Start-Up Guide
Have you got the passion, the spark, an idea, an invention? The John Cracknell Youth Enterprise Bank is here to guide you along the way, we're here to support you every step on the road to success. In this guide we have highlighted some of the aspects you will need to consider when starting a business, as well as throwing in some helpful hints from Hull based young entrepreneurs who have been there and made the mistakes – so you don't have to!
We all know how difficult it can be to find work/employment in the current economic climate, because of this more and more people are turning their hand to setting up a business. The same is no different with young people. There are many issues which you may face along the way, issues such as lack of finances, lack of credit history/assets, lack of experience are three main factors holding back young people.
That's where Youth Enterprise comes in. We provide the guidance and support needed to help young entrepreneurs succeed.
It won't be an easy process but with hard work and dedication you can make a real change to your life!
So, what are you waiting for? Let's get started!
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Before launching a business, it's worth thinking through your ideas and taking a look at YOU.
1. Do you have what it takes?
2. Can you work long hours to get your business off the ground?
3. Are you ready to make sacrifices to your social life?
4. Can you cope with a temporary drop in your income?
These are just a few situations you may face in the early stages of your business so you should be preparing yourself for these now.
Find out if you have what it takes!
Take the Youth Enterprise self assessment test
Evaluate your own skills and make judgments about whether you're ready to own your own business?
Download the test
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People who start their own business can be put into two groups. You will either be developing an existing hobby or skill into a business or you may want to start a business, but have no real idea about what you would like to do. Which group do you fall into?
If you have no clear idea of what you want to do, it is wise that you examine this further. We're here to help, give us a call on 01482 612 983 or alternatively why not speak to our resident Entrepreneur, email ask@youthenterprise.co.uk today!
When you are more confident about your idea you will need to start making more important decisions and start focusing your time on:
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writing your business plan
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researching legal requirements
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learning more about TAX & VAT
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securing finance if you need it
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planning sales & marketing techniques for your idea
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recruiting staff if you need some
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planning a website for your business
This guide will act as a reference guide helping you answer these questions and signposting you to companies for extra assistance.
Do I need a business plan?
Yes. Download our easy business plan template and get started today.
What will be your legal structure?
Business Link: Legal structures the basics.
What regulatory issues apply to your business?
Business L ink: Regulation Checklist
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Everybody setting up a business will face challenges, however there are financial and legal restrictions that apply to young people that need to be considered.
Lack of money
Unless you have your own cash to invest in your business idea you will need to find an alternative source to fund your idea. If you are aged under 18 you are legally considered to be a young person and as a result of that you cannot obtain finance from banks. We can assist in helping you find funding for your business/idea.
Mixing Work/School/College Balance
Young people are further restricted by their age. Those under 16 are regulated by when they can begin work and the number of hours they can work per week. By law all people under 16yrs MUST receive a full time education. Please refer to the table on the following page to learn more about age restrictions facing young people. Sometimes you can't do it all, whilst there are many young people who have setup their business and successfully balanced their education and their business you MUST ask yourself – can you do this?
Lack of experience
A lack of business experience is another obvious obstacle to getting your business started. You may feel insecure about talking with business people; Confused by all the business practices or feel like your ideas are not being taken seriously. Talking with people who have been in the same situation you find yourself in now is always helpful. They can give you hints and tips to deal with potential problems. Attending local business events and career days can be a great way to forge relationships with local business leaders.
EXTRA RESOURCES AVAILABLE:
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Youth Enterprise
We can help you via our associates or put you in touch with young people helped by the programme. Contact us on 01482 612983 for details. Email ask@youthenterprise.co.uk to speak to Richard, our resident entrepreneur.
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Shell LiveWIRE
This online mentor service allows you to tap into a pool of experts with specialised knowledge.
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The Prince's Trust
The Prince's Trust can put you in touch with a business mentor.
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Young Enterprise
Young Enterprise has several programmes aimed at giving young people an understanding of how business works through running their own businesses.
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Planning for success
Starting a business is a huge step. You have to have a good idea, research all the details needed to put it into operation, and be firmly convinced and dedicated in your ability to make it work.
Having it all worked out in your head is ok, but it's only when you take the time to create a written document that details all your thoughts that you realise how big the task ahead will be and what's involved in running a business. A business plan deals in facts and figures and should help to bring some reality to the situation – you're setting up a business!
A business plan is designed to help you to:
Youth Enterprise
We can help you via our associates or put you in touch with young people helped by the programme. Contact us on 01482 612983 for details. Email ask@youthenterprise.co.uk to speak to Richard, our resident entrepreneur.
Shell LiveWIRE
This online mentor service allows you to tap into a pool of experts with specialised knowledge.
The Prince's Trust
The Prince's Trust can put you in touch with a business mentor.
Young Enterprise
Young Enterprise has several programmes aimed at giving young people an understanding of how business works through running their own businesses.
Having it all worked out in your head is ok, but it's only when you take the time to create a written document that details all your thoughts that you realise how big the task ahead will be and what's involved in running a business. A business plan deals in facts and figures and should help to bring some reality to the situation – you're setting up a business!
A business plan is designed to help you to:
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Understand whether or not to go ahead with the idea.
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Determine if your idea will be a success.
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Estimate your start-up costs
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Determine how much finance you'll need to invest or finance.
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Convince lenders to fund your business.
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Know who your customers are and how you can reach them.
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Establish your competitive position in the marketplace.
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Set goals for your business and plan how you will achieve them.
Download the Youth Enterprise business plan and get started on your business idea today.
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Securing finance
Unless you have your own cash to invest in your business idea you will need to find an alternative source to fund your idea. If you are aged under 18 you are legally considered to be a young person and as a result of that you cannot obtain finance from banks. The main sources of finance available for young people are:
Under 18yrs
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Joint ventures with adults who can access finance.
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Shares
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Family loan
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Grants
Over 18yrs
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Loans
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Bank
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Overdrafts
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Credit
If you need to secure finance to help you get your business idea off the ground why not visit our funding page . Here you can learn more about local business start up grants or loans for the under 30's, including:
The John Cracknell Youth Enterprise Bank; The Princes Trust; New Entrepreneur Scholarship; Acorn Fund & Sirius.
Don't be afraid to ask! A well written business plan, along with a passionate young entrepreneur can gain funding from the many sources available. If you don't ask or apply for funding you won't get it; at the Youth Enterprise Bank even if we cannot provide funding for any reason we always advise and assist as much as possible.
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Tax & VAT
Throughout your business life you will need to pay tax. What tax you pay will differ depending on the type of business you start, whether you employ staff or need to register for VAT.
The best source of information relating to tax is available direct from HM Revenue & Customs . They have HM Revenue & Customs Advice Teams on hand to help you understand your tax responsibilities, and give you the confidence to get it right, first time.
You can also attend HMRC workshops tailored for those new to self-employment. In these workshops you can learn more about:
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Becoming self-employed
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Tax.
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National Insurance.
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VAT
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Record keeping.
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When to pay.
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How to complete your Self Assessment tax return
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When to send in your tax return
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How and when to pay your tax.
EXTRA RESOURCES AVAILABLE:
Business Link: Find out what TAX you will have to pay
Hull City Council: Business Rates
Business Link: Importing & Exporting
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Financial planning & control
To succeed in business, one of your most important tools is good maintenance of your business records with correct use of financial planning & control.
If you do your finances right and keep them up to date you can answer important questions about your business, such as:
1. Are you making money, or losing it? How much?
2. Is your business ok or are troubles lurking ahead?
3. Can you afford to buy new equipment or take on staff?
Ensuring you have a good book keeping system is the foundation on which all of this valuable financial information can be built. We have developed a few finance templates that you can use for your business. Feel free to download these templates today.
1. Business Plan
2. Personal Survival Spreadsheet
3. Cash flow Forecast
4. Profit & Loss
5. Balance Sheet
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Recruiting Staff
Recruiting an employee is a big investment for any business. When recruiting someone to work for your business, you will need to invest time, money, training, and trust in the individual to train them for the role.
If you do it right, you can move your business forward faster in a productive way; if you do it wrong, you can lose your investment of time, money, training and trust spent on that employee. You could also be subject to legal proceedings arising from unfair dismissal claims.
It's an important process with serious implications for the future of your business, and you should put in the time to examine your needs and to recruit the right way.
EXTRA RESOURCES AVAILABLE
Business Link: Recruiting Staff
HMRC: New employers
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Developing a website
Before you consider getting a website it is wise for you to consider:
1. Why do I need a web site?
2. What benefits will I gain from it?
3. How important is it to my business?
Websites can be costly depending on what you want the website to do. You may just want a simple website that lists what you do, where you are and how people can get in touch with you. Or you may want a more advanced website that allows for:
1. E-commerce – selling online
2. Forums/Communities
3. Blogs
4. Flash Technology – for videos and/or moving images
We provide free single page static websites to young people free of charge. Please contact websites@youthenterprise.co.uk
Developing websites on a low budget.
You can still have a website with little or no money.
1. Social media is your friend, use Facebook and Twitter to promote your business
2. Develop an eBay store
3. Free websites available from Microsoft
4. Get a Youth Enterprise associate to help your website.
Call us on 01482 612983 for more information.
EXTRA RESOURCES AVAILABLE
Business Link: Best practice in web design
Business Link: Get the right website for your business
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Sales & Marketing
Planning the sales and marketing to be used by your business is very important. Customers will not come to you if they don't know where you are and what you do. There are key sales and marketing questions that should be answered for every business. Below are just a few to consider.
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What's unique about your business idea?
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What will make people buy/use your business instead of someone else.
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Who is your target buyer/customer?
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Who will buy your product/service, or who do you really want to sell to?
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Who are your competitors?
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Where they are located, what do they sell, are they cheaper or more expensive than you?
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What messages do you want to communicate to your target audience/customers?
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How do you cater to the needs of your customers?
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How do you plan to sell to your customers?
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Will you do this online, from a shop, door to door?
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How will they know who you are, where you are, what you are selling?
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What methods of advertising will you use? Newspapers/Magazines?
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Networking & Mentoring
Did you know that you may be networking and not even know it? If you have a Facebook or Twitter, you are already taking part in social networking.
In business the same networking principles apply. The difference is that most introductions will be done face to face rather than over the internet. You need to meet people for them to be reassured in you & your business. It also helps YOU to learn more about your customers.
The networking & mentoring opportunities available in Hull are:
Youth Enterprise
We can help you via our associates or put you in touch with young people helped by the programme. Contact us on 01482 612983 for details.
Shell LiveWIRE
This online mentor service allows you to tap into a pool of experts with specialised knowledge. Requires registration.
The Prince's Trust
The Prince's Trust can put you in touch with a business mentor.
Young Enterprise
Young Enterprise has several programmes aimed at giving young people an understanding of how business works through running their own businesses.
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Business Startup Checklist
The final step before developing your plan is the pre-business checklist. You should be able to tick these points to show you have examined the issue and know what they involve for your business:
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