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 statement 3. Table of contents 4. 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 DecisionStart upBrandAnalysis

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.Corporation Tax 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.legal responsibilities

'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. Partnerships in Scotland 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.limited partnership or limited liability partnership 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.limited company

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 enterprise If 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)charitycharitable incorporated organisation co-operative industrial and provident society community interest company (CIC) sole trader or business partnershipsole traderbusiness 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

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Conclusion Consider starting your own business Questions Conclusion

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