How to set myself up.

DON'T JUST GET A JOB.

In today’s climate it's a real option to set up a business

For two reasons –

One is its very competitive in the job market. People have been laid off etc.

Also because its never been easier to set up your own business.

A few decades ago it was seen as quite daunting.

Now you can just begin.

The risk is so low at graduation age.

DISCLAIMER

For the expression start a business please also read.

Become a freelance designer

Be a practicing artist

Start a collective with other creatives.

Start a creative commune in a squat.

Why would you start a business?

Issues - Be passionate about it. If you're not passionate about it you won't pour your personality into it and you won't defend it like a good business person should.

Johnny cupcakes

Talks to bongoboy.

In the following video Johnny talks to Bongoboy about how he started his business without a degree or any creative education. He mentions how he didn't want to create a generic store but instead create a store that gives customers a unique experience.

He talks about his four p's -

Product - tee shirts

price reglar and limeted edition

promotion -USA tour

Place - Fantasy bakery on steroids.

Marketing

brand

longevity

scarcity

Risk

Take a chance

learn from mistakes

Overseas trade

Is aware that he has customers overseas and is interesting in opening stores in London and New York.

They think it takes luck, a clever idea or just knowing the right people. That's not true its about you.

Things to think about when starting a business.

Leading business magazines

Starting a business -

UK growing business-

Do what you love

Start it whilst you're a student

Start it whilst employed

Don't do it alone.

Use people as much as you can (advice)

Write a business plan

Do the research

Find out what legal status you're going to operate under

and find out what taxes you would have to pay right from the start.

start your business mag -

Come up with a business idea

Write a business plan

Choose a winning name for your business

Choose a legal status for your business

Register your business

Find some small financing

Why are you starting a business?

Company structure

skills

funding

competition

market place

business plan

staff

seek professional advice

What is a business plan?

It's a statement of where it is you're trying to go

what I'm trying to achieve

how I'm going to achieve it.

It is a four part document-

LOOK ON MOODLE FOR DIAGRAM

Marketing.

How I'm going to start a business is about how i'm going to promote it

public relations

personal selling

promotions.

In short it's these things -

• 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

But why do we need one.

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

If I have one after a year i can look at the forecast I created when I started.

That way you can measure how well you are doing.

Where to find a business plan

A high street bank.

The Arts council. Some possibility that you may get a grant.

Businessballs.com

Businesslink.gov.uk great outline plan

Where am i going to get funding from?

1.By helping others to get grants (to pay your fee)- This takes a bit of lateral thinking. if you know the comm or a not for profit org that could use your expertise. Then you can go and hunt for a grant that they would apply for to get help for their website, creative imput of some sort.

2.Crowd funding-grants have been cut and because of this there are dozens of sites which are offering the opportunity to publish your project and to invite people to invest anything from 5 pounds upwards. Alot of small business are being funded this way today.

We did this - crowd funding sites. Get a really good idea from this how crowd funding works.

cooperative - 

How do we get organized?

Work alone, in a team, as an equal partner with others, as an employee in an organization.

Orginisations.

A team is not a bunch of people with job titles, but a congregation of indiviuals...

Power culture

Role culture.

Task/matrix culture


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