15 Getting Started Unit 5 and 4 Elements of new business start up? Stages in set up? Main sources of finance? Elements of the production process Central role of the business plan? Q5,6,7 LC Long

Organisational Options Sole Trader – Individual own boss, private, profits, tax, unlimited liability Partnership- more ideas, simple set up, more capital, slower decision making Private LTD- 1-50, less tax, can continue under business and sue or be sued under same. Harder set up and more legal needs

Why? New idea or see a gap in the market Prefer self employment Barriers Regulations, Money, Product selection, Accountancy, Management and Marketing knowledge

Finance options Short term <1yr Overdraft, Trade Credit (slow down payments to people you own money to), Accrued expenses (expenses saved over time), Factoring ( selling your debt to other company), Invoice discounting ( discount for those who pay you quickly) Medium 1-5 yrs Medium term loans, HP (rent but soon own), Leasing (Rent)

Finance options ii Long term for expansion >5yrs Owners capital, Shares sell, use mortgage, debenture (secured L.T loan), Venture capital (Money from business people who want to invest) Government finance e.g grants Consider Risk, Cost, Tax, Plan

Key Terms Gearing means what balance of shares versus debt have you in your company. High gearing and it means you have too many loans to equity Working Capital: is money left over from C.Assets-C.Liabilities to use in the company’s day to day spending needs. Credit control: making sure your debtors pay up on time

Money Cash flow forecasts are accounting diagrams to monitor money in and out so the firm can see where deficits and surplus might arise. Companies(businesses) pay PRSI and maybe VAT, collect tax and sent it to the inspector of local taxes

Productions Options Job Production: E.g suits in Thailand. Goods to order by highly skilled people. No stock of finished products Batch Production: Repetitive, semi-skilled, automated Mass Production: continuous, stored goods e.g pens,cigs. Unskilled

Business/Marketing plan 1 Description of business and owners 2 Managemnt team 3 Market Opportunity 4 Marketing strategy 5 Product and production process 6 Financial analysis 7 Staffing

Importance of a Business Plan Get entrepreneurs focused on goals They anticipate probs and prepare solutions Impresses investors Used to control business and measure success Def: A doc which sets out objectives of the business and the strategies by which these will be achieved.

Conclusion??????????? Why set up? What finance options? Explain gearing, working capital and credit control, cash flow forecasts Explain the three types of Production What would you include in a business plan?????????????????