'Starting a Business - the basics' - Business in Focus presentation slides

1. Julie Walters BA(hons)
Business Adviser, Business in Focus
Starting your own
Business
The basics

2. 0870 950 90 90 www.businessinfocus.co.uk
Business in Focus – who are we?
• Business support company dedicated to helping
businesses to start and grow
• Formed in 1983
• Part-funded through Welsh Government
• Most services at no cost at point of delivery
• 2 offices in Swansea –Fforestfach & DTC

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Who am I?
• Business Adviser with Business in Focus
• Self Employed for 20 years in my own
consultancy – online business and face to face
raising of funds. Owned a managed workshop
• Management accountant for a large plastic
recycling firm and a Waste transfer station
• Currently Studying a Masters in ICT and
Leadership

4. Some Statistics
• 526,446 businesses were registered with Companies
House in 2013, beating the 484,224 businesses
recorded in 2012, and 440,600 in 2011. The number of
active business in the UK has reached 2.82m,
• 95% of all businesses are micro-businesses
less than 10 employees
• ⅓ of new businesses fail in 1st year
• Improved survival rate for those that seek support and
guidance

5. 0870 950 90 90 www.businessinfocus.co.uk
The Reality
Starting a Business – The Basics
Advantages
Financial
rewards
Personal
satisfaction
Freedom Sense of
achievement
Flexibility Being in control
Rising to the
challenge
Job security
Disadvantages
Long unsociable
hours
Financial
pressure
Stress Responsibility
24/7 – no escape Fluctuating
income
Juggling
everything
Facing the
unknown

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Developing my business
idea
• Use your skills
• Spot a gap in the market
• Turn a hobby into a business
• Buy in a product
• Create a product or service
• Take up a franchise
• Buy an existing business
THINK HOW YOU CAN DEVELOP YOUR BUSINESS
Starting a Business – The Basics

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• Key ingredients to start your own business?
The idea Customers Suppliers
Finance
Location
The Business Plan
legalLegal
Starting your own business – the
vital ingredients - MAIR

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The business plan
• A written business plan sets out broadly:
– What you are going to do (Business idea)
– How you are going to do it (Sales/Marketing)
– Where you are going to do it (Legal status)
– What you want to achieve (Products/Service)
– When you are going to do it (Forecasts)

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Your business idea
• Have you clearly defined your proposal?
• Will your idea translate into a viable business?
• What do you know about your competitors?
• How are you different from the competition?
• There is always going to be competition !!

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Legal issues to consider
• Legal structure of your business venture
• Taxation, National Insurance & Value Added Tax
• Licences
• Various Insurances

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Legal status of your business cont.
Options
• Sole Trader
• Partnership
• Limited Company (Shares/Guarantee)
• Limited Liability Partnership (LLP)
• Co-operative/ Social Enterprise

12. It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• Sole Trader
 One person is the owner
 You can employ others
 No business registration
 Keeping records and
accounts is straight-forward
 You keep all the profits
 You are personally
responsible
 Fewer social security
benefits

13. It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• Partnership
 Two or more people own
the business
 Working with someone who
is equally involved in the
business
 Partners have no
financial protection
 Jointly and Severally
Liable
 One partner can make
commitments of behalf of
the partnership

14. It’s the law:
Choosing your legal status
Starting and Growing a Profitable Business – Starting Up : Taking The Plunge
• Limited Company
 Business is a separate
legal entity
 Company’s finances are
separate from the owners
 You are not liable for the
company’s debts
 Must be registered with
Companies House
 Tax advantages; access to
finance, etc.
 Strict requirements on
registration, record
keeping and submission
of accounts
 Profits belong to the
company

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My Customers
– Who are your customers going to be?
– Where do they buy from at present?
– Why do they buy?
– When do they buy?
– More importantly why will they buy from you?

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Suppliers
• Do you have suppliers in place?
• Do you know what levels of stock you will require?
• Do you know what terms your suppliers will
require for payment?
• Where will you keep your stock?
• Example – Figurine client

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Location
• Where will your business be run from?
• Is this the right location for the sort of business
you want?
• Do you need premises?
• Do you know the complete cost of occupation?
• Is working from home a viable option?
• Business in Focus property portfolio

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Finance & money
• Do you know how much it will cost to set up your
business?
• Will you be investing your own money into the
business?
• Will you need to borrow money to commence?
• Are you aware of sources of finance / grants?
• Have you worked out your minimum survival
income?

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Types of Finance
• Loans
• Grants
• Your own money
• Equity/ Venture Capital
• Factoring
• Asset Finance

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Your own money
• The best way to fund a project if you can is to use
your own savings and funds i.e no debt
• Best way to get through University would be no
student finance –
• Reality!
• We don’t all have £ under the bed – so we have
to rely on others
• Important to show commitment

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Grants
• Next best thing to own money is free money that
is not yours!
• Why is this the next best thing?
• How long to get a grant
• Spend and then reclaim
“A tiny amount of money can start an empire”
Richard Branson

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Grants – different types
• Grant funding
– Technology - TSB
– Waste Recycling
WRAP
– Welsh office
– Tourism
– Young people
– Training grants
• Mainly government
funds in the
economy to boost
business and kick
start the economy
• Dragon Innovation
Partnership

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Training Grants
• Support is available for training and recruitment
and includes the following schemes
• Jobs Growth Wales (18 to 24 year olds)
• Skills Growth Wales
• Go Wales (Graduates)
• Workforce Development
• ReAct

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Loans
• Bank Loans – business or personal
• Government backed loans – Enterprise Finance
Guarantee Scheme
• Princes Trust
• Start up loan company
• A4e Loan funds
• Finance Wales / CDFI Loans

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Campari principles of good
Lending
• Character
• Ability
• Margin
• Purpose
• Amount
• Repayment
• Insurance

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Asset Finance and Factoring
• Two types of lending
• One secured against a fixed asset – normally a
vehicle or a piece of equipment (tends to be short
term max 3-5 years high interest)
• The other against the debtor book.
• Factoring vs Confidential Invoice Discounting

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Venture capital
• In addition to the owners’ cash equity in a
business, two forms of venture capital are
available:
 Institutional Venture Capital
 Private (Business Angel) Venture Capital
 Example – If I invested in your business – IT’S
PERSONAL

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Who can Business in Focus help?
• Anyone thinking about setting up a new business
(Pre-start contract)
• Anyone running an existing business (Post-start
contract) either via Business in Focus or Business
Wales

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DID YOU
?KNOW

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Life is about…

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Listening to your
heart
Taking calculated risks
Creating Value
Realising your
aspirations ……….

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So is
Entrepreneurship

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Why
are
Entrepreneurs
Unique ??

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Some defined their lives..

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Some changed the world…

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Some are in school…

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Anshul Samar
Age: 13
Does homework regularly
Plays computer games
Fights with his sister

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…also an entrepreneur
Anshul Samar
CEO, Elementeo
www.elementeo.com

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Some are in college…

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Mark Zuckerberg
Age: 22
Hangs out with girl friends
Stays in a rented apartment
Drives a cycle

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…also an entrepreneur
Mark Zuckerberg
CEO, Facebook
www.facebook.com

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Some sold rubbish…
Still became millionaires…

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Szaky
Age: 23
CEO, TerraCycle (www.terracycle.net)
Selling Plantfood taken from rubbish
Revenue: ~$5 million

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Some started at Home …

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Jared Isaacman
Age: 22
CEO, United Bank Card
Revenue: $58 million
Manages 45,000 clients daily

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So what
NeXt ??

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Do You Want To Join
elite league
of
Entrepreneurs ??
the
If so..

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Keep
‘em
Open

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Plan
Organis

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Or
Else.. Join the league ofDSMJFY*
or
NJOG*
DSMJFY: Doing the
same monotonous job
for years.
NJOG: No Job only
gaming

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Business in Focus
Committed to your future

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Presentation by:
Julie Walters
Business in Focus