START YOUR OWN ENTERPRISE Module 5 – Welcome!

1. START YOUR OWN ENTERPRISEModule5 – Welcome! Tutor:

2. WELCOME!

3. 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

4. COURSE ARRANGEMENTS 4.00 finish 1.00 - 1.45 11.15 and 2.45 Handouts provided and/or online resources Off or silent

5. GROUPINTRODUCTIONS

6. REVIEW HOMEWORK:1)Complete USP on Business Plan2)Social Media – explain which social media platform is most appropriate for your business and why?3) WCDI group discussion/feedback focusing on the above

7. SESSION AIMS:> Personal/business budgeting and cashflow forecasting for a lean business start-up model > Legal structures/compliance> Elevator pitches

8. BASIC FINANCIAL TERMS (see tablet/website 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

9. BUDGETING

10. ‘BUDGET’ An estimate of income (revenues) and expenditure (expenses) over time, reflecting a reading of future conditions and goals

11. WHY A BUDGET IS IMPORTANT To: • limit expenditure • measure performance • plan for foreseeable adverse conditions • plan for achieving future objectives • determine future budgeting

12. CREATING A LEAN BUSINESS • Start small and grow • But make sure you actually Start! • Trial things first – then get feedback • Only add what you know your customers will pay for • Perfect is the enemy of good • It stops you doing anything until “its right” • And you don’t even know if your customers will like it! • The “Lean Start Up” by Eric Ries

13. CREATING A LEAN BUSINESS Questions: • What could you offer NOW? • Where would you sell it? • Are you ready to listen to what your customers say? • How would you measure their response?

14. CASHFLOW FORECASTING

15. QUOTE OF THE WEEK - 1 “Business owners are often unrealistic in predicting their cashflow; they tend to overestimate income and underestimate expenses.” Scott Allen

16. CASHFLOW FORECASTING • The movement of money into and out of a business. • The cashflow projection helps to ensure that the business has enough money to survive. • Review regularly. • Do not confuse profit with cash flow!

17. SIGNS OF CASHFLOW PROBLEMS • struggling to pay wages (or yourself!) • bill arrears • lack of profit • no ‘working capital’ buffer • lack of contingency funds

18. WAYS TO IMPROVE CASH FLOW • Increase sales • Increase price • Reduce costs • Collect money faster • Pay slower • Get a loan/overdraft/more investment

19. “The legal structure of your business is likely to affect the way your business can raise money and the way management decisions are made” • – Business Start Up Guide

20. LEGAL STRUCTURES see tablet/website for further information

21. MAIN BUSINESS LEGAL STRUCTURES • Sole trader • Partnership • Limited Company by shares • Limited Company by guarantee • Community Interest Company (aka CIC)

22. HOW TO DECIDE WHICH LEGAL STRUCTURE • What is the aim/purpose of my business? • What is my motivation? • What do you want to do with the profit/surplus? • How much control do you want (or are willing to sacrifice)? • How much help do you need to run the business? • How do you feel about taking financial risks? • How do you feel about company info being publicly available?

23. COMPLIANCE Things you must do when starting a business: • Notify Job Centre/DSS • Register with HMRC • Register your company (if limited company) • Register for VAT if turnover + £83,000 • Other appropriate sector registrations • Get a business bank account • Get book-keeping/tax advice • Take out relevant insurance • Set up direct debits for tax , NI, business rates, utilities, VAT • Keep strict records of income and outgoings • Ensure business registration details on all public correspondence

24. 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.

25. HOMEWORK:

26. REVIEW OF DAY

27. TARGETS FOR NEXT WEEK:- Key resources needed for business start up- Budget & cashflow- Fixed & variable costs- Elevator pitches- Generating income

28. SESSION EVALUATION

29. Feedback Link https://www.surveymonkey.co.uk/r/SYOE_5