Starting Your Own Business by Geoff Folkes GEF Associates April 2013 (C)

Aims & Objectives: Today is aimed at assisting you to gain a clearer understanding of how to set up your own business. Our objective is to work together and explore a simple straight forward way to accomplish this. GEF Associates April 2013 (C)

Why do you want to start a business? Life-style To fulfil a dream An investment To sell To build an empire To create a franchise Can’t find suitable employment GEF Associates April 2013 (C)

Qualities required to succeed: Determination Desire to succeed Self belief Responsible Good planner Disciplined Good at making decisions Self motivated Reliable Honest Ambitious Willing to learn Have an open mind Organised Good communicator Patient GEF Associates April 2013 (C)

Market Research Primary or Field Research –Going out and observing –Talking to customers –Talking to your competitors Secondary or Desk Research –Making reference to information available(i.e. publications, internet, statistics etc.) GEF Associates April 2013 (C)

Gathering The Evidence Completed questionnaires Letters of intent Analysis of Desk Research Orders Market Research company reports Other All the above - Appendices GEF Associates April 2013 (C)

Market research The industry/sector Your potential customers Your suppliers Your competitors GEF Associates April 2013 (C)

Industry/sector How big is your market? Will your business be in a niche market? Is the sector stable, growing or emerging? GEF Associates April 2013 (C)

Potential customers Who are likely to be your potential customers? Where will you find them? What are their needs and expectations What are they prepared to pay for your product/service GEF Associates April 2013 (C)

Competition Who are the other businesses offering the same or similar product/service How much do they charge? How do they promote themselves? Identify their strengths and weaknesses GEF Associates April 2013 (C)

SWOT Analysis What are the Strengths of your product or service? Are there any Weaknesses in your product or service? Have you identified any success Opportunities? What are the Threats to success? GEF Associates April 2013 (C)

Advertising Remember no matter how good the product or service is… It will not sell itself! Offline-Online marketing GEF Associates April 2013 (C)

Marketing/Promotion Radio, television, press, PR Public Relations Website and marketing Social Networking Sales Promotions Word of mouth referrals Networking events GEF Associates April 2013 (C)

What kind of business structure? Advantages & Disadvantages: Sole Trader Partnership Limited Partnership Limited Company (Shares) Limited Company (By guarantee) Social Enterprise Co-operatives Charity GEF Associates April 2013 (C)

Sole Trader Notify HMRC of self employment Can use a business name, (National Business Register) Can have staff Sole responsibility and liability Profits are taxed at personal taxation rules GEF Associates April 2013 (C)

Partnership Joint and several liability Must have a partnership agreement in place Partnership names must be displayed High risk- same as sole trader Preferable to register as a Ltd GEF Associates April 2013 (C)

Limited liability partnership Applicable to firms of solicitors, accountants, architects etc Register at Companies House Same legal requirements as companies Not often used GEF Associates April 2013 (C)

Limited company Register with companies house (may be quicker to use a company formation online such as Brighton Company formations) Has shareholders, directors Limited liability Suitable for partners and investors GEF Associates April 2013 (C)

Limited by Guarantee Register with companies house Suitable for community orientated organisations, not for profit companies, charities, and social enterprises No shares attached to the company GEF Associates April 2013 (C)

Social Enterprises Social enterprises are businesses which exist to address social or environmental needs. Rather than maximising profit for shareholders or owners, profits are reinvested into the community or back into the business GEF Associates April 2013 (C)

Social Enterprises con’td Types of social enterprises Credit Unions Housing Associations Social Firms Community Businesses GEF Associates April 2013 (C)

Social Enterprises con’td There is no single legal form used by social enterprises A new legal structure was introduced in 2005 Community Interest Company is a bespoke legal structure designed for social enterprises with a built-in asset lock GEF Associates April 2013 (C)

Social Enterprises con’td To register a CIC, go to The Department of Business, Innovation, Skills, (BIS) However a social enterprise can also be a Company Limited by Guarantee, a Company Limited by Shares, Charites can convert GEF Associates April 2013 (C)

Do You Need Premises? Working from home Retail Unit Manufacturing Unit Office Virtual Office GEF Associates April 2013 (C)

Legal requirements Is your business subject to: Health & Safety regulations- food hygiene, environmental health Tax, VAT and National Insurance Specific registrations with certain organisations- Ofsted, Licences, GEF Associates April 2013 (C)

Insurance Public liability Employers liability Premises Goods in transit Stock, equipment, fixtures and fittings Professional indemnity GEF Associates April 2013 (C)

Personal Income Analysis How much do you need to earn from the business? How much would you like to earn from your business? How will starting a business affect you and others around you? Can you think of any disadvantages? What could go wrong? GEF Associates April 2013 (C)

Budget and resources Personal Survival Budget Start-up Costs Sales-forecast Cash-flow forecast Breakeven GEF Associates April 2013 (C)

Funding Considerations Start-up fund for young people Credit Unions Banks Friends & Family Asset Finance GEF Associates April 2013 (C)

What next? Business plan GEF Associates April 2013 (C)

Thank you! GEF Associates April 2013 (C)