Monday, 9 January 2012

Enterprise lecture 6 - Don't just get the job!

How to start a business/set yourself up.


Todays climate may have to set up as fewer opportunities and also a lot of support to set a business up.  The risk is lower.


87% of creative industries are organised with 10 or less people.


Disclaimer 


Start a business can mean become a Freelance designer, 'collective', creative commune, or practising artist



Jonny Cup cakes and Bongo boy How to start a business - YOUTUBE video
Issue discussed:


Why start a business - be passionate/ driven
Collaboration - Disney, Warner Brothers - Aim high
4 PS- Product - t shirts
Price  reguar and limted editions
Promotion - USA tour
Place - Fantasy bakery on stroids


Getting ripped off - copyright matters


Marketing
 See slide 2 for rest


Getting started


Starting a business...they think it takes luck, a clever idea or just knowing the right people. Thats not true.  Its about you.  Mark Boulton - Web Designer


Personality is important


www.growing business.co.uk - advice:



  • do what you love
  • Start your business while you are still a student or employed.
  • Don't do it alone.
  • Write a business plan
  • Do the research
  • Get pro help
  • Get legal and tax issues right first time.
www.sybmagazine.com

  • Come up with a good business idea
  • Write a business plan
  •   
  •    
  •    
www.betterbusiness.co.uk
www.bytestart.co.uk

Why are you starting a business
Company structure
Skills - Collaborate if you neeed more skills
Funding
Competation
Markeplace
Business pan
Staff
Seek profesional advise
Biggest cause of failue - find out so you can avoid

What is a business plan?

- A business plan is a written statement of where you going to go and how you are going to achieve it.

See diagram - Mission and value/ activity and skills required - what problems are you going to solve and how are you going to make things better.
Money, Financeneeded, Budgeting and money management systems

Resources and equipment needed ( Overheads)
Marketing - 4ps
Monitor your Competitors


In short - If you want to invest oney or ask for investment need to know:


What are you going to do?
What is the value proposition?
What resources you need?
How much it will cost to get it started?
How will you pay for it?
Who are you target customers?


Business plan - why we need one?

  • Focus your efforts
  • Set some clear objectives - to review in a year
  • To enable you to track your growth
  • To raise finance
  • Attract collaborators - partners  
Www.freelance.com

Where to find a business plan:
Funding?
  • By helping others to get grants - Assist Not for profit, community organisations.  Get a grant to do the work you can do i.e. Website design, branding
  • Crowd funding - Websites inviting people to invest small projects - Chose correct project website.  Need a business plan 
  • wedidthis.org.uk - Crowd funding website
  • Cooperative - Film makers, graphic designers, photographers small investment from each collaborator.
Not always one income stream

How do you get organised? 
Work alone, team, colaborate?

Organisations - Meredith Belbin - British team management author



http://www.mindtools.com/pages/article/newLDR_83.htm

Power Culture - eg Owner managed - Restaurant, family business.  Can be difficult to work in these kind of business, can be unpleasant.

Role Culture - Large organisations - hierarchies eg College, PLCs, Councils

Task/matrix culture - Collaborators/freelance come together eg Holywood making a film.,  Interior designers, Festival

Person culture - eg a dental practice - for dentist with their own clients they need shared services such as cleaners, receptionists, Solicitors, Design practice

How will you organise your practice?
What skills do you need to get the job done?

Income streams 
  • Private commissions
  • Freelance design work
  • Workshops, part time teaching
  • Royalties from book sales - subject passionate about
  • Professionals seminars
Why I started a business - video
Jeff Bozoz - No regrets staring Amazon

What status?

Legal status determines how much tax you pay - what are t=you going to do with your profits - In pocket - self employed
                        - SHare - Cooperative
                        - Charity- Social enterprise

Look at hyperlinks on power point
  
Sole trader
Partnership
Limited Company
Limited Liability Partnership 
Public Limited Company

Can determine how the business iis run
Whetehr you can get investment

Companies House
Businesslink
Social Enterprise Coalition - Not a legal status
Cooperatives Uk

Taxation in the Uk

Tax allowance £7475

tax bands
0-35000 20%
35001-150000 40%
Over 150,000 50% 

Applies to everyone


National Insurance Contributions - State pension, aspects of NHS, rescues people

Without this we would have to have private dental, medical insurance

Self employed £2.50 per week
Class 4 7000 to £42,475 pay 9%

Self employed also pay class 1 -  3.7%

Sole Trader obligations
  • Keep records safe
  • Separate personal from business expense
  • Private and business use of car
  • Responsible for any debts
Partnership
  • Run by two or more people
  • Share of profits
  • share of debts
  • share need not be equal
  • Responsible for any debts

Limited Company
Directors and shareholders liability for debts is limited to a % of ownership.
Annual meeting
Approve accounts
Register with companies house
At least two employees - Can do as sole trader and put your wife/husband as 1% shareholder.
Startup have a £10,000 tax free threshold

Liabilities
NIC payments
Corporation tax payments
VAt payments

Corporation tax 
21% ,£300,000

VAT registered

More than £70k
Charge extra 20% on all invoices to customers.
5%
Zero rated - water supplies, Food in restaurants, Passengertrasnport
Exempt -  Needs an act of parliament to change

You hav

Eye to eye: Richard Branson interview.e to register charge 20% more and can claim the VAt back on everything you buy.  No advantage if you do not buy a lot of goods.






























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