ISSUE 2 SUMMER 2006

In this issueChells Family Pub case study

Focused Networks case study

Moving Forward

How to franchise your business to other entrepreurs

2006 budget – What it meansfor small business

Profile of Hemant Mistry, director of EMBG

EMBG/Bibby financing deal

www.embg.co.uk

Jill passes the torch to EMBG asthe Phoenix projectdraws to a closeby Alok Mitra

On 8 March, MBN andBusiness Link officiallycelebrated the end of thePhoenix funded ‘Share andSucceed’ and E-Rainbowprojects at the Fielder Centrewith MBN members.

Jill Barnes made the Keynote addressto the many members of the MinorityBusiness Network who attended theevent. Jill is the Director of BusinessDevelopment for Exemplas Ltd, a St. Albans based company whichdelivers the Business Link service inHertfordshire. Jill shared with themembers some of the highlights of theprojects, talked about the people weall met along the way and the manysuccesses achieved. In the first editionof this newsletter, we covered casestudies of some of these successes. If you missed the articles, you candownload the newsletter from theEMBG website.

As Jill made her presentation, shepicked out a few members from theaudience who MBN and Business Linkhave been able to help to grow fromstart up to strong growing businesses.It became clear why the MBN haslasted over 10 years growing instrength.

Jill finished her presentation with some very useful hints on networkingand explained how it can improvebusiness results. It can also help tobreak the ice and meet new people inan enjoyable way.

Keeping intouch

Alok Mitra, Chair and CEO of EMBGLtd, followed on and outlined thevision for the future of the EthnicMinority Business Group. The keymessage to the members was thatEMBG will continue to run the MBNand will launch a number of newinitiatives including B2B deals, trainingcourses, events and a new interactivewebsite. The slides for thispresentation are available from theEMBG website.

Finally, Alagappa Jeganathan, Chair of the MBN gave a vote of thanks tothe Directors and staff of Business Linkwho helped to make the project asuccess.

The remainder of the evening wasspent networking, enjoying good foodand music.

The Minority Business Network(MBN) ran using the fundingobtained from the Phoenix Share& Succeed project until the endof March 2006 when this projectended. MBN will, however,continue to support andrepresent the ethnic minoritybusiness community inHertfordshire. MBN has nowbecome the first network of anew “not for profit” company,Ethnic Minority Business GroupLimited (EMBG). This companywill raise the finances to fundand manage the MBN and othernew networks.

continued on back cover

MBN movingforward

JILL BARNES - DIRECTOR OF BUSINESSDEVELOPMENT WITH EXEMPLAS

Ethnic Minority Business Group www.embg.co.uk

In our last issue, we covered case studies showing how establishedmembers were helped by MBN over the years. This time we coverthe experiences of some of the new members joining in 2006.

Case study 1

“MBN are doing an excellent job inbringing businesses together andmaking them more prosperous”

Robert Looker –Franchise Manager,CREATE project,explains how tofranchise yourbusiness to otherentrepreneurs.

Leon and Jane Messam are from theCaribbean island of Jamaica andDominica respectively. Leon has manyyears experience in the pub and clubindustry and the couple always wanted torun a pub with an emphasis on familyvalues. Jane explains, “family is veryimportant to us and being able to createan environment where families cometogether is critical to creating a pleasantand an enjoyable atmosphere”

Before taking the plunge to open theirpub and restaurant in Stevenage onNovember 2003, they undertookextensive research both into the

background of the pub and the localarea. To their surprise they found out,from the local police, that the pub had areputation for being the most notoriouspub in Stevenage. In the past there hadbeen many major issues such as a drugproblem. This was an obvious contrast tothe family friendly pub Jane and Leonwanted.

EMBG congratulates Leon and Jane on winning the

Pub of the Year Award

Due to determination and an indisputablerecord of excellent quality food andservice, their pub has been transformedinto a friendly local orientated pub. “Westill get comments on the great job wehave done to give the community theirpub back.” says Jane. Now the pub isenjoyed by senior citizens and youngmothers as well as much of the rest of thecommunity.

The couple can also take pride in winningthe pub of the year award from the tradein recognition for the magnificent workthey have done in turning around thepub.

“I recently become a member of the “Franchising is, in essence, thegranting of a company’s rights to athird party to operate their businesssystem using a common brand andcommon format for promoting,managing and administering thebusiness”

If you can answer yes to the followingquestions, then franchising or licensingcould be beneficial to you and yourbusiness:

1. Is your business format simple, with aproven track record, with a steady orgrowing demand for the products andservices, capable of replication andhave been trading successfully for atleast 12 months?

2. Is the business financially secure andhas the resources including capital,staff and infrastructures to build,support and train a franchisenetwork?

3. Will there be sufficient profit toprovide a worthwhile income for bothparties?

You should also research the internet togain as much information on otherfranchise businesses as possible. The CREATE websitewww.createproject.org.uk offers impartial advice through variousonline services, such as the FranchiseSuitability Matrix and the BusinessGrowth Model. They will help you tofurther assess your company’s suitabilityfor franchising.

It is important that any decision onfranchising is taken after seeking expertand professional advice from recognisedconsultants, solicitors and accountantsand in particular other Franchisors beforeinvesting any money. A realistic robustbusiness plan is vital – it needs to addressthe issues of your expansion plan andhow it will affect the business, it shoulddocument all business processes.

The next significant and critical step is toset up one or more pilot operationswhich will:

Chells Family Pub

Chells Family Pub

• Show that the business is viable as astand alone operation

• Identify any problems anddevelopments needed

• Enable you to put an operationsmanual together

• Highlight the set up and operationalcosts involved

Preparation of a prospectus or marketingplan is essential to attract suitablefranchisees and must give clear, conciseand accurate information about yourbusiness to promote a strong companyimage. Recruiting the right people iscritical - don’t be tempted to lower yourstandards or this could lead to problemsin the longer term.

If you feel you have what it takes, thenwhy not take the next step. CREATE runsProspective Franchisee and FranchisorWorkshops in Hertfordshire throughoutthe year – if you are interested inattending please contactcreate@exemplas.com.

To find out more or for furtherinformation visitwww.createproject.org.uk or contact the CREATE team on 0845 60 20 101 or by e-mail create@exemplas.com

Impartial advice for businesses looking

to grow through franchising,

licensing and distribution.

For further information on CREATE’s adviceand support programme visit our website at:www.createproject.org.ukor telephone 01727 813 747or e-mail create@exemplas.com

The story of Jane and Leon Messam – Owners of The Chells Family Pub and Restaurant Ltd

MBN. They are doing an excellent job inbringing businesses together and makingthem more prosperous. I recentlyattended a Bookkeeping course throughthe MBN, which has helped me gain abetter understanding of the way Imanage my books. It is nice to know thatI am part of a team who is helping meexpand my business and is at the otherend of the telephone. I have justintroduced my friend, who has a businessin the Wembley area.”

Leon and Jane Messam welcome you to

their award winningChells Family Pub & Restaurant

Great Family ValuesPleasant Atmosphere

Excellent Quality FoodYour Friendly Local

Chells Family Pub & RestaurantChells Way, Stevenage, Hertfordshire SG2 0LU

Tel: 01438 316325

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The budget this year was fairly uneventful, with no major changes affecting smallbusinesses other than the abolishment of the zero% corporation tax rate on the first£10,000 of profit. Also abolished is the marginal rate of tax up to £50,000 and thereforethe need to pay 19% tax on dividends.

This now means that companies will pay 19% corporation tax on the first £300,000. Thesechanges mainly affect companies with profits below £50,000 who will see an increase intheir tax burden. The worst affected will see their tax burden rise by up to £1900.

Helping HandA series of practical tips to help you and your business.

2006 budget – What it meansfor the small businessby Jenny Mitra, Partner of AMitra&Co, Chartered Accountants

info@amitra.co.uk 01923 212687 www.amitra.co.uk

Commercially drivenaccountants –

plus a great deal forMBN members

Free one hour consultation ANDFree company formation OR...

Free company secretarial service OR... 5% cash back on your first years fee

(Maximum £150)

Terms and conditions apply. Please ask for details.

Audits

Business Advice

Budgets

Accounts Tax Returns

Taxation

Payrolls

VAT Returns

Company Formations

Business Funding

Shareholders Agreements

Start-up Packages

Bookkeeping

Profit Improvement

The most frequent question we get askedby start ups is whether to register as alimited company or operate on a self-employed basis.

The changes in the tax rules have notnegated totally the benefits ofincorporation, the final decision has to bebased on a number of factors and eachmust be assessed individually.

A rush to de-register should be avoidedwithout thinking through all the issues.

There are still tax advantages for many inpaying 19% corporation tax and taking adividend rather than paying full incometax and national insurance on the taxableprofits payable by a self employedperson.

Apart from the tax advantages otherfactors to consider include the limitedliability status which gives protectionfrom personal liabilities in the event ofbankruptcy and the fact that acorporate structure can add gravitas tobusinesses.

Meet your Executive committee membersProfile of Hemant MistryHemant is a Fellow of theManagement Chartered Institute. A former member of The KingsRegiment of the British Army, heserved in Northern Ireland as part ofthe Battalion Unit Intelligence and asHead of Administration for the HQcompany. Hemant received an exemplary conduct certificate at theend of his six year contract. He spent12 years as director of Watford RacialEquality Council, involving the localbusiness community in developing anEqual Opportunities policy.

In 1991 Hemant joined theHertfordshire Training and EnterpriseCouncil and in 2001 becameAssociate Director of Inclusion andAccess on the Learning and SkillsCouncil for Bedfordshire and Luton.

Some of the other changes in thebudget include the following:

• First year capital allowances increasedback to 50% for another twelvemonths from 6th April 06 for smallbusinesses. This is claimed againstplant and equipment, such as computers, office furniture, telecomequipment etc.

• Registration threshold for VATincreased to £61,000. Remember thatit may be to your benefit to registerbelow this level on a voluntary basis asdoing this will enable you to re claimthe VAT you pay on your business purchases. The decision on whether todo this will have to be made taking anumber of factors into account.

• Capital gains tax threshold for individu-als increased to £8800.

• Income tax allowances and thresholdsincreased in line with inflation. Basic

personal allowance (amount your canearn without paying tax) is now£5,035.

• Increase in the threshold for StampDuty Land Tax on houses to £125,000.

Other general points to note are:

• All new businesses must register withthe Inland Revenue within 3 months ofstarting to trade otherwise they face apenalty of £100 for not doing so.

• Corporation tax is due 9 months and 1day after the end of your 12 monthsaccounting period. The corporation tax return filing deadline is12 months after the end of youraccounting period. Failure to file willlead to a £100 penalty.

The above is just a brief summary of thebudget, for more information and todownload a budget booklet and taxtables visit www.amitra.co.uk.

If you are thinking of starting a newbusiness, it is recommended that youseek professional help.

Some of this can be obtained free fromagencies such as Business Link. If youwant more hands on help then seek outa good Accountant; they will charge youbut, in many cases, they will save youmore in time and money than you willspend on their fees. You should be ableto get the first consultation free and alsoget a free quote for the work you need.Visit the Institute of CharteredAccountants website at www.icaew.co.ukfor advice on how to find an accountant.

Ethnic Minority Business Group www.embg.co.uk

Really free business banking.

CALLS MAY BE MONITORED OR RECORDED. LLOYDS TSB BUSINESS IS A TRADING NAME OF LLOYDS TSB BANK PLC AND LLOYDS TSB SCOTLAND PLC AND SERVES CUSTOMERS WITH AN ANNUALTURNOVER OF UP TO £2M. AUTHORISED AND REGULATED BY THE FINANCIAL SERVICES AUTHORITY AND SIGNATORIES TO THE BANKING CODES.

Switch to Lloyds TSB and you’ll get 6 months free

day-to-day banking. All we ask is that you keep your

account within agreed limits, like not exceeding your

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� No limit on the number of deposits or withdrawals

� No minimum balance required to qualify for benefits

Lloyds TSB, Stevenage Branch, 3 Town Square, Stevenage,

Hertfordshire, SG1 1BG. Contact name – Steve McQueen

Contact Tel no – 07725 068828

EMBG are pleasedto announce ourdeal with BibbyFinancial Servicesby Alok Mitra

Call 0845 838 5163/4 or visit www.aurora4design.co.uk

Grow your business throughmarketing and

design. 25% discount for MBN members, ask for details.

D E S I G N

Case study 2

New memberflourishes with a Loan from Lloyds TSB andhelp from EMBGRussell Meehan, CEO of Focused Networks Ltd and Fotec (UK) Ltd

Focused Networks is an independentprovider of IT products, businesssolutions and support services to thepublic and private sectors. However, forthe business to expand and flourish theyneeded a bank loan. This plan was notwithout problems though. RussellMeehan, CEO of Fotec and FocusedNetworks explained “even though we arean established and successful company, itis not easy to raise a loan without securityas the IT industry is seen by financialinstitutions as a high risk sector”.

Fotec looked to CJM Consultants, their

business advisors, for assistance in raisingthe necessary finances. It was at thisstage that Fotec was introduced to EMBGand to Steve McQueen at Lloyds TSB. Thebank and EMBG have negotiated a specialB2B deal. As a result Lloyds are willing togive the network members a sympathetichearing and may even offer loans atpreferential rates if they pass theirlending criteria.

Mr Meehan explained, “Steve McQueentook time to visit our offices andunderstand the business plan and ourpotential. Steve and our advisors worked

together to provide a flexible andcompetitive deal. The whole process wentvery smoothly and within a month wewere able to move ahead with a newmarketing campaign that incorporatedFotec as a new division to the group”.

The extra funding helped Fotec topurchase IT hardware and software thatis essential to operating their new userfriendly technical helpdesk. This newscheme will benefit existing and newclients and therefore the business as awhole.

The funding also helped with the launchof their new marketing campaignincluding a new website, an updatedlogo and professional company brochure,designed and printed by Aurora Design.“Less than a month after the new launchwe are already starting to see thebenefits of the marketing as it hascreated a more SME focused campaignbacked by a very professional image”says Mr Meehan.

“We are grateful to EMBG for providing anetwork of companies and professionalsto assist and manage our businessgrowth”.

For more information on FocusedNetworks and Fotec please call 0845601 6485 or visit www.fotecuk.com

Bibby Financial Services are business financeproviders who specialise in helping businessesrelease the working capital tied up in unpaidinvoices. They can also collect the debts, managethe sales ledger and will provide access to a dedi-cated relationship manager and a team of creditcontrollers.

Bibby will give a 10% discount on their normal rates to MBN members who use their invoice finance facility, andEMBG will earn a fee to assist our development.

The costs and flexibility of the products available can makethis a very cost effective solution for funding your needs andis worth considering. Contact Paul Broughton on 07974948578 to find out more about how you can benefit.

Please mention EMBG when you call. You can also get moredetails at www.embg.co.uk. Seek professional advice if youare unsure of the financial implications.

RUSSELL (RIGHT) LEADS THE STRATEGY MEETING.

www.embg.co.uk

137 Cassiobury Drive Watford WD17 3AH Telephone: +44 (0)845 0940310 Email: info@mbn.org.uk

Directors: A Jeganathan, Hemant Mistry, Alok Mitra, Larry Rach

Editor: Alok Mitra

Send comments or news articles to:news@mbn.org.uk

Designed and produced by Aurora Design Ltd.www.aurora4design.co.uk

Newsletter

UPDATEOur first newsletter proved a greatsuccess and we have received anumber of positive comments as wellas many articles contributed by ourmembers and partners.There has alsobeen a high demand for advertisingspace and therefore we have doubledthe size of this issue and areincreasing the circulation to 3,000copies. These will comprise ourmembers and local businesses. Thankyou all for your support andencouragement.

Alok Mitra

Ethnic Minority BusinessGroup announces theirBoard structure,

At a meeting of the Board on 20 April2006 the following appointmentswere confirmed:

Mr Alok MitraChair and CEO

Mr Alagappa JeganathanFinance Director

Mr Larry RachMarketing Director – Networks

Mr Hemant MistryOperations Director

The above appointments tookimmediate effect. The board is alsopleased to announce that it hasappointed John Roberts of AuroraDesign to coordinate all externalcorporate communications and pressreleases.

A Mitra, Chair and CEO

continued from front cover

EMBG is in the process of moving towards becoming a regional businessnetwork organisation serving the East of England. In doing this EMBG willbuild on the successful MBN model and enhance it with new innovative ideasto attract more members, network with other existing networks and bringcommercial organisations to provide custom built products to meet the needsof our members. The expanding business network and new products andservices will greatly improve the opportunities for our members to benefitfrom their membership.

EMBG is run by experienced business leaders who are acutely aware of theissues and concerns that affect us all. We now need to take the initiative tohelp ourselves. By using successful business leaders and selected partners witha track record of delivery and commitment to our network, we aim topromote Entrepreneurship, and help to identify and manage business risksthereby creating an environment for sustained business growth vital to theregional economy.

We are continuing to build partnerships with businesses to bring special dealsfor our members and in this regards we have added Bibby Financial services toour list of businesses who are offering special terms to our members, detailsof these are posted on our website, www.embg.co.uk. We are alsoencouraging local businesses to provide incentives to our members. These willappear in their adverts in our newsletter and on the website.

The network is currently undergoing significant changes in terms of the way itis managed, governed and funded. We have had to make many changes andadjustments to restructure ourselves in a way that best serves our growingmembership. The current phase of this process is nearing completion. Overthe coming months we will continue to announce the programme ofnetworking events, training opportunities and special deals negotiated for ourmembers from reputable suppliers.

We have been able to make available various courses and events throughBusiness Link and others. These frequently appear on our website. We alsosend out monthly emails with updates and events that are coming up. Toensure you receive your updates make sure we have your up to date emailaddress. Please email admin@mbn.org with any changes to your details. Ifyou are not a member, you can register and become a member on line athttp://embg.co.uk/register.asp. Currently there is no fee for joining.

Alok Mitra – Chair, CEO