1. START YOUR OWN ENTERPRISE Module 5 – Welcome!
Tutor:

2. WELCOME!

3. 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

4. Handouts provided and/or online resources
COURSE ARRANGEMENTS
4.00 finish
11.15 and 2.45
Handouts provided and/or online resources
Off or silent

5. GROUP INTRODUCTIONS

6. REVIEW HOMEWORK: 1)Complete USP on Business Plan 2)Social Media – explain which social media platform is most appropriate for your business and why? 3) WCDI group discussion/feedback focusing on the above

7. SESSION AIMS: > Personal/business budgeting and cashflow forecasting for a lean business start-up model > Legal structures/compliance > Elevator pitches

8. BASIC FINANCIAL TERMS (see tablet/website 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

9. BUDGETING

10. ‘BUDGET’
An estimate of income (revenues) and expenditure (expenses) over time, reflecting a reading of future conditions and goals

11. WHY A BUDGET IS IMPORTANT
To:
limit expenditure
measure performance
plan for foreseeable adverse conditions
plan for achieving future objectives
determine future budgeting

12. CREATING A LEAN BUSINESS
Start small and grow
But make sure you actually Start!
Trial things first – then get feedback
Only add what you know your customers will pay for
Perfect is the enemy of good
It stops you doing anything until “its right”
And you don’t even know if your customers will like it!
The “Lean Start Up” by Eric Ries

13. CREATING A LEAN BUSINESS
Questions:
What could you offer NOW?
Where would you sell it?
Are you ready to listen to what your customers say?
How would you measure their response?

14. CASHFLOW FORECASTING

15. QUOTE OF THE WEEK - 1
“Business owners are often unrealistic in predicting their cashflow; they tend to overestimate income and underestimate expenses.”
Scott Allen

16. CASHFLOW FORECASTING The movement of money into and out of a business.
The cashflow projection helps to ensure that the business has enough money to survive.
Review regularly.
Do not confuse profit with cash flow!

17. SIGNS OF CASHFLOW PROBLEMS
struggling to pay wages (or yourself!)
bill arrears
lack of profit
no ‘working capital’ buffer
lack of contingency funds

18. WAYS TO IMPROVE CASH FLOW
Increase sales
Increase price
Reduce costs
Collect money faster
Pay slower
Get a loan/overdraft/more investment

19. – Business Start Up Guide
“The legal structure of your business is likely to affect the way your business can raise money and the way management decisions are made”
– Business Start Up Guide

20. LEGAL STRUCTURES see tablet/website for further information

21. MAIN BUSINESS LEGAL STRUCTURES
Sole trader
Partnership
Limited Company by shares
Limited Company by guarantee
Community Interest Company (aka CIC)

22. HOW TO DECIDE WHICH LEGAL STRUCTURE
What is the aim/purpose of my business?
What is my motivation?
What do you want to do with the profit/surplus?
How much control do you want (or are willing to sacrifice)?
How much help do you need to run the business?
How do you feel about taking financial risks?
How do you feel about company info being publicly available?

23. COMPLIANCE Things you must do when starting a business:
Notify Job Centre/DSS
Register with HMRC
Register your company (if limited company)
Register for VAT if turnover + £83,000
Other appropriate sector registrations
Get a business bank account
Get book-keeping/tax advice
Take out relevant insurance
Set up direct debits for tax , NI, business rates, utilities, VAT
Keep strict records of income and outgoings
Ensure business registration details on all public correspondence

24. 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.

25. HOMEWORK: Individual homework:
HW1: To research the specific regulations on food hygiene, health & safety, waste management, trading licenses.
May use the following link:
HW2: To have a look at the various company types and choose which may be appropriate for their business idea?
HW3: Work out the 5 most expensive items you NEED to start up and how much they might cost?
Group homework:
HW4: Meet as WCDI groups to focus on the above topics
HOMEWORK:

26. REVIEW OF DAY

27. TARGETS FOR NEXT WEEK: - Key resources needed for business start up - Budget & cashflow - Fixed & variable costs - Elevator pitches - Generating income

28. SESSION EVALUATION

29. Feedback Link