Enterprise & innovation; lecture eight.

Stash your cash!
Accounting
- Keep track of who owes you money. 
- See how much you are spending on materials etc. 
- See the money coming in and going out. 
- Make sure you don't spend more than you earn. 
Invoices and statements
- Invoice; the bill.
- Statement; reminder. 
- Essentials of an invoice; 
Your business address
Your customers address
The date
Item by item details of service or product provided
Total amount due
- Statement has a list of recent invoices you've sent out and also all of the above as with the invoice. 
Terms and conditions
- Designed to protect the rights and interests. 
- Costs
- Delivery arrangements
- Payment terms
- Credit limits
- Your right to charge interest on overdue amounts and claim compensation
- A commitment to quality
- Data protection
Statement
- Before or day before due date.
- Send out every month thereafter. 
- How much is owed. 
- How long it's been outstanding.
- A call to action. 
- Online quick books essentials; industry standard accounting software.
- Will need a certified accountant. 
- Ask for a quote before you choose.
Spending money
- Start up 
- Overheads
- Direct costs
- Start up costs
- Equipment 
- Website
- Register name
- Logo design
- Decoration
- Launch party
A loan is usually taken out to cover these costs.
Sources. 
- Barclays. Natwest, HSBC, Llyods.
- Crowd funding: opening a project up to strangers so they will help out. No return within this (online).
- The arts council, creative england, venture capitalists, shareholders; will invest but will want a percentage. 
- Prizes and awards eg. 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 it? 
- How will you pay it back? 
Indirect costs;
- Utilities
- Office supplies
- Rent
Direct costs; 
- A cost directly attributable to the manufacturing of a product. 
- Or what the customer takes away with them. 
- Tangiable assets; things that have physical existance.
- Other assets; company name, clients, reputation.
Cost and price
- What you spend
- What you charge
- Capital... the wealth of an inudvidual or business. 
- Receipts, payments, cash flow. 
(Cash receipts minus cash payments) 
R: money coming in eg. sales
P: money going out eg. rent and materials
- Balance; amount in the account. 
- Profit; money left over.
- Loss; no money left over after all has been deducted. 
- Income, personal income (tax) 
What to do
- Business bank account
- Certified accountant 
- Solicitor
- Register with inland revenue.
- Business link, start ups, HM revenue and customs, creative choices, t-shirts and suits.