Starting a New Small - Business Plan Example

B Plan & Develop SEVEN WAYS TO FIND HELP IN STARTING A BUSINESS Introduction Starting a new small business enterprise can be a challenging process involving several important factors (Business Link, 2009). By developing small and medium enterprises in the science and technology sectors in the United Kingdom, the current business challenges related to recession can be overcome (Caan, 2009). Thesis Statement: The purpose of this paper is to identify seven advantageous ways to find help in starting a business; and investigate in each case what the help consists of, who provides it, the conditions applying to it, and why it is worth knowing about. 1. East London Small Business Centre How/where to find the help: The East London Small Business Centre (ELSBC, 2009) is located in Universal House, Wentworth Street, East London. What the help consists of: ELSBC helps entrepreneurs to raise loan funds through their loan fund portfolio for new start-ups, and also for existing businesses unable to raise all their finance through high-street banks or other lenders. Up to £20.000 are provided to start-ups and up to £50,000 for growth businesses. Further help provided are: business advice, mentoring, start-up business training, business planning, access to finance, franchise advice, start-up space, Business to Business Networks, and Web presence. Who provides it: Under the leadership of the Chairman and the Chief Executive are executives who offer help in starting a new enterprise. Conditions applying to it: The client has to repay the loan within a maximum of 3 years. Why it is worth knowing about: This 31-year-old agency provides services which are free or heavily subsidised. Moreover, it provides initial and continued support to enterprises across communities in east London, to increase business sustainability, social wealth and mobility (ELSBC, 2008). To increase social wealth and mobility through the stimulat 2. Using One’s Own Money to Finance the Start-Up Business How/where to find the help: The best way to finance a new enterprise is through one’s own savings. What the help consists of: Personal savings, and sale of property or assets. Who provides it: The finance is self-provided by the entrepreneur. Conditions applying to it: There are no conditions applying to using the entreprenuer’s own finances (Business Link, 2009). Why it is worth knowing about: This is the safest and most secure method since there is no possiblity of withdrawal of assistance, as from an external source. It is also economical because payment of loan interests can be avoided. Finance from Friends and Family How/where to find the help: Investments from friends and family to support the start-up business, and outside investors who buy shares of the company. What the help consists of: Mainly funds to help the entrepreneur start the business. Who provides it: Friends and family provide financial support on easy-interest or nil-interest terms. Oustside investors provide funds through buying the company’s shares. Conditions applying to it: In the case of borrowing from family and friends, it is essential that a written agreement with terms and conditions should be prepared beforehand, to prevent misunderstandings. Outside investors share in the profits if the company does well, and conversely lose their money in the event of the business failing. Why it is worth knowing about: This method is feasible when banks and other sources are not providing funds. However, the amount should not be exhorbitant, since it would place unnecessary stress on the entrepreneur for returning the amount borrowed (Business Link, 2009). 3. Bank Finance to Start Small Business How/where to find the help: HSBC (Hong Kong and Shanghai Banking Corporation) Bank loan facility is available for starting small businesses; and can be applied online. What the help consists of: Bank loans and overdrafts can be availed of by the entrepreneur, to financially support his business. Who provides it: HSBC Bank Small Business Loan department. Conditions applying to it: After drawing the loan, the entrepreneur can start repaying the amount after one month, or after three months. The repayment term is 1 year to 10 years, with a fixed interest rate. At opening, there is a £100 fee at competitive rate. “As with all business finance, interest can be offset against tax liabilities” (HSBC, 2009). Why it is worth knowing about: The loan is safe from fraud, interest rates for the various loan sums are moderate, and the durations for repayment are adequate. 5. The Prince’s Trust Grants How/where to find the help: The Prince’s Trust Head Office, Park Square East, London. Details are available at the Website (Prince’s Trust, 2009) for application online. What the help consists of: Besides start up funding, other facilities available are: business skills training, business planning support, ongoing support from a mentor, and free legal helpline sponsored by Barclays. Also available are other free and discounted services and products such as a set of twelve guides and a planning pack. Who provides it: Those entrepreneurs who sign up for the Business Programme, are given various support offers by the following: Mr. Site, Contact Star, WinWeb, KashFlow, icomplete, Barclays, SOS Search Office Space Worldwide, RDC and Dulux Decorator Centres at kayleigh.donelan@princes-trust.org.uk. (P Trust Support, 2009). Conditions applying to it: The applications for start-up funding are assessed on criteria related to perceived risk, business viability and individual need. Eligible are: U.K. residents between the ages of 18 to 30 years, unemployed or working less than 16 hours per week, and should have a viable business idea. Why it is worth knowing about: Though the maxumun amount of £250 is the value of the grant, several allied assistance for starting a new business are provided, including carrying out market research projects to determine the demand for product or services, and the availabity of grants for all types of business (Prince’s Trust, 2009). 6. Start-Up Insurance How/where to find the help: Online business insurance at Hiscox (2009), and at the office in Glasgow, given in the Website. What the help consists of: Professional advice on public liability, employers liability, professional indemnity insurance, and director’s insurance. Other types of business insurance are for equipment, buildings, contents, motor and legal expenses (bytestart.co.uk, 2009). Who provides it: At Hiscox, one of U.K.’s leading insurers of professionals, the Website provides ample online facilities for getting quotes and choosing the business products that one needs insurance for. Conditions applying to it: If the automated decision making process results in not accepting the proposal for insurance, then it is taken up by officials at Hiscox for decision making. Only U.K. registered companies are eligible (Hiscox, 2009). Why it is worth knowing about: The variety of insurance services available covers almost all requirements for starting a small business. 7. Recruitment and Employment of People How/where to find the help: BusinessLink Recruitment (2009) Website. What the help consists of: Information on recruiting staff, pay and pensions, management of staff, improving staff performance and tackling various problems and incidents (BusinessLink Recruitment, 2009). Similarly, information on insurance, taxes and returns are also available at the Website, for start-up businesses. Who provides it: The Website provides interactive tools, checklists and information. Conditions applying to it: No specific conditions are given at the Website. Why it is worth knowing about: The main benefit is the extremely comprehensive information available on all aspects of starting a new business. The Website is easily navigable, and all the dealings can be carried out in an interactive manner. Conclusion This paper has highlighted seven advantageous ways to find help in starting a new business, which include: East London Small Business Centre, Self-financing, Assistance from family and friends, HSBC Bank finance and the Prince’s Trust Grants, for obtaining financial assistance. Further, help for start-up insurance and for recruitment and employment of people have been identified respectively from Hiscox (2009) and BusinessLink Recruitment (2009). References Business Link. (2009). Are you ready to start up? Practical Advice for Business. Retrieved on 29th July, 2009 from: http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1073858805&r.lc=en&r.l2=1073859137&topicId=1075215800 BusinessLink Recruitment. (2009). Employing people. Practical Advice for Business. Retrieved on 30th July, 2009 from: http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858787&furlname=employingpeople&furlparam=employingpeople&ref=http%3A//www.bytestart.co.uk/content/legal/people/recruitment-interviewing.shtml&domain=www.businesslink.gov.uk Bytestart.co.uk. (2009). Do companies need small business insurance cover? Business Insurance. Retrieved on 30th July, 2009 from: http://www.bytestart.co.uk/content/20/20_4/small-business-insurance.shtml Caan, J. (2009). Innovative SMEs key to overcoming recession, says James Caan. SmallBusiness.co.uk. Retrieved on 29th July, 2009 from: http://www.smallbusiness.co.uk/channels/small-business-finance/news/1058277/innovative-smes-key-to-overcoming-recession-says-james-caan.thtml ELSBC (East London Small Business Centre). (2008). ELSBC Annual Review 2008. Celebrating 30 years. Retrieved on 29th July, 2009 from: http://www.goeast.org/2008AnnualReview.pdf HISCOX (2009). Small business insurance. Retrieved on 31st July, 2009 from: http://www.hiscox.co.uk/business/?s=39469849;&p=2&m=2&c=0 ESLBC (2009). East London Small Business Centre. Retrieved on 29th July, 2009 from: www.goeast.org; www.bdsbc.org HSBC (Hong Kong and Shanghai Bank). (2009). Small Business Loan. Retrieved on 30th July, 2009 from: http://www.hsbc.co.uk/1/2/business/finance-borrowing/business-loan Prince’s Trust. (2009). Helping change young lives. The Business Programme. Retrieved on 31st July, 2009 from: http://www.princes-trust.org.uk/need_help/business_start-up.aspx P. Trust Support. (2009). Support on the programme. Prince’s Trust. Retrieved on 30th July, 2009 from: http://www.princestrust.org.uk/need_help/the_business_programme/support_on_the_programme.aspx Read More