Enterprise lecture - 'Don't just get a job!'

Starting a business (Become a freelance creative)


Why you should start a business - 'Bongoboy' Johnney Cupcakes (t-shirt factory)
itsbongoboy.com
Never taken classes in any criteria before creating business.
"Nows a time to start a business, no time like the present.'







Collaborated with Disney and Warner Bros
Is passionate, wants best for business. Decided not to sell work within chain stores, kept work as 'one off'. 4Ps. Talks of products, price, promotion and place. Tee shirts, regular and limited edition, USA tour and fantasy bakery 'on steroids'.
Risk. Take a chance, learn from mistakes.
Overseas trades, recognises needs for this. To open a store in London?




Getting started.
Mark Bolton - web designer.
' They thing it takes luck, a clever idea of just knowing the right people. Thats not true, It's about you.'


www.growingbusiness.co.uk


- Do what you love
- Start business while your still a student or still employed
- Don't do it alone - Feed off other people and collaborate. 
- Write a business plan
- Do the research
- Get professional help
- Get legal and tax issues right first time


Come up with a good business idea
Write a business plan
Choose a winning name for your business
Choose a legal status for your business
Register your business name


Bytstart.co.uk
Betterbusiness.co.uk


Why are you starting a business?
- Company structure
- Skills
- Funding
- Competition 
- Market place
- Network
- Business plan
- Staff
- See professional advice
- Biggest causes of failure




What is a business plan
'A business plan is a written statement of your business; what you want to achieve with it and how you will do that.'

• Activity and skills required, missions and values
• resources and equipment needed (overheads)
• Marketing, 4P's and your competitors
• Money, finance needed, budgeting, money management systems

WHat are you going to do?

What is the value proposition?

What resources you need?

How much it will cost to get it started?

How will you pay for it?

Who are your target customers?

Why do we need a business plan?

• To focus your efforts
• Set some clear objectives
• To enable you to track your growth
• To raise finance
• Attract collaborators

freelanceuk.com

Where to find a business plan

- A high street bank

- The arts council

- How write a business plan - businessball.com

- www.businesslink.gov.uk

Where to find the funding

- By helping others to get grants

- Crowd funding - Websites offering you to publicise projects, for people to invest 'wedidthis' fuinding website

- We did this - Funding website

- Start a Cooperative. 

How do we get organised?

Work alone, in a tema, as an equal partner to others, as an employee in an organisation?

Meredith Belbin

' A teams is not a bunch of people with job titles, but a congregation of individuals, each of whom has a role that is understood by other members.'

- Action - Completer finisher

- Social - Co-ordinator

- Thinking - Monitor evaluator

- Action - Implementer

- Social - Resource investigator

- Thinking - Plant

- Action - Shaper

- Social - Team worker

- Thinking - Specialist

Charles Handy (1985)

- power culture - Small business with one boss. e.g family restaurant 

- Task culture - Group of people which come together to organise a project, a temporary 'thing', collaborators, a team of workers to achieve project.

- Role culture - Large organisations. E.g - LCA, triangle like senior management,  Head > deputy head etc

- Person Culture - e.g dental practise. 4 dentists, with own clients, own way of working. Need receptionists, cleaners, dental nurses, to keep place running.

How will you organise your practise

- What skills do you need to get the job done?

- Will you work alone?

- Will you be more productive if you work as a team?

Income streams

- Private commissions

- Freelance design work

- Workshops

- Part time teaching

- Royalties from book sales

- Professionals seminars

Why I started a business

Case study - Amazon - Jeff Bezos

What type of company?

Status determined by - What you choose to do with your profits

• Profitable growth of business
• Increasing income for the people in the business
• have just enough money to be able to continue practising
• Share the profits with everyone in the business
• Give all profits to charity
• Use profits to fund community projects
• Share profits with customers / members

A list of legal types

• Sole trader
• Partnership
• Limited comapny
• Limited liability partnership
• Public limited company
• Social enterprise

Determines how the business is run

What records must be kept

Whether you should be registered with companies house or not

How much tax you pay

How You pay your employees and yourself

Useful links

Business link

Companies house

Social enterprise coalition 

Co-operatives

Taxation in the UK

This is the money that educates us, protects us, keeps us healthy and enables economic growth. 

Personal taxation rates

Tax bands

0 - 35,000 - 20%

35,001 - 150,000  40%

Over 150,000 - 50%

Applies to self employed, sole traders and employees

NIC's

National insurance contributions

Class 2 (self employed) weekly - £2.50

Or monthly direct debit

Class 4 (self employed) Collected aunually on tax return

9% of profits up to £42,475

+2% over £42, 475

Class 1 (paid on behalf of employees) 3.7%

Sole trader obligations

• Keep records safe
• Seperate personal from business expenses
• Private and business use of car
• NIC _ £2.30 oer week + 8% profits at year end
• Inform inland revenue - thinking of starting a business
• Self assessment tax return - Jan 31st

Partnership

• Run by tow or more people
• Share of profits
• Share of debts
• Share need not to be equal shares

Limited company

• Directors and shareholders liability for debts is limited to their % of ownership
• Your are an employee of the company
• Corporation tax will be paid on profits

Limited company obligations


AGMs to recieve and approve accounts
Annual return to companies house
At least two employees 
e.g - Plumbers, nail artist, bands


Corporation tax

• Turnover of less that £300,000

Value Added Tax

- 20% on all goods and services

- 5% on

Children's car seats

Some property renovations

Insulation

Gas and elec

etc

Zero rated 

Advertsiing for charities

Some protective workwear

Food, other than takeaways

Exempt

- Admission charges

- Building sales and rental

- Burial and cremation

- Sight tests

- Health services

- Tolls

- Postal services

VAT Threshholds

If your annual turnover exceeds £70,000 you must register to collect and claim VAT