1. START YOUR OWN ENTERPRISE Module 6 – Welcome!
Tutor:

2. 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

3. 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

4. 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

5. REVIEW 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?
HW4: WCDI groups – discussion/feedback

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

7. 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

8. “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

9. FIXED AND VARIABLE COSTS

10. 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.

11. RAISING FINANCE/INCREASING REVENUE

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

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

14. CROWDFUNDING
SEE TABLET/WEBSITE FOR FUTHER INFORMATION

15. 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.

16. 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

17. REVIEW OF DAY

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

19. SESSION EVALUATION

20. Feedback Link