Be Your Own Boss - workshop presentation

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  1. 1. Be your Own Boss Elishba ZachariahCareers Consultant
  2. 2. Objectives The key to starting a business Market Research Business Plan
  3. 3. What is the key to starting a business?You!
  4. 4. Attitude and Personality Are you a self starter? Do you enjoy taking responsibility? Are you organised? Can you sell, and accept the inevitablerejection selling involves? Does the idea of managing change excite you? Can you make decisions quickly?
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  6. 6. Reasons to start your own business Ditch the rat race and make your own way in theworld Work to the hours & deadlines you set for yourself Experiment with ideas youve always had You are the boss You earn the money Take holidays when you want to Decide who you do business with and what valuesyou representSource: WHSmith Becoming your own boss
  7. 7. RealityThere is a quantifiable gap in themarket that can sustain your business!
  8. 8. Market Research Observation Experimentation Asking Questions Make informed business decisions
  9. 9. Market Research Customer Profile Customer attitudes and requirements Competition Market size (volume and value) Market structure Environmental forces Specific considerations
  10. 10. Customer Profile Who are the buyers of your product orservices likely to be? How many will actually buy? How can you define or describe them? Where are they? How can they be located?
  11. 11. Example Offer bespoke computer software to largebusinesses Provide toys and games for children under 12years old Provide an environmentally friendly range ofpackaging materials for use in the foodindustry
  12. 12. Customer Attitudes and Requirements Why will they buy? What motivates them to buy? What particular benefits are they looking for? How do they judge value for money? How do they want to able to buy? How do they go about making buying decisions Who or what plays a part in making buyingdecisions or can influence the decisions?
  13. 13. Example Swiss watches - well made and precisionmechanical time pieces Electronics industry in Japan offered timeaccuracy at a low price (major benefit tocustomer) Today Swatch promote watches as fashionaccessories
  14. 14. Competition What is being offered at the moment and bywhom? What actually sells at the moment? How are these products being sold? Where and from whom do customers buy? What do customers think of their existingsuppliers and products and services? What would encourage them to switch?
  15. 15. Market Size (Volume and Value) How many existing and prospective buyers arethere? How often are they likely to buy? How much of each product is being sold? At what prices? Are prices very similar or widely different? Why? What price will buyers be willing to pay? How price sensitive is the market?
  16. 16. Market Structure What is a typical supply chain like materialssuppliers; manufacturers; distributionchannels; customers; end users? Who buys what from whom? How many operators are there and who arethe key players at each stage in the supplychain? At what stage of development is the market new, growing, well established, declining?
  17. 17. Mobile Phone Industry
  18. 18. Environmental Forces What factors have a influence on marketdevelopment political activity; economictrends; social issues; technologicaldevelopment; balance of supply and demand;market entry barriers; resources issues? How are these factors effecting the marketgrowth rates, trends, structurestability, customerpreferences, profitability, etc?
  19. 19. University Sector
  20. 20. Specific Considerations Are there any special regulations or standardsto meet? With what legislation must you comply?
  21. 21. Information sourcesGovernment reportsStatisticsMarket research reportsTrade magazines/web sitesBusiness directoriesPress articlesLocal ward profilesElectoral registerThe British Library/Business Link
  22. 22. Your Own Market Research Published information cannot answer all thequestions. Small businesses are specialised Collect your own relevant data:QuestionnairesInterviewsFocus groupsSocial media
  23. 23. Test Marketing Trial runs Order a small number of the products to testsales Build a prototype to show clients Provide a new service on a small scale
  24. 24. SWOT AnalysisHow well do you compare to your competitor (internalstructure)?What is the customer perception of your products/services Strengths WeaknessesMarket Research Opportunities Threats
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  26. 26. Business Plan
  27. 27. Whats your product or service? Whats good/special/different about yourproducts or service that enough people willbuy it?Is this something that you have a real passionfor?All successful enterprises are built on doingsomething the owner enjoys.
  28. 28. What does it cost to make/buyin/provide the product or service?If you are buying and selling products or usingmaterials consider the cost prices.If the main resource is your own time thenattach a cost to your labour that reflects youravailable time for the work and the wage youneed to draw.Divide your required annual wage by thenumber of work hours available to you, andthis is your notional hourly labour cost.
  29. 29. What price will the product/servicesell for? Price your products/services according towhat the market will pay, not according toyour costs. Take into account your competitors and whatthey charge and their relative quality.
  30. 30. Who will buy the product/service? Do you know your customers and market. Test your assumptions: this is a critical part of the proposition and generally benefits from more thought and research to confirm that a big enough market exists for your idea Consider your competition - what are people buying currently and why will they buy from you instead?
  31. 31. How much/many do you need to sell in a year?And how many customers do you need? Does the gross profit (the difference between costs of bought in products/labour and sales revenues) covers your/their financial needs including a living wage and other fixed costs of running the enterprise. Remember the affect of VAT on your selling prices if applicable
  32. 32. How will people know about the service/product?You need to understand whatadvertising/marketing/enquiry-generation isnecessary.There is usually a cost for generating newcustomers, especially in the early stages of anew enterprise.
  33. 33. Video Clip Tim BerryExpert Business Planner
  34. 34. ResourcesBusiness Planning and Research
  35. 35. Tax/VAT Personal allowance 7,475 Capital Allowance Scheme (hot desking/licenced office ) Research & Development Working Tax Credit Child Tax Credit VAT is paid for revenue over 68,000
  36. 36. Intellectual PropertyPatents For inventions, protecting newproducts and processesTrade marks For brands, protecting distinctivereputations vested in names and logosDesigns For appearance of articles, protectingshape and patternCopyright Creative and Artistic workseg. paintings, books, film musicOne product can be protected with many forms of IP
  37. 37. Non-disclosure Non Disclosure (or Confidentiality) agreements areuseful when disclosing information that you do notwant to be discussed with any other party or yourcompetitors. This might be if you are pitching forwork or if you are explaining the special methods youuse to create a product. They are legally binding documents which can betailored to your specification. Always ask the organisation you will be disclosing theinformation to, to read and sign the documentbefore the initial meeting takes place.
  38. 38. Intellectual Property Intellectual British Copyright Own ACID Anti Copyright in
  39. 39. Business Structure Self EmployedTo be self-employed, an individual is normally highlyskilled in a trade or has a niche product or service tooffer. Free LanceA person who sells services to employers without along term commitment. PartnershipA partnership is a type of business entity in whichpartners (owners) share with each other the profitsor losses of the business.
  40. 40. Business Structure CollaborationsCollaboration is a practice whereby individuals work togetherto a common purpose to achieve a business benefit. This iscommon practice within the creative industry. Limited Liability CompanyLimited companies exist in their own right. This means thecompanies finances are separate from the personal financesof the owner FranchisesBuying a franchise is a way of taking advantage of the successof an established business. A license is bought to use thename, products, services and management support systemsof the franchiser company.
  41. 41. Elishba Zachariah Careers