Enterprise lecture

Stash your cash
Looking after the money

Accounting

Keep track of who owes you money
See how much you are spending on materials and services
See the money coming in and going out
Make sure your not spending more than you earn

Invoices and Statements

Invoices is the bill, statement is the reminder

Essentials of an invoice: Business address, customers address, date, item by item details of service or product provided, total amount due.

Essentials of a statement: Same as invoice, with details of invoices unpaid.

Terms and conditions

Designed to protect your rights and interests
Costs
Delivery arrangements
Payment terms
Credit limits
Your right to charge interest on overdue amounts and claim compensation for recovery costs
A commitment to quality
Data protection

The Statement

Send out on due date or day before
Send one every month thereafter
How much is owed
How long it has been outstanding
A call to action

Accounting software

Quick books: £75
Online Quickbooks essentials: £19pm
Bank Tree: £26
Sage: £240

Accountant

Only use someone certified.

What do businesses spend money on?

Start up costs
Overheads- What you have to pay whether you have any clients or not.
Direct costs- Coat of producing work.

Start up costs

Spend cash on new equipment
Design website
Register company name
Design logo- make signs
Decorate premises
Launch party

...Many companies get a loan to cover these initial expenses
Pay back each month over 2-3 years

Where sto get the money from?
Barclays, Natwest, HSBC, Lloyds... but banks very rarely lend money to creative businesses
Crowd funding- find them online
The arts council, Yorkshire forward, Venture capitalists, Shareholders
prizes and awards: Shell live wire, Make your mark, BIPP, D&AD

What do investors want to know?

Marketing plan
How much money do you need?
How much money have you got?
How will you spend the money?
How will you pay it back?

Indirect costs

Utilities
Offices supplies
Equipment leases etc

Also known as... Overheads, fixed costs, the cost of doing business

Direct costs

A cost directly attributable to the manufacturing of a product, or what the customer takes away from them.

Tangible assets

Car, computer, manufacturing equipment etc

Intangible asset

Talent, reputation etc

The different between cost and price don't mix these words up.

Capital

The money, property and other valuables which collectively represent and wealth of an individual or business- what you are worth.

Capital assets

The money, property and other valuables.

Receipts, payments, cash flow or net payments.
Balance, Profit, Loss.

Open a separate bank account, get an accountant, gat a solicitor, Register your business with the inalnd revenue.

Business Link.
Startups.
HM Revenue & Customs.
CreativeChoices- Tshirts and suits.... Download for free.