UPDATED FOR

2014/15

UPDATED for

2015/16

START-UP INFORMATION FOR LEAP ENTERPRISE COMPANIES

2

A MESSAgE FROM OUR ChAIRMAN 3

wELCOME TO LEAP 4

ThE 9 KEy PhASES 5

whAT wILL yOUR COMPANy DO? 6

NAMINg & bRANDINg 8

ELECTINg COMPANy OFFICERS 12

SETTINg UP A bANK ACCOUNT 17

bUSINESS PLANNINg 20

MEETINgS 23

SELLINg ShARES 27

MARKETINg & SELLINg 29

ACCOUNTS & TAX 32

CLOSINg yOUR COMPANy 35

EvENTS & wORKShOPS 36

COMPETITIONS 37

OUR TEAM AND SPONSORS 41

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As you’ll be aware, LEAP is a charity, run by a board of volunteers. However, more importantly, the people who make LEAP the success it is are not acknowledged by name on this site. They are the supporters and sponsors who allow LEAP to take place.

These supporters take the form of parents who ferry students between sales events and competitions, teachers and non-teaching staff in the schools who buy shares, give their own time to support the companies and go above and beyond the call of duty to help the students achieve success in what is an extra-curricular activity. We are incredibly grateful for the advisors who come into schools from businesses to share valuable skills in areas from finance to marketing.

LEAP would not able to run the events we do without our sponsors. These range from listed firms, worldwide organisations, including HSBC and PWC, through to local firms who give time and money not as a ‘box ticking’ exercise, but because they see what a difference their investment in the students can deliver.

We are proud to count parents of previous LEAP achievers, as sponsor and or volunteers, people who have experienced first-hand how the LEAP process works. We are also grateful to the individuals who donate money and sponsor awards year after year without wanting recognition.

Special thanks goes to those who give up their weekends to come along to LEAP trade fairs to undertake the incredibly difficult job of judging the stands. In addition we would like to thank the judges of all events who give their time as volunteers.

Steve webber Chairman

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INTRODUCINg LEAPLEAP is a registered charity and not for profit organisation, which supports schools and mentors their students in setting up a business for an academic year.

Students (aged 14–19) practise decision making and problem solving, they develop interpersonal skills, work as members of a team and become ‘self-managers’.

By participating in the LEAP programme, seminars and competitions, students gain confidence and employability skills, making them better prepared for employment or university interviews. Some even use this insight as a stepping-stone to developing their own business.

Students raise their own share capital by making or buying a product, writing a business plan and marketing the product or service. At the end of the process, they present their company results to a panel of business advisors alongside an annual report and financial accounts.

SEMINARSTo help you make the most of your LEAP experience, we deliver seminars on various aspects of setting up your company, from electing directors, choosing the product or service, marketing, selling and financial accounts.

Following the Getting Started launch event, the Getting Organised workshop takes place in October and in January the What’s Next? seminar.

TRADE FAIRS We have strong links with Town Centre Securities (Merrion Centre) where LEAP arranges trade fairs in December and February. Many schools also arrange other trading opportunities at various locations around Leeds.

COMPETITIONS AND ANNUAL AwARDS The three major competitions, Marketing at Trade Fairs, Presentation and Report are judged throughout the year. From these three competitions combined with a review of the company business plan and the administration folder the board selects The Best LEAP Company of the year. We also award broader aspects of business in fifteen other categories. The year closes with an Oscar style awards evening where VIPs, parents, teachers and business mentors celebrate the achievements of the students.

To keep track of your progress, download the STEP-by-STEP

COMPANy ChECKLIST

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There are many steps involved in starting your company, but don’t feel overwhelmed because many of these you will already have done: chances are you’ve already given thought to what you want to sell and how to promote it, the name and logo that your company displays to the world, which of your classmates you want to work with, and perhaps even what job you want within the company.

There are also other steps that you may not have thought of yet; such as opening a bank account in the name of your company, how to make the company’s products, making a business plan to determine your company’s chances of success, and even if you’ve thought of these then you will certainly not have spent your time after school dreaming about doing the accounting for your company.

The next nine sections of this document will cover the key phases, which are:

what will your company do?

Naming and branding

Electing company officers

Setting up a bank account

business planning

Meetings

Selling shares

Marketing & selling

Accounts & tax

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2

3

4

5

6

7

8

9

Click here to download our

calendar

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ChOOSINg yOUR PRODUCTThis is the bread and butter of your company. In order for the business to be successful it must generate money from the sale of products or services that customers will be willing to pay for. Of course it is not enough just to have a good product, it must cost less to produce and sell than the money paid by customers, and your business must be well run. However having an attractive product that people want to buy is a crucial ingredient. It is important to consider that there are restrictions on the products and services that your company can offer, they must comply with the law and with the reasonable restrictions placed by our insurance providers.

PRODUCT/SERvICEThe process of brainstorming is a very powerful and useful one. It is all about placing everyone’s ideas down, giving you all a chance to decide on your product and the way the company may look going forward.

The Managing Director should control the meeting and the company Secretary must record the ideas and decisions.

Each person should be encouraged to put forward product or service ideas, and to state why it would be a good idea. Do not make fun of the more outlandish ideas – you would be surprised how often ‘thinking outside of the box’ is successful.

Although you can just buy-in goods and resell them, you should look at ways of increasing the value and making the goods easier to sell. We usually prefer products rather than services, but a combination of the two can be very successful.

PLEASE NOTE ThE FOLLOwINg INSURANCE RULES, yOU MUST COMPLy TO bE INSURED:- Foodstuffs must comply with regulations issued by the food standards agency and/or the department for environment, food and rural affairs and/or any successor or substitute agencies or departments

Products must not be designed, intended or purported to be used as safety items·

Products or components must not be mechanically or electrically propelled, or for use as sports, health or fitness equipment

Any pre-owned electrical or electronic items must be PAT tested

Furniture or furnishings must meet the fire resistance requirements of The Furniture and Furnishings (Fire Safety) regulations 1988

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SOME EXAMPLESHere are some ideas for products from previous companies in the LEAP programme. Try to take advantage of certain seasonal needs and spending patterns, such as Christmas, Valentine Day, Mothers’ Day and Easter.

Find below some examples of products made and sold and services provided by previous LEAP companies: – Clocks – Battle of the bands – Bird feeders – Calendars – Picture frames – Garden plants – Sports events – Specialised chocolate & sweets – Paintings – Cards – Christmas etc. – Club nights – Recipe books – Business cards – Handmade decorations – Wind chimes from recycled materials – School stationary – Handbags – Candles – T-Shirts (printed & designed by you) – Eco-friendly / reusable shopping bags – Hoodies – Keyrings – Watches – T-shirts with slogans – Keep fit gear – Photographs – Painted mugs – Notebooks – Organising events – Digitising photo albums – Film nights – Puzzles – Jewellery – Lingerie

INSURANCE COvER AND LEgAL RESPONSIbILITIESNow you have your product/service you now need to check again that it complies with LEAP Insurance.

Insurance cover has been arranged for all the companies that are registered with LEAP. You cannot start trading until you have confirmation of your registration.

The insurance is valid from the confirmation of your registration until the end of August the following year.

The insurance does not cover any products that could be considered dangerous or fresh food unless it is pre-packaged by a professional organisation, sell-by dates should be clearly labelled and adhered to. The insurance does not cover manual labour or hazardous activities. This is not insurance for your personal possessions, money, theft of stock, belongings or damage to your trade stand including backing boards and table. The insurance is to cover a member of the public becoming injured by your product or activities whilst trading.

Other exclusions include but are not limited to: – Goods for animal consumption. – Goods sold to USA or Canada. – Goods for use in the repair and maintenance of mechanically propelled vehicles. – Acids, gases, fireworks and chemicals, drugs and pharmaceutical products. – Fertilisers and weed killers. – The manufacture, modification or sale of any product requiring mains electricity. – Alcohol and tobacco products. – Production or manufacture of foodstuffs, or resale of unbranded foodstuffs. Any foodstuffs for sale must be branded and pre-packaged by the commercial manufacturer.

Copies of the insurance certificate can be downloaded from the website.

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whAT IS bRANDINg?Broadly speaking, a ‘brand’ is a set of associations that a person makes with a company or product. Companies use the process of ‘branding’ to try and control these associations. You should think of your brand as your reputation.

A big part of your brand will be your ‘visual identity’ (logo, colour palette, fonts, etc.), but there are other factors that affect how you are perceived – such as customer service, the quality of your products, your pricing, etc.

Branding will be an integral part of your company and should be considered when making many key decisions – e.g. deciding what product to sell, where you source it, how you price it, etc. Most of the following points are worth considering at every phase of the LEAP year.

why IS bRANDINg IMPORTANT?You may have the best product in the world, but if the right people don’t know about it, or about what makes it so great, then nobody will buy it. This is where branding (alongside marketing and advertising) can help. Effective branding can:

Target the right people Tailor your messaging and visual identity to your ‘target market’. You need to get the attention of the people who are most likely to buy your product.

Promote your point of difference Let people know what makes your product different from other companies (you may be familiar with the term USP, or ‘unique selling point’).

Create a personality Communicate with people on an emotional level. With branding you can make your company seem fun, serious, authentic, cheap, caring, etc. Your customers will have often formed an opinion of a company before seeing any of its products.

Look professional Companies spend a fortune maintaining their brand. If you don’t get it right you risk appearing amateur in comparison!

– howard Schultz, Owner/CEO of Starbucks

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ThINgS yOU ShOULD ThINK AbOUTyour target market Who is most likely to buy your product and how do these people make buying decisions? Do they choose products based on price, quality, prestige, environmental credentials, etc? What other brands are they likely to be interested in?

your competitors Which companies create similar products to you? What are their strengths and weaknesses? How much do they charge? What lessons can you learn from them?

your USP (Unique Selling Point) What makes you different from your competitors? What can you offer your target market that your competitors can’t? Are your products cheaper, better looking or higher quality? It doesn’t have to be an obvious benefit of the product itself – your service could be quicker, the sales experience better, the product more environmentally friendly. The simpler this difference is, the easier it is to communicate.

Personality Based on the above points you should think about how you want to portray your company. Do you want to be seen as fun, prestigious, cheap, high-quality, functional, etc? Your target audience should be able to relate to your brand. It should be sympathetic to your USP and be different to your competitors.

honesty Are you being honest? Just because you tell your customers that your product is better than a competitor’s, it doesn’t mean they will believe you. Your product or service will need to live up to the hype. You should try to be as honest and

objective as possible when analysing the strengths of your product and how it compares to the competition.

This process of deciding how your product compares to the competition and what you can do to stand out is often called ‘brand positioning’.

NAMINg yOUR COMPANyYour name obviously plays a big role in how people perceive you. Company names often fall into four categories:

Descriptive A name that describes what the company does. For example: EasyJet (flying made easy), Phones 4 U (phones... for you), BBC (British Broadcasting Corporation).

Evocative A name that suggests the personality of the brand, but it may not be as descriptive. For example: Innocent (purity, no ‘nasty’ ingredients and friendly), Intel (intelligent and forward thinking).

Abstract A name that is completely ‘made-up’ and has no obvious link to the company (but does contribute to the personality of the brand). For example: Google (quirky, fun and inventive), Vimeo (anagram of ‘movie’, but also a combination of ‘video’ and ‘me’).

Personal, geographical or historical A name based on the companies founder (or another person) or a place. This is the case with a lot of older and more established brands. For example: Kellogg’s (named after founder Will Keith Kellogg), McDonald’s (named after founders Richard and Maurice McDonald), Fuji (named after the tallest mountain in Japan). Sometimes new companies will take this approach to naming in order to sound more established, or to create an association with a person or place.

EXAMPLES OF LEAP COMPANy NAMES

Customeyes

IQ

Sweet Nostalgia

Totes Quotes

Elland bead Co.

Peace of mind

Cloud Nine

The hamper Co.

Echo Sound

Spectrum Audio

Revival Clothing

Paper Chain

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DESIgNINg yOUR vISUAL IDENTITyThe visual identity is often the main aspect of a brand that people interact with and will normally include the following:

Logo The logo is the first design element to consider. How do you get across your personality in one symbol? How do you make it appeal to your audience whilst being different from your competitors? It’s a good idea to do a bit of research into how different logos communicate different ideas. For example: a crest/coat of arms suggests heritage, an illustrative logo could suggest fun, youthfulness or hand-made. On the next page are some examples of logos from previous year’s companies.

A logo is only one part of your visual identity and should be considered alongside the following:

Colours Again, different colours suggest different things. Bright colours are often seen as young and fun, but also cheap/budget. Darker colours are usually associated with tradition or luxury. Pastel colours often seem more caring or feminine.

Type Carefully consider what fonts you use and how you use them. Do you want to use a traditional ‘serif’ font like Times New Roman, something more modern like ‘Helvetica’ or maybe even playful hand-drawn lettering?

Imagery At some point you will need to use images. Think about what kind of imagery will best suit your brand. Should you use photos – if so will they be best in black and white, or colour? Maybe they should have some sort of effect applied? Perhaps illustration would me more appropriate – either hand-drawn, or modern and computer-generated?

All of these elements should be considered carefully. Maybe you can use the contrasting connotations of different elements to tell a more accurate story –

for example using a traditional crest-style logo and font alongside a more contemporary colour palette could suggest an established company with a forward thinking attitude. You should also think about how adaptable your visual identity is – it will need to work at different sizes and across different media.

Marketing material, literature and websites Every piece of printed material (posters, leaflets, t-shirts, etc.) that you produce should use your chosen colours, type and imagery to make sure that you are communicating consistently to your audience. You should also make sure you follow this through online – on your website and any social media.

Make sure that any text that your write for leaflets, your website and social media has the correct ‘tone of voice’ (the personality of writing) – think about whether it should sound light-hearted, quirky, funny, serious, etc.

Other things to consider You should maintain consistency across everything you do. This includes product and packaging design, trade fair design and even how you dress (it’s no good trying to brand your company as fun and youthful if your salesperson is going to be wearing a suit and tie).

For a more in depth introduction into the world of branding go to http://www.designcouncil.org.uk/news-opinion/power-branding

Many companies produce documents

called ‘brand guidelines’ to ensure that their visual identity is kept consistent.

Click here to see ours.

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COMPANy LOgOS FROM PREvIOUS yEARS

Make sure that your logo is adaptable.

Think about the different applications that your logo will need to work across.

A square logo won’t fit on a pen very well, and a long, thin logo won’t work in a social media profile image.

You may need to create several versions that work across different formats and on different colours.

Here’s some simple examples of logo variants:

a: horizontal b: Square c: Negative colour

Your Company

Name

YourCompanyName

Your Company

Name

a

b c

You can find more on our website!

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CREATINg yOUR TEAM You have likely given some thought to which of your friends and colleagues you want to work with in joining the business. It is important to consider, however, that successful organisations require workers of many different skills in order to be successful, so it is important that careful thought is given to the suitability of each person to the roles detailed in this section. One person may fill more than one role, even five roles, if they are able; but it is critical that a diverse set of skills are brought to the company in order for all jobs to be done well. It may be tempting to work with your friends, all of whom have similar skills and interests, but it is important to remember that in addition to being fun, running your company is somewhat serious business. It takes courage to approach people who you think might have skills which would help your business but who you don’t know; taking the initiative to introduce yourself to them and gauge your mutual interest in working together may sound scary but it’s a critical skill for successful entrepreneurs and will become second nature before too long.

The following section provides some further information around the roles and responsibilities of the employees within your company. It is important that you carefully consider your strengths and which role would be best suited to your attributes.

Different people have different skills. You may consider you have a strength in one of the following; organisation, coordination, record keeping, accounting, innovation, creativity, problem solving, selling, or idea generation.

A successful company needs all these skills and you need to nominate or elect the most appropriate person for the various major roles in a company. You may want to have deputies for each role to cover the times when the Director is not available, or to share the responsibility. Above all, your company is a team with everyone contributing. Some companies decide to change the roles part way through the year but this may lose continuity. Some suggestions for the responsibilities are listed below, but real life companies often vary these according to the skills of the individual people. There is no reason at all why the Managing Director and Finance Director (etc.) cannot help with production and sales – the more experience you all get the better.

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MANAgINg DIRECTORKey Responsibilities: Organisation, coordination, leadership, decision making, final say (casting vote).

The Managing Director is normally the driving force of the company and will have the final say in all major decisions. They should keep everybody fired up with enthusiasm and coordinate everyone’s efforts to get the most out of everybody, in the most effective way. It is important that the Managing Director leads by example.

The role of a Managing Director is considered the most important role within the business, and with it comes significant responsibility. Some tasks may include; – Setting the culture of the company. – Developing strategy and direction for the company. – Leading the senior management team. – Managing financial and physical resources. – Signing off on all important contracts. – Building the company for the future. – Having the final say in all important decisions.

what will your role involve? As the Managing Director of your company, you will be responsible for approving decisions made by your management team. You should also be the voice of reason, listen to others, make informed choices and in general, look after every aspect of your business plan.

Other tasks will include; – Leading the company and its directors. – Delegating responsibility to other directors – Disciplining individuals. – Ensuring the company is successful.

There will be a great deal of responsibility that comes with this role so ensure that you can work well under pressure and have great organisational skills!

COMPANy SECRETARyKey Responsibilities: Record keeping, taking minutes, checking actions are completed, filing of accounts.

The Company Secretary is responsible for keeping the legal records of the company and taking minutes of the meetings. They should also assist the Managing Director in making sure that all the actions are followed up. Also, they need to ensure the company accounts are filed on time to avoid any fines.

Despite the name, the role of a company secretary is not a secretarial one in the usual sense. They hold a large amount of responsibility including; – Ensuring directors and the company comply with the law. – Communicating messages from the board of directors to the wider

organisation. – Organising board meetings and the

company’s annual meeting. – Updating regulatory bodies, such as the Companies House, with any updates to the company (e.g. change in directors, change in address). – Managing, storing and filing the company’s records.

what will your role involve? As the Company Secretary, you will be required to take an active role in the running of your business and assist the Managing Director in the organisation of meetings.

Other tasks will include; – Keep the legal records of the business – Take minutes at meetings. – Communicate important messages to the shareholders. – Organise meetings and ensure directors are in attendance. – Assist the Managing Director ensuring that all actions are completed. – Ensure financial statements are submitted on time.

If you are organised, can stick to deadlines and have good communication skills then this is the role for you!

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FINANCE DIRECTORKey Responsibilities: Financial control, cash and banking, receipts, payments, financial statements.

The Finance Director keeps records of all financial transactions (buying, selling and expenses), keeps the accounts and reports on them at the board meetings and generally controls the finances of the company. They will also be responsible for setting up the bank accounts and ensuring there are available funds to grow the business.

The role of a Finance Director varies significantly and day to day they will encounter different challenges. Some tasks may include; – Recording all transactions in the business. – Providing financial information to the business. – Producing financial reports. – Analysing data. – Arranging new sources of finance. – Approving payments. – Minimising risk. – Managing a team.

what will your role involve? As the Finance Director of your company, you will be responsible for book keeping and the recording of all important transactions. You will be provided with spreadsheets and guidance on how to do this to help you on your way.

Other tasks will include; – Setting up bank accounts. – Approving payments to suppliers. – Providing a report on the financial information at board meetings. – Accounting for receipts, payments and expenses. – Ensuring there is available cash to grow the business.

You do not have to be great at numbers, but a basic understanding of spreadsheets and a keen interest in finance would definitely help!

PRODUCTION DIRECTORKey Responsibilities: Product design and manufacture, ordering parts or services, labour coordination.

The Production Director (sometimes called Operations Director) is responsible for organising the buying of materials, the manufacturing process and the quality control of the manufactured items (or service provided). They are responsible for organising the labour and the production line for manufacturing.

Any company involved in the manufacturing and distribution of product will require a Production Director. Some of their main responsibilities may include: – Ensuring that the production process is both time and cost efficient. – Working out both human and material requirements. – Monitoring product standards and ensuring that product meets quality standards. – Working closely with different departments (e.g. finance, sales, marketing). – Complying with (and ensuring that employees comply with) health and safety regulations. – Ensuring the production equipment is up to date.

what will your role involve? The Production Director in your company is an important role as it is likely to be the project which will determine whether your company is a success or not. At a high level, you will be responsible for making the product and ensuring it meets the standards you set as a board.

Other tasks will include; – Buying the materials to make the product. – The manufacturing process. – Quality control of the manufactured items. – Organisation of labour.

This is a creative role and you will need to ensure that the production process runs smoothly and on time!

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hUMAN RESOURCES DIRECTOR Key Responsibilities: Morale and motivation, discipline, development and training.

The Human Resource Director is responsible for ensuring colleagues attend meetings or manufacturing sessions, and for maintaining the morale of the company members. This might be done by encouragement or incentives (chocolates, biscuits, money, outings for workers). If a company member does not attend the meetings, or is consistently late, then the Human Resources Director is responsible for discipline. Human Resources is also responsible for organising any necessary training for production or sales personnel.

The role of a Human Resources Director requires staff monitoring and management on a daily basis. Some of their tasks may include: – Recruiting and staffing. – Organising training sessions. – Monitoring the attendance of meetings. – Maintaining staff morale. – Encouraging positive performance behaviour. – Responsible for staff discipline. – Responsible for staff safety and well-being. – Resolving issues/conflicts.

what will your role involve? As the Human Resources Director of your company, you will be responsible for staff discipline and morale of workforce. You will get to know your staff and ensure they work well with each other whilst perform and develop as a team.

Other tasks will include; – Communicating important staffing decisions. – Advising and counselling. – Keeping staff records/details. – Informing the board of any staff issues.

You are the people person and you make sure everyone’s happy about their role and working as a team!

MARKETINg DIRECTORKey Responsibilities: Market research, promoting the product, advertising, trade stand, public relations, pricing.

The Marketing Director is responsible for researching the products, market and price for promoting and advertising the product. The Marketing Director will also coordinate the design of the trade stand and work closely with the Sales Director to maximise the sales and provide opportunities for selling. Marketing is all about experimentation, ideas and fun!

The role of a Marketing Director varies based on the product and the promotion needed. Some their tasks may include; – Conducting market research. – Deciding which product to produce/sell. – Finding the correct market and customers. – Product pricing. – Deciding promotion methods (posters/flyers). – Organising promotion activities Maintaining customer relationship. – Public relations and press releases

what will your role involve? As the Marketing Director of your company, you will be responsible for all marketing activities ranging from conducting customer survey to designing trade stands. You will have a deep knowledge of the product and find the effective way to sell it.

Other tasks will include; – Being informed of market trend and development. – Work closely with the sales team. – Overseeing the implementation of marketing strategy.

You need an open mind and tons of great ideas to promote your products. Don’t be afraid and try them out!

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SALES DIRECTOR Key Responsibilities: Coordination of sales, selling methods, working with Marketing on pricing and trade stand.

The Sales Director is responsible for coordinating the sales people (usually all members of the company) and arranging selling opportunities and methods. They will work closely with the Marketing Director on pricing, trade stand and selling venues, and with the Human Resources Director on any necessary training for the Sales staff.

The role of a Sales Director varies based on the product and the sales activities required. Some their tasks may include; – Forecasting and budgeting. – Coordinating the sales people. – Leading the sales team. – Monitoring sales activities. – Implementing the use of posters, trade standing, flyers etc. – Communicating directly with customers. – Gathering customer feedback.

what will your role involve? As the Sales Director of your company, you are at the front-line talking to customers and selling products. You are also responsible for organising the sales team (usually all members of the company) and monitoring sales activities.

Other tasks will include; – Producing sales reports. – Identifying new sales opportunities. – Building relationship with other directors to support sales activities. – Training and guidance to your

sales team.

You are the face of the company as customers buy products from you. You should act professionally and sell as much as possible!

IT DIRECTORKey Skills: Email set up, web site design, PowerPoint presentations and spreadsheets.

The role of an IT Director is to take responsibility for all the electronic communication of the company from emails to web site. They are also responsible for the preparation of PowerPoint presentations for the Presentation Competition.

The role of a Marketing Director varies based on the product and the promotion needed. Some their tasks may include; – Using social media to communicate

with customers.– Maintaining company website. – Updating electronic information. – Responsible for emails. – Implementing IT related strategies. – Preparing presentations . – Support other directors with IT related issues.

what will your role involve? As the IT Director of your company, you are managing the electronic side of the business (website, social media, etc.). You should work closely with the board to understand what’s needed and ensure the implementation is effective and efficient.

Other tasks will include; – Use of other IT channels (company phone). – Safety of IT equipment. – Updating the board regularly. – You don’t need to be able to programme software, but a good knowledge of basic IT functions will help!

OThER MEMbERSDeputy positions, production members, sales people.

Role in the business: Not everyone has the inclination or the time to be one of the directors, but the other roles in a company are also essential. “No production, no sales!” and “No sales, no business!”

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why DO wE NEED A bANK ACCOUNT?Every company needs a dedicated bank account so that you can bank your earnings, pay suppliers and be sure there is no chance that the money can be lost or mislaid.

You can use any bank of your choice and we recommend a community account.

OPENINg yOUR COMPANy bANK ACCOUNTOnce the company and LEAP Enterprise Teacher have been appointed, you will need to set up a bank account. This is so you can operate safely and effectively where money is involved.

Here are a few points to know before any action is taken.

– Choose a bank that is either convenient and/or practical.

– The bank and branch you use should be convenient and open when you can attend.

– In line with banking rules, no one under the age of 18 years old can sign on the account, so you are protected legally, therefore your LEAP Enterprise Teacher should be the only signatory for signing cheques. HOWEVER, as students and company directors, you need to arrange with the bank & teacher to proceed.

– You will need to open a community account, this has no charges applied for any facilities but does have the chequebook, paying-in book and in some cases Internet Banking.

– No debit or credit cards will be available due to the account type.

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MAKINg AN APPOINTMENTCall in personally to the branch and introduce yourself, advise the bank representative that you need to make an appointment with the Business Specialist.

Please keep in mind students and teacher’s time commitments.

Ask if booklets or paperwork are available, so you can read beforehand, and so you, the Company Director and LEAP Enterprise Teacher are fully informed.

Facilities needed: – Community bank account. – Cheque book and paying-in book. – Internet Banking (FREE if available) with availability to make payments up to £250.00 per transaction.

IDENTIFICATIONYour LEAP Enterprise Teacher who is going to be signing on the account will have to produce identification and address verification in line with the individual bank’s rules.

Each bank has slightly different requests so please make sure you get a clear understanding.

This is the same for any student who is to sign and over 18 years of age.

Note: if students are to sign on the account we recommend that two signatories sign the cheques where one is to be the LEAP Enterprise Teacher.

ThE APPOINTMENTMake sure ALL attendees are prompt for the appointment (a little early is always nice) and that you have all the details ready.

We recommend your LEAP Enterprise Teacher plus two company directors to attend the meeting; this could include the Managing Director and Company Secretary.

You will need: – Company name. – School address. – Postal address for statements, cheque books, paying books etc. – Telephone numbers. – E-mail address for the company

representative and LEAP Enterprise Teacher.

You will need to get: – New bank account details. – Bank address, telephone number and opening hours. – Name of person/point of contact.

The bank account is an urgent priority.

If you have any problems then contact

donna@leapenterprise.co.uk

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CLOSINg ThE bANK ACCOUNT This MUST be done by end of JUNE.

Once you have processed all your payments and you have checked all transactions have gone through the bank account you will need to begin closing the account.

Review and check all shareholders dividends, final stock sales and any charity payments have been completed therefore any final credit balance is to be actioned upon.

Then once the balance goes to NIL, you are ready to close the account.

Step 1 Talk to the bank and advise you need to now close the account.

You may be required to make an appointment.

Two people will be required to attend including the LEAP Enterprise Teacher who is the signing authority on the account.

Step 2 When attending the appointment, you must take all cheque books, paying-in books and Internet Banking secure keys etc. back.

The Business Specialist will check the account has been fully completed and all items been actioned. The account can then be closed and funds paid out (if available).

Step 3 You will be sent a closing statement; we recommend that all the bank statements including the closing confirmations be left with the LEAP Enterprise Teacher.

MAINTAININg ThE ACCOUNTKeep records safe and learn how to write cheques and fill in paying-in books correctly. All teachers have these skills so don’t be afraid to ask!

REMEMbER: Managing Director and Financial Director should review and update the financial account programme (which should be downloaded) and we recommend you check at each meeting these actions have been taken.

If you need any advice on bank accounts or would like a personal visit to your school to open the account please e-mail donna@leapenterprise.co.uk

If this is arranged, your bank account will be held with HSBC Bank PLC, who have previously agreed these rulings and facilities for our LEAP Companies.

you MUST close the bank account

by the end of June

20

whAT IS A bUSINESS PLAN?Before you can start raising working capital you will need to complete your Business Plan with advice from your LEAP Enterprise Teacher and/or your Business Mentor.

The plan should give your company name and logo, the students involved, your mission statement, your product or service, how you did (or plan to do) your market research, your marketing plans, sales plans, price of your product and your financial requirements.

You can use one of the templates provided to draft your business plan. This should be prepared and agreed by the company board and then reviewed by your LEAP Enterprise Teacher and/or Business Mentor, then submitted to LEAP by the November deadline. This will form part of the evidence for the Competition Best Administered Company and it will also act as your guide whilst you are conducting business. If you do not decide on a destination then you have no chance of getting there.

A business plan is a living, working document to help the owners (the board) to run the company. As a living working document, the business plan will change regularly, i.e. your statement (your vision/goal) may not change, but your financial status, client base and resources may change regularly. A good business plan will be altered ‘just ahead’ of the changes happening to a business, i.e. the business has planned for the change.

It’s also to obtain funding to start or keep a business going, either from a bank or via a body giving grants. One big piece of advice – if you are doing a plan to get funding, write it ‘from the reader’s perspective’, i.e. think about what they need to know about your business that will help them say ‘yes’ rather than what you want to tell them about your business. Write this plan to allow a potential funder to have faith in you and your business.

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hOw MANy STAFF ARE NEEDED?

hAvE yOU RAISED

CAPITAL?

whO IS yOUR

SUPPLIER?

hAvE yOU DONE

MARKET RESEARCh?

whAT’S yOUR ADvERTISINg

PLAN?

hAvE yOU SET yOUR MARgIN?

whAT IS EACh

PERSON’S POSITION?

whAT IS yOUR

PRODUCT?

hAvE yOU MADE A PROTOTyPE?

hOw DO yOU

COMPETE?

whAT TURNOvER

DO yOU EXPECT?

NAME AND

vISUAL IDENTITy?

ThINgS yOU ShOULD ThINK AbOUT

bUSINESS PLAN

22

wRITINg yOUR bUSINESS PLANUse this structure to draft your business plan. It should be prepared and agreed by the Company Board and then presented to your Enterprise Teacher and Business Mentor, then submitted to LEAP by the November deadline. This will form part of the evidence for the competition Best Administered Company and it will also act as your guide while starting the company.

where are we now? A simple statement of: – What do we want to do? – What resources do we have? – What preparation have we done?

where do we want to be? A simple but clear vision, e.g: – Make smart phones accessible to everyone. – Sell more sportswear than Nike. – Revive the music scene in Leeds.

Product brainstorming All staff should try to put forward ideas and state the reason. Think outside the box! There are no outlandish ideas. Think about: – Are you producing or reselling? – Are you only/also providing services? – How can you increase the value of the product?

Define the market Conduct market research: – Who are the customers/competitors? – What’s the market share left for you? – Is this market driven by price? (tight margin).

Define the financial position How much money do you need for: – Buying in stock or raw materials. – Paying for advertising and promotions. – Unexpected costs.

SwOT analysis – What are your strengths and weaknesses? – How to make the best of opportunities? (new customer base; new social trends) – How to limit risks and threats? (increased cost; new competitors)

business plan submission

deadline:

6th November 2015

23

whAT IS ThE ROLE OF MEETINgS?Meetings are held weekly throughout the LEAP company year with the formal board meetings taking place monthly. It is always useful to have a brief review of past and future actions at each meeting.

At the first formal board meeting for the company you will need to elect the officers of the company.

Your Business Mentor or LEAP Enterprise Teacher will help you in the early meetings.

Meetings are used in almost every business as a way of communicating information to other people. There are several functions of a meeting, some of which are shown below:

MEETINgS

SEEK IDEAS

RESOLvE PRObLEMS

CLARIFy

SETTLE DISPUTES

MAKE DECISIONS

COMMUNICATE

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TyPES OF MEETINgThere are several types of meeting that you may hold during your company year which are likely to vary in duration, frequency and content. However, some things remain consistent. Ensure at each meeting you have a brief review of past and future actions and a representative takes minutes.

board Meetings These are typically formal meetings held on a monthly basis but in the first few weeks you may want to hold these more frequently. At your first board meeting for the company, you will need to elect a Managing Director and Company Secretary along with the other roles detailed in section 3.

Production/Sales Meetings These meetings may be held more frequently, ideally once a week and will focus on specific actions related to the production and sales of your product.

The Business Mentor will help you in the early meetings but normally the Managing Director is responsible for the control and direction of these meeting and the Company Secretary for the minutes and list of actions.

If you are given the responsibility of completing actions from the meeting then it is essential that follow-up is done on these. The Managing Director or the Company Secretary should make sure that the actions are completed on time (using a tactful reminder approach where necessary).

It is necessary for all members of the company to attend the meetings, and if they cannot attend they must let someone know (together with their reason for absence).

Your first three meetings are crucial to the success of the company. To give you a helping hand, we have provided some support on the structure of these meetings. Here’s some key topics to cover:

First meeting – LEAP Enterprise Teacher’s role. – Business Mentor’s role. – Explain how the company programme works. – Roles of directors. – Register the company with LEAP.

Second meeting – Update on matters raised in last meeting. – Election of directors. – Brainstorming ideas for the product/ service of your company. – Financial report: – Bank accounts – Captial (sale of shares).

Third meeting – Finalise the product and/or service. – Agree how capital will be raised. – Decide on a mission statement. – Discuss production methods; when/where.

Fourth meeting – Draw up a business plan – you cannot

reach a destination without deciding on a route.

MEETINg AgENDAA meeting agenda is the list of items that participants hope to accomplish at a meeting. The agenda should be distributed to participants several days in advance of a meeting, minimally 24 hours, so that participants have the opportunity to prepare for the meeting.

Your meeting agenda will vary from meeting to meeting but you should look to include the following as a minimum; the date, time and location of the meeting, apologies for absence, matters arising from the minutes of the last meeting, topics to be discussed, a financial report led by the Finance Director, a discussion around any other business (AOB) and don’t forget to set a date for the next meeting!

25

MINUTESTaking minutes forms an essential part of most meetings and is usually completed by the Company Secretary. Some of the reasons for taking minutes are outlined below; – Confirm any decisions made. – Record any agreed actions to be taken. – Record who has been allocated tasks or responsibilities. – Provide information to those who were absent from the meeting. – Serves as a record of the meeting and the discussions that took place.

The minutes should be kept up to date and circulated to all board members of the company with copies sent to the Business Mentor and LEAP Enterprise Teacher. The minutes must clearly state who is responsible for each action and any deadlines for completion. These minutes will also form part of the competition for Best Administered Company.

CONTROL OF MEETINgSIt is the Managing Director’s responsibility to control (or chair) meetings, or in their absence a deputy should be appointed to do this. Instead of everybody speaking at once, hands should be raised to indicate you want to speak and the chairperson will then select the speaker. Only one person should speak at once. This is quite a novel situation for teenagers – but it is the only way a meeting can be held successfully.

Note: Your Business Mentor is there to advise but not to control the meetings. They will not control the discussions but will probably indicate if you are going in completely the wrong direction! Use their experience, they are volunteers giving up their time and must be treated with respect.

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MEETINg DETAILS Date Time Location

11/07/2014 11am Leeds

ATTENDEES Name Initials Role

Jamie Spencer JS Managing Director

Kyle Bibby KB Marketing Director

Olivia Greaves OG Financial Director

Lauren Forrester LF Sales Director

Rosie Saunders RS Company Secretary

SUMMARy POINTS Initials

a) Apologies for absence

b) Update on matters raised in last meeting

Key Topics

c) Election of directors

d) brainstorm ideas for the product/service of your company

e) Discussion around your business plan

f) Financial report Bank accounts Capital (sale of shares)

g) Any other business (AOb)

h) Date for next meeting

27

whAT ARE ShARES?In order to get your company off the ground it will need some initial money – money to build its first products or provide its first services, money to promote its brand, and other essential business activities.

This can be done by selling shares in the company, which is the sale of ownership in your company.

The Company Secretary can download share certificates from resources on the LEAP website. Each director of the company must buy at least one share, and the remainder of the shares can be sold to friends, family and school students who are then shareholders in your company. The shares are sold at £1 each. Normally we restrict the amount of capital that can be raised by shares to £400. The Company Secretary must keep a register of shareholders and the number of shares each one has bought.

Money may also be raised through sponsorship – this is less usual in a real business. You might consider sponsorship as a way to get T-shirts printed with your company name and logo for use at trade fairs. Perhaps the sponsor’s logo can also be printed on the T-shirt.

In very simple terms, shares represent partial ownership in a business, or shares of a business.

Imagine you wanted to start a jam making company and have determined that £150 is needed to buy the fruit and sugar for the first batch of product, place a deposit with the city market to rent a stall at the weekend, and promote the business to get it off the ground. One way of raising this money is sell-off shares in the ownership on the company so that in total £150 is raised. Following LEAP rules, shares are £1 each, with one shareholder (a term meaning owner, full or partial, of a business) owning no more than £20 shares (rules detail is below), and therefore at least eight owners must be found to raise the £150. Some shareholders may have 20 shares, while others only have one; both are owners of the business, but one has rights to 20 times the profit and voting rights as the other.

TyPES OF ShARESThere are two main types of share:

Ordinary shares Represents ownership in a company and entitles the owner to ordinary benefits such as a share of the profits and in most cases, and votes at important meetings.

Preference shares An individual may wish to own preference shares, which typically have a fixed dividend and in case of bankruptcy, these shareholders have the right to be paid company assets first. However, with preference shares, you do not have voting rights.

28

whAT DOES ThIS MEAN FOR yOU?Like any business, you will have the opportunity to raise share capital through the sale of shares. However, you will need to guided by the following rules: – The share price is £1. – The maximum number of shares per person is 20 (£20). – Each member of the company must own at least 1 share. – The maximum share capital is £400. Note: this may be increased under special circumstances with the permission of your Advisor, Enterprise Teacher and the LEAP Board (all three must agree.

ThE NUMbER OF TOTAL ShARES IMPACTS ThE INFLUENCE OF EACh ShAREhOLDERImagine that, in total, your business has issued 25 shares. If you had bought the maximum of 20 shares, and each of your five business partners had only bought one then you would have most of the shares, thereby entitling you to most of the profits and votes of business and allowing you to effectively control the business. This would seem like a pretty good deal to you.

Now imagine that you had bought the same 20 shares, and that each of your business partners had bought the same one share, each as above, but that in order to raise £150, the business had sold one share each to 125 of your friends. Your 20 shares would be reduced in importance in comparison to the over one hundred other shareholders. Meetings of shareholders to determine important company decisions would become very challenging, and other challenges with having this number of shareholders would arise. Overall, it is ideal to have a smaller number of larger shareholders (those that have larger number of shares each, up to £20) than a large number of smaller shareholders. Additionally, it is ideal if the shareholders are involved in

running the business and have directors roles; this way they will feel motivated to bring energy and ideas to the business.

It is important to remember that when your company issues shares for money, it is doing so in exchange for ownership in the company, and that issuing shares should be done only after careful planning as part of the business plan drafting.

RECORD KEEPINg It is important that you record all your shareholders on a share register. This way, you can keep track of who owns a part of your company, how many shares they own and the owner’s details in case you need to contact them.

It is also important you provide the investor’s with a share certificate which acts as an official record of ownership. We recommend that you provide one to the shareholder and keep one for yourself. Ensure the certificate number is the same on both so you can confirm it is real at a later date!

Click here to download the share certificates

Click here to download the

share register

29

whAT IS MARKETINg?The first point to learn is that marketing is far more than just advertising or promoting your product. It involves answering all of the following:

– What price will customers be willing to pay for the product or service?

– What other companies will be competing with us to sell a similar product?

– How much will the product cost to produce or service cost to provide?

Answering these questions will involve performing market research.

whAT IS ThE DIFFERENCE bETwEEN MARKETINg & SELLINg?Many people think marketing and selling are the same thing, but let us make it clear that they are not. Effective marketing involves homework, brainstorming, market research and finding creative ways to help your product stand out from the crowd. Marketing is all about numbers, research and statistics, but that’s not enough on its own, it’s a whole collaboration.

A good marketing message will draw potential customers your way, which gives you the chance then to talk, listen and sell.

Marketing takes on many forms, from advertising posters, website, word of mouth, announcements, and flyers. All give interest that there is something new being launched and creates a desire for the product.

Some companies work on having a pitch which is a simple worded message that is used to sell the product, idea and entice further interest.

Effective marketing is not about sales, it is about communication with potential buyers which then become sales.

Sales are the results of good marketing; the very best sales person creates an opportunity to talk, listen and closes the sale.

If a customer is considering the purchase of your product, they already desire the product, but chances are they have objections that stand between them and completing the sale. The market research completed earlier could help you with overcoming potential objections or issues later on, and can be useful to refer to when talking with the customer. But be careful not to do this too much as it can also frighten them off.

Don’t forget when asking questions in the beginning use open questions. These questions have to be answered with information and not a “yes” or “no”.

Alternatively, closed questions are answered with a “yes” or “no”. Such as “would you like to buy ?”

30

MARKET RESEARChAs entrepreneurs, you are great at generating ideas but often have trouble creating a plan to turn those ideas into a successful business. However, to launch a new product or service, you must take the time to research your concept through market research questionnaires, which then will enable you to write a business plan that proves it is feasible. The first stage of market research is to ask yourself and fellow directors ‘Would you buy ?

Below are some questions to consider for your consumer market research survey:

Demographic Questions

Q. What is your age?

Q. What is your gender?

Psychographic Questions

You may want to ask about their interests, hobbies, opinions or anything else that will help you learn more about your customers.

buying Pattern Questions

Q. Do you ever purchase ?

Q. Where do you go when you are looking for ?

Q. How often do you purchase ?

Q. How long does it take you to make a buying decision ?

Q. What is your typical budget for ?

Q. How far would you travel to make the purchase ?

benefits Questions

Q. What features do you look for when you purchase ?

Q. What specific benefits do you look for in ?

Q. What problems motivate you to purchase ?

Q. What needs are you trying to meet when you purchase ?

These questions can provide a jumping point for your consumer market research efforts.

Never ask too many questions, decide what is important for you to know, keep it brief (to a maximum five questions) and always say “thank you”. Remember that if the questionnaire is too long people start to give silly responses, they easily get bored of questionnaires. If this is the case, perhaps you should consider doing verbal market research.

When you have your answers, collate the results and review with the other directors in your company.

31

ThE wEbSITEHaving a well-planned website can help your business immensely. It’s a sales tool, an information tool and a platform to communicate with your customers. How people browse the web has changed a lot over the past few years; with the emergence of smartphones and tablets, people now visit websites when they’re out and about. This means that your website should be designed to work on lots of different devices. This process is called responsive design and you can read more about it here: http://www.smashingmagazine.com/2011/01/12/guidelines-for-responsive-web-design/

This is just one fundamental aspect that your website should cover, but before you begin your website you should ask yourself the following questions: Is our website inviting to readers? Are the colours and font choices consistent with our brand? Is it easy for people to get in touch with us? Are we linking to all our social networks such as Twitter?

A good starting point to making your own website would be to look at Wordpress (http://wordpress.org) which has a lot of useful features out of the box, and is completely free of charge. If you need images for your website, be sure to get royalty-free pictures from http://www.istockphoto.com and never just steal from Google as they might be copyright protected.

Finally, make sure you have somebody to proof-read your website text (often called ‘copy’ in the industry) for spelling errors or grammar mistakes – nothing screams amateur like badly written copy!

SOCIAL MEDIASocial media gives brands the opportunity to instantly talk to fans in a creative and engaging way. It allows you to reach new and relevant audiences to develop your own online community. Today people are always ‘switched on’, they have their mobile phone with them at all times and will watch TV whilst using their iPad, it’s important for brands to get involved in their online world.

You should set up a page on Facebook, Twitter and LinkedIn at the very least; if you have a lot of images or like to take pictures then it’s also worth checking out Pinterest and Instagram. You can also get your business registered with Google using Google My Business, this will get your business location registered with Google and will create a Google+ page linked to your business location.

You should try to post at least once a day on each channel, with Instagram and Twitter you can post as regularly as needed. You should try not to post for the sake of posting and actually post useful information and content that sits well with your brand. You should post a combination of links, images and videos as the more varied your content is, the more likely it is that it will appear in the newsfeed of fans.

To get fans you should tell everyone associated with your company to connect with your company on the social media channels. Ensure links to your social media channels are on your newsletter, website, any print materials and email signatures. You should then look a conversations happening across social media and join ones appropriate to you.

Just like your website copy, you should proof read social media posts before they go live as typos and grammatical errors look unprofessional.

32

MANAgINg yOUR ACCOUNTSEvery company is required to keep financial records this is the Financial Director’s responsibility usually assisted by a deputy and the Managing Director. The accounts programme must be downloaded from either the website or the USB issued at registration, this has been specially written for LEAP. Full instructions for the use of this programme will be given in the seminar in October, but we advise you to make yourself familiar with the contents before that date.

LEAP vAT and Corporation Tax are calculated automatically when using the programme and should be paid on presentation of the Financial Report in March.

hOw MUCh MONEy DID OUR COMPANy MAKE, AND hOw MUCh DOES IT hAvE?You will operate your business for a number of purposes, and one of them is to earn a profit for yourself and the other shareholders, and you will want to know how much profit has been earned in a period.

You may ask why you can’t simply count the cash in the company’s bank account and cash register at the end of the year; but what about products that you sold or services that you provided to customers who agreed to pay the company at a later date? There will be no cash in the bank account or cash register, but your company made a sale for which it will receive the corresponding money for shortly, and therefore you should account for this transaction to include the sale in profit. Similarly, perhaps your company received the materials needed to make a product, such as fruit to make jam, and agreed to pay the farm who supplied the fruit once you sold a few jars of jam at a later date. The company has not paid cash for the cost of this fruit, but it is a cost that has been incurred that will reduce your profit. Profit is calculated by drawing up a profit and loss account, which lists the money earned for sales and incurred for expenses and costs; these items may either already be settled in cash or subject to a promise to pay at a later date.

Click here to download the

accounts programme

33

Let’s consider an example statement of profit that a jam company would prepare.

Let’s assume that:

Of the £700 of jam sold: £600 of cash has been received; and customers have promised to pay for the remaining £100.

Of the £450 of expenses: The company has paid for all of the sugar, rent, stationary, and advertising, but still owe £100 to a local farm for fruit.

The £600 of cash and £100 of amounts owing are assets of the company; and £100 owing to the farm is a liability of the company, because you will have to pay this at a future date.

The profit and loss account measures for the profit achieved in a particular period, and the assets and liabilities of a company are accounted for on a statement called the balance sheet:

You will notice that the balance sheet on the right does not balance to nil as the title suggests, and this is because we have not completed the balance sheet just yet.

PROFIT & LOSS ACCOUNT FOR ThE yEAR ENDED 31ST MARCh Out In

Jam Sales 700

Expenses: Fruit 200 Sugar 50 Rent for market stall 165 Stationery 10 Advertising 25

TOTAL EXPENSES 450

PROFIT 250

bALANCE ShEET AS AT 31ST MARCh Assets

Cash at bank 600

Debtors 100 (amounts owed from others)

TOTAL ASSETS 700

Liabilities

Creditors 100 (amounts owing to others)

TOTAL LIAbILITIES 100

34

hOw wILL I bE ACCOUNTINg FOR My COMPANy?As you will have appreciated from the above, accounting can be a complicated subject at times.

In order to assist you with this, we have created software for you to record the various transactions of the company. In order to do this, you will have to recognize that there are:

1. Sales to customers, and purchases from suppliers in which cash is exchanged immediately.

2. Sales to customers, and purchases from suppliers in which there is promise for cash to be exchanged at a future date, such as in a month or so.

3. Settling of these promises to pay cash.

4. Counting stock of unsold products at the accounting date.

In the downloadable spreadsheet, each of the above types of transactions will have a separate tab to enter the details of the transaction. The statement of profit and balance sheet will be updated for each transaction entered, and therefore, in order to create the accounting statements, you will simply need to ensure that all transactions are entered in the correct tab.

whAT IF wE hAvE UNSOLD JAM AT ThE ACCOUNTINg DATE?Another important asset in addition to cash and money owed to the company is stock. You may have worked in a shop, and after the store closed for trading on the last day of the month stayed late at work to help count all of the products at the shop. These remaining products are the company’s stock.

Two steps are required to account for stock at the end of the year:

1. Estimate the cost of each product. In our example, we bought £200 of fruit, and £50 of jam. If this makes 100 jars of jam, then the stock cost of one jar of jam is £2.50.

2. Count stock at the end of trading on the year-end date

If there are 50 jars of unsold jam at the accounting date, then the profit and loss account and balance sheet will need to be updated to move £125 of expenses from profit to assets:

As a result of counting the ending stock, the profit increases to £375, and the total assets increases to include £125 of stock which can be sold at a future date.

PROFIT & LOSS ACCOUNT FOR ThE yEAR ENDED 31ST MARCh Out In

Jam Sales 700

Expenses: Fruit 200 Sugar 50 Rent for market stall 165 Stationery 10 Advertising 25 Less: Value of stock -125

TOTAL EXPENSES 325

PROFIT 375

bALANCE ShEET AS AT 31ST MARCh Assets

Cash at bank 600

Debtors 100 (amounts owed from others)

Stock 125

TOTAL ASSETS 825

Liabilities

Creditors 100 (amounts owing to others)

TOTAL LIAbILITIES 100

35

whAT TO DO AT ThE END OF ThE yEARBefore the end of the academic year you will need to close down your company. You must ensure that you have paid the LEAP vAT and Corporation Tax you owe. The accounts programme will indicate the amounts of tax to pay.

You can continue trading until August, but at the end of August your insurance will expire and alternative banking and insurance arrangements MUST be made if you wish to continue trading.

You must repay your shareholders (hopefully with a well-earned dividend, or increase, on the money they put into the company). Some companies like to discuss with their shareholders a donation of the dividend to a charity. If this is the case shareholders must be consulted.

Remember to close the bank account.

you can continue trading

until the end of August

36

whAT’S ON?LEAP arranges workshops and seminars on various aspects of setting up your company. To make the most of your LEAP experience, we strongly recommend that as many members of the company as possible attend the seminars and workshops.

The full list of all current events and workshops can be found on the LEAP website.

All seminars and workshops take place at Allerton High Business & Enterprise Specialist School with registration and refreshments from 4.30pm finishing promptly at 6.30pm.

gETTINg STARTED September 2015 Free to all LEAP schools

This seminar is held at your school and is for all LEAP students, there will be activities including; administration of your company and the competition structure, use of social media to enhance your company profile, can you make it from being a ‘Del boy’ to Lord Sugar and importantly ‘watching the pennies’.

gETTINg ORgANISED October 2015 Free to all LEAP companies

This series of workshops will ensure LEAP entrepreneurs can plan for company success, practical sessions for Finance Directors on the use of the accounts programme; checking your social media profile and establishing your brand.

ChRISTMAS TRADE FAIR November/December 2015 Merrion Centre Fee 10.00

This is your first opportunity to practise your selling skills and take advantage of Christmas trading at one of Leeds prominent retail venues.

whAT’S NEXT? SEMINAR January 2016 Free to all LEAP companies

Following the Christmas Trade Fair this event will provide you with the opportunity to revisit your selling and marketing skills, tips on how to write the new financial report and learn how to be a winner in the LEAP competitions.

vALENTINE TRADE FAIR February 2016 Merrion Centre Fee 10.00

This is your chance to ‘step to the plate’ in this final marketing competition of the LEAP year.

Click here to download our

calendar

37

whAT COMPETITIONS ARE ThERE?There are many opportunities for your company to participate in competition with other LEAP businesses and to be awarded for your endeavours:

– best Trade stand at Merrion Centre (this is awarded by Edward Ziff of the Merrion Centre)

During the year there will also be competitions for:

– Media Awareness (Newspapers/Radio)

– Use of Social Media (Twitter/Facebook)

– Innovation Award

To enter these competitions you will need to submit a short report detailing why you think the award should be presented to your company.

LEAP will also give awards for the following, based on the board’s impressions and the judgements of the LEAP Enterprise Teachers’ and Business Mentors:

– best Logo

– best website

Using information provided by your company in your business plan, the company report & financial accounts, questioning at trade stands and the administration folder which is submitted alongside the report, the LEAP board decide upon the following two awards:

– best Administered Company

– Enterprise Award

The following major competitions are judged by teams of business associates of LEAP and the winners will be announced at the Annual Awards Ceremony:

– Marketing at Trade Fairs

– Presentation

– Report

To be named Best LEAP Company you will need to be highly placed in the Marketing at Trade Fairs, Presentation and Report competitions. Your performance in the other competitions may be considered in a tie-break situation.

38

JUDgINg CRITERIA: COMPANy REPORTThe company report is the opportunity to summarise your team’s year in business. It is an important record of what you achieved. Each company member should keep a copy with his or her Record of Achievement.

To help the competition judging process and give you some guidance on what is expected, below is a list of the rules you should follow and some guidelines on content.

Rules

1. The cover is in addition to the permitted 10 pages. It should include:

– Company name.

– Name of school/college.

– Name of LEAP Enterprise Teacher.

– Name of Business Mentor and their company.

– Whether the report contains interim or final accounts.

2. The report has a maximum number of 10 sides of A4.

3. In addition you must include the trial balance and the profit & loss sheets from your accounts.

4. You can include up to three pages of appendices e.g. flyers used in advertising, marketing examples.

5. Body copy size must be 12 point.

6. Page one must begin with a contents list and also contain an executive summary which should include:

– Your company name

– The mission statement

– The product/service

– A summary of the financial accounts

– A summary statement of the company’s performance.

Note: Whether accounts are final or interim, they should be verified and signed by your LEAP Enterprise Teacher or the Business Mentor.

general guidance

The rest of the report should cover all aspects of the company performance but should read as one business-like document, not as a series of repetitive directors’ reports. The report should demonstrate the company’s development through problem solving and innovation, and should highlight the company’s achievements.

The report must be written by the students and should be original and innovative in approach, not based on a template from previous years.

A recommended approach is to ask each director to write a brief report of their activities and then for one director to draw the information together into one readable document.

There should also be a review of the students’ development as individuals and as a team. Company membership and structure should be illustrated.

Any special activities such as attending other trade fairs or visiting companies for training should also be included.

Companies are encouraged to include photographs of their product or service.

The use of word processing to produce the report is considered as necessary.

39

JUDgINg CRITERIA: COMPANy PRESENTATIONThe maximum presentation time is five minutes.

The style should be business-like but can include humour, or it can be novel and innovative.

The judges will be looking for evidence of rehearsals and preparation.

There are no restrictions to the members in the presentation team but one of your company members will need to operate your PowerPoint presentation.

The presentation should summarise the key experiences and achievements of the company. Try to bring the highs and lows of your LEAP year to life for the audience. How you have learned from your mistakes and how you overcame them is as important as your achievements.

Visual aids must be produced and paid for by the LEAP company itself, and be identifiable in the company accounts. Good quality PowerPoint presentations are recommended. We suggest that you do not make the technical side too complicated since this often backfires and can give a bad impression to the judges. Videos and audiotapes are not recommended other than for minimal complementary music. Although a short video can be included in the PowerPoint presentation please remember the judges want to see a live presentation.

JUDgINg CRITERIA: COMPANy FINANCIAL REPORTThe financial report is the official summary of your company’s year in business. It should be held with your company report to back up your findings; it is an important record of your achievements.

To help the competition judging process and give you some guidance on what is expected, below is a list of the rules you should follow and some guidelines on content.

Remember

The financial report is to summarise all the transactions of your business and to advise shareholders where you have raised and spent funds.

Rules

1. The cover should be the same as the company report but with additional information saying either final or interim accounts.

2. The report should be bound together (no loose sheets).

3. Body copy size must be 12 point.

4. A maximum of one side from the Financial Director summarising and explaining the financial reports enclosed alongside their personal experiences of looking after the money for the business.

Report the successes as well as the problems. The judges like to hear about all areas of business, it shows the learning curve you and your company have climbed. The report should demonstrate the company’s development through problem solving and innovation, and should highlight its achievements.

Did your company hit the ‘nail on the head’ or did you have struggles along the way?

Click here to download our

judging matrix

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The six pages of financial accounts summary must be included and must be prepared to the company liquidation date, showing the LEAP vAT and Corporation Tax that is to be paid, the balance sheet, the profit and loss account, and the liquidation report.

Or – if this is an interim report, it must show provisions for payment of LEAP vAT and Corporation Tax. For the sake of administration these payments should be paid on presentation of the Financial Reports.

Note: Whether accounts are final or interim, they should be verified and signed by your LEAP Enterprise Teacher or Business Mentor

Finally

Check that the profit & loss and the liquidation sheets are signed and payment for taxes has been organised. These figures are calculated automatically through the accounts programme and reported on the profit & loss account sheet.

If any of these are missing, your financial report will not be accepted

JUDgINg CRITERIA: TRADE STAND AND INTERvIEwSAt the trade fairs your stand must show:

1. Name of the company (prominently displayed)

2. Name of school/college and town

3. Name of LEAP Enterprise Teacher

4. Name of Business Mentor and their company (if applicable)

5. Copy of insurance certificate

6. A folder which includes the business plan, minutes of company meetings other examples of your administration and the interim financial accounts all of which will help in judging the Best Administered Company. At the stand the judges will examine the display and interview the company members. Judges may visit the stand as a team or individually.

The stand contents (excluding any provided shell system) should have been produced and funded by the company.

At the trade fairs your marketing and sales skills will also be judged.

See the judging matrix for a full list of the criteria the judges use.

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OUR ChARITy bOARDSteve webber Chairman Westcom Networks

Donna booth Deputy Chair & Treasurer HSBC Bank PLC (retired)

Julie brownrigg Secretary Assistant Head Allerton High Business and Enterprise Specialist School (retired)

Sarah britton Charity trustee

Malcolm v gwyn Bank of England (retired)

Louise Leach Clearsilver Marketing

Deborah Mcgrath Lets Clean (Yorkshire) Ltd

Miles Mount Nucletron International BV & CBF Media Ltd (retired)

Karen ward The Grammar School at Leeds

OUR SPONSORS

vERSION 3.0 August 2015 Copyright © LEAP 2006–2015

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