Enterprise - lecture 6 - Don't just get a job.

Johnny Cupcakes..!
Why start a business?
Have to be passionate - if you're not you won't put everything into it.

Collaborate - Disney, Warner Bros.  
Go big. aim for the top first.
4ps
Product > T-shirts
Pricing > Regular & limited editions
Promotion > US Tour
Place > Fantasy Bakery

Copyright
Marketing
Brand > Longevity > scarcity.

- Do what you love
- Start your business as a student or while you're employed
- Don't do it alone
- Write a business plan
- Do the research
- Get professional help
- Get legal and tax issues right first.

> Come up with a good business idea first 
-Why you're starting a business
- Company structure
- Skills
- Funding
- Competition
- Marketplace
- Business plan
- Staff
- Professional advice
- Biggest cause of failure? find out what it is

Find out 
- what you're going to do
- what is the value proposition
- what resources you will need
- how much will it cost to start
- how will you pay for it
- who are your target customers

But why do we need one?
> to focus your efforts
> get some clear objectives
> enable you to track your growth
> to raise finance
> attract collaborations

www.freelanceuk.com

Where to find a business plan...
> a high street bank
> the arts council (social enterprise)

www.businessballs.com
} writing a business plan
www.businesslink.gov.uk

Finding Funding.
- By helping others to get grants
- Crowd funding
- we did this - funding website
- co-operative

Meredith Belbin 
Team management author

Action
Completer
finisher

Implementer

Sharper

Social
Co-ordinator

Resource
investigator

Teamworker

Thinking
Monitor
Evaluation

Plant

Specialist

Power culture   |     Role culture
Task culture      |    Person culture


Power > family restaurant
               Mafia family
               buddy (cake boss)
Role > Large organisations
           LCA > principal
                    > Departments
                    > Support structure
Task/Matrix >  Group coming together
                           Temporary
                           Hollywood. Film 
                           Freelancers all coming together
                           One project
                           No heirarchy
Person >  Key people
                 supporting people        } dental practice.

What you need to get the job done?
Income Streams
- private commissions
- free lance design work
- workshops                                           }     slow build > long burn
  part-time teaching
- Royalties from book sales
- Professional seminars.

Status is determined by
> what you do with the profits
Legal status
- Sole trader
- Partnership
- Limited Company
- Limited liability partnership

Choosing the wrong legal status can be detrimental
> loss of trust
> Lack of investment

Business link.
Taxation
Tax allowance > £7,475
Above £35,000 > 20% tax

NICs (National Insurance Contributions)

Sole trader 
Partnership - shared profits. not necessarily equal

Limited company 
- Directors & shareholders. liability for debts is limited to their % of ownership
- You are an employee of the company
-AGMs to receive and approve accounts
- Annual return to company's house
- Need to be at least 2 employees.

> NIC payments
> Corporation tax payments
> VAT payments

Corporation tax 21% of profits > get a good accountant
Value added tax
- 20% on all goods and services
- 5% on some things.
VAT exempt
£7000 VAT threshold

Can claim back on everything you buy
not so great for creative businesses.