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Becoming your own Boss !

Chris Hollands

May 13, 2014 www.riskaudit.com

www.riskaudit.com

www.riskaudit.com

Chris Hollands

Who am I ?

How am I qualified to stand here and talk to you ?

What is an entrepreneur ?

What are my interests, what do I enjoy doing ?

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WHAT DO I ENJOY ?

www.riskaudit.com

Chris Hollands

What are my skills and strengths ?

What am I qualified to do ?

What did it take to get me here ?

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STEP 1

A lot of thinking about how you want to work !

Go and work for someone else

Start your own business

Join an existing business

Working with friends and family

Drivers

Money

Responsibilities/dependents

Your personality

Time

Age www.riskaudit.com

STEP 2

What is it, exactly you want to do ?

Skills

Knowledge

Contacts

Ideas

Is there a market out there ?

What do you know about it ?

Can you dip your toe in it to test it ?

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STEP 3

Business plan

Sales – on what basis, profit margin, competition, discounts

Expenses easier to work out

Stress the results ( +30% on expense and -50% sales)

Consider seasonality

Dependence on one contract www.riskaudit.com

STOCK

As little as possible to keep you going

Cost + Funding

Storage/security

Insurance ?

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WEBSITE

Build website (what is it for ?)

Up to date

Domain name ( www.riskaudit.com

)

Payment mechanisms (Paypal/Worldpay etc)

SEO optimisation

Google analytics www.riskaudit.com

Funding

Loans

Overdrafts

Cashflow !

Tax

MONEY

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MONEY SAVERS

Virtual office

Use the WiFi in Starbucks/Costa

Travel off peak, arrange afternoon meetings

Don’t spend a lot on things you don’t need !

Internet/broadband deals

Learning to do things yourself (Powerpoint/mailshots) www.riskaudit.com

RUNNING A BUSINESS

Bank accounts

Telephone/mobile

Internet/website

Premises/Virtual office/Home

Insurance

VAT (£80,000)

Capital items (Car/PC/Tablet)

Name/Image/Stationery

Taxation www.riskaudit.com

RUNNING A BUSINESS

Accountant

Lawyer

Who will do your admin (partner/self/other)

Staff

Don’t look cheap www.riskaudit.com

RUNNING A BUSINESS

Local Chamber of Commerce

Local small business groups

Enterprise centres www.riskaudit.com

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WHY IT GOES WRONG

Leading Management Mistakes

Going into business for the wrong reasons

Advice from family and friends

Being in the wrong place at the wrong time

Entrepreneur gets worn-out and/or underestimated the time requirements

Family pressure on time and money commitments

Pride

Lack of market awareness

The entrepreneure falls in love with the product/business

Lack of financial responsibility and awareness

Lack of a clear focus

Too much money

Optimistic/Realistic/Pessimistic www.riskaudit.com

1

Major Cause

Incompetence

CAUSE OF FAILURE

Percentage of Failures

46 %

2

Unbalanced Experience or

Lack of Managerial

Experience

3

Lack of Experiences in line of goods or services

5 Neglect, fraud, disaster

30 %

11 %

1 %

Specific Pitfalls

Emotional Pricing

Living too high for the business

Nonpayment of taxes

No knowledge of pricing

Lack of planning

No knowledge of financing

No experience in record-keeping

Poor credit granting practices

Expansion too rapid

Inadequate borrowing practices

Carry inadequate inventory

No knowledge of suppliers

Wasted advertising budget www.riskaudit.com

BAD NEWS

Business with Worst Rate of Success After Fifth

Year

1 Plumbing, Heating, Air Conditioning

2 Single-Family Housing Construction

3 Grocery Stores

4 Eating Places

5 Security Brokers and Dealers

6 Local Trucking www.riskaudit.com

GOOD NEWS

Businesses with Best Rate of Success After Fifth

Year

1 Religious Organizations

2 Apartment Building Operators

3 Vegetable Crop Productions

4 Offices & Clinics of Medical Doctors

5 Child Day Care Services www.riskaudit.com

TWO THINGS TO REMEMBER

Conversations

Persistence www.riskaudit.com

THEN WHAT HAPPENS ?

You sell the business

You retire ……………………………… www.riskaudit.com

SOMEWHERE SUNNY

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Cheers !

www.riskaudit.com

10 Fenchurch Avenue, London, EC3M 5BN www.riskaudit.com

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