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

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.


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


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


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.)


Gathering The Evidence

• Completed questionnaires

• Letters of intent

• Analysis of Desk Research

• Orders

• Market Research company reports

• Other

All the above - Appendices


Market research

• The industry/sector

• Your potential customers

• Your suppliers

• Your competitors


Industry/sector

• How big is your market?

• Will your business be in a niche market?

• Is the sector stable, growing or emerging?


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


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


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?


Advertising

Remember no matter how good the product or service is…

It will not sell itself!

Offline-Online marketing


Marketing/Promotion

• Radio, television, press, PR

• Public Relations

• Website and email marketing

• Social Networking

• Sales Promotions

• Word of mouth referrals

• Networking events


What kind of business structure?

Advantages & Disadvantages:• Sole Trader• Partnership• Limited Partnership• Limited Company (Shares)• Limited Company (By guarantee)• Social Enterprise• Co-operatives• Charity


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


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


Limited liability partnership

• Applicable to firms of solicitors, accountants, architects etc

• Register at Companies House

• Same legal requirements as companies

• Not often used


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


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


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


Social Enterprises con’td

Types of social enterprises

• Credit Unions

• Housing Associations

• Social Firms

• Community Businesses



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



• 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


Do You Need Premises?

• Working from home

• Retail Unit

• Manufacturing Unit

• Office

• Virtual Office


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,


Insurance

• Public liability

• Employers liability

• Premises

• Goods in transit

• Stock, equipment, fixtures and fittings

• Professional indemnity


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?


Budget and resources

• Personal Survival Budget

• Start-up Costs

• Sales-forecast

• Cash-flow forecast

• Breakeven


Funding Considerations

• Start-up fund for young people 18- 30

• Credit Unions

• Banks

• Friends & Family

• Asset Finance


What next?

Business plan


Thank you!


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

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