session 5: competitors and organisational and legal structure
DESCRIPTION
SESSION 5: Competitors and Organisational and legal structure. TOPICS COVERED Participants will produce a formal business plan that will include a component of each of the following: Week 1: Introduction Week 2: Entrepreneurship Week 3: Idea development Week 4: Marketing - PowerPoint PPT PresentationTRANSCRIPT
SESSION 5:Competitors and Organisational and legal
structure
TOPICS COVERED
Participants will produce a formal business plan that will include a component of each of the following:
Week 1: IntroductionWeek 2: EntrepreneurshipWeek 3: Idea developmentWeek 4: MarketingWeek 5: Competitors and Organisational and legal structureWeek 6: Technical developments and Risk assessmentWeek 7: FinanceWeek 8: Integrating and controlWeek 9: Guest speakersWeek 10: Summary
CONTACT DETAILS
SURGERY HOURS
On Request
Mind stretcher
• What recent competitive strategies have you seen in the market place? E.g. Tesco vs Sainsbury
Team
• You need a team!• What to check for: proven and relevant experience; diversity
of personal qualities; balanced in terms of skills and experience; mutual trust
• There will be conflict!• Invest in people, not ideas!
Importance of legal structure
• The tax and National Insurance that you pay• The records and accounts that you have to keep• Your financial liability if the business runs into
trouble• The ways your business can raise money• The way management decisions are made about the
business
Sole trader
• Advantages: independence, ease of set up and running, and all the profits go to you.
• Disadvantages: lack of support, unlimited liability, personally responsible for any debts run up by your business.
Partnership
• Advantages: ease of set up and running, range of skills and experience that the partners can bring to the business.
• Negatives: disagreements between partners, personally responsible for any debts that the business runs up.
Limited liability partnership (LLP)
• Advantages: retain the flexibility of a partnership, personal liability is limited, no restriction on the number of members, but at least two must be "designated members”
• Disadvantages: formation is more complex and costly
Limited liability company
• Advantages: personal financial risk will be restricted to how much you invest in the business and any guarantees you have given in order to obtain financing
• Disadvantages: a range of extra legal duties, including the maintenance of the company's public records
Franchise
• Advantages: takes advantage of the success of an established business and support networks.
• Disadvantages: freedom to manage the business is limited, pay a share of their turnover to the franchiser
Competitors
• Identify competitors by name and sector• Identify their positives and negatives• What is their single most important
uniqueness• How can you compete against them?
Exercise
Who are they?
Where are they located?
What product range are they
offering customers?
What are their strengths?
What are their weaknesses?
What prices do they charge for
similar products/ services?
Questions?