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Business Rules

Based on the Young Enterprise rules and past experience, you must creatively work within the following constraints:

1. You must source your goods from within the EU. Because of the short time period in which you have to set-up, run and close down the business, you will not have time to produce or manufacture goods outside of the EU.

2. Your business must be a “creative industry” and your product or service must be new, or done in a new way.

3. Services often take more time to develop than selling products. If you are doing a service, make sure that it is not reliant on building reputations that take time to create. Be focused on what your service offers and be realistic with the time you can devote to it.

4. Use the skills within your team. Teams that choose to create businesses that rely on skills outside of their team often fail. Make sure you are building a business with accessible resources, and take advantage of each team member’s abilities, not just one or two members.

5. Set a goal each month based on sales. A business without sales is just a hobby. By setting goals with your team each month on how many sales you are going to achieve, it focuses your tasks on building the business through various activities. Focusing on goals such as “preparing for the trade fair” is setting the bar too low. Instead, “Prepare to sell 10 items at the trade fair” is a better goal.

6. Create roles within your team. Here are some suggestions:

[M] Manager:
This person has the responsibility of keeping the team on track and helping the team communicate regularly. The manager sets the meeting schedule and establishes with the rest of the team, the team goals related to assessments every month. They also oversee that the team is participating equally and that sales are on track. They also maintain relationships with key partners and contacts.

[F] Finance director:
This person keeps track of the money in the business. Everything that goes and and comes in needs to be recorded. The finance director also sets the budget with feedback from the team. Think of them as the score keeper for the business. Are you losing or winning? Do you need to send out an invoice or pay a bill?

[S] Sales & Marketing director:
This person establishes a strategy for getting the word out about your business, and maintaining relationships with customers. The marketing director keeps score by keeping track of the marketing efforts and if any sales were made as a result of those efforts. Examples of this would also be designing a logo, making adverts and setting up a website.

[O] Operations & HR manager:
This person makes sure that the product is made and delivered on time through appropriate channels at the right quality. They also keep attendance records and minutes of meetings, and are the contact person for any conflicts in the team. This person should attempt to resolve a situation (perhaps with the help of the university mediation service mediation@kingston.ac.uk) before problems are brought to the module leader.

Depending on the size of your team, you may have to divide up the responsibilities differently, but each person’s role must be defined. Everyone will be involved to some degree on each of these roles, but only one person will be responsible for seeing that these areas are functioning properly. For example, several people on the team may make a flyer or keep track of sales, but only one person is responsible for reporting on that topic.

 

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YE Rules

What does your Young Enterprise Insurance Cover?

The following notes on the insurance provided as part of the programme are for general guidance only. They are not an exhaustive synopsis of the Young Enterprise Insurance Policy. This is available on request.

It may be possible to arrange additional insurance to cover your company?s activities but this must only be arranged with the prior agreement of your university or college and with the prior agreement of Young Enterprise.

Products and Public Liability (Including Prohibited Products)

Young Enterprise has effected Products and Public Liability Insurance, under which there is an indemnity up to £10,000,000 to cover such amounts as it may legally be liable to pay in respect of accidental death, bodily injury, or loss of or damage to, material property not belonging to or held on trust by Young Enterprise, happening in connection with its occupation as a youth training organisation.

The Products Liability extends the policy to include any goods sold or supplied by Young Enterprise but excludes:

  • “Trading with the U.S.A. or Canada”,
  • the cost or value of any product lost or damaged due to defects;
  • the direct or indirect costs of repair or replacement of any product;
  • any liability assumed on behalf of Young Enterprise by means of an express agreement or contractual undertaking if such a liability would not otherwise have arisen.

The Young Enterprise insurance does not cover the manufacture or trading in any of the following products or activities:

  • the repair and maintenance of mechanically propelled vehicles;
  • the manufacture, storage, filling, breaking down or transport of explosive gases;
  • crop spraying.

Also NOT covered by the policy are manufacture, recondition ing, alteration, repair, sale or supply of:

  • goods for use as component parts in aircraft control;
  • goods for animal consumption;
  • goods for use in the repair and maintenance of mechanically propelled vehicles;
  • acids, gases including helium balloons, explosives, fireworks and chemicals; drugs and pharmaceutical products;
  • cosmetics and beauty preparations including Henna products and face paints, other than the re sale of proprietary branded products, including soap, perfumes and bath salts;
  • fertilizers, crop and weed spraying preparations;
  • the manufacture, modification or sale of any product which has to be plugged into the mains electricity supply.

Please note that:

  • Young Enterprise companies must not trade in alcohol or tobacco products.
  • Young Enterprise companies are not insured to produce or manufacture foodstuffs, nor buy unbranded products for consumption, those subject to refrigeration and special storage arrangements, together with products of a sell by date under 3 months, or which would have reached the sell by date at time of sale.

Exception: companies may deal with food where the company is being run as part of a recognised catering course and where insurance cover already exists. FOOD HYGIENE CERTIFICATE IS NOT A CATERING COURSE. Written permission must be obtained from Young Enterprise

  • YE Companies must not act as Travel Agents, Tour Operators or Taxi Services.

The policy does NOT cover:

  • liability arising directly or indirectly from ownership, possession or use by or on behalf of Young Enterprise of any mechanically propelled vehicle for which a Certificate of Motor Insurance is required, or of any aircraft, hovercraft or watercraft;
  • liability arising directly or indirectly for loss or damage to property owned by or in the custody or control of Young Enterprise, Consultants or students;
  • The first £50.00 of each and every loss arising from Third Party Property Damage.

The indemnity provided by the policy is extended to individual participants in the Start-up Programme (i.e. students and their Consultants) while they are engaged in its recognised activities, provided that they observe completely all the terms of the policy and provided also that they are not entitled to an indemnity under any other policy. This extension of the policy applies also in the event of one participant making a claim against another.

As guidance in terms of personal possessions or clothing, these are not covered for loss or accidental damage by the owner except in circumstances whereby Young Enterprise or their employees can be held legally liable for negligence.

Materials Damage Insurance
Young Enterprise have also effected a materials damage insurance to cover property belonging to Young Enterprise Companies up to £1,500 per Company.

This insurance does NOT cover:

  • the first £50.00 of any one claim;
  • theft unless from a premises involving entry to or exit from such premises by forcible or violent means;
  • the loss of cash.

It is assumed that sponsoring organisations and the owners and occupiers of premises will insure themselves against any damage to the buildings while these are used for educational purposes; such contingencies are NOT therefore, among the risks against which Young Enterprise is insured, if such premises are deemed to be in the custody or under the control of Young Enterprise.

Business Consultants should ensure that Young Enterprise is advised when an accident occurs using form OPS5 (available through the Operations Function Guidance).

It should be noted that there is NO personal accident cover on individual participants in the Start-up Programme and all members should be aware that this cover is up to the individual concerned, as indeed many schools have their own schemes available to any students, parents.

In case of any doubts regarding insurance reference should be made to the Young Enterprise Support Centre who issue the insurance certificate.


What you need to know about… FOOD AND DRINK

Young Enterprise companies must not trade in alcohol or tobacco products.

Young Enterprise companies are not insured for growing, producing or manufacturing foodstuffs and beverages. Nor the buying and selling-on of unbranded products or those subject to refrigeration or other special storage arrangements.

Exception: Companies may deal with food where the company is being run as part of a recognised catering course (Food Hygiene Certificate is not a catering course) and product liability insurance already exists. Companies wishing to do this must obtain written permission from YE Support Centre, this will require proof that the necessary insurance is in place.

What you can do

Young Enterprise companies are allowed to buy and sell on branded foodstuffs not subject to refrigeration or other special storage arrangements as long as the best before date is more than three months away. Products must be sold before the best before date. Manufacturer’s multiple packets can be broken down as long as the wrapping on individual items are marked with best before dates and the manufacturer has not restricted the breaking down of a multiple pack product for re-sale (this is printed on the packaging).

The legal position

Young Enterprise companies often see the production of food items as an attractive option. However the Environmental Health and Trading Standards legislation around the production and retailing of food products is complex.

Insurance is not available as the risk to the public due to food poisoning and therefore the potential for an insurance claim is high. This would result in increasing the cost of the product liability insurance and add to the cost of the registration fee for all companies.

Retailing of branded products as described above is allowed because whilst the product remains in a manufacturers wrapping and within the best before date, product liability remains with the manufacturer.

Things to remember when… RUNNING A SPORTING EVENT

You are covered for Public Liability but should check to see if the venue you are using is also covered. There should be an agreement between the Young Enterprise company and the venue as to who would make a claim if necessary. Young Enterprise insurance also covers damage to the venue. You should make an entry check of the venue and note any existing damage and make an exit check so you can see if any damage caused was by the Young Enterprise event.

You should agree with the owner of any equipment used who would make a claim if necessary. Cash is NOT covered by insurance so keep it in a safe and secure place. Car parks are not covered by Young Enterprise insurance. Personal belongings are not covered by Young Enterprise insurance. Company members are NOT covered for personal injury.

Health & Safety:

As the potential for injury is high at a sporting event, we suggest you have a person trained in first aid with an adequate first aid kit present. If you are organising a class (eg. aerobics) the instructor must be qualified to teach such a class. The class should be aimed at the level of the people taking it.

Fire exits must be clearly marked and an exit plan decided before the event. Correct lifting procedures should be used for carrying heavy equipment. The equipment must be stable and not likely to cause personal damage. The electricity supply must be suitable for any equipment.

Legal responsibility:

Any food sold at the event must be pre-packed and have a best before date of more than 3 months unless professional caterers have been contracted.

General:

You should think beforehand what you will do if unforeseen circumstances occur, such as power failure, personal injury etc. and formulate a plan. How will you manage risks? Do you have enough company members available to staff the event properly throughout its duration? Certain sports are prohibited, such as Go Kart Racing, so check with Young Enterprise Support Centre if you are unsure as to whether you can run a particular event.

Things to remember when… CREATING A COMPANY WEB SITE

Creating a web site for your company has the potential for stimulating sales interest in your products or services. However companies should remember that your website will be visible to a general audience worldwide.

What you must include on the home page of your site:

  • Company name including ‘a branch of Young Enterprise <region>’
  • An explanation that the company is part of the Young Enterprise scheme
  • The date at which the company will be wound up (The Company liquidation date)
  • Your college/university name

What you must include somewhere within your site:

  • A link to the Young Enterprise UK web site (www.young-enterprise.org.uk)
  • Acknowledgement of use of material for which proper authorisation has been granted (icons, images, background, clipart, etc.)

What you may include on your site as long as permission has been granted by the relevant people:

  • Pictures of company members
  • Names and links to your business advisers companies

What you must not include on your site:

  • Student personal contact details
  • Any material that could be considered offensive and which could damage the image and reputation of Young Enterprise or any links to external sites containing such material
  • Any material which might potentially damage the reputation of any individual or groups of individuals
  • Any materials for which proper authorisation is required but has not yet been granted

Insurance/Trading restrictions:

Young Enterprise companies trading on the internet are subject to the same insurance restrictions as Young Enterprise companies trading in other ways.

In particular please note that:

  • Because of the cost and prevalence of litigation in North America, Young Enterprise insurance does not cover trading with or within the USA or Canada. Any orders received from these countries will need to be (politely) rejected.
  • All companies selling over the Internet must comply with the Distance Selling Regulations 2000.

Things to remember when… RUNNING A FASHION SHOW

You are covered for Public Liability but should check to see if the venue you are using is also covered. There should be an agreement between the Young Enterprise company and the venue as to who would make a claim if necessary. Young Enterprise insurance also covers damage to the venue. You should make an entry check of the venue and note any existing damage and make an exit check so you can see if any damage caused was by the Young Enterprise event.

Cash is NOT covered by insurance so keep it in a safe and secure place. Car parks are not covered by Young Enterprise insurance. Personal belongings are not covered by Young Enterprise insurance.

Any clothes you borrow for the fashion show are insured with up to a total of £1500 accidental damage cover excluding general soiling (eg.deodorant or make-up marks). If you are keeping the clothes overnight please note that they are only insured if they are stolen from a secure place. You should have an agreement before the clothes are borrowed with the lender, as to what condition they will accept the clothes back in and as to whom will claim if the clothes are damaged.

Health & Safety:

Fire exits must be clearly marked and an exit plan decided before the event. Correct lifting procedures should be used for carrying heavy equipment. The equipment must be stable and not likely to cause personal damage. Ensure models are familiar with the length and width of the runway. The electricity supply must be suitable for any equipment. Check to see if there are any sound restrictions and keep to them. Will there be anyone from the venue’s staff on duty during the event?

Legal responsibility:

Young Enterprise companies must not trade in alcohol or tobacco products. Any food sold at the event must be pre-packed and have a best before date of more than 3 months unless professional caterers have been contracted. Sponsorship of the event is not allowed but you can promote a company that lends you clothes for the fashion show.

General:

You should think beforehand what you would do if unforeseen circumstances occur, such as power failure or an accident and formulate a plan. Will you give refunds? How will you manage risks? Do you have enough company members available to staff the event properly throughout its duration?

Things to remember when… RUNNING AN ENTERTAINMENT EVENT

You are covered for Public Liability but should check to see if the venue you are using is also covered. There should be an agreement between the Young Enterprise company and the venue as to who would make a claim if necessary. Young Enterprise insurance also covers damage to the venue. You should make an entry check of the venue and note any existing damage and make an exit check so you can see if any damage caused was by the Young Enterprise event. You should check with the owner of any equipment before the event whether they have the equipment covered by insurance. It is expected that they would have it covered.

Cash is NOT covered by insurance so PLEASE keep it in a safe and secure place.

Car parks are not covered by Young Enterprise insurance. Personal belongings are not covered by Young Enterprise insurance.

Health & Safety:

Electical equipment should have been PAT tested as a health and safety requirement (check with the owner). Check for any sound level restrictions at the venue and stick to them. Fire exits must be clearly marked and an exit plan decided before the event. Correct lifting procedures should be used for carrying heavy equipment. The equipment must be stable and not likely to cause personal damage. The electricity supply must be suitable for the equipment. If your customers are below 18 years old, do you have enough supervisory adults available? Think about the number of children per adult. Will there be anyone from the venue’s staff on duty during the event?

Legal responsibility:

Young Enterprise companies must not trade in alcohol or tobacco products. Any food sold at the event must be pre-packed and have a best before date of more than 3 months unless professional caterers have been contracted.

General:

You should think beforehand what you will do if unforeseen circumstances occur, such as power failure, unwanted gatecrashers etc. and formulate a plan.

Will you give refunds? How will you manage a security issue, accident or emergency? Do you have enough company members available to staff the event properly throughout its duration?

Young Enterprise companies must not act as Travel Agents, Tour operators or Taxi services for the following reasons:

Insurance:

Young Enterprise Insurance does not cover any activity (as part of a Young Enterprise company’s service) involving the arrangement of travel. Young Enterprise Companies may not arrange additional insurance for such activities.

The Legal Position:

The legal situation surrounding the organisation of coach trips, pleasure outings. etc. is very complex. If something goes wrong, the customer’s claim is to the person/company organising the trip, regardless of whether the problem lay with the destination, the mode of transport or whatever. The organiser would then need to pursue any grievances or counter-claims against, for example, the coach operator or venue management. This can be a complicated and difficult process and a complete distraction from the objectives of running a Young Enterprise company. The process is also longwinded and it is likely that any such case would go on beyond the normal liquidation date of the Young Enterprise company.

Other Forms of Transport:

The same prohibitions apply to boats, trains, cars and all other forms of transport.

Things to remember when… CAR WASHING

You are covered for damage caused to a car you are washing as long as the car has not been moved by anyone other than the driver. Should a student, Enterprise Co-ordinator or Business Consultant move the car, any insurance cover becomes invalid. Therefore NEVER move the car.

It is good practice to have a quick look over the car before you start and note any obvious scratches etc. and agree them with the driver. Then if a driver accuses you of damage you will know if it was your fault or it was from a previous event.

Any equipment you use (eg. a jet wash) is covered by Young Enterprise insurance should it get damaged or stolen. If you are borrowing or hiring any equipment please decide with the lender who will make a claim if anything happens to it.

Students are NOT covered for personal injury so obey health and safety rules.

Cash is NOT covered by insurance so keep it in a safe and secure place.

Health & Safety:

If using an electrically powered jet wash ensure that it meets the required safety standards. Water and electricity are dangerous when combined. Ensure the power supply is suitable for the jet wash. Make sure that students that will use any equipment have been trained to do so. Correct lifting procedures should be used for carrying heavy equipment. The equipment must be stable and not likely to cause personal damage.

General:

You should think beforehand what you will do if unforeseen circumstances occur, such as power failure, an accident, damage to a car etc. and formulate a plan. Will you give refunds if the customer is not happy with the service you have provided? How will you cope with a customer who believes you have damaged his car?

© 2010 Young Enterprise

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