The New Entrepreneur's Guide to Setting Up and Running a Successful Business

303 Pages·2018·7.626 MB·English

by  Kendall, Paul Francis

Content Content
The New Entrepreneur’s
Guide to Setting Up and
Running a Successful
Business

The New Entrepreneur’s
Guide to Setting Up and
Running a Successful
Business
By Paul Kendall
A PRODUCTIVITY PRESS BOOK
Routledge
Taylor & Francis Group
711 Third Avenue, New York, NY 10017
© 2018 by Taylor & Francis Group, LLC
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Library of Congress Cataloging‑in‑Publication Data
Names: Kendall, Paul (Paul Francis) author.
Title: The new entrepreneur’s guide to setting up and running a successful
business / Paul Kendall.
Description: New York : Taylor & Francis, [2018] | Includes bibliographical
references and index.
Identifiers: LCCN 2018002451 (print) | LCCN 2018015987 (ebook) | ISBN
9781351015875 (eBook) | ISBN 9781138498693 (hardback : alk. paper)
Subjects: LCSH: New business enterprises. | New business
enterprises--Management. | Accounting. | Advertising.
Classification: LCC HD62.5 (ebook) | LCC HD62.5 .K446 2018 (print) | DDC
658.1/1--dc23
LC record available at https://lccn.loc.gov/2018002451
Visit the Taylor & Francis Web site at
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Contents Contents
I would like to dedicate this book to my wife Sue,
and to my children Nicola, Paul and Steven.
I would also like to thank and acknowledge all
those I have had the privilege of working with
during my career, and to the clients who provided
me with the inspiration to write this book.
My thoughts are with those who did not fare so well,
but provided me with the experience to forewarn
others of the obstacles that may await them.

Contents
Preface .................................................................................xv
Author ...............................................................................xvii
1 Introduction .............................................................1
The Aim of This Book ........................................................2
Who Will Be Interested in This Book? ..............................2
New Business Startups ........................................................2
Government Assistance for New Businesses .....................4
Success Stories .....................................................................6
Out of Acorns Giant Oaks Grow ........................................6
eBay and PayPal ..............................................................6
Starbucks .........................................................................7
Panasonic .........................................................................8
Apple ...............................................................................9
2 So You Want to Run Your Own Business ..............11
Why Are You Setting Up a Business? ................................11
Viagra ..............................................................................12
Evolution .........................................................................12
Unemployment ...............................................................13
You Can Do It Better .....................................................13
A Eureka Moment ..........................................................14
The Post-it Note ..........................................................14
Velcro ..........................................................................15
Technological Developments .........................................15
Developing an Idea ........................................................16
vii
viii ◾ Contents
Vanity ..........................................................................17
You Want to be Rich ..................................................17
What Is Your Business Going to Do? ................................18
Unique Selling Point ......................................................18
Where Should You Set Your Business Up (Both
Virtually and Actually)? ......................................................19
When Should You Start Your Business? ............................20
Who Should You Go into Business With? .........................21
The Dasslers ...................................................................21
Work as a Team..............................................................22
What Should You Call Your Business? ..............................23
3 How Do You Start? .................................................25
The Business Plan ..............................................................25
Create a Brand, Logo and Business Design ......................26
Sole Trader, Limited Company or Partnership? .................27
Sole Trader .....................................................................28
Limited Company (Incorporation) .................................29
Partnerships ....................................................................31
Budgeting and Cash Flow ..................................................33
Pricing and Costings ..........................................................39
4 Buying and Selling a Business ..............................43
Is the Price Right? ...............................................................45
Value-Added Tax on a Transfer of a Business ..................47
How Should You Finance the Purchase?...........................49
Crowdfunding ....................................................................52
Tax Issues to Consider .......................................................54
What Records Should You Inspect? ...................................54
Buying a Franchise ............................................................55
How Will the Purchase of a Business Affect
Your Tax Bill? .....................................................................57
Is the Business Right for You or Should You
Consider the Alternatives? ..................................................57
Is the Split of the Purchase Price Right? ...........................58
Should You Form a Limited Company to Buy a
Business? .............................................................................58
Contents ◾ ix
Selling the Business ...........................................................59
Selling an Incorporated Business ......................................59
UK Enterprise Investment Schemes ..................................60
Enterprise Investment Scheme .......................................61
Capital Gains Tax Deferral Relief ..................................62
Inheritance Tax (IHT) Exemption .................................63
Seed Enterprise Scheme .................................................63
SEIS Reinvestment Relief and Capital Gains Tax Relief ....64
5 Staffing ..................................................................65
Setting Wage Levels ...........................................................66
Staff Pensions .....................................................................67
Self-Employed Subcontractors ..........................................68
The National Minimum Wage ...........................................69
Employment Legislation .................................................70
Employers’ Liability ........................................................70
Staff Management ...........................................................71
Staff Relationships ..........................................................71
Statutory Maternity, Paternity, Adoption and
Shared Parental Pay........................................................72
Statutory Sick Pay (SSP) ..................................................73
Redundancy Pay .............................................................74
The Gig Economy ..............................................................78
Contracts of Employment ..................................................79
Pro Forma Employment Contract ......................................81
Pro Forma Freelance Agreement ......................................86
6 Taxes and VAT........................................................91
Income Tax.........................................................................92
Tax on Dividends .......................................................... 96
Optimum Tax Planning for Directors on Low
Earnings ......................................................................... 96
Corporation Tax .................................................................97
Example of Tax Planning Exercise ................................... 98
Year One........................................................................99
Year Two .......................................................................100
Year Three ....................................................................100