webactivate "start your own business"

Thomas St John LLP

WebActivate PROGRAMME

Start Your Own Business

St

Thomas St John Business Management

AGENDA

Entrepreneurship

Business Start-Up

Budgeting

Finance

Business Planning

Thomas St John LLP

ENTREPRENEURSHIP


WebActivate Programme

Entrepreneurship

“The best time to plant a tree was 20 years ago. The

second best time is now.”

- Chinese Proverb



Entrepreneurship Is becoming Self-employed for me?

What are the traits of an entrepreneur?

Do I share any of these traits?



Entrepreneurial Traits An All-rounder

Big picture focused / Unfazed by detail

Resilience or “Bounce-Back-Ability” Ian Dowie Former Northern Ireland

Footbal payer / Crystal Palace Manager

Innovative

Courage to take risks

Optimistic

Thomas St John LLP

BUSINESS START-UP



Business Start-Up

“The beginning is the most important part of the

work.”

- Plato



Business Start-UpWhich business structure?

Sole trader

Partnership

Limited company


WebaActivate Programme


Sole trader




Partnership




Limited company



Business Start-UpOpening a business bank account

The bank will want to see:

A Certificate of Registration of Business Name

OR

A Certificate of Incorporation



Business Start-UpRegistering for Taxes

Which taxes?

Income Tax

Value Added Tax




When do I register?

Income tax

As soon as you go into business




When do I register?

VAT

In the year that you think your fee income from the business will exceed €37,500




How do I register?

VAT and Income Tax

Use form TR1 (TR2 for Limited companies)

Download from revenue.ie



Business Start-UpPaying Tax

How do I pay tax?

VAT

Income Tax




How do I pay tax?

VAT

Pay and file

Usually every 2 months




How do I pay tax?

Income Tax

Pay and file

31 October in the year following the year of

assessment

Extension to mid November if filing online through

ROS



Business Start-UpAccounting / Book-keeping

Essential records

Level of detail

Basic financial statements




Essential records

Sales

Receipts

Purchases

Payments

Time-records




Level of detail Date

Type of transaction

Party involved

Amount

Net

VAT

Gross




Basic financial statements

Profit and Loss Account

Balance Sheet



Business Start-Up

CASH!!!!!




Information you should always know:

How much is in the bank.

What you are owed by customers.

How much you owe your suppliers.

Thomas St John LLP

BUDGETING



Budgeting

“Success always comes when preparation meets

opportunity.”

- Henry Hartman



BudgetingApproaches to budgeting:

Revenue Focused Budgeting

- How much will I make if I sell this amount?

Cost Focused Budgeting

- What are my fixed costs?

- What revenue do I need to earn to cover these?



BudgetingKey terms:

- Turnover = Sales / Fees

- Direct costs = Costs directly related to the sales you

make

- Gross profit = Sales – Direct costs

- Fixed overheads = Costs that will be incurred regardless of sales levels

(e.g. Support staff, Rent, Legal costs, Accountants

costs, Utilities)



BudgetingUsing a budget:

- Regularly compare actual costs to budgeted costs

- Measure variance from budget

- Take corrective action

Thomas St John LLP

FINANCE



Finance

“A banker is a fellow who lends you his umbrella

when the sun is shining, but wants it back the

minute it begins to rain.”

- Mark Twain



FinanceTwo (maybe three) types:

- Equity

- Debt

(- Government Support)



FinanceEquity:

- Generally relies on receiving a return from business

profits, and takes the risk that a business may

make a loss.



FinanceTypes of Equity Investments:

- Seed capital (< €100,000)

- Venture capital (> €100,000)

- Development capital / Private equity (> €500,000)



FinanceSources of Equity Investment:

First round of funders:

- Family and friends

- Business contacts

- Business angels

- Government bodies:

- Enterprise Ireland

- County Enterprise Board



FinanceSources of Equity Investment:

Second Round of Funders:

- All of the previous funders

- Venture Capital Funds



FinanceDebt:

- Generally seeks a guaranteed fixed interest return

at some given time in the future.



FinanceTypes of Debt Finance:

- Bank overdraft

- Bank loan

- Mortgage over personal property

- Leasing

- Invoice discounting



FinanceSources of Debt Finances:

- Family and friends

- Business contacts

- Bank

- Credit Union



FinanceTypes of Government Support:

Back to Work Enterprise Allowance

Employment Grants

PRSI holidays for employers



FinanceTypes of Government Support:

Back to Work Enterprise Allowance

Local Social Welfare Office

File out and submit form BTW 2

Employment Grants

County Enterprise Boards

PRSI holidays for employers



Finance

YOU WILL NOT RAISE A CENT UNLESS:

- YOU ARE SEEN TO INVEST EQUITY

YOURSELF

- YOU PREPARE A REALISTIC AND

COMPREHENSIVE BUSINESS PLAN

Thomas St John LLP

BUSINESS PLANNING



Business Planning

“Victorious warriors win first then go to war.

Defeated warriors go to war first then seek to

win.”

- Sun Tzu



Business PlanningExecutive Summary

Introduction and Background

Ownership, Management and Employees

Market and Marketing Strategy

Operations

Financials

Funding Proposal

Detailed Projections

Thomas St John LLP

CONTACT

DETAILS


Jim Gilmartin FCADIRECTOR

THOMAS ST JOHN BUSINESS MANAGEMENT LTD60 Lower Baggot Street

Dublin 2

THOMAS ST JOHN LLP85 Crawford StreetLondonW1H 2HB

THOMAS ST JOHN LLC

10866 Wilshire Blvd, Suite 400Los Angeles

T: 01 602 4772M: 087 9484716E: [email protected]

CONTACT DETAILS

webactivate "start your own business"

Documents

business st page

business page

thomas st john llp business

upwhich business structure

tax page

business bank accountthe

risksoptimistic page

partnership page