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 Week 5: Competitors and Organisational and legal structure Week 6: Technical developments and Risk assessment Week 7: Finance Week 8: Integrating and control Week 9: Guest speakers Week 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?