2.

Creating a Limited Company

2.1 Idea for new product or service

For any kind of organization to start, it is compulsory to have a product or service which can
be sold in the market. The dynamics of market, technology and competition have brought
development and change to every market sector and have had the latest new product
development which is one of the most important weapons for a company to stay in the
market. As the competition in the market is increasing day by day through face lifting of the
old products and inventing new technological product which helps the organization to survive
in the market. The initial stage starts with the design, then the idea screening where all new
products ideas pool in, then concept development and testing, business analysing and
development of the product.
We are planning to start the marketing of the product Projector Watch which is one of the
rarest product in the market. This watch consists of a high power projector which can be
directly connected from a system or device through us connection .The watch is very
powerful and can emit on large screens of that of the same brightness of a projector. The
advantage of this device is that it is very handy and can be taken anywhere. The battery used
is powerful and it is able to give the sufficient visibility from the device which is shown on
the screen. The main advantage is that it can be used in any environment and in any place. It
doesnt need much space and the problem of carrying it and storage is very much far off from
the situation. The company name is Axiom Technologies Private Ltd. The invention will be
purely under the stern leadership of the company itself. The firm requires an initial capital
amount of 75000 British pound for the development process and for these the firm requires
investors for funding. If the idea doesnt come under the firm then initial public fund will not
be received. For IP the organization has to receive the necessary funding from the investors
and for these the firm has to be established and the idea should be found suitable for the
investors. The idea has been approved and the technology is also one of the best. W heave
decided to move to next stages for the final result.

2.2 Initial funding

Initial funding is typically gained through friends and family in the start. Capital which is
provided by them wont satisfy. The closest people who knows us will be the one who we
should believe and that is the reality that should be accepted. Initial amount will be for launch
of the business, creation of website and for other petty expenses. Expenses for getting a space
for establishing an office, buying stationaries and salary for temporary employee for doing
documentation work and another for doing the external works like promotion of the product.
This product is very costly, and production cost is high for the reason external investments
are required. Occasionally, Universities may also offer access to small amounts of money.

2.2.1 University
Advice and support offered from Scottish Universities during the initial stages of a start-up
include:
Launching the product, small funding will be given by the universities towards the
development of science and for uplifting the skills of the students. As a part of boosting the
power of the students this program initiative is taken by the university. The students inform
about their project to the university and action is taken according to that. The management of
the university has to approve the project, later which the requirements are done.

2.2.2 Competitions
A source of initial funding could come from competitions. They take part in these
competitions and if the business project is selected then a huge reward amount is received
which could be till 50000 Britain Pound and this amount will be sufficient for the initial
business to start. There are lots of competitions which are initiated by the universities and
some non-profit organisations. Some competitions currently available in Scotland which
includes:

Wild card edge: This is a judge award category where the company which is being built up
should have a very catchy factor and the product should not only be innovative but should be
excellent and a unique point to be told. The team approach, the design and the brand name
also includes in it.

Young Hedge: This is for the directors of the company who are aged between 18 to 30 years.
There are chances for the business to win awards up to 10000 Britain Pounds. These
entrepreneurs are challenged and there are various kind of business competitions in the
market. This award is for those for taking up risks in business.
Scottish Edge: This is made up of four categories which are Higgs Edge, Young Edge, Wild
card edge and Scottish edge. This is for companies of all sectors and stages. It was operated
by the Scottish Enterprise and Highlands and Islands enterprise .Its only motive is to support
high growth business and make the economy an entrepreneurial nation. The winners of this
takes away a fund of 1 lakh British pound. If the project doesnt win, then detailed report and
feedback will be provided.

Higgs Edge : Higgs EDGE is a special award aimed at entrepreneurs who have a company
that has applied leading edge technology to an innovative product, or product under
development in the Science, Technology or Engineering sector, which is potentially world
leading and has the potential for large scale global commercialisation. The judges see that if
the project plan is commercial and potential then it is moved to further stages. The price
amount goes till 1, 50,000 British pounds.

2.2.3 Government

Government also offer a lot of support for start-up companies. Scotland government provides
grants to small scale industries and it helps in doing feasibility studies and research and
development projects which have a commercial programme. The feasibility studies includes
the Research and Development and to see that the new products work out in the real world
and in the practical life. Nearly 70% of the expenses are borne by the government and the
maximum amount will be 100000 British Pounds. One third is paid before the project starts
and then the balance amount is paid quarterly.

2.3 Paying for a lawyer

A lawyer is very important before any kind of business is started. They are actually the
advisors and help in all the stages of the business establishments. As a foundation is laid for a
house and for further works, strong pillars are erected for building a strong house, same is
that of a strong and tactful lawyer who plays an important role in erecting the business to
make a strong empire. There are various kind of internal and external risks which the
business has to face like government rules, tax rules, threats from competitors in the form of
cheating and fraud games in the market, registration and renewal. The lawful tactics and the
issues which will be faced in the start of the business and a SWOT analysis is also done by
them for helping in the progress of the business. A good lawyer will help from the basic
aspects of business start-up like copyright and trademark, business incorporation, lawsuits
and risk factors. For these service they levy charges. They are paid in different ways:-

Flat fees: They ask for flat fees for routine work that they do.

Hourly Payment: Most of them go for hourly bills. For each task they do, if any expenses are
there they collect all the bills and then give it at the end of the day for reimbursement.

Contingent fees: These are for the cases they take. If the lawyers succeed, they get a portion
of the case and if they fail only petty expenses which were met by they will be given.

2.4 Incubators and Accelerators

It is often difficult for a start up to rent office space. Incubators offer working space for a
company on a month to month basis at affordable prices. Accelerators tend to want some of
the equity of the company in return for advice, support and office space. Examples of
incubators and accelerators in Scotland include:

Business Model Validation, Customer Acquisition, Sourcing channel and technical partners.
References:-

Available at: http://www.upaccelerator.com (Accessed: 27th February, 2016)

Available at: http://www.albainnovationcentre.co.uk/ (Accessed: 27th February, 2016)

Available
http://www.strath.ac.uk/rkes/commercialisationenterprise/enterpriseteam/risingstarprogramme
(Accessed: 26th February ,2016)

Available at: http://www.enterprisecampus.org.uk/ (Accessed: 25TH February ,2016)

Available:
http://www.strath.ac.uk/rkes/commercialisationenterprise/enterpriseteam/strathclydersintobusine
sssib(Accessed:24th February,2016)

Available at: http://www.strath.ac.uk/enterprisepathway (Accessed: 26th February, 2016)

Available at: http://www.scotedge.com (Accessed: 25th February, 2016)

Available at: http://www.scottish-enterprise.com(Accessed:28th February,2016)