1. 15 Getting Started Unit 5 and 4
Elements of new business start up?
Stages in set up?
Main sources of finance?
Elements of the production process
Central role of the business plan?
Q5,6,7 LC Long

2. Organisational Options
Sole Trader – Individual own boss, private, profits, tax, unlimited liability
Partnership- more ideas, simple set up, more capital, slower decision making
Private LTD- 1-50, less tax, can continue under business and sue or be sued under same. Harder set up and more legal needs

4. Why? New idea or see a gap in the market Prefer self employment
Barriers
Regulations, Money, Product selection,
Accountancy, Management and Marketing knowledge

5. Finance options Short term <1yr
Overdraft, Trade Credit (slow down payments to people you own money to), Accrued expenses (expenses saved over time), Factoring ( selling your debt to other company), Invoice discounting ( discount for those who pay you quickly)
Medium 1-5 yrs Medium term loans, HP (rent but soon own), Leasing (Rent)

6. Finance options ii
Long term for expansion >5yrs Owners capital, Shares sell, use mortgage, debenture (secured L.T loan),
Venture capital (Money from business people who want to invest)
Government finance e.g grants
Consider Risk, Cost, Tax, Plan

7. Key Terms
Gearing means what balance of shares versus debt have you in your company. High gearing and it means you have too many loans to equity
Working Capital: is money left over from C.Assets-C.Liabilities to use in the company’s day to day spending needs.
Credit control: making sure your debtors pay up on time

8. Money
Cash flow forecasts are accounting diagrams to monitor money in and out so the firm can see where deficits and surplus might arise.
Companies(businesses) pay PRSI and maybe VAT, collect tax and sent it to the inspector of local taxes

9. Productions Options
Job Production: E.g suits in Thailand. Goods to order by highly skilled people. No stock of finished products
Batch Production: Repetitive, semi-skilled, automated
Mass Production: continuous, stored goods e.g pens,cigs. Unskilled

10. Business/Marketing plan
1 Description of business and owners
2 Managemnt team
3 Market Opportunity
4 Marketing strategy
5 Product and production process
6 Financial analysis
7 Staffing

11. Importance of a Business Plan
Get entrepreneurs focused on goals
They anticipate probs and prepare solutions
Impresses investors
Used to control business and measure success
Def: A doc which sets out objectives of the business and the strategies by which these will be achieved.

12. Conclusion??????????? Why set up? What finance options?
Explain gearing, working capital and credit control, cash flow forecasts
Explain the three types of Production
What would you include in a business plan?????????????????