PRIME business club

Getting British Business Online, the governmnent backed-scheme that offers UK small businesses a free web site, is now live.

Partners include Google, Enterprise UK and Paypal.

You get:

A free web address: Choose from any available ‘.co.uk’ domain name.

A free web site: You build your site using an easy Wizard-type tool provided by Google, which lets you upload your own words and images.

Try it now at www.gbbo.co.uk

John asks: My colleague and I were both made redundant last year, with 25 years experience as Engineering Recruitment Consultants in London. Over the years we have both either project-managed or hands-on built/extended residential property on at least six new builds/extension projects. We have now decided to establish a business based on this and enter the property refurbishment market full time.

We are both in our 50’s with substantial equity in our own properties but having problems raising money to purchase our first project.

Having been made redundant over 6 months ago, we are unable to show earnings, which is a requirement to draw on our equity. The banks will only lend if we come up with 40 per cent - which is not possible unless we can use the equity built up! 

Any ideas? We are considered extremely competent, professional and perfectionists but not to an extent that it would affect earning levels!

Robert replies:

It’s always difficult to win over lenders, even when it’s your own equity securing the loan. Have you considered moving to one of the growing number of ‘boutique banks’ such as Handelsbanken? They delegate decision making to branch manager level and so can work around the rules that are holding back your present lender.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

Maybe friends or family who know you, like you and trust you will invest or lend you money using your property equity as collateral?

When raising finance your starting point should be a good and robust business plan.  Although it may seem tedious to provide, it will stand you in good stead when financiers are summing up your business prospects.  A good template and advice is available from www.businesslink.gov.uk. 

Your first port of call could be friends and family who would invest in a Limited Company under the Enterprise Investment Scheme (EIS). Shares can be sold to investors and 20 per cent of the investment can be claimed back against any tax liability for the tax year or previous tax year.  Therefore an investment of say £10,000 will only cost the investor £8000. Shares should be held for 3 years and if you wish you can include a buy-back option after 3 years.

If the shares lose value the loss can be set against any income and also any capital gain on another venture can be deferred if reinvested into an EIS.  You have 3 years to defer the gain. Dividends are payable in the usual way. This scheme can make it ideal for the smaller investor.

Another source of finance is the Business Angel who would purchase shares, share in any dividends and have the advantage of not charging any interest.  If you link up with a Business Angel you could be eligible to have the funds matched by the Government under the Enterprise Capital Funds Scheme.

Business Angels can often make a decision quickly without the need for complex assessments and bring valuable experience to the table. A disadvantage is that it can take months to find and track down the right investor.  Business Angels do invest individually but typically as part of a syndicate. 

You can find a BA by contacting the BBAA Association at www.bbaa.org.  The BBAA have 24 Business Angel Networks and 30 professional advisory businesses.

The government operates the Capital For Enterprise Fund providing long term capital for Companies who can demonstrate that they have exhausted borrowing capacity.  However, my experience is that the cost of providing this capital together with management fees makes it prohibitive.  There are also very stringent requirements with regard to financial provision to include extensive profit and loss and cash flow forecasting spreadsheets. 

It is always worth contacting your local Business Link to get advice and it is likely they will be aware of any local form of finance.

Lastly, I wonder if you have considered forming a partnership with an established property developer on the basis that you provide the expertise and he provides the start-up capital.

Kim asks:Stocks and Shares - is there any help with start up in this area e.g. advice, training, mentoring, please?

Robert replies:

In my experience, the most successful start-up businesses are those that add value to the life or experience of others. Most products and services can be said to do this in some way or the other.

Trading stocks and shares yourself is not a business. Trading for others is a business, but one that rightly is highly regulated. This is not the right forum to advise you on either.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:When first dipping your toes in the waters with stocks and shares it is helpful to join a local Investment Club who will advise you of what shares they feel are worthy of purchase. You will have the free advice of more experienced investors and a certain amount of mentoring. Members share magazines and literature, follow Company information and vote on Company shares to invest in. 

You might invest in a good book and I would recommend ‘Investing in Shares for Dummies’ - available from Amazon at £7.90.  You could employ the services of a Financial Advisor if you feel you don’t want to go it alone but if possible you should appoint someone recommended by a friend or colleague and preferably one whose advice is not commission linked.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Tony asks:I have patented a compact exercise machine at considerable cost that has enormous commercial potential but I need someone with the finances and expertise to have it manufactured in bulk and take this machine to market to see its full potential.  I have a working prototype to demonstrate its worthiness to any interested party. I would be happy to chat over the phone but prefer to speak face-to-face and give a demo for impact purposes.

 Robert replies:

I have a friend who develops, manufactures and markets electromechanical products. He might well be interested in this. Email me further details on robert@robertashton.co.uk

 Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

When bringing a new product to market you firstly need to be clear about what its unique selling point is and whether you have the drive, time and energy to grow the business.  You need to assess what industry knowledge you and your management team have and that should encompass selling, marketing and financial acumen as well as knowledge about the product.  You need to plug any holes in the above before you even step over the threshold.  It is also advisable to have a business plan in place and a free template is available form www.businesslink.gov.uk.  When discussing your product with other Companies you need to have in place a good non-disclosure agreement.  As you have a firm patent in place I wonder if your best course would be to contact other Companies in the health and fitness sector.

 John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Russell asks:I and some colleagues are in the process of starting a business. We are at the very early stages and would like to know what the expert views are on Partnerships (with limited liability) and Co-operatives. We all want the same from the company and we all want to have an equal input. Which option out there affords the most democratic way of doing business?

Whilst there is a lot of advice out there it would be great to have an expert’s view. For example perceptions - I often think of co-operatives as a little backwards. This is only based upon my experience of growing up in a rural area where co-operatives tended to struggle for money and therefore “relied” on others in bad times. So can a co-operative be seen as “today” enough?

Robert replies:

There are two issues here for you to consider:

1. leadership - as someone has to be the boss - even if elected to that role by equal partners in the venture
2. legal structure - and choosing the right one

Make sure you’re not failing to grasp the leadership nettle by choosing one of you to lead. Rotate leadership annually if you like, but someone needs to have the final say - however democratic the process

As for legal structures - LLP might well be the best bet but take advice from an accountant.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

Will replies:

Business is a game and all games have rules. Partnership or Co-op needs the same rules.

Things will go wrong and you will fall out!  Go through, at the start, what you are going to do when this happens.  I was in a partnership for 25+ years - believe me I know what I’m talking about.

 Will Kintish, Business networker, speaker and trainer, replies:

 
John replies:

Partnerships tend to be between small numbers of people and cooperatives often encompass larger numbers of generally local people with schemes tending to be more ‘community’ in nature.  Cooperatives therefore have the disadvantage that decision making is usually a longer process and there is more chance that there could be a conflict between member’s views. However there may be a larger pool from which to draw knowledge.  Whilst investors are less likely to withdraw finance at short notice there is also less incentive for investors to invest extra capital should the need arise.  Cooperatives also tend to limit the choice of external finance. There are however tax incentives, for example employee share schemes, although most small cooperatives would find these too expensive to run. 

Limited Liability Partnerships (LLP) can be registered simply at Companies House for a fee of £20. LLPs offer limited liability for partners to protect assets.  Therefore the main advantage is that the legal entity (the LLP), rather than individuals, is responsible for any debt that may arise.  With any partnership it is essential to have a Deed of Partnership as this will help to avoid any misunderstandings or disputes.  This would set out the amount of capital, how partners will share profits or losses and any salaries.  Also how much time each partner would devote to the business, who does what management task and which things would need a collective agreement. This agreement should also cover how any new partners can be appointed and what happens if a partner leaves or dies.   In short my own feeling is that a Limited Liability Partnership would tend to be a tighter framework from which to run the business.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

A lavish government mentoring scheme has kicked off today with expensive ads in many newspapers. For a change it’s not just spin - over 150 major companies are backing the plan to get unemployed people into work with the support of their own mentor. There is only one problem - you have to be aged under 25 to benefit.

The scheme is the latest stage of Backing Young Britain, an even larger campaign launched back in July. Initially the emphasis was on apprenticeships, work experience and internships.

The mentoring offer has only just kicked off. The main money is coming from the Department for Work and Pensions. Companies contribute volunteer mentors, who get trained for free at taxpayers’ expense.

So it’s a well-thought-out scheme. Shame there’s nothing similar for older people.

Meanwhile here at PRIME we are starting our own more modest mentoring scheme for older people thinking about going into self-employment. These programmes do cost something to run even with volunteers as you need to vet and train the mentors, and then publicise what you are doing so the right people get to hear about it.

Fortunately as a charity we’re not completely without supporters. As yet we haven’t quite managed to get 150 organisations on board to back the mentoring project, but we have got two. Bank of America Charitable Foundation is providing the money and HMRC are first in with a team of volunteers.

Bristol is the first city to go live. We’ll be adding two more later this month.

If you want more details about getting mentoring support for yourself then contact PRIME’s Mentoring Manager Harri Harrison at harri.harrison@ace.org.uk . He’s also your man if you are an organisation that has some volunteer mentors to offer.
 
Get yourself a PRIME mentor in Bristol

If you’re over 50 and thinking about starting a business in the Bristol area, then contact PRIME about getting a mentor. PRIME has recently completed training mentors in the area, who are now ready to talk to you. This is a completely free programme.

Here’s what Harri Harrison, who is running the scheme, has to say about it:

PRIME mentoring is specifically for people aged 50+ who are just beginning to think about setting up their own business. It is about exploring initial thoughts around self-employment. It is an opportunity to have a soundingboard, to check ideas and to discover the best way of moving forward.

Somebody once described this as having ‘a critical friend’ - that’s probably a good description.

We think mentoring is most useful for people at the early stage - when thay are are just starting to think about setting up in business. But mentoring has also been used successfully in many walks of life, and is an increasingly popular learning method for personal, professional and business development.

Mentoring is popular in the business world, where talking to a mentor can be helpful to entrepreneurs as they prepare their business plans, or it help more established businesses to progress.

If you would like to find out more about this new resource, please contact Harri Harrison at harri.harrison@ace.org.uk

Mon, Mar 1, 2010 at 3:00 PM
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T h e O l d e r p r e n e u r
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News for older entrepreneurs from The PRIME Initiative

Welcome to PRIME Business Club’s March 2010 newsletter.

You are receiving this entirely free because you contacted PRIME, the charity set up by Prince Charles, about starting your own business.

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In this issue
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1. Get a FREE business check-up

2. FREE eight day course for over-45 Londoners

3. Could you become a PRIME online mentor?

4. Newsletter controls

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1. Get a FREE business check-up
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PRIME has teamed up with UK business set-up specialist Clever Gecko to offer our members a FREE health check for their businesses.

Business Doctor is predominately aimed at those people who have already started and would just like some advice on how they are doing. The check-up will give you an opportunity to discuss any concerns you may have but also for the Doctor to highlight issues that may not be obvious to you.

If you are still just contemplating starting your own business then Business Doctor can still help by assessing your business idea for viability

To find out more and to take up the offer go to:
www.primebusinessclub.co.uk/category/offers/

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2. FREE eight day course for over-45 Londoners
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The Centre for Micro Enterprise, a unit within London Metropolitan University has funding to support a small number of people over the age of 45 who want to go self-employed.

Places on the course will be offered on a first come-first served basis. You must have a London postcode to be eligible.

They are offering an eight day programme delivered one day a week over eight weeks. The course is designed to help you to develop your skills to enable you to set up your own business

To find out more go to:
www.primebusinessclub.co.uk/2010/02/26/free-eight-day-course-over-45-londoners/

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3. Could you become a PRIME online mentor?
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Have you already experienced the challenge of setting up your own business? Would you be prepared to share your experience as a PRIME mentor?

Mentoring online can be the perfect way to share your hard earned wisdom with those who can benefit from your experience and knowledge, all in an interesting online environment.

To find out more go to: www.primebusinessclub.co.uk/category/volunteer/

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4. Newsletter controls
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Copyright (c) 2010, The PRIME Initiative
Astral House, 1268 London Road, London SW16 4ER

 Could you be a PRIME online mentor?

Have you already experienced the challenge of setting up your own business? Would you be prepared to share your experience as a PRIME mentor?

Mentoring online can be the perfect way to share your hard earned wisdom with those who can benefit from your experience and knowledge, all in a supportive, safe and secure online environment.

PRIME mentors assist people in the early stages of starting a new business. The emphasis is on being a sounding board and talking through and clarifying options rather than giving business advice.

If you would like to find out more about volunteering with the UKs top mentoring website please get in contact with Harri Harrison, PRIME Mentoring Manager, harri.harrison@ace.org.uk

PRIME has teamed up with UK business set-up specialist Clever Gecko to offer our members a FREE Health Check for their businesses.

To get this offer go to the special PRIME landing page.

Business Doctor is predominately aimed at those people who have already started their own business and would just like some advice on how they are doing. The check-up will give you an opportunity to discuss any concerns you may have about your business but also for the Doctor to highlight issues that may not be obvious to you.

If you are still just contemplating starting your own business then Business Doctor can still help by assessing your business idea for viability.

Clever Gecko is one of the UK leaders in business start-up services, dealing with every type of business from a window cleaner to a corporate consultancy. With unrivalled access to their Partners a Clever Gecko client can, on average, save up to 54% on things like stationery, printing, logo design, website design/hosting and insurance. So whatever your business, a call to Clever Gecko is probably one of the best calls you’ll ever make.

They understand that starting your own business can be a very stressful time; full of questions,uncertainties and worries and sometimes you just need a helping hand. Their friendly, plain language, hands-on approach makes them perfect for people starting out in the business world.

Disclosure: We are not taking any commission or affiliate fee on this offer to enable the maximum saving to be passed on to you. PRIME has asked Clever Gecko to offer this service FREE to our clients so that they receive the greatest benefit.

Are you aged 45 or over?

Have you been made redundant in the last 18 months or currently threatened with redundancy?

Do you have a business idea?

Are you almost ready to go self-employed?

Do you have a London postcode?

The Centre for Micro Enterprise, a unit within London Metropolitan University has funding to support a small number of people who want to go self-employed.

They are offering an eight day programme delivered over eight weeks. The course is designed to help you to develop your skills to enable you to set up your own business.

Course Content includes:

• Business self image and networking
• Designing your business plan
• Market research and market planning
• Finances and HMRC information
• E-commerce and ICT
• Pitch and present
• You and the law

The programme starts on Tuesday 02 March 2010 and will be delivered at London Metropolitan University, 84 Moorgate, EC2M 6SQ.

If you are interested please call: 020 7320 1383 or email: info@upturnonline.co.uk

Please note, participants will be selected if they fit the requirements of the funding regulations and places on the course will be offered on a first come-first served basis.

The City Business Library has just moved, and is running a series of free events of interest to small business startups in its swanky new but historic premises.

Located in the City of London near Moorgate, CBL is the largest specialised public reference library in the country dedicated to practical business information. You can use it for free and there are no membership requirements.

The new address from Feb 2010 is: City Business Library, Aldermanbury, London EC2V 7HH. Map of new location (PDF)

Here are some of the upcoming workshops

Setting up a Limited Company

Wednesday 3 March
2.15 – 4.15pm
Talk

Her Majesty’s Revenue & Customs staff will look at the tax implications of setting up a limited company in the UK.
Free - but you must book in advance

Web Optimisation and E-Marketing

4 March
13.30 -4.30pm
Afternoon seminar

Business Link staff will use this non-technical workshop to help small businesses to learn about marketing your business through good website design and by optimising to gain improved ranking on Google; about domain names, key words and email marketing, and about the business uses of social networking.
Free - but you must book in advance

Importing and Exporting    

Wednesday 10 March
2.15 – 4.15pm

Her Majesty’s Revenue & Customs staff will outline customs procedures and possible ways of reducing costs in relation to the import of goods into the EU and export outside the EU.
Free - but you must book in advance

Low cost marketing 

Thursday 11 March
10-12 noon

Business Link staff www.businesslink.gov.uk/london will help small businesses discover the most cost-effective ways to market their businesses.
Free - but you must book in advance

To book a place on any of these courses, telephone the City Business Library on 020 7332 1812 or email cbl@cityoflondon.gov.uk

Plans to deal with pension shortfalls by encouraging people to work for longer received a dash of cold water today. Three-quarters of us could be too ill to work, Professor Sir Michael Marmot of University College London warns in a new report.

All but the richest Britons suffer years of ill health. People in the richest neighbourhoods in England live seven years longer than in the poorest, and enjoy an extra 17 years of good health.

Even if you exclude the poorest five per cent and the richest five per cent the gap in life expectancy between those in low and high income places is still six years, and in disability-free life expectancy 13 years.

Much more needs to be done to address health inequalities if raising the retirement age to 68 is really to mean people remaining active and working for longer, the report warns.

The report is not the work of some maverick outfit, but the final paper from the Marmot Commission - set up in 2008 at the request of the Secretary of State for Health. The Commission, chaired by Sir Michael Marmot, was tasked with finding the most effective strategies to reducing health inequalities in the country.

Fair Society, Healthy Lives (The Marmot Review)

Coverage at Times Online

Nice picture of marmot (a kind of groundhog) sitting on rock.

In all the events and reports on worklessness that have come out over the last couple of weeks youth unemployment is always the central theme. But the evidence on youth unemployment is a bit like jelly - bright and brash on the surface, but 95 per cent water. You can’t use it to support anything. Only Polly Toynbee writing in the Guardian seems to have noticed that there was considerably more youth unemployment in the 80s than there is now.

Don’t get me wrong. I am not saying we should take all the public and private money that is spent on youth schemes away. The two groups that suffer the most when unemployment rises are the young trying to get a start on the employment ladder and older workers trying to stay on it – or get back on. Both groups require help - it’s not an either or thing.

The belief that all our problems will be solved if we throw everything into helping youth is irrational. It doesn’t even help youth long term. If older workers can’t get a job who will be paying to support them in their impoverished retirement? Today’s youth, one way or another.

In fact the interests of young and old are closer than you might think in other ways too. For example, schemes to help them often have the same flaws. So understanding what actually works when it comes to practically assisting one group can often lead to better initiatives to help the other.

Take the Future Jobs Fund. It is a Department for Work and Pensions initiative designed to create 170,000 additional jobs, mainly for 18-24 year olds who have been out of work for nearly a year. It does seem to be providing some new opportunities, particularly in work experience and training places. But it’s too early to say how many of real long-term jobs will remain when the money runs out in March 2011.

Here’s the problem. The Future Jobs Fund depends on there being employers ready to take government money to create sustainable jobs for youth. But will there be enough employers wanting to hire in the midst of a recession? Even with the incentive currently being offered of up to £6,500 for each unemployed young ­person taken on?

We really need to increase the number of expanding employers. One way to do that would be to put more effort into enterprise support for people creating new businesses. For example the over 50s – people who have seen recessions before. People with the experience, skills and knowledge to build businesses with a good survival rate, even in tough times.

So let’s put aside the false distinctions and the factional fighting. It’s often older people who can help younger people. And the other way round too.

Having said that, I’d not say no to a Future Enterprise Fund for the over 50s, should some wise government set one up. The point is the jobs the new enterprises create would help not just their older owners, but all of society.

The government is backing a scheme by Google, Enterprise UK and a number of other partners including PRIME to get more British businesses online. The campaign will kick of later this month with the launch of a set of free tools to simplify the building of a straightforward business web site, hosted by Google. 

The scheme is called Getting British Business Online (GBBO). It is a nationwide campaign that will offer small businesses located in the UK the tools and knowledge to do business online from their own free website.

You can pre-register your interest by leaving your email on the GBBO web site.

We’ve not yet seen the automated web site building tool, so we’ve not had a chance to check out how good it is or what the limitations are. But here’s what GBBO promise.

You get:

A free web address: Choose from any available ‘.co.uk’ domain name. If the name you want is already taken, the system will suggest another.

A free web site: You complete a short form online and and the system promises will create a customised, professional looking website, tailored to their business type

Free online marketing: All sites created will be listed for relevant queries in the Google search engine.

 
PRIME has worked with Enterprise UK and the relevant government department BIS before, which is why we are think it is worth keeping an eye on how this scheme develops. The web site is free, so if it’s any good it’s probably worth investigating to see if it’s suitable for your business. There are also likely to be a number of training providers offering courses to help people who need it. Some of these may not be free.

For businesses that already have a web site GBBO is promising another set of tools to help them perfect and market their web site. But is too early to say anything more about them.

GBBO FAQ