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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 ?

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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

8 9 10 11 12 1 2 3 4 5 6 7

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

2 Unbalanced Experience or Lack of Managerial Experience 3 Lack of Experiences in line of goods or services 5 Neglect, fraud, disaster

Percentage of Failures

46 % 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 !

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

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