Start Up Awareness Raising Seminar

Transcription

1 Start Up Awareness Raising Seminar

2 Housekeeping Toilets Fire Alarms Escape routes Time table Mobile Phones

3 Registration, Slides & Information Registration form Data Protection Forms Equal Opportunities Form Evaluation Form Confirmation of Start Copies of the slides and templates will be forwarded following the course

4 Introductions

5 Objectives Provide information on Business Gateway Help you understand the process involved in starting a business Help you find out where to seek advice Help you make the decision on whether starting up this business is right for YOU

6 Who we are? ElevatorUK Delivering Business Gateway on behalf of Aberdeen City Council & Aberdeenshire Council

7 Business Gateway Introduction Start Up Service Early Stage Growth Business Boost Growth Advisory Service Growth Pipeline

8 Business Gateway Service Business Gateway website Start up workshops Business Gateway information service Women into Business Signposting Dedicated Business Adviser

9 Adding value to your business idea Market research guides your communication with current and potential customers & helps you identify new opportunities in the market place You are two and a half times more likely to launch your business if you write a business plan A solid marketing plan doesn t just help you target the right customers, it helps you keep them too. A wide network will assist you to long term be successful WE CAN HELP

10 Schedule The Market, Marketing and Sales Legal Structure Money Matters

11 Pre-Start Considerations

12 Pre-Start Considerations How much money will you need to take out of the business on a monthly/weekly basis? How much money will you need to start the business? How much money will you require to run the business on a monthly basis? How much money do you have to put into the business, how much extra will you need? What are you offering to your customers? Who are your customers? Who are your competitors and what do they offer?

13 Your Personal Money Make a list: Mortgage/Rent Home Running Costs Social Costs Personal Car Costs Other Personal Costs

14 Start up Costs Make a List Equipment Purchases Marketing & Advertising Accountancy & Legal Premises Stock Purchases Insurance

15 Running Costs Fixed Monthly Costs (those payments which you have to make whether or not you have a customer) Rent & Rates Finance Repayments Permanent Staff Costs HLP (Heat, Light & Power) Telephone & Internet (Line Rental) Insurance Personal Money (Drawings/Wages) Variable Monthly Costs (Costs which come about following a sale) Stock Staff Wages Marketing & Promotion Travel & Motor Expenses

16 Cash Requirements Personal Cash to invest Capital/Directors Loan Personal money to invest into the business Other Sources of Funding Funding Requirements Bank Funding: Loan/Overdraft Enterprise Finance Guarantee Scheme Princes Trust Support for Aberdeenshire Businesses Start up loan Scotland Business Loan Scotland New Enterprise Allowance Scheme Crowd Fund

17

18 Research Tools Business Model Canvas The 4 C s The 7 P s SWOT Analysis

19 Business Model Canvas

20 Business Model Canvas Useful links: Strategyzer Information on the canvas Short Videos YouTube - Y&list=PLBh9h0LWoawphbpUvC1DofjagNqG1Qdf3

21

22 Market Research 4 C s

23 Market Research 7 P s

24 Market Research - SWOT

25 Research - SWOT Business SWOT Competitor SWOT Personal SW

26 For more information on Market Research why not attend the following courses: Market Research & Marketing Business Planning

27 Break

28 Legal Structure

29 Choosing the right Legal Structure

30 Legal Structure Most popular structures include: Sole Trader Partnership Limited Company (Others include Co-operative, Social Enterprise, Charity & Limited Liability partnership Ask your adviser for more information if any of these are relevant to you)

31 Sole Trader One owner Full responsibility Decision Making Independent May have employees Unlimited personal liability for all debts Less regulation Simple to set up Self Assessment - annually Support

32 Partnership Two or more parties involved Simple to set up Shared control Partnership Agreement e.g. sale of business, profit sharing, decision making Each partner has unlimited personal liability for all debts Limited Liability Partnerships

33 Limited Company The company is a separate legal entity from the owners Three roles Shareholder, Director, Employee Start up more formal - seek advice Limited liability to an extent Dividends Check if the limited company name is available to register at - Ongoing administration Confirmation Statement, Annual Accounts & TAX returns

34 Money Matters

35 Tax Facts

36 Tax Make provisions for paying Sole traders: taxed upon their profit before drawings Partnerships: each partner is taxed on their share of profits before drawings and is individually liable Companies: pay PAYE on wages paid and pay corporation tax on profits before dividends

37 Taking Money out of the Business Sole Trader & Partnership Drawings TAX paid annually Drawings can be taken weekly/monthly to suit cash flow Limited Company Wages Tax deducted & paid monthly Wages paid weekly/monthly to suit cash flow Dividends TAX paid annually Dividends can be taken monthly (check profit availability)

38 Income Tax & National Insurance for Sole Traders & Partnerships INCOME TAX AND CLASS 4 NATIONAL INSURANCE ARE CALCULATED ON PROFITS Income Tax Personal allowance 11,850 = 0% 11,850 to 13,850 = 19%, 13,851 to 24,000 = 20% 24,001 to 43,430 = 21%, 43,430 to 150,000 = 41% Over 150,000 = 46% National Insurance Pay Class 2 NI 2.95/week (paid annually) Pay Class 4 National Insurance personal allowance 8424 = 0% Next 37,926 = 9% Over 46,350 = 2% How is tax calculated and when is tax paid

39 Tax Time Line Sole traders & Partnerships

40 Tax for Limited Companies CORPORATION TAX IS PAID ON PROFITS OF THE LIMITED COMPANY Corporation TAX (Profits) 19% DIVIDEND TAX Dividend allowance Basic Rate 7.5% Higher Rate 32.5% DIVIDEND Dividends can be withdrawn after corporation TAX has been deducted e.g. 50,000 profit 19% Corporation TAX = 9,500 remaining profit available as dividends - 40,500 Depending on how much other personal income you have will depend on tax charged on dividends

41 Corporation Tax Time Line

42 VAT

43 Value Added Tax VAT VAT Threshold - 85,000 Can also choose to register under this threshold Think about your customers Different VAT Rates

44 Employees By Law you have to register with HMRC as an employer Responsible for deducting PAYE and NI at source & Paying this to the HMRC Must pay employers NI (13.8%) You must comply with employment legislation Contracts of Employment, Holiday & Sickness entitlement Auto Enrolment

45 Book Keeping Tax and VAT Financial control e.g. profit Cash Flow Satisfy creditors or to access funding Potential sale of business Keep records for inspection BG runs a bookkeeping seminar

46 Banking Try your own bank first Loans Overdraft Free Banking Subsequent Charges Ask your adviser if you want a contact within the bank

47 Insurance Consider: Home/Contents Insurance Public Liability Motor Insurance Product Liability Employers Liability Professional Indemnity Key man insurance Health Insurance Industry Specific Insurance

48 Protecting your Business Trademarks Copyright

49 Next Steps Attend the other start up workshops to give you all the tools to support in your journey and increase your chances of success Market Research & Marketing Business Planning Finance Undertake market research Business Gateway Information Service Begin writing your business plan Templates available from your adviser

50 Any Questions