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NEA Business Plan - Pinnacle People

NEA Business PlanChoosing self Employment The more glamourous aspirations attached to self -employment take years of hard work and commitment to achieve. It s this realisation that provides the biggest shock to most People who decide to work for themselves. This may cast some light on why only one in three Business start-ups in the UK succeed in the first three years of Business . So, it is important to consider the following: You do everything yourself and are responsible for the day-to-day running of the Business . This may mean doing tasks that you dislike. Large salaries or income are rare in the early days. Need for personal financial investment in the Business , competition, economic fluctuations and changes in consumers may occur.

Personal Financial Planning Becoming self-employed is not a decision you should take lightly. Your future income depends on your business being viable and you need to

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Transcription of NEA Business Plan - Pinnacle People

1 NEA Business PlanChoosing self Employment The more glamourous aspirations attached to self -employment take years of hard work and commitment to achieve. It s this realisation that provides the biggest shock to most People who decide to work for themselves. This may cast some light on why only one in three Business start-ups in the UK succeed in the first three years of Business . So, it is important to consider the following: You do everything yourself and are responsible for the day-to-day running of the Business . This may mean doing tasks that you dislike. Large salaries or income are rare in the early days. Need for personal financial investment in the Business , competition, economic fluctuations and changes in consumers may occur.

2 You may need to consider having a second job to help provide a guaranteed source of income for day-to-day living costs. You need to offer a product or service for which there is a demand. You alone are accountable. Taking an unwise decision could reduce your income. Expanding too rapidly or not being quick to seize a chance might be detrimental to your Business . Working from home is most effective when you have the space and facilities to do so. If you work out of other premises, you ll have to pay rent and other overheads. It s impossible to escape some pressures, especially those that come from clients and customers, who ll often dictate your working hours.

3 By not being employed , you risk losing a range of benefits and a support infrastructure. Setbacks may impact on your confidence and profits. Be realistic and learn from your mistakes. You will have to make your own tax, pension and health insurance arrangements. That being said, many People find self -employment to be highly rewarding both personally and financially. Some of the upsides to being self - employed are: Freedom. Being your own boss. Potentially earning more money (and possibly becoming rich). Choosing your working hours. Independence. Doing something you enjoy. 2 Important things to know about starting and running your own Business 1.

4 Start by focusing on your customers Before starting up you need to know where you ll find customers, why they ll want to buy from you, and how you can make enough sales and profit to be viable. Research your market carefully. 2. Be realistic Remember, most of your potential customers are already being supplied by someone else you ll have to win customers from other businesses. You must be better than them, not just as good! 3. Pricing If your Business doesn t offer anything new or different, you ll have to compete on price. Do your sums - check and double check that you can earn a decent profit to sustain your lifestyle from your prices.

5 4. Find the right way to sell your services Find out where and how your potential customers make their purchases. Will they come to you, on-line or in a shop? Do you need to network or are you relying on recommendations? Work out and focus your attention to where most sales are likely to come from. 5. Basic advice Before setting up, you need to know what kind of legal structure you want your Business to have. These days, most start-ups are structured as limited companies, but you could choose to be a sole trader, form a partnership or limited liability partnership (LLP). An Accountant can help you decide on the best structure.

6 6. What about Tax and VAT? Go to for information on setting up a Business and tax. Remember to include your tax and insurance costs when calculating your breakeven figure. 7. Calculate your costs to set your breakeven figure: Development costs (if applicable). Variable costs such as supplies, travel costs and equipment. Fixed costs (overheads) such as rent and leases. Add your costs together to get your breakeven figure then you know how much you need to sell before you can make a profit. 38. Get the price right Start with solid research into what your competitors charge and how much People will pay. Until you re absolutely sure what your costs will be, don t just match the lowest price.

7 Be ready to change your price including putting prices up in busy times. 9. Write and refine your Business plan Create a Business plan that clearly and concisely explains your Business , your customers, how you see your Business making money and growing over the next few years. Remember, your Business plan is a living, working document. 10. Forecast your sales Make sales forecasts every month to cope with fluctuating demand. Think about the year and when will be your busy and slower times. plan for this and ensure you have money saved to cover the not so busy months. 11. Finding finance You may be able to arrange a small overdraft on your Business bank account.

8 Most People starting up use their own savings, or turn to friends or family for a loan (in which case, always agree how and when to pay them back). Get a legally binding document signed by all parties. 12. Find an accountant Find an accountant with experience of working with your kind of Business who can help you organise your finances so you can keep more of what you earn. To find a registered Chartered Accountant in England and Wales, go to 13. Be the best you can be Keep your customer happy. If you are delivering the service yourself, be sure to keep your promise and do an excellent job. Repeat Business and recommendations are crucial to all Business start-ups.

9 14. Keep one eye on the future Ensure you have a pipeline of sales and/or bookings which will bring in future income and sustain your Business . Contingency plan for the unexpected an order or booking might be cancelled; an unexpected emergency at home. Try to have a plan B ready to go, should the unexpected happen. 4 Business planning Every Business needs a set of plans which demonstrates that you have a credible, viable and sustainable Business . An important part of establishing your Business is spending time developing a series of plans that you ll need to get started. Your Business plan should provide details of how you re going to develop your Business , when you re going to do it, who s going to play a part and how you ll manage the finances.

10 The process of building your plan will also focus your mind on how your new Business will need to operate to give it the best chance of success. Writing a Business plan is one of the most important tasks you will complete when setting up your new Business . You should take time to complete your plan , carefully thinking through all aspects of how you will run your Business . Once you start getting into the detail of your plan and are realistic with what you can achieve, it will help you to verify that your Business is realistic and workable. What your NEA Business plan should include Full Description of your Business Idea - full details of your Business idea.


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