Start-up Cornwall Presentation 2013

Start Up Cornwall
14 May 2013
Ivan Burnard - Partner

www.francisclark.co.uk
Agenda and presenters
 Start Up Loans
 Funding
 Tax
 Legal
 Business Support
 Competition

COMPANY OVERVIEW
Inspiring a generation of entrepreneurs
Presented by Tim Sawyer
May 2013

The Start-Up Loans Company is a private company, that helps
18-30 year olds develop their business ideas with the help of
accessible, unsecured, low-cost loans coupled with business
support in the form of a mentor.
Backed by government, with a budget in excess of £112
million, The Start-Up Loans Company will help create 25,000
businesses throughout England across all industry sectors in
the next 3 years.
WHAT IS THE START-UP LOANS COMPANY?

WHO RUNS THE START-UP LOANS COMPANY?
James Caan was appointed the Chairman of the Start-Up
Loans Company in June 2012 by Lord Young of Graffham,
the Enterprise Advisor to the Prime Minister.
The Start-Up Loans Company is run by CEO, Tim Sawyer.
The Start-Up Loans Company reports to the Department
of Business, Innovation and Skills.

WHY HAVE THE START-UP LOANS COMPANY?
Young people typically cannot
access funding to start a business
from a bank. With little or no track-
record and often no security to
guarantee a loan, they are
repeatedly turned down by
traditional lenders.
The Start-Up Loans Company
provides opportunities to anyone
with a good idea together with a
business plan and passion to
make it work.
“If the UK was as
entrepreneurial as the US, we
would have 900,000 more
businesses in this country.”
Lord Young

HOW DOES THE START-UP PROCESS
WORK?
The Start-Up Loans Company has a
national distribution network of delivery
partners who operate across England.
They work with entrepreneurs to develop
their business ideas into a feasible
business plan to increase their chances of
success.
Once the entrepreneur is approved for a
loan, they work closely with a business
mentor in their chosen industry and
region, who will help and guide them to
make the right decisions for their
business.
1
2
3

HIGHLIGHTS AND SUCCESSES TO DATE
Under budget on cost, yet over budget on target!
 Over 3,000 businesses funded since September
2012
 Over £13M of lending approved
 Achieving a current daily run-rate of 40 businesses
 Over 45 Delivery Partners signed up
 Average loan size £5,000 from £2,500
 Fantastic corporate partnerships with Regus, Intuit,
eBay, Paypal, and Magento Go
 Extensive media and press coverage with support
from The Prime Minister and HRH Prince Andrew

METRICS SO FAR
• Gender ratio shows that more loan recipients are male at
66%, than female at a lower 34%.
• Age split is fairly even between 18-24 year olds who make
up 47% of all loan recipients vs. 25-30 year olds at 53%.
• Ethnicity breakdown illustrates that 67% of loan recipients
are white British while 33% are Black, Asian and minority
ethnic.
• Regional breakdown indicates the largest number of loans
have been delivered in Greater London, followed by the
North West, and Yorkshire and Humber. There is a fairly
even spread across the rest of the country.
• Industry categories that are the most popular are
wholesale and retail, IT, fashion, e-commerce, food and
drink and building and construction.

PRESS COVERAGE
The Start-Up Loans Company has appeared in hundreds of
publications across the country, from national to regional
titles. Journalists have an insatiable appetite not only for the
Start-Up Loans story, but also for our loan recipients and
mentors.
Regular features on The Start-Up Loans Company and
entrepreneurs can be found in The Sunday Express, Talk
Business, The Sun and The Guardian.
Radio stations have profiled businesses backed by The
Start-Up Loans Company, providing a great platform to
showcase our entrepreneurs.

OUR DELIVERY PARTNERS
The Start-Up Loans Company operates in England through a
network of organisations. These bodies:
- Work with young people
- Are able to provide business guidance for budding entrepreneurs
- Provide quality mentoring for start-ups in all industries
- Can credit assess business plans for funding
Our Delivery Partners:
Ariadne Capital
Arts Thread
BEF
Biz Britain
Bricks and Bread
Bright Ideas Trust
Business Finance Solutions
Business Support and Development
CDFA
CDFA Newcastle
Cloudspeed (Springboard)
Dreamstake Ltd
East London Small Business Centre
Elevation Networks
Enterprise Loans East Midlands
Enterprise4All
Entrust
Fashion Angel
Five Lamps
Foundation East
Frederick‟s Foundation
GLE Group
Hackney Business Ventures
Hull Business Development Fund Ltd
Kaleidoscope
Kent Foundation for Young Entrepreneurs
Lancashire Community Centre
Let‟s Do Business
MSIF
NACUE
North London Community Finance
NWES
Original Upstarts
Pinetree
PNE
Positive Inclusions
Printing.com
Riverside Credit Union
Rockstar Youth
School for Startups Ltd
SFEDI
Sheffield City Council
South London Business
South West Investment Group
Spring to Action
The Bright Side Trust
The Prince‟s Trust
TrainE TraidE
Transmit Consulting
UAL
Virgin Unite
WSX
Young Britain
Yorkshire Coast Enterprise
Youth Enterprise

OUR GLOBAL PARTNERS
The private sector is actively engaged with The Start-Up
Loans Company, providing business products and services
to entrepreneurs, giving them the tools they need to
succeed. 24 months free access to QuickBooks Online Simple Start (Cloud-based
accounting software)
Free website for 6 months, with e-commerce capabilities
Discounted PayPal rate of 1.4% + 20p per transaction for 6 months
(usually 3.4%)
Free eBay store for 3 months
6 months free use of Virtual Office, giving a business address, mail
handling and administrative support, a Businessworld Gold Card and
discount on all other Regus products and services

TO ACHIEVE BY MARCH 2015
• Administer over £112 million worth of loans to 18-30 year
olds living England
• Start over 25,000 businesses in all industry sectors
• Create thousands of additional jobs
• Strengthen the SME sector in England
• Make young people more employable in the future
• Ensure entrepreneurship is a standard career path for all
• Create entrepreneurial role models for young people
• Inspire 18-30 year olds with confidence to be their own boss
by equipping them with the skills needed to succeed in
business
• Make The Start-Up Loans Company a household name

FREQUENTLY ASKED QUESTIONS
Why are Start-Up Loans only available to those living in England?
From a policy perspective, enterprise is a devolved issue. Wales, Ireland and Scotland
are all encouraged to replicate the Start-Up Loans model.
Why are Start-Up Loans only available to 18-30 year olds?
The Prime Minister announced an increase from 18-24 to 18-30 as there is a reported
difficulty for this age group to access start-up funding from normal lending routes,
therefore this scheme aims to address the gap.
What interest is being charged on the loan?
The interest rate is 3% over RPI, and is capped at 6% for applicants applying before
March 2013.
The entrepreneurs are able to take up to 12 months interest repayment holiday if their
business needs it.
Why is mentoring mandatory for all entrepreneurs who get a loan?
Mentoring is as important as the funding, especially when starting your first business,
and want to give all of our entrepreneurs every chance at success.
How much can people borrow?
The loan amount is wholly dependent on the business. The average loan value is
£4,500, however we are able to lend up to £10,000 and have lent as low as £500.
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CONTACT
Yasmina Siadatan, Head of Media:
ys@hbpe.com
Anooshe Mussarat, Marketing Assistant:
anooshemussarat@startuploans.co.uk

“Community Development Finance Institutions
(CDFIs) lend money to businesses, social enterprises
and individuals who struggle to get finance from high
street banks and loan companies. They offer loans and
support at an affordable rate to people who cannot
access credit elsewhere”
Presented by John Peters

HQ Truro
Since April 2012
we have lent:
£1,266,138
to 142 Start-Up businesses

Start Up Loans
Since November 2012
Low cost loans alongside business support
18-30 year olds
Delivered in partnership
South West region-wide coverage

Start Up Loans
To date we have lent:
£412,200
to 69 young entrepreneurs
£2,000,000 available this year

Start Up Loans
David Forsyth, Driftwood Surfboards

David Bullen -
Corporate Senior Associate
Funding Start Up
SMEs
.. And a little bit on
financial management

Funding: potential sources
• See Finance in Cornwall
factsheet
• Grants: Eligibility?
• PWGF2, BIG and Assisted
Asset Purchase scheme
• Equity
• FFF, Business Angels and
Crowdfunding? SEIS and EIS
• Companies only
• Debt: peer to peer?
Understand
your
requirements
Understand
funding
options and
funders
requirements

Investment ready
• General
• Business Case
• Funding gap?
• Business plan and projections
• YOU…
• Grants – eligibility and conditions
• Debt – security and ability to service
• Equity – „return‟ and valuation
Understand
your
requirements
Understand
funding
options and
funders
requirements

The banks...
• „Open for business‟
• Still provide c 92% of funding to
SMEs
• New businesses
• Security and Ability to repay
• “Equity proposition”
• Your money
• De-risk
• match funding?
• Different business model e.g., sub-contract
manufacture or licence technology?
Understand
your
requirements
Understand
funding
options and
funders
requirements

Financials: Management Accounts and Projections
• Why?
• Facilitate delegation/ Performance management
• Proactive cash management
• Investment ready
• What?
• Avoid “paralysis by analysis”
• KPIs
• Standardise format of production
• How?

Other assistance?
• MAS
• UKTI?
• Growth Accelerator
• Mentoring
• Leadership (subsidized assistance with projections for
example)

Introduction to Crowdfunding
Phil Geraghty, Managing Director

What's the problem?
“Small business funding needs new mechanisms”

2013 : £3.3bn Crowdfunded
Growing 90% each year
Reuters 2013

Types of Crowdfunding
Equity
- Dragon's Den
- Crowdcube
Rewards
- Crowdfund
er
Donation
- Just giving
Equity
- Dragon's
Den
- Crowdcube
Loans
- Funding
circle
- Kiva
Rewards
- Crowdfunder
Donation
- Just giving

Funding
The benefits of crowdfunding
Validation
Marketing Advocates

Crowdfunding in Cornwall
• Crowdfund Cornwall is a campaign to get over 100
projects launched and funded within Cornwall.
• Bringing Cornish communities together to make
great ideas happen
• Stimulating Cornwall‟s economy and entrepreneurial
and social initiatives.

Get Involved
We are looking for…
Projects
100 projects all over
cornwall
Partners
Organisations that want
to help others, and help
us spread the word.

Rewards based
Crowdfunding
Phil Geraghty, Managing Director

IDEAS COMMUNIT
Y
PASSION
IDEAS COMMUNITY
PASSION

The Crowdfunder way
Lots of
people
All put
in small
amounts
The great
idea happens
Rewards
Are fulfilled

Funding
Why the Crowdfunder way
works
Validation
Marketing Advocates

Describe your project
Set your target
Define your rewards
Make your video
Build a team
Promote to your network
Social media
Email
Word of mouth
Newpapers, radio, blogs
Updates to your backers
Status updates
Deliver rewards
Relax and celebrate
Pre-launch Campaign Success
Running a Successful
Campaign

Got an idea to be
Crowdfunded?

START UP CORNWALL: Contracts and structures
Gavin Poole, partner
The Lighthouse Cinema 14th May 2013

OUTLINE
• Structures, contracts, governance and other realities
• Seven and a half minutes - fantasy!
• Lots to say – an overview of the key issues
• A lot of common sense
• You will learn something!
• Venue
• Compelling case/case study

Contracts and business structures: outline
From this…
…to this…
…to this!
Start up/first customer
SME/more customers
Group structures/many
customers
You will learn: the meaning behind “Bohemian Rhapsody”

THE VISION
• Why start up a business?
• Positive reasons
• Negative reasons
• Capture the vision
• But keep feet on the ground:
• Careful planning
• Consider your markets
• Consider the long term
Is this the real life?
Is this just fantasy?
Caught in a landslide
No escape from reality
Open your eyes
Look up to the skies and see…..

ECONOMY
• Failure!
• Business Plan
• Key assets in a tough
economy:
• Money
• Time
• Partners/advisors
I'm just a poor boy, I need no sympathy
Because I'm easy come, easy go
A little high, little low
Anyway the wind blows, doesn't really
matter to me, to me

STRUCTURES
• Sole traders
• Partnerships
• Companies
• Limited Liability Partnerships
• Others
• Growth/incorporation
• External perceptions/contracts
Mama, just killed a man
Put a gun against his head
Pulled my trigger, now he's dead
Mama, life had just begun
But now I've gone and thrown it all away
Mama, ooo
Didn't mean to make you cry
If I'm not back again this time tomorrow
Carry on, carry on, as if nothing really
matters

EXIT • Succession planning –
strategies to maximise value
• How and when?
• Truth: mortality/natural
lifecycle of a business
• Psychology and stress for
you…and the family?
Too late, my time has come
Sends shivers down my spine
Body's aching all the time
Goodbye everybody - I've got to go
Gotta leave you all behind and face the
truth
Mama, ooo - (anyway the wind blows)
I don't want to die
I sometimes wish I'd never been born at all

START UPS • Spectre of a business is
becoming a reality
• Celebrate your “brilliant
exploit”
• Plenty of activity
• With enough planning,
shouldn’t be frightening
I see a little silhouetto of a man
Scaramouch, scaramouch will you do the
fandango
Thunderbolt and lightning - very very
frightening me

TAX
• Repetitious reminder
• Science
• EIS
• SEIS
• Grants
Gallileo, Gallileo,
Gallileo, Gallileo,
Gallileo Figaro – magnifico

REDUCING RISKS
• Compliance and “monstrosities”
• Limits of liability
• sole trader and partnerships
• companies and LLPs
• Other regulation
• Licences
• Landlord covenants
• Planning
• Insurance
• Registrations
• Practical measures
• Ts and Cs
But I'm just a poor boy and nobody loves
me
He's just a poor boy from a poor family
Spare him his life from this monstrosity
Easy come easy go - will you let me go
Bismillah! No - we will not let you go - let
him go
Bismillah! We will not let you go - let him go
Bismillah! We will not let you go - let me go

OTHER RISKS and
PROTECTIVE MEASURES
• Financial arrangements
• Covenants
• Conditions
• Restrictive covenants
• Shareholder/partnership
agreements
• Directors
• Employees
• Personal guarantees
Will not let you go - let me go (never)
Never let you go - let me go
Never let me go - ooo
No, no, no, no, no, no, no -
Oh mama mia, mama mia, mama mia let
me go
Beelzebub has a devil put aside for me
for me
for me

SUCCESS!
• Setbacks (…threats?)
• Market and other opportunities
• Business Plan
• Resilience and flexibility
• Exit
• Retirement yacht!
So you think you can stone me and spit in
my eye
So you think you can love me and leave
me to die
Oh baby - can't do this to me baby
Just gotta get out - just gotta get right outta
here
Ooh yeah, ooh yeah
Nothing really matters
Anyone can see
Nothing really matters - nothing really
matters to me
Anyway the wind blows...

Summary
• Business planning
• Structures
• Exit
• Tax
• Limiting risks
• Protective measures
• Measuring success
• Learnt something new!

Premier South West Law firm
Legal Week Regional Law Firm of the Year 2011
Nationally recognised for our sector expertise
Depth and breadth of capability in over 25 areas of law
Over 350 staff including 250 lawyers and 50 partners
Top 100 law firm
Offices in Truro, Plymouth, Exeter, Taunton, Bristol

THANK YOU
Gavin Poole
01872 243344gavin.poole@footanstey.com

Tax…
14 May 2013

Business Taxation
 "The only things certain in life are death and
taxes." Benjamin Franklin
 Business taxes, include:
 On profits
 Income tax (and NI) or Corporation Tax
 On sales – VAT
 On capital disposals – Capital Gains Tax
 On capital additions (some) – Stamp Duty/ SDLT
 On death – inheritance tax
 On remuneration – Income tax and NI
 Rates and limits etc – see “2013/2014 Tax Card”

Taxation of profits and extraction of funds
 Sole trader or partnership
 Profits (or cash) in Accounting Period
 Your share taxed as income
 Irrelevant how much you have extracted
 Taxed profits are „yours‟
 Class 2/4 National Insurance
 Tax paid 31 January (and 31 July)

Taxation of profits
 Limited Company
 Profits in Accounting Period
 Company profits taxed at Corporation Tax rates
 Corporation Tax paid 9 months after
 Profits „locked in company‟
 Extraction: salary and/or dividends
 Your salary is a deduction against profit
 PAYE/ NI on your salary

Taxation of profits
 Cash = profit
 Profit = taxable profit
 Capital Allowances
 AIA, ECAs, WDA
 Advance or postpone capital spend to maximise
AIA for capital allowances.
 R&D Tax Credits
 Patent Box (10% Corporation tax rate)
/
/

Other tax saving opportunities
(for a later day perhaps)
 Salary sacrifice to save NIC
- Childcare vouchers
- Pension contributions etc.
- Bikes to work
 Share options instead of bonuses

Other business taxes
 Capital Gains Tax
- “10% rate”: Entrepreneurs Relief
- EIS / SEIS – attractive for investors?
 VAT
 Care re transactions in land and buildings..
 Flat rate schemes

Some administration points
 HMRC notification < 3 months of starting to trade
 Self Assessment Tax Returns by 31/1
 RTI for PAYE schemes
 VAT
 registration/ deregistration
 quarterly returns and tax paid by month following
 Corporation tax returns due 12 months after ARD
 Penalties and interest for missing deadlines etc

77
Kate McEwen, Head of Outset
Operations - South West

Pauline Davies
Special Guardian Support and Therapy Services

We invite the best business talent to Cornwall to share their experiences, challenges and insight,
giving delegates:
- a handful of tips to take away and apply to your business
- motivation and (maybe) a spark of inspiration
- the opportunity to meet our Enterprise Heroes and learn from their experiences in business
- new connections with like-minded peers in the Cornish business community
- and some time away from your desk to work on your business not in your business.
Enterprise Heroes
We run four per year, for an audience of at least 100 delegates, often in partnership with public and
private sector organisations. Our aim is to welcome 3000 delegates from 1500 businesses to these
events, and we have already have seen over 500 delegates attend.

A unique support package including potential financial
investment, training and mentoring for graduates looking to set
up a business in Cornwall.
For: Graduates who have a business idea through to businesses
(set up by a graduate) who have been trading for less than a
year. NB. Graduates must have graduated in the last 10 years.
Chris Phillips,
Graduate Business
Start-Up Programme
Manager
Graduate Business
Start-up

IGNITE 2013
Alan Street
Oxford Innovation

IGNITE 2013
• A business plan competition
• Prize fund worth more than £100K.
• Open to pre- and early start businesses based in Cornwall and
IoS
• Must have been trading for less than 12 months on
17 September 2013

The Process
• Attend Ignite Experience Workshops
• Submit 3 minute ‘video’ pitch
• Judges select finalists
• Finalists submit written business plan
• Judges select winner

Looking for....?
A plan for a good business
more than a.....
A good business plan

Looking for....?
• Originality
• Scalability
• Employment
• Uniqueness (USP)
• Tested concept and / or market
• Strong Entrepreneur

Winners Ignite 2012
– RCH Marine Renewables

Ignite Experience Workshops
• Person – The entrepreneur
• Proposition – Business idea
• Plan – ‘Lean’ business process and plan
• Pitch – ‘Sell’ your idea

Key Dates
• Ignite Experience Workshops – June / July / August
• Closing Date – 17th September
• Announce Finalists – 9th October
• Submit Business Plan – end of October
• Winner Announced – 14th November

How?
Learn more and register your interest:
www.ignitecornwall.com

Follow us:
@Ignite_Cornwall
Ignite Cornwall

Eita, Secretary of Public Works for the
Kiribati Government - a thoroughly nice
chap! We look forward to working with
the government in the future.

Start Up Cornwall
2013

Summary
• SMEs – the country needs you
• Cornwall a great place to do business
• Some great businesses in Cornwall
• Confidence?
• Funding and support – options
• Thank you

Presenters and other participants
…and many more

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