How to Set-up Your Own Firm

Hello. Welcome to you listening online to this datable program. How to set up your own firm. My name is Matt and I worked for the Agency LTD. Very marketing and training consultancy. Andi. I look after your division POW law on. We helped orphans with obviously their marketing training on through data. Or we've provided a program online recording for a very comprehensive package. Looking at the f A one day for for third application one documentation for the S. R. A requirement. We take new entities through that help firms with various components Help him with that. The pubs of this keynote Siri's is to give you the overview to give you key topics that you'll have to address. Unhelpfully. You'll gain from that with this program we've created a world book comes with it, and I have this Onley laptop my side here some 20 or so pages that help you get a little bit more information. So without further ado, let's have a look what we're aiming to cover on this session today the learning outcomes. The aim of this Keenan program is to recognize why might fail. We've done some research with the S. R. a looking at their information on explore why firms tend to fail for So So you avoid those things with this program, we're gonna have a look at some parliament details of your new business. What means be on Look at the S a raise risk management profile on the planning issues. With that, the financial business that you're gonna be creating is a very important one, of course, that in for you and your clients, but also, of course, from regulator regulator, of course, is risk averse. Almost make sure that you're actually robust and social services two kinds on. Then, of course, although you may start as assault practitioner making a partnership, you may start. Could people on even if you are recruiting a temporary person Haixi to help you estimate administration, there are some key issues that you need to be addressed that level. So what about the opening remarks? While I think by now you will have done a lot of research Before you even started looking at this program, I hope you recognize there's a lot of places where you can go to explore how to cut through some red tape. It's very important that you get into the S. R. A's firm based authorization pages on Web pages on Do some research, get yourself good coffee and go through that into detail, which will guide you and get your checklists. From that they produce a very useful small firms guy. I hope to add a lot more color to the process with this program because we're looking at it from a number different points of view. What they'll say is you need to do this on our help. Explain how this not what you need to do but how to do it. And that's really what we're trying to do with this Keating program. Andy. The F one bundle we've created to help guy people through the process. There's an entity out there ball care well worth researching what they could do for you to help Look after some went to these phones, starting out on their own to hold off. There are a number of different groups out there, one of which saw Practitioners Group. If you are gonna be a sole practitioner, that's a logical place to start to get involved there, helping support then from people like you who have been through the process. Know what fields to, uh, other entities will start to look it. For example, in legal aid made work, there's a variety of different quality marks. They're excellent resignation so forth may be something you want to be looking at, being number things to pick up there. There is from the law society itself a small firms division that again is a useful place to start looking at to get help guidance from that support. So why might you fail while I remember 25 years ago setting myself up in business literally while end of my dining room. But I wasn't the law firm no lawyer, anyway. But looking at some of the entities, they're looking at something issues. I think it's really quite I have a commercial organization to get going up until three years before partnership, except sectors of God's really growth on the germination growth stages with Jordan facing. So I do have a lot of empathy with folks like yourself, But let's turn first of all to have a look at why firms famous first total, So feedback Yes, our a se. But before we have a look at the S. R. AIDS T issues. I think it's well worth remembering. There's a lot of other groups you get involved, one of which may be a particular group now coming out of the old Danone Connect herbal franchise. There's a lot of very, very professional groups out there. Larger firms doing a fee sharing opportunity help more modest entities retained their clients but also be able to find service through them. So depending away on location is have a look of law groups that are around. There's a lot of good ones around. Midland's have legal point. Legal fusion, legal based around, not share linked to Bo is a very good one to legal. Let network whales with you change love. Very good entities have been obliged to work with these people and their well worth getting in touch with, because again there's a helping hand. So why are firms failing? Yes, are able Telesis to the top 10 reasons. So go through this very quickly. There are notes, of course, to back yourself. Should you wish unbelievably, you may find that make application for get this subsequent application forms required F A 1246 There's a number of different ones. Depending on this sort events, you've got this sort of structure you've got on how things finance. They need to be aware off what documentation need not make your application to missing. Professional deputy is a bit of a nuisance in, but understandable from yesterday's point of view. If you go get a indemnity insurance quote for your business and it's wrong for generally through February putting application. But the esoteric cannot authorize you until, for example, March while you won't get authorization, because your indemnity quote doesn't cover a period in which they're going to be submitting. So don't be too early. And getting your indemnity quote you do. You may have to get a free quote because you need to give yourself a couple of months coverage to make sure that the application time is going to match the indemnity. Cover a proposal that you've got to make sure you got that match in time. Uh, through they do expect everything to be online. They do expect to be tight on getting a hard copy of filling and help you quite octopi. I suppose it's a number of declarations, a required on need to make sure you got those declarations about himself and other things within that these various decorations there, that's all the documentation that some detail Well, you are small entity. When you start your own firm, your Mr Firms, an international entity may recognize, of course, the gene compliance officer for finance that men the practice. But are you as an individual, uh, sufficiently meeting the requirements for suitability? And that's, of course, very important thing. You've got to be both. So there may be some things that you need to look at that you have not yet been involved with doing, even if you were a Culp within another firm and you're setting yourself up a lot of coffee so your finance and admin will need skills and there's a a train required that for some people to do with that, Although you may set yourself up in business, do remember that it's very tempting to say, Well, I want to be a high street firm to do a lot of different private kind works. Or how much experience have you got a war, those areas of private client just because you I've had some experience. There are limits to the amount of work, you cover legal aid agencies. Of course, if you're going to be supervising, people develop work, they little legal aid supervisors. And you can't supervising more a certain number of areas of law because you won't have had a number of hours in the year to have actually done the work to supervise somebody who does work as well. So that's an important area, very difficult. Of course, if you have been an employee of law firm, have you had management experience? And it is interesting, it looks management experience. I've been a manager for a lot of decades, but what I really qualified to run a business from the point of view off the regulator, one thing's running department is one thing to run a case later. It's entirely differently to business. There's a lot of business requirements there, and I think personally, I would say this is rather narrow bandwidth or hours that they suggest folks like yourself should have in management training. I think experience again, comes to them and looks at financial management as well as a team people Andy with operations and the kinds and so on, so quite important to with that goes hand in hand. Financial handle on what's going on. Managing cash flow. Cash is important, of course, to pay bills. When they told you, you don't end up being insolvent. Not good behavior, Of course. In the first year in Africans off failed. Can't demonstrate they're financially robust. Before the start was actually quite a difficult area. What are you gonna earn in your first year? How you pay your bills? Very difficult to estimate things. Unsuitability off the various role holders. Yes, mentioned Coffer mentioned, called well but suitability about people which may engage in various parts business. But then finally, the thing that seems a little bit unusual when you start businesses, how am I gonna close it? Well, what they are very concerned about is maintaining the supply. It's protecting the interests of clients that you as an entity starts business, then tumbles. First hurdle. Well, have you got your disaster plans? We got recovery plans. Have you got plans for a key man or person? Insurance? That should be. Somebody has been unable to fulfill their duty through illness or accident. Accidental early death, not being too melodramatic about it. Who's gonna pick up the threads off the business from there. So quite a lot to think about in those first opening comments. Hope that hasn't put you off because with all the suggestions I made for help support from US State a little, but also from ourselves, the consultancy and other entities. There is a lot of help and support, right? Let's move it on with a determination to move to success. Let's look at some of the basic details. Well, very straightforward. Hope on Very important To get a handle on this will be looking at the basic application details just myself. The information got hand for you. Okay, Section one off. The documentation remain where they have got hold of documentation. Take through sources. They have a divine application process. Make sure that you familiarize yourself with that application process. There is a guy in the notes on the links to Web. Page said you had do make sure that your PC can actually access the vegetable. Pdf Very important area, but there's a lot of tumble First hurdle because they haven't got with my PC system on it won't work on an apple, Mac. Sorry, Mr Apple. It won't work in that situation right PC system. No point looking for PC. Wonder how to make the best out of it. It's gotta be the right system that, of course, that's frustrating to people. But it's easy enough to get access to those things. I need to be getting pity. Then you have to think about your name, and it may seem a little bit surprising. You want your sick self up? Is ABC? No, I'm sorry. ABC look has gone on, but you need to be able to research the right areas for this company's house. Be limited entity to look at the rights to the name rights to the Web pages rights to the U. R L. The mains and so forth on they would get a application in place. If you will risk passing yourself off, it's no good. Recognize ABC Law is out. There may be seen Law doctor calm and you set yourself up on ABC nor dot co dot UK. That just won't wash. It needs to be. Actually, you've got protected rights to name on best serving research, helping to get first thing Who who is get going to be your office contact. It's no good having a virtual office. People do. This set themselves up through a lot of good it entities out there setting up virtual offices, virtual office entities that won't work, that you've got have the rights of office contact as well. So a few things to think about in the early parts there from Section one moving on to the second part off the firm aggregation section two. A number of things to think about here, particularly with the new data Privacy 2000 and 18 2018. There were no changes to the General Data protection regulations, which will be very familiar with it. Should be. But that's a lot of things you think under those headings. Yes, there will be other training programs from day to look, covering them well. Racial registration ways, your address and ways your office address now are quite obviously a lot of people set themselves up to work for her, and that has particular issues. If you are going to have a home office, I have on office that he's in the grounds of my house. It's not in my house. Separate, prominent access for people come to from the office not coming to the House itself. Think about security, not only security from breaking into it. Security data, GPR confidentiality and privileged. If you have a a ground floor reception room that you could be using is your office. One firm we helped set up got a a very professional looking entity. It's a straight in the front door of the house, off to the left. There is a lot of room that's being used. Their office, three people working there so so forth. Unless you can convince people, uh, convinced the X ray that other people in the household, even your 12 year old daughter, cannot get access to. You can't demonstrate that it's got a security look to make sure nobody in household getting to that. Then you will find it difficult to think that so it doesn't matter. Really gonna be the high street medication where you have a small office in grounds This isn't our officers. It happens just some house. But if you have those things, sure, correct entity that is professional but also secure. So is it quite a few things about that? Let's move on and have a look at the Step three about risk and planning. So Step three off the application process. Risk of planning is actually quite a large section because your regulator, the S R A. Is a risk averse regulator. So risk management planning business is sexy. Oh, so this got a detailed section again. Do you remember that? The notes we provide within this program often come pensive and take you through a few more? A lot more detail than we have time for this program. But I hope in this section to give, you know, So what is the form application? 13 Section three Looking well, it's all about making sure that you are able to manage the business appropriately. The governance is there in with financial elements are apartment or entity and so forth. How risk managed. It's so much easier to start as you need to go start as you mean to go on means that you look at the S R A's regulator risk framework. Go online, search that out, have tables given understanding what's going No, they have a very clear regulatory risk index on as a business manager, Ralph, just employing you will have a lot more risks that you must manage that you have done as employees, so quite important area. Do you have a look at their risk Assessment methodology is how we go about handing That will take you through a little bit more detail of that. As we get through this section. There are a lot of other risks that you may not yet have Bean wear off when you are running your own business. Supposed employees on all those areas, not only to do with the money how the operation works. The impact on society. Impact on clients corporation regulated. Sent for these things you may not have met before, so that's how we get some of the details. Financial misconduct While a lot of things going on there and I suspect practicing lawyer, you're very well. Where? What the money, Norman. Enough regulations to be. But there's a lot of things that need to think about here because it's not just you that's also staff. So all a appropriate individuals. They have appropriate training by making sure they are the right people. Authentic staff. They are who they say they are being taken aboard, particularly if they are not originally from the UK and so forth. You gotta make sure the right people right toe, therefore their supervision needs to be handled properly. So things like the office man will be very important here to make sure that you're covering a whole variety of different areas to do with managing those things. There is a lot more detail within the notes that you need to look at help guide you through this part. I've mentioned already about access to your business premises from family members if you work in your home, but also from other points of view staff access to information in the office as well as the financial aspects of that client accounts. And did you have money, for example, those accounting and recording systems of robust, well, painful Let's have a look, then the some of the risks that the area are looking at here. Some the priority risks emerging property risks. And these are the things that our current in the latter part of the second decade millennium 20 18 2020 is the scrutiny overly firm's account used for plight? Banking. If you're handling those things that's going bogus. Firm's clients entities, client firms, both was the highest ever into 2016 firms operating in fashion, not saying that's a due diligence beating, any commercial entity or property development. When isn't that needs to be very, very robust and you probably very well where its effects. The Eric law you operating in there is obviously on, I think, quite rightly, a concern over the having the right diversity and representation within the profession from different sectors of society, which one serves so that looked at cybercrime is one of the highest problems on bond. 2/3 off UK companies hit by cyber crime. So what you doing on what can you demonstrate your doing as an anti to make sure that you are covering those sorts of things? It's an area that you may not as an employee, have been aware off. You need to be picking up there's duties, investigation of your litigating on them. About that, I want to dwell on those areas. It's very, very concerned about the business structure for governments going into partnership being publish it with other people. It's not as simple as it might seem. You may be good mates at work on, then decide to set up your own firm together, and then you find. Hang on a minute. Are things going as well as they could miss America that I'm involved with? Because we set apart in 1994 with husband, wife John, Packed rooms Hearst that doubling d W They're no longer in the business after all these years. Time Johnson reasoning with us. So how was I dealing with partnership? Is it Waas? Then people leaving the partnership moving on things that have to be thought off looked at quite camp. So the name of the partnership who has the rights to those names, what contributions made to that who take money out of it needs to be looked at what liability is joined several, both one of the other needs to be looked at what has authority over what and who looks after, what elements of it and so forth, who takes decisions and how those decisions made. If you are limited company that plane, it is going to be statute governing the sorts of things, of course, duties. Who does what he does, what when somebody has taken else, Have you got working department that he or she is off SEC for on extended period of time than those sorts of things looked at quite a lot on the business governments instruction, and you'll find some further notes within the PAC vie to guide you home. Let's think further that about how bringing you partners having started with your entity how you gonna grow? Remember, start as you mean to go on. So you may unconscious to have no plans to bring in somebody else. What's gonna happen somewhere down the line? So again, thinking through that demonstrates you've got a handle on business business model off growing from fledgling micro business on what it's gonna look like as it grows. Okay on, then finally, how about disputes? What do you mean? You know, have a dispute your apartment? I guess you will. So let's sort out how those things get Resolve for you. Jobs, business outline a lot of things to think about. Their market risks his changes outside a macro environment that need to be looked at as well as the internal micro environment as well. Look at those top 10 reduction policies of information we've got in the notes take you through that way about some guy thoughts and structures there that can help you with that, um, what about the thing? You'll find this within the notes, but it's talking about the just checking on making sure the right information. It's within the workbook. Looking at the top 10 reduction policies. This is taken from our own business, the W's outlining the sorts of things that we have got. True. Anybody need to ask us about how our business to get these things that look checking deployed candidate associates are who they say they are. We dealing with data security, handling how that's gonna be down with. We have a clear data that it's a disaster recovery plan. If are, there should be fire in our office or a flood, or there's an electrical failure on the grid, how we're going to carry on business and we can genuinely because we tried it. If our with power goes, I could be up and running again within two hours. But you need to have that recovery plan There something. We work in the public sector quite a bit, so we need to have things like mental policy. How do issues to do with consumables with business and so forth? We have one of these gingers policies to clarify what is natural enough as an entity making help. Safety policy from point of view of your own health and safety. But others clients that you need to become your premises except how you take all born new employees. Some business process outsourcing could be outsourcing any of your work important how you're nice, stopped business quality assurance and how you evaluate risk risk assessment within the business deals with fire. Another risk said you pregnancy is so so so. Those are the sorts of things that we need to have, and you need to give some thought to demonstrate your regulated that you have got those risks covered. Moving on to new areas Now to have a look, a major risk groups missed something from the risk manager. Yes, I will have this online. First of all, you need to make sure that you are viable business, that you are financial financially viable. What happens if you get into financial difficulty loans from various entities? I need to be looked at. What happens if those lines get called on just family loans and novels? Robust is, I think, because families are what families are structural instability as well. People leaving people impact over a variety of areas You do investigate as well as operational stuff incompetence and bar staff compliance officers finance at the practice, of course Need to be looked at. Those groups are dealt with by the regulator Risk Index picture Take it from the s a raise website which you will be familiar. Really? Look there. Me too. There will be sector risks Changing regulations Yes, a rain move. The goal posts a little bit. How you deal with that For example, then within the firm the three levels Viability operation on impact justice Great example What remained by market risks? Well competitor opens up down the high street internally within firm viability risks include financial If the operational risks along Mr these fake toe integrity not just you, but start for example then impact risks of sorts of things that as a qualified to listening to be very familiar with, but something you need to be where or when you are engaging other people across all those particular areas. So market risks. How do we deal with market escorting A plan gets in views and sort this So how far ahead have you got a plan? I think that planning ahead, of course, very important aspect. I think that pre recession 10 years ago, how things now have changed a little bit. Short term pre recession off the 26 78 I think we would have had a one year plan, but I think short term now is next. 12 weeks, short term plans, medium term from year on. The long term will be three plans and so forth. I do recall when the partnership was changing on John A. Pat robs us. We're retiring. I have planned, written in 20 the millennium change called 2020 20 year Plan, where some years through that. Now, of course, it's quite interesting to reflect on the something we had on. We are on plan different financially, but certain structurally and help businesses analogy. So having those things in place is not something that's very wanted to see. But if you do have one is it can help to areas not only regulator but also your insurer. If you're able to show your underwriters through your broker that you have a plan and it's a robust plan, not only from a commercial point cubicles. Financial point of view, when this is coming from and how it's growing developing, they're commercially, but also some numbers. Then, of course, you're going to be demonstrably a low risk and that improve your insurance premiums. So this is not just about, um, doffing or captains dissed regulations. He is very much about demonstrating to ensure that you are never to do so. It's like any other insurance tools, techniques to the review, the environment well, these sorts things that run training programmes on the things like managing call Stage two were running with the law on your version is coming out soon on it will cover these sorts of things the strengths, weaknesses of the business, the opportunity threats, externally common analytical tool. We demonstrate how to turn it into a strategy, development or just a political too. We look at things like Porter's Five Forces of competitions, very traditional model. Looking at what's going on within sectors. Where's the hot bonds depressive? Will Teoh manage your business successfully on then to look at the opportunities and threats from the point of your external analysis off political, economic, social and technological changes to address some of those things. That's that's everything we've done on many courses before. I don't you have to attend those credible pestle is it's now the record. I believe you think that will be other l b. Might be, but those are important when it comes to setting up your business and running prisons. You thought these things through because that will, of course, effect your business plan. Don't do some do sitting and white by tower, right? Plan. Ignoring everything about the external world. So your business plan needs to cover a number of different areas, not just important for your vision for the business, your goals where it's headed. Your financial projections are going to be in section four. How much finance you need to set yourself up, how much it's gonna be from organic growth. How much is your inspector money? All cash flow is required. How you repay your finances. Indeed, you have some finance in section. He had those sort of things. Profit projections is going to be important. Job it. What happens to that profit now? Some of these things you may not have toe hand, you may need help. Guidance. We have very useful templates illustrate these in the FAA bundle off programs we set out days. We'll take you through that Really illustrate examples on it's something we can help you. So obviously talking your financiers becomes So let's then move on to talk about the financials and the sources of funding the how you manage the finances with business when you get your work wrong, very difficult. Sometimes I'm going to do when you get your work from but none of this things to look. So sources of funding. Well, I don't know what you're gonna use that Mr them up here, but you need to be able to define how they are going to be attained on how you're going to pay them on. My, uh, bank manager once said to me when I went to him with cash flow forecast so on so forth showing will be spreadsheets and really kept a job took folder putting to one side tenant way. Look, shocks. Why did you look at what I've done is that I want to hear from you about you and your business, I think spreadsheets one saying Anybody do a spreadsheet or anything like on its I want hear about you, which is really quite interesting. So being able to handle those questions, it's important part off. Wait, what you had business services offered? Check this to gain pause. If you want to read through them in a bit more detail, define office services. You're offering on how you're going to deal with those marketing off. Um, need to apply to the comply. Comply with extends authority doesn't practice as well as the S areas code said officers supply chain risks upstream. Downstream. How are you going to deal with the, uh, your serviced offices for service office goes pear shaped complaints procedures straight out. PSC Great surprise there when it comes to your indemnity insurance. I've mentioned this before about having the cover over a period will be setting up in business, actually are going to start with cover in place about that. We've got a NASCAR then they know spent on health insurance costs but a few things to think about. Do your research on different providers and look at the different brokers. Get advice on that on. There's no substitute for all that. I have been working down. Look to your broken and find out what he she will do for you. Rather just past papers on and get a quote for you broke Help you look at them. The insurers. Lots of insurance you got what? Your limits for your excesses. But my car insurance paying the first portion of any particular claim exception will affect the final prunes. Good practice. Suggest that your underwriters are gonna be through your broker wanting to know that you have some things in place. Business plan, practice, manual in case management, customer relationship management, your CPD continuing professional development, health and safety. It's those sorts of things and says lovely couple basis. We know what we're doing and do be careful when it comes to practise many of them by one off the Internet. It's not right for your business. We can show you the sorts of things that he knows. We've got some headings with notes, guide you source things in there and then way, move on to think about the people that some of you will start a business without other just being a sole practitioners that you may then stops support staff. I started my own as a sole practitioner, I think about 12 weeks before I realized crazy had a part time fattening stuff coming help with businessman. I couldn't survive without having good support around me. So I need to think about how you deal with people. There are rules governing this the UK site to get guidance on that, make sure the people are right to people about the rights to work in the UK They locked in my freckles, they passports and so forth. Bribery corruption needs to be looked at. Any been anti money laundering on discrimination, working fundamentals there, sure as employees where some off but a few things were exploring in detail. I mentioned earlier the business continuity on the disaster recovery. I think it's very important from your underwriters point of view that they want to know that you have these in place on that. Indeed, there are those things Teoh capable. So whats required? So do breaking eyes that the X rays manager principles There's 10 principles. Act as a baseline to a guy drunk. How are you going to protect the interests of clients and arranged, if your business in pain shaped briefly, what are those sorts of things that you need to think about? What he is four. So how would you deal with those things? Make sure things coming. Key person insurance. What about when you retirement? Something else happens. You passed business on that Continuities suggested You know what you're doing on particularly with your maintaining service in a succession plan protested. But your being fire flood illness plans they need to contest it to make sure that you can indeed be up money to working hours. You set yourself up to be able to do so. Quite a lot of things that we've covered in this program of hope. Find that's been useful. Gone through it fairly quickly. Always really play any of this, Get some information in there. But we recognize from the S a raise the top 10 reasons why business might fail. We've looked at some parliament details what you entity look like. How structure held together big section there on risk management planning issues of lots of information needed to financial matters and your services and then key issues when engaging people for sexual very quick canter through lots of areas. But I hope it's not frightened you. I hope you realize there is helping support out there to guide you through this process. We're very much committed to helping you datable to get training, need to cover all of those entities. My own business will help you to go through this process. That's what you feel will be a value to you, Teoh. Thank you through some of these things, how to set up your own firm. I have to say off 25 years of running my own, I couldn't think of a better way off getting that work life balance. So I wish you every success with your venture have to talk to you soon. Another program? I've been back Mukai Date of him. Thank you very much. Having your cheating to talk to you. So I speak to you again soon. Thanks again by phone.