Firms

Firms

If you start up self employed you need too keep track of your finances because the tax man will want too know.

Individuals traded good, as the trades grew individuals needed more more and this resulted in partnerships.

Were 2 or more people = partnership, the tax man then assumes the partner ship is split 50 50, you are both liable for each others debts
This implies trust in your partners

Often partnerships would develop with one party having money and the other having the idea or trade. This is called a sleeping partner where they have nothing too do with the company etc while partnerships are still used it becomes evedent that more funding were needed as trade grew (victorian times)  government developed the limited liability girl (inc) this is a incorporated firm or company.

To ensure potential investors were protected against various criminals , limited liability firms must do this in this way
Publish what the firm was about- publish annual returns about the company performance yearly - log all this data with companies house - have the accounts of the firm independently audited

Starting a ltd firm £200
Buy one from a solicitor, cost too start up is around
Stopping a ltd firm is hard too stop

A ltd firm is a person in law
Ie a ltd firm is regarded by the law as being a person... as individual

-What is the firms, is the firms and not yours
-You must do what is best for the firm and not you
-Conflict of interest may result - care needed

Limited liability became too small, the plc (public limited company) was developed for investments on a big scale

Issues of debt
All firms have a degree of debt
Too manage debt you need too understand your cost

Managment
Normal operating activities (cost and income of normal services) Extra-ordinary items (big things like moving offices that do not come around very often) BUDGET! Cash flow is critical!

Entrepreneurship and business engagement

Entrepreneurship - being in a business - filling a gap in the market - geographical, specialism, ability, product
Competition issues?
This is your decision


What is the aim? Money? Kudos? Society/Aid?

How do you succeed? Do it! Don't sit back because chances are someone else will do it.
Tenacity, there will be problems, don't give up. Work through issues, solve the problem

Don't be precious, your idea but it will change, your work will be modified

Ability to do, practical/ pragmatic, ability to act

Its what you know it who you know

What is the cost and what is the return