Timings

00:15 - Scene 4.1 A Matter of Equity

05:28 - Scene 4.2 The Devil and the Angel

06:52 - Scene 4.3 It's Katherine Kash

09:25 - Discussion with Dan Orasnjak

09:48 - Lang Bennetts Introductions

11:04 - Organisational Structures

14:30 - Share allocation

16:00 - Equity

17:48 - Angel Investors

19:25 - Investor exit strategy

20:11 - Partnership and Shareholder agreements

21:32 - Lessons: Sole Trader tax return planning

24:15 - Lessons: Enterprise Investment Scheme traps

26:00 - Top tips for Start-ups

27:40 - Research and Tax Credits

28:32 - What's next?

Useful Information

Organisational Structure (@11:04)

Choosing the right business structure - article (gov.uk)

Shares and Equity (@14:30)

Setup a private limited company - page (gov.uk)

Investors (@19:25)

EIS - Enterprise Investment Scheme - page (gov.uk)

SEIS - Seed Enterprise Investment Scheme - page (gov.uk)

Angel Investment Network - Site (angelinvestmentnetwork.co.uk)

The difference between angel investment and venture capital - article (virginstartup.org)

Top tips for those thinking of starting a business (@26:00)

Know your market

Prepare Profit and Loss forecasts

Understand your cash flow

Plan for your tax

See a professional sooner rather than later

Know where you are going

Episode script

A Matter of Equity The Devil and the Angel It's Katherine Kash A Matter of Equity

CONTINUITY: Zelda and Jakob meet, once again, in her temporary office at the Dog and Bone.  Zelda sits staring intently at the screen of a brand-new laptop.

JAKOB: Morning Zelda, thought I’d find you here… You found any premises yet?

ZELDA: I’ve been negotiating with dad on the vacant industrial unit he has on the Bunkum Industrial Estate

JAKOB: And how has that been going?

ZELDA: Well, he keeps mentioning money and I keep reminding him that I’m his only daughter and I’ve never asked for anything… Like this!

JAKOB: And his response was…

ZELDA: He knocked 20% of the rental price

JAKOB: Well, that’s not bad

ZELDA: To £5000 a month

JAKOB: Holy smoke! What size is this place?

ZELDA: I think he said 12 and half thousand square feet

JAKOB: (Choking) So, you haven’t been to see it yet! Let me have a chat to him about it.  I am a bit concerned that you are aiming too big as a start up.  Why would you need all that space?

ZELDA: Well, the product needs a lot of people in manufacturing.  Automating it with machinery will reduce the space needed but adds more expense.  Look, I have been working out the options (passing her mass of paper work over the table)

JAKOB: You have been busy… (Flicking through the first pile). I think I need to introduce to you one of my team, Katherine.  She’s my money whizz and can help you put a realistic finance plan together.

ZELDA: Oh that would be great…  That will be weight off my mind.

JAKOB: Katherine will help you put it together, not do it for you.

ZELDA: Oh, ok… I’ve got other things to do, but I guess th..th..that’s fine

JAKOB: That brings me onto another matter.  I’m ready to register Sydeline with Companies house and we need to decide on the shares

ZELDA: Well, 1 share for me…  That’s it isn’t it

JAKOB: Ok, right… So… What about me?

ZELDA: (Sweetie) You’re my Angel?!

JAKOB: Yes… Yes I am.  (Dwelling on the way Zelda said it) OK, let’s put it another way.  What are you putting into the business

ZELDA: 110%

JAKOB: Money-wise!

ZELDA: Oh, well… I could put my savings in, thats about 18,000

JAKOB: Riiiiight! What about your apartment?

ZELDA: Dad bought that for me

JAKOB: I know, but you’re lucky to not have a mortgage on it then – you could put that on the table too – you are serious about this business aren’t you?

ZELDA: Yes, yes, absolutely.  Oh heck, I thought you and dad would help me get going!

JAKOB: Well your dad hasn’t handed the key of that industrial unit over for nothing so I would suspend that idea for a while.  And, as you said, I’m an Angel Inve