Budget & Business Economy. Tom Kevin Haaland, Business Advisor DNB Bank ASA

Transcription

1 Budget & Business Economy Tom Kevin Haaland, Business Advisor DNB Bank ASA

2 Agenda 1. Before you start 2. When you start 3. After you have started

3 Half a million Norwegians have a dream of starting their own business 3 Before you start

4 Corporates in Norway There is about 50,000 new establishments in Norway every year 86% have fewer than five employees 51% have turnover less than NOK 1 million > 5 employees < 5 employees 4 Before you start

5 It is supposedly fairly easy to start up a company in Norway 5 Before you start

6 However, it is easy to start, but the reality is. % of 2 fail or give up within the first year Only 1 of 3 survive their first 5 years! Year 1 Year 2 Year 3 Year 4 Year 5 Source: SSB (Central Statistical Agency) 6 Before you start

7 So, how are you going to be on the bright side of the 50 %? Vision Business idea Value proposition Market / Customers Competitors Budgets Funding Progress schedule 7 Before you start

8 A good budget will get you far 8 Before you start

9 When you start

10 What expenditures do you have? Office lease Salary? Research & Development Accountant Marketing Telephone, Internet Patent Domain Legal advisors Testing Computer Utilities Patent 10 When you start

11 What income do you have? NONE 11 When you start

12 The Troll s penis rock and MovieMask 12 When you start

13 Are there other ways to get money? 13 When you start

14 The valley of death and how to get funded 14 When you start

15 When you apply for a loan Ø Talk to your bank as early as possible Ø Develop and present a realistic business plan with budgets Ø Be confident and clear on your pitch Ø Know your competitive advantages and weaknesses Ø Keep your path clean (no payment defaults) 15 When you start

16 What are the banks focusing on? Purpose Cashflow Equity Collateral The people behind 16 When you start

17 After you have started

18 Be in control of your liquidity!!! 18 After you have started

19 Main reasons why entrepreneurs get in trouble straight away Currency fluctuations Production errors Bankruptcy of a customer Payment terms to customers Payment terms from suppliers Large unforeseen costs 19 After you have started

20 You are buying parts in EUR in the time period end 2012 to end %! 20 After you have started

21 Main reasons why entrepreneurs get in trouble straight away Currency fluctuations Production errors Bankruptcy of a customer Payment terms to customers Payment terms from suppliers Large unforeseen costs 21 After you have started

22 When you are too kind to both your customers and suppliers YOU pay your suppliers within 14 days What are you going to do in this period? Your customers pay YOU within 30 days 22 After you have started

23 When you are too kind to both your customers and suppliers YOU pay your employees salary within 30 days What are you going to do in this period? Your customers pay YOU within 60 days 23 After you have started

24 Back Office! You can t live with it, and you can t live without it create a business plan, check whether you need special permits or approvals, learn a little company law, decide corporate form and company name, obtaining board members, registrer in Brønnøysundregistrene, find out if you should be in the VAT register, find suitable premises, gain knowledge about rental agreements, pensions and insurance, decide logo and other graphic elements, find a solution to develop and operate your own website and accounts, choose telephone and internet provider, go to IKEA, acquire and install technical equipment, obtain goods, choose curtains, talk to the bank, create shareholder agreement, determine if you need employees, learn a little employment law, advertise and hire, send message to AAregister, buy door signs, write contract, purchase a kettle, learn rules for wages, vacation and illness, book electrician, join trade organisation, buy toilet paper, find an accountant, avoiding overuse, print business cards and promotional materials, setting up business documents, familiarize yourselves with the rules for patent and trademarks, contacting suppliers, register trademarks, create a system in the warehouse, ensure the tax, tax withholdings and social security contributions are reported on time, pay VAT, install After you have started

25 A good budget will get youfar Cash flow, cash flow, cash flow Back office! Good luck!

26 Something to think about 26

27 Thank you for listening! Tom Kevin Haaland