: https://www.gov.uk/licence-finder HW2: To have a look at the various company types and choose which may be appropriate for their business idea? https://www.gov.uk/set-up-business HW3: Work out the 5 most expensive items you NEED to start up and how much they might cost? HW4: WCDI groups – discussion/feedback

SESSION AIMS: - Business revenue - Fixed & variable costs - Raising finance - Elevator pitches

BASIC FINANCIAL TERMS BUDGET A summary of planned income and expenses COSTS Expenses in producing products or running the business, including the cost of your time FIXED COSTS Expenses incurred whether you trade/work VARIABLE COSTS Expenses which vary according to the amount of work CASHFLOW The movement of money in and out of a business REVENUE How much money you take in from sales before expenses are deducted TURNOVER Same as revenue PROFIT The surplus after you have deducted all costs from sales income

“Turnover is vanity. QUOTES OF THE WEEK Profit is sanity. Cash is reality!” “Money is plentiful for those who understand the simple laws which govern its acquisition” The Richest Man In Babylon ROSE FRES FAUSTO

FIXED AND VARIABLE COSTS

FIXED AND VARIABLE COSTS FIXED (INDIRECT) COSTS VARIABLE (DIRECT) COSTS Do not change over the short term. Are not affected by changes in business activity (e.g. sales). Has to be paid regardless of business activity. AKA ‘overheads’ Will change according to the level of activity in the business.

RAISING FINANCE/INCREASING REVENUE

INCREASING REVENUE 4 main ways: increase number of customers increase average size of each sale increase number of sales per customer change your prices

INCREASING REVENUE – IDEAS Complementary services Coupon programs (‘daily deals’) Bundling Licensing/royalties Rental income Internet: subscriptions advertising digital product sales affiliate commissions

CROWDFUNDING SEE TABLET/WEBSITE FOR FUTHER INFORMATION

THE ELEVATOR PITCH A brief persuasive speech to create interest in your business. Should be: interesting, memorable and to the point. Motivation – my vision and personal driver. Market – my customers. Mechanics – what and how I deliver to my customers.

HOMEWORK: Individual homework: HW 1: Calculate, using your top 5 final agreed start up items, how much start-up capital you would need. HW2: Take those figures to the WCDI group. WCDI group to challenge: Would you invest? Would others lend them money? Individuals to ask: would their group lend them money to start up? If not, why not. If yes, why? HW3: Complete the ‘start up capital’ section of your Business Plans Group homework: HW4: Meet as WCDI group to focus on the above topics

REVIEW OF DAY

TARGETS FOR NEXT WEEK: - Developing and building effective partnerships - Negotiation skills - Leadership styles - Elevator pitches

SESSION EVALUATION

Feedback Link https://www.surveymonkey.co.uk/r/SYOE_6