NEW BUSINESS ENTRANTS AND

THE UNITED KINGDOM

COMPANY LAW

Presented by:

Dimabo Wolseley

• Legal Issues are paramount

•Introduction

Planning your business in readiness for your next move?

Develop and change your idea based on what you’ve found out about your customers’ needs before investing.

Deal with any problems you’ve found with your product or service, including the way you’re planning to make and sell it.

Business Plan• A good business plan template can really help you get your thoughts organized. It

can provide a guideline, so that you’re not stuck looking at a blank page trying to figure out where to start. And it can show you the general layout of a standard business plan

• What a business plan should contain;1. Company name, address and other contact details.2. Non-disclosure statement3. Table of contents4. Executive summary (easier to do after rest has been completed) to include: Summary of business, when formed etc, and what it does The objectives of the business plan The personnel involved in the business The market the business is aimed at and how much this market is worth / what %

the business expects to cover Any development plans Financial summary – showing sales in 1st year, gross profit margin, fixed costs, and Expected month of break even Funding – how much required / received so far

• 5. Business description to include:

• The business idea (what the business will be and why the legal trading format was chosen)

• Brief history of the business

• Current position

• 6. Management and personnel

• Brief description of yourself (CV in appendices may be useful) and role of key personnel,

• details of roles

• Reporting structures

• Advisers to the business

• 7. The products and services

• Description (range of products / services) include price list in appendices x Distinctions –

• why are you different?

• Products / services development strategy

8. The market

Market sector positioning

Target customers

Market research (describe how gathered, who are competitors, what is your USP)

9. Sales and marketing

Marketing strategy (how you will find customers)

Sales methods (face-to-face / internet / telesales etc)

Equipment

Business systems

Training requirements

10 OPERATIONS

PREMISES (NOW AND IN THE FUTURE) PRODUCTION FACILITIES SUPPLIERS DISTRIBUTION EQUIPMENT BUSINESS SYSTEMS TRAINING REQUIREMENTS

11 FINANCE

FINANCIAL ANALYSIS EXPLANATION OF ASSUMPTIONS USED TO PRODUCE P&L ACCOUNT

12 RISK ANALYSIS EXPLANATION OF WHAT COULD GO WRONG AND HOW YOU WOULD OVERCOME IT

13 CASH FLOW AND PROFIT AND LOSS FORECASTS DETAILED FORECASTS FOR TWELVE MONTHS SUMMARISED FORECASTS FOR YEARS 2 AND 3

14 APPENDICES

• The Law

• Company Law

• Immigration Law

• Nationality issues

• Environment

• Community

• Commerce

• Deciding when to launch your new business

• Boosting your start-up knowledge

• Deciding who you’ll sell to — and how

• Analyze your competitors

• Creating a brand

• Writing your business plan

• Registering your business

• Managing your business finances

Business Plan

Decision

Start up

Brand

Analysis

Type of Business:Sole Trader

• If you start working for yourself, you’re classed as a self-employed sole trader - even if you’ve not yet told HM Revenue and Customs (HMRC).

• As a sole trader, you run your own business as an individual. You can keep all your business’s profits after you’ve paid tax on them.

• You can employ staff. ‘Sole trader’ means you’re responsible for the business, not that you have to work alone.

• You’re personally responsible for any losses your business makes.

Limited Liability

• A limited company is an organisation that you can set up to run your business - it’s responsible in its own right for everything it does and its finances are separate to your personal finances.

• Any profit it makes is owned by the company, after it pays Corporation Tax. The company can then share its profits.

• Ownership

• Every limited company has ‘members’ - the people or organisations who own shares in the company.

• Directors are responsible for running the company. Directors often own shares, but they don’t have to.

• Legal responsibilities

• There are many legal responsibilities involved with being a director and running a limited company.

'Ordinary' business partnership• In a business partnership, you and your business partner (or

partners) personally share responsibility for your business.• You can share all your business’s profits between the partners. Each

partner pays tax on their share of the profits.• Partnerships in Scotland (known as ‘firms’) are different, and have a

‘legal personality’ separate from the individual partners.• Legal responsibilities• You’re personally responsible for your share of:• any losses your business makes• bills for things you buy for your business, like stock or equipment• You can set up a limited partnership or limited liability partnership if

you don’t want to be personally responsible for a business’ losses.• A partner doesn’t have to be an actual person. For example, a

limited company counts as a ‘legal person’, and can also be a partner in a partnership.

Finance

• Personal savings

• Loans

• Investors

• Venture capital

• Business angels

• Crowd funding

Accounting:

• Using an accounting service

• Company returns

• Annual return

• Corporations tax

• Vat

Limited partnership and limited liability partnership

• Your liability for business debt differs depending on whether you’re a limited partnership or limited liability partnership (LLP).

• You can share all the business’s profits between the partners. Each partner pays tax on their share of the profits.

• The liability for debts that can’t be paid in a limited partnership is split among partners.

• Partners’ responsibilities differ as:• ‘general’ partners can be personally liable for all the partnerships’ debts • ‘limited’ partners are only liable up to the amount they initially invest in the

business• General partners are also responsible for managing the business. • Limited liability partnerships (LLPs)• The partners in an LLP aren’t personally liable for debts the business can’t pay -

their liability is limited to the amount of money they invest in the business.• Partners’ responsibilities and share of the profits are set out in an LLP agreement.

‘Designated members’ have extra responsibilities. • Read more about how to set up and run an LLP.

Charities commission

Setting up a social enterpriseIf you want to set up a business that has social, charitable or community-based objectives, you can set up as a:•limited company•charity, or from 2013, a charitable incorporated organisation (CIO is a new legal structure for charities)•co-operative•industrial and provident society•community interest company (CIC)•sole trader or business partnership

Requirement is £5000 for start up.

FINANCE – GOVERNMENT FUNDED LOANS

Eligibility

To apply for a loan you must be:

18 years old or older when you apply

living in the UK

Additional information

Start Up Loans is a government-funded scheme that funds and mentors entrepreneurs.

You’ll have a delivery partner (assigned by the Start Up Loans Company) who will help you develop a business plan. This will be assessed and funding decided by the Start Up

Loans Company.

You’ll get a low-cost unsecured loan, business mentoring and a range of business support products if your plan is approved.

You must pay the loan back within 5 years, and you will pay a fixed rate of interest. Capital repayment holidays are available, but you must pay interest each month.

• European Social funding opportunities

• ESF Community Grants provide grants of up to £15,000 to small third sector organisations. These grants support a range of activities that help individuals in the hardest to reach communities to make progress towards or enter the labor market.

• Community Grants are managed by the Skills Funding Agency (except in London) and administered by a series of grant coordinating bodies on a regional basis, which:

• Publicize the availability of grants

• Manage application and selection processes

• Provide support to successful applicants

21st Century Business Tools

•Website

•Using web designer

•Use privacy and cookie settings

• Information Technology LawsSocial media

facebook

twitter whatsup

Conclusion• Consider starting your own business

• Questions

• Conclusion

Do

Aim

Think