1. Welcome to ……
First Steps to Start Up

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

3. 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!

4. 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?

5. 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. 6
advice
property
finance
training 6 6

7. 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

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

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

10. 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

11. 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
/ = £5.90 every 5 mins
Average spend = £3.50 per customer
1.7 customers every 5 mins

13. 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

18. Business Structures Sole Trader Partnership Limited Company HMRC
Companies House

21. Business names
Business names

22. 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

23. Also consider…….
Does your name conflict with any registered trade marks?
Check availability of domain names
or ww.netnames.co.uk

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

25. Thank you…… /