Please be aware that this workshop is being
video recorded for promotional purposes.
Copyright University of Plymouth. For
permission to distribute or disseminate this
information, other than for personal use,
please request permission from
ideaschallenge@plymouth.ac.uk
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Business Planning
and Regulation
Taster Workshop
Presented by Bernard Curren
Knowledge and Innovation
Manager
www.businessideaschallenege.co.uk
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Small Business Start-up Flow Chart
The 3 C’s
Customers
Product/Services
Competitors
Environment
Capabilities
Marketing Mix
Context
Niche Target
Potential
Price
Feasibility
Distribution
Promotion
Financial Plan
Cash On-hand
Cash Flow Protection
Operations
Do
Investors
Tools
Check
Loans
Suppliers Training
Act
Work Incentives
Contingencies
Breakeven Analysis
Production Plan
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Planning and Regulation
Considerations of why we choose self employment
Business plan…why have one?
Business failure…some considerations
Legal status
Business names, trade marks, licences
Insurances , tax, VAT
Business insurance
Health and safety and employment law
Premises
Contracts - terms and conditions
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Why do we go into self
employment?
For
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Money
Working hours
Flexibility
Choice
Independence
Achievement
Power
Control
Status
Against
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Failure
Long hours 24/7
Greater responsibility
Stress
Insecurity
Hard work
Lonely
Risk
Money
Relationships
Lack of Business knowledge
Nothing else
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Advantages and Disadvantages of
Self Employment
Disadvantages
Advantages
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Be your own BOSS
Flexible hours
Choice(size colleagues etc..)
Earning potential
Decision making
Job satisfaction
Tax benefits
Plan for retirement
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Self discipline
Time management
Family and relationships
Lack of earnings
Long unsocial hours
Accurate record keeping
Personal responsibility
• No safety net (sick pay, holidays,
redundancy etc)
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What is a Business Plan? Why have
one?
Why
How
When
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Planning is about
looking to the future to
minimise risks and
maximise opportunity
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Why have a Business Plan?
A document setting out what you aim to do
(setting targets)
Reducing the risk of failure
Possibly assisting with the raising of business
finance
Make your mistakes on paper!!
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Further reasons for preparing
a Business Plan
To raise money
You know where you are going and when you have arrived!!
To cut down the risks
It forces you to deal with all aspects of the business
It reminds you why decisions were reached
It encourages realism
It allows you to ‘sell’ the business to customers
It helps to convince you and your team, landlords , backers and suppliers
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Important parts of the plan
The vision (where you are going)
Why, When, How?
The Market: Segment, Size, Trends, Customer
Profile, Competition, Suppliers and
Distribution
Financials: Sales Forecast, Cash Flow Forecast
Profit and Loss Forecast
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Business Plan
Title page
Synopsis of the plan
Background information
Form/status decision – advantages and
disadvantages
Key personnel – details in CV
Description of product/s and or service/s
Premises – location, type, size
Market research activities, findings and results
Written short, medium and long-term objectives
Marketing plan
Financial plan
Contingency plan
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The cash flow forecast
This important document helps to:
Establish
Ensure that
Encourage
the amount
capital
of money
efficient
expenditure
use of
required
is
and when it
resources
controlled
is needed
Identify any
shortfalls
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Provides
facts to
help with
decisionmaking
Reasons for Failure
Under pricing
Inadequate cash flow
Lack of capital
Over-trading
Change in market demand
Ill health
Failure to keep Bank informed
Over estimating sales
Failure to control costs
Losing control over cash
Inadequate market research
Taking unnecessary risks
Failure to meet client needs
Third party debt – major customer
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Legal Structures
Sole Trader
Partnership
Limited
Liability
Partnership
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Limited
Company
Business Names, Logos
and Licences
Regulated by Business Names Act 1985
Using your own name
Passing off
Checking for names in use
Using a trading name
Consider domain names
Trademarks
Business Registration, HMRC, Local authority, HSE
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Protecting your Ideas/ Work
COPYRIGHT:
Protection applies to any form of original work – books,
drawings photographs, technical plans, music and computer
software
Make a clear presentation of the concept or creation
Write a description
Add your name, copyright symbol (capital C in a circle ©) the
date, month, year on the original document
Post to yourself or solicitor for safekeeping – keep the receipt
Do not open the package
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Protecting your Ideas/ Work
Trademarks
Products, processes,
mechanisms and materials
Registered Designs
• Brand name
• Inventions can be patented
• New and previously undisclosed
• Involves an inventive step
• Capable of industrial application
• Relates to visual appearance, style, colour and image
• Outward appearance is the main attraction
Patents: www.patents.gov.uk
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Regulatory Compliance
Data Protection
VAT
Insurance
Licences
Health and Safety
Premises
Terms and Conditions (trading and employment)
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Data Protection Act 1998
The 8 Data Protection Principles:
Data should be:
- Fairly and lawfully processed
- Processed for limited purposes
- Adequate, relevant and not excessive
- Accurate
- Not kept longer than necessary
- Processed in accordance with the data subject’s rights
- Secure
- Not transferred to countries outside the EEA without adequate protection
Do you need to register?
Find out at: www.informationcommissioner.gov.uk
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What is VAT?
Value Added Tax
A tax on the supply within the UK of:
Goods and services
Imports and acquisitions into the UK
Charged by a taxable person/entity
In the course/furtherance of business
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What Insurance will I need?
Legal Requirements (compulsory)
• Vehicle insurance
• Employers liability if you employ people
Other forms of Insurance
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Public liability
Product liability – if you sell, repair or supply
Professional indemnity – for consultants
Goods in transit, loss of money, fire etc
Building and contents
Personal insurances – such as pensions
Health and life insurances
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Do you need a licence?
Local Authority
• Theatre, child-minding, taxi service, nightclubs, pet kennels, adult shops etc
Environmental Health Dept
• Hotels, restaurants, tattooing, massage, acupuncture, abattoirs, etc
Police
• Possession or sale of firearms, to work with children etc
Magistrates
• Sale of alcohol, betting shops, gaming etc
HM Customs & Excise
• Bureau de change, money transmission, third party cheque cashing etc
Office of Fair Trading
• Lending money, debt collection, hiring, leasing, etc
Planning Officer
• Building regulations, alterations, change of use etc
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The Law and your Business
Customer Obligation
- The Supply of Goods and Services Act
- The Sale of Goods Act
- Trade Descriptions Act
- Consumer Protection Act
- The Unfair Contract Terms Act
- Consumer Credit Acts
- Weights and Measures Acts
- Unsolicited Goods and Services Acts
- The Prices Acts
- The Goods and Drugs Act
- The Distance Selling Regulations
Expert advice can be obtained from the Trading Standards Department of
your Local Authority
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Useful websites and contacts
• Business Link: www.businesslink.gov.uk
• DTI: www.dti.gov.uk
• HM Revenue & Customs: www.hmrc.gov.uk
• Business Link Local Contact: 0845 600 9966
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To find out more about the Business Ideas
Challenge 2009/10 or to view the video
recording of this presentation visit
www.plymouth.ac.uk/bpchallenge
or if you have an enquiry please contact
ideaschallenge@plymouth.ac.uk
www.plymouth.ac.uk/bpchallenge
www.businessideaschallenege.co.uk