16/11/11

“It’s all About The Money”

AGENDA

Introduction

Successful Household brands

Kingsfleet Wealth

Group Session

Beatons Group

Break

Questions Time & Business Quiz

Q&A

Summary in Buzzwords

Success Stories

Contact Details and Useful Links

Introduction

• Introducing Colin and Andrew

• What are they here for today? Well hopefully their expertise will help direct you all in establishing hurdles and goals. Helping you to understand that the small steps are fundamental to achieving the long term goals.

• The purpose of today’s workshop is to take the ideas that you have come up with or have in mind regarding business start ups and try to make sense of it all.

• Hopefully you will leave with a better understanding of what is involved when looking to start your own business.

Successful businesses over the years that have become household brands...

• Colin Low – my story• From Kingsfleet

•To Kingsfleet Wealth

Introduction:

Group Session

What are your worries about starting up a business?

• For example:- where do I start?- Do I need to register the company with Companies House? - Who do I notify when setting up a company and when?

• For the next 10 minutes in groups identify and list your concerns.

• Then we will spend a further 10 minutes consolidating your ideas from each group into ONE list.

• Q&A

Knowing how to price your goods or services is vital

Introduction: • Who is Andrew Diver ?• Beatons Group – brief company overview • The role of an accountant/tax advisor in starting up a business and the importance of getting this right from the word go.

Areas of concern when starting up a new business: • Structures:• Sole Traders/Partnerships (and VAT threshold)• Banking & finance• Limited Company – Ltd Plc • Legal Risks• Employing people• Tax/NIC • Filing Obligations

Questions on Financial Ratios

•Gross profitA company purchase 500 garden chairs for £5000 on the 1st of the month.During the month it has sales to the value of £6000At the end of the month is has 200 garden chairs left in stock.What was its gross profit in the month?What was its gross profit % in the month?

•Net ProftThe same company had overheads of £2400 in the month.What was its net profit?What was its net profit % in the month?

•Break EvenAssuming its overheads are £2400 per month and the prices and costs remain as above how many garden chairs does the company need to sell to break even?

Quiz

Questions on Cash Flow/Balance Sheet

• Assuming all of these transactions were cash what would be the cash flow in the month?

• If the sales were all due for payment in the following month what would the cash flow be in the month?

• Taking the assumptions in question 1 and assuming the owner put in £7400 capital to pay for the initial stock and the first months overheads what would the Balance Sheet look like at the start of trading and at the end of month 1?

• Assuming the payment delay as in question 2 and the other assumptions as in question 3 what would the Balance Sheet look like at the start of trading and at the end of month 1?

Summary in Buzzwords

“Turnover for show, Profit for dough”

“have a plan, but planning is just guessing, be flexible to change.”

“Cash is king! you can make wonderful book profits and still

go out of business”

“operate in the right structure, it can save you thousands in taxes/NIC as

well as reduce risks”

“Constantly review, learn from your successes”

“get your pricing right, you might be working very hard only to stand still”

“test the market, don’t spend time & resource on your product only to

find there is no demand”

From Small Acorns...

• Innocent was founded by three Cambridge graduates - Richard Reed, Adam Balon and Jon Wright.

• The three were friends at St John's College, Cambridge and at the time they were working in consulting and advertising.

• They spent six months working on smoothie recipes and £500 on fruit.

• In 1998 the trio sold their drinks from a stall at a music festival in London. • People were asked to put their empty bottles in a 'yes' or 'no' bin depending on whether they thought the three should quit their jobs to make smoothies.

• Results - the 'YES' bin was full, with only three cups in the 'NO' bin

• They went to their work the next day and resigned and the three had a lucky break when Maurice Pinto, a wealthy American businessman, decided to invest £250,000.

• And now? ......as we all well know, Innocent is a household brand.

From Small Acorns...

• bet365 was founded in 2000 in a portacabin in Stoke-on-Trent by Denise Coates.

• Denise developed a sports betting platform and trading team to launch the business online in March 2001.

• The business borrowed £15 million from RBS against the family's betting shop estate which had been started by Peter Coates in 1974 and had been run by Denise Coates as Managing Director from 1995.

• bet365 sold its betting shop chain in 2005 for £40 million and paid off its loan to RBS 

• bet365 has grown into one of the world’s largest online gambling companies with its reported figures to March 2010 showing amounts wagered on Sports at £5.4 billion, revenues of £358 million, and an operating profit of £104 million.

From Small Acorns...

•The first Starbucks was opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker.

•The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. 

•The name is taken from Moby-Dick; after Pequod was rejected by one of the co-founders, the company was named after the first mate on the Pequod, Starbuck.

• Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and over 150 in Turkey.  

• In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s.

Contact Details

Colin Low IMC, APFSChartered Financial PlannerKingsfleet Wealth01206 322992www.kingsfleetwealth.co.ukEmail: colin@kingsfleetwealth.co.ukTwitter: @DedhamValeIFA

Andrew Diver CTA, ATTHead of Tax Beatons Group01394 279692www.beatons.co.ukEmail: andrew@beatons.co.ukTwitter: @BeatonsGroup

Useful Links

• www.hmrc.gov.uk• www.businesslink.gov.uk• www.startups.co.uk• www.startupdonut.co.uk

Link to this presentation: