The document discusses the importance of training for entrepreneurs and their staff. It explains that training allows businesses to address weaknesses in employees' skills, improve performance, ensure consistency, increase employee satisfaction, and strengthen the business overall. Training presents costs and drawbacks, but the benefits of a more knowledgeable and competent staff make it a worthwhile investment, especially when expanding a business.

1. Street Food Success What Next
Module 5

2. Learning Outcomes
Following completion of this module, the learner will better
understand the rules and regulations pertaining to business
ownership, including how to keep up to date with regulation
changes. We will look in to limited and sole trader companies,
as well as discussing the importance of training to
entrepreneurs and their staff.
Materials
• Business development training exercise - developed from
the previous sessions homework
• Writing and completing a training and needs analysis for
staff
• Video on importance of training

3. The rules and regulations
The food industry remains one of the most regulated industries,
with much of the detailed legislation on food standards and health
and safety law originating in the European Union. Regulations are
also set at national and local levels which seeks to aid compliance.
In 2002, the European Parliament and the Council adopted
Regulation (EC) No 178/2002 laid out the general principles and
requirements of food law (General Food Law Regulation.)
The General Food Law Regulation is the foundation of food and
feed law. It sets outs an overarching and coherent framework for
the development of food and feed legislation both at Union and
national levels. To this end, it lays down general principles,
requirements and procedures that underpin decision making in
matters of food and feed safety, covering all stages of food and feed
production and distribution.
It also sets up an independent agency responsible for scientific
advice and support, the European Food Safety Authority (EFSA).

4. Rules and Regulations continued…
Moreover, it creates the main procedures and tools for the management of emergencies and crises
as well as the Rapid Alert System for Food and Feed (RASFF).
The General Food Law Regulation ensures a high level of protection of human life and consumers'
interests in relation to food, while ensuring the effective functioning of the internal market.
http://ec.europa.eu/health/home_en
In the UK Health and safety is regulated by the Health and Safety Executive
http://www.hse.gov.uk/catering/index.htm
The site provides information for people working in the catering and hospitality industry on how to
comply with health and safety law.
The industry covers people working in commercial kitchens, hotels, restaurants, cafes, fast food
outlets, pubs and clubs as well as those working as contract caterers to other industries.

5. Limited or sole trader companies, making the move
when and why.

6. The differences between Sole Trader and a Limited Company
Each structure has advantages and disadvantages which are outlined below to
help you choose the best option for your circumstances.

7. Liability
• A limited company is its own legal identity, so as
a shareholder your liability is limited (hence the
name 'limited by shares').
• As a sole trader, there is little distinction
between you and the business. Any business
debts become your debts and your personal
assets - including your house - are not
protected

8. TAX
In a limited company, tax is deducted from directors'
salaries via PAYE and paid at regular intervals to HMRC.
All directors are also obliged to complete a tax return
unless you received absolutely no pay or benefits;
irrespective of whether any tax is owed. If applicable,
higher tax rate is paid by shareholders on dividends
under the self-assessment regime. Corporation tax is
payable 9 months after the year end, by filing a
company tax return.
Sole traders pay tax on their business profits, after
expenses have been deducted, via the self-assessment
tax return system. The deadline for online tax returns is
31st January after the end of the tax year.

9. National Insurance
Within a limited company, both employers and
employee's National Insurance (NI) is payable on
directors' salaries and bonuses. This NI charge is greater
than that paid by a sole trader/partner, who pay Class 2
NI contributions of £2.80 per week and Class 4
contributions dependent on profits more than £8,060
(rates accurate for 2016/17.)

10. Profit and Loss
• For limited companies of any size, corporation
tax is charged at 20%. For a sole
trader/partnership, profits are taxed at 40% on
taxable income in excess of £32,001 and 45%
over £150,000 (rates accurate for 2016/17).
• In a limited company, losses can only be carried
forward and set against future profits or set
against the previous year's profits. For sole
traders, losses can be set off against other
income in the same tax year, carried back to
previous years or carried forward.

11. Filing Accounts
• A limited company must prepare annual accounts (also
known as 'statutory accounts') from the company's
records at the end of the financial year. These are to be
filed with HMRC as part of your tax return as well as
sent to all shareholders and Companies House. A
limited company must also file an Annual Return to
HMRC, which includes information about the directors,
shareholders and registered office.
• Sole traders/partners are not legally required to have
annual accounts to or file accounts for inspection.
However, a record of business expenses and personal
income are required for tax returns.

12. Prestige
An incorporated company, whilst not
guaranteeing reliability, gives the
impression of a soundly based
organisation and may appear more
credible.
In certain sectors, contractors or agencies
may not work with sole traders because
of the legal protection a limited company
provides.

13. Why training is so important for the entrepreneur and their staff.
Training presents a prime opportunity to expand
the knowledge base of all employees, but many
employers find the development opportunities
expensive. Employees also miss out on work time
while attending training sessions, which may leave
the business short-handed. Despite the potential
drawbacks, training and development provides
both the company as a whole and the individual
employees with benefits that make the cost and
time a worthwhile investment particularly in this
phase of upscaling the business.
The video below emphasises the importance of
training to a workforce:
https://www.youtube.com/watch?v=CSvz4kuSWw
A

14. Legal issues
• In the UK, food handlers don't have to hold a food
hygiene certificate to prepare or sell food, although
many food businesses will prefer that they do. The
necessary skills may be obtained through on-the-job
training, self-study or relevant prior experience.
• UK food hygiene certificates don't have an expiry date. It
is left to the discretion of the food business operator or
environmental health officer to decide whether a
refresher course is needed. This may be a result of
changes to legislation or technological developments in
food hygiene.
• It is a general requirement however for food business
owners and managers to have completed a level 3 food
hygiene certificate or higher.

15. Addressing Weaknesses
Most employees have some weaknesses in their
workplace skills. A training program allows you to
strengthen the areas which employees need to improve
upon. A development program brings all employees to a
higher level so that they all have similar skills and
knowledge. This helps reduce any weak links within the
company who rely heavily on others to complete basic
work tasks.
Providing the necessary training creates an overall
knowledgeable staff with employees who can take over for
one another as needed, work on teams or work
independently without constant help and supervision
from others.

16. Improved Employee Performance
An employee who receives the necessary training is better able
to perform their job. They become more aware of safety
practices and proper procedures for basic tasks. The training
may also build the employee's confidence because they have a
stronger understanding of the industry and the responsibilities
of their job.
This confidence may push them to perform even better and
think of new ideas that help the business grow. Continuous
training also keeps your employees aware of the bigger picture
and the need for a safe working environment as well as food
safety issues. Employees who are competent and on top of
changing industry standards help your company hold a position
as a leader and strong competitor.

17. Consistency
A structured training and development program
ensures that employees have a consistent experience
and background knowledge. The consistency is
particularly relevant for the company's basic policies
and procedures.
All employees need to be aware of the expectations
and procedures within the company. This includes
safety, discrimination and administrative tasks.
Putting all employees through regular training in
these areas ensures that all staff members at least
have exposure to the information.

18. Employee Satisfaction
Employees with access to training and development
programs have the advantage over employees in other
companies who are left to seek out training
opportunities on their own. The investment in training
that a company makes shows the employees that they
are valued.
The training creates a supportive workplace. Employees
may gain access to training they wouldn't have otherwise
known about or sought out themselves. Employees who
feel appreciated and challenged through training
opportunities may feel more satisfaction with regards to
their work.

19. Training and Needs Analysis
What is Training/Learning Needs Analysis (TNA)
A training/learning needs analysis (TNA) is a review of
learning and development needs for staff, volunteers and
trustees within in your organisation. It considers the skills,
knowledge and behaviours that your people need, and
how to develop them effectively.
1. Organisational TNA should ideally be undertaken at
3 levels:
2. Organisational level
3. Team/departmental level
These three levels are inter-linked, and using this
structure will help ensure a balanced analysis that takes
into account the big picture as well as the specific needs
of individuals.

20. Methods that can be used to identify learning needs include:
• Analysis of existing strategies and plan to
identify what skills are needed for delivery
• Questionnaires – paper based or online
• One-to-one interviews
• Focus groups – facilitated small group
discussions with a representative sample of
people

21. The outcome
The outcome of your TNA should be a robust learning and development plan,
based on research and linked to organisational, team and individual objectives.
Some of the questions that you might like to ask before undertaking an analysis of
learning needs are:
• Do we have a strategic and organisational plan?
• Do we have an appraisal system in place?
• Do all staff have an up to date job description?
• Do all staff have written objectives?
Once you have identified learning needs across the organisation, they need to be
analysed and prioritised.

22. Areas to consider when prioritising
• What impact will developing these skills have on
our performance?
• What would be the cost/benefit of investing in
developing these skills?
• Which skills needs are the most important to our
long-term success?
• Which skills needs are the most urgent?
Cost/benefit analysis means assessing the potential
costs of learning and development activity against
the potential gains in a quantifiable way

23. Making the case for the value of learning interventions to decision-makers and
funders for investment in training is strengthened by a cost/benefits analysis.
Potential gains might include:
• reduced turnover and savings on recruitment costs
• higher skill levels leading to increased efficiency and fewer errors
• reduced risk of accidents or breaches of legislative requirements
• higher morale and levels of motivation
• impact on fundraising capacity through a higher skills base
• improvements to the quality of your service and reputation
• sustainability and succession planning

24. Of course, training or learning interventions will not
always be the appropriate solution for organisational
issues, and the process of undertaking a TNA and a
cost/benefit analysis is likely to highlight areas where
other solutions are required.

25. TNA Exercise
Click on the graph to access a TNA exercise that
you can complete.

26. The value of trade associations and other business networks
Why join a trade association?

27. Why join a trade association?
In the long term, it is in business owner’s financial
interests to do so. Trade Associations sit at the heart
of their respective industries and offer many benefits
to members. These benefits include money saving
activities such as free advice on many issues, access to
special rates through affinity services and regulatory
cost avoidance which can often cost a significant sum
of money on the open market.
Associations are seen as the voice of their sector and
able to represent all their members at every level.
Associations therefore provide government and other
authorities with the peace of mind that they are
getting a fully considered view of what is good for the
sector. This is an extremely powerful asset for
members and as the membership base grows, so does
the Trade Association’s authority.

28. Why join a trade association?
Associations are trusted and are central to
their industry. This means that they can
uniquely offer a wide range of information
and services which others cannot; this may
include collation of sensitive information to
provide an industry wide statistical report
service, or the management of a consumer
code of conduct.
Associations are often in a position to offer
specialist advice, particularly of a technical,
legal or commercial nature. Some will also
offer a consultancy service or an expert
witness service on behalf of members if
necessary.

29. Why join a trade association?
Associations often undertake specific
projects which benefit members or the
industry as a whole. Members would
have an excellent opportunity to become
involved first hand and influence the
outcome of these projects should they
choose to.
Associations facilitate the opportunity for
members to network with their peers at
Conferences, Exhibitions and other
events whilst they are learning about
issues which may affect their business.

30. Why join a trade association?
Associations provide immediate updates
regarding changes in industry technical
standards, policy and news which are
disseminated to members and provide an
early warning system with advice on how to
deal with the issues which may be
encountered as a result.

31. Why join a trade association?
Associations often offer commercial benefits through
negotiated deals with approved suppliers. Some Trade
Associations negotiate excellent deals with suppliers
for products which their members may wish to utilise.
Typically, these may include preferential rates for
insurance, road recovery for fleet vehicles, health and
safety and employment law services.
Trade Associations are also advantageous to
companies in that it often serves to improve a
company’s reputations; for many industries,
membership of the industry association is seen as a
badge of quality, particularly for those industries
which are heavily regulated, i.e. food industry.

32. Companies and individuals should join Trade Associations
because…
Trade Associations represent private businesses and it those
private business which will likely create the profits and
employment needed to restore the UK economy; they will
also aid growth and assist in the reduction of the public
sector deficit. Arguably, no one else can do that.
Trade Associations are representative of the interests of
their members; with an effective Trade Association boasting
a good intelligence network. It knows at a very early stage
what issues are moving up the agenda of policy-makers and
businesses and also which organisations and individuals are
important in the policy making process. This intelligence
gathering is complemented by a culture of knowledge
sharing within the organisation. The importance of
reputation must not be understated. An effective Trade
Association is certainly one which is trusted as a speaker on
behalf of its members.

33. Continued
• Trade Associations identify the effects of policy measures
on their sector and act as an additional resource in
ensuring that Government action achieves its desired
purpose.
• Trade Associations have an extensive knowledge of the
industry itself or else have access to such knowledge
which can be quickly passed on to policy-makers. Trade
Associations are leaders in sector thinking, standard
setting, building proactive policies and developing a long-
term strategic plan which incorporates practical solutions
and greater transparency. It is therefore possible for
Governmental bodies and Trade Associations to form
effective partnerships and bridge mutual gaps in
understanding. Trade Associations can also help identify
any emerging issues and develop solutions to problems.

34. Continued
• Trade Association’s representations to the Government
on policy matters are backed up with the best available
evidence gathered from their members. This helps with
assessments of the costs and benefits of policy proposals.
• Trade Associations are willing to work with others with an
interest to minimize areas of difference and maximize
areas of common ground. They are able to work closely
with Government bodies to sponsor the creation of
additional networks, forums and alliances which can
provide a focus for collaborative work with Government
bodies on policy and delivery. This also helps to provide a
consolidated industry view and develop skills.
• Trade Associations are the most effective way of
establishing excellent lines of communication between
the Government and their represented sector.

35. Government consult with Trade Associations because…
• Many Trade Associations require their members to
undergo a vetting process before joining and are
subsequently monitored regularly to ensure continuity.
• A Trade Association’s logo on the letterhead and
advertising material is often the sign of a reputable and
trustworthy organisation.
• Many Trade Associations require their members to sign
up to a Code of Practice which outlines a minimum
standard that the organisation is expected to meet and
details of how it should conduct its business in a fair and
reasonable way.

36. Continued…
• Using Trade Association members means that there is somewhere to
go for help in the event that things go wrong. With the best will in
the world, even the best organisations have problems occasionally.
Many Trade Associations have a complaints process and can
effectively help resolve the problem, acting as a mediator between
the customer and the member organisation if necessary.
• Some Trade Associations operate Deposit Indemnity Schemes which
are a guarantee that customers do not lose their deposit should a
member organisation ceases trading for any reason. They are often
voucher based schemes which are redeemable with other member
organisations.
• Trade Associations sometimes require members to provide insurance,
thereby backing customers for long term guarantees. Lack of
insurance can mean that if something goes wrong within the
guarantee period and the original member company does not
continue to exist, the cost of any remedial work falls to the customer,
making the guarantee worthless. Insurance backing means that the
cost of this can be reclaimed and customers are not out of pocket.

37. Continued…
• Membership of a Trade Association in most industries is a
commercial decision for the organisation and if it were
not serious about proving its worth, it would not take the
trouble to be involved with other like-minded
organisations; thus signalling their reputability.
• Reproduced in part from The Benefits of Trade
Associations published by The Trade Association Forum,
Centre Point, 103 New Oxford Street, London WC1A 1DU.

38. The benefits of business networking
• Business Networking is a really valuable way to expand
your knowledge, learn from the success of others, attain
new clients and tell others about your business.
• I highly recommend business networking as a way to gain
new clients and to build a sustainable business. Here are
the top 9 benefits for business owners of getting involved
in networking:

39. Generation of referrals/Increased business
• This is probably the most obvious benefit and the reason
most business owners decide to participate in networking
activities and join networking groups.
• The great news is that the referrals that you get through
networking are normally high quality and most of the
time are even pre-qualified for you. You can then follow
up on these referrals/leads and turn them into clients. So
you are getting much higher quality leads from
networking than other forms of marketing.
• The increase in business from networking is the major
advantage, but there are many others as well.

40. Opportunities
• With a motivated group of business owners comes an
abundance of opportunities! There are always lots of
opportunities that come from networking and in fact this
is where the benefits of business networking are huge!
• Opportunities like joint ventures, client leads,
partnerships, speaking and writing opportunities,
business or asset sales… the list goes on, and the
opportunities within networking are really endless.
• Just make sure you are jumping on board with the right
opportunities and don’t go jumping into every
opportunity that comes your way. The opportunities that
you get involved in should align with your business
goals/vision, otherwise you might find that you are
spinning your wheels chasing after opportunity after
opportunity and getting nowhere.

41. Connections
• Business networking can benefit your business in so many
ways. Give it a try and reap the rewards for yourself.
• “It’s not WHAT you know, but WHO you know” is a
pertinent adage in this business; if you want a really
successful business, then you need to have a great source
of relevant connections in your network that you can call
on when you need them.
• Networking provides you with a great source of
connections, and really opens the door, offering business
owners the opportunity to liaise with highly influential
people which you wouldn’t otherwise be able to easily
talk to or find.
• It’s not just about who you are networking with directly
either – that person will already have a network you can
tap into as well. So ask the right questions to find out if
the person you are networking with knows who you want
to know!

42. Advice
• Having like-minded business owners to talk to also gives
you the opportunity to get advice from them on all sorts
of things related to your business or even your personal
life and obtaining that important work-life balance.
• Networking is a great way to tap into advice and expertise
that you wouldn’t otherwise be able to get hold of. Just
make sure you are getting solid advice from the right
person – someone who actually knows about what you
need to know and is not just giving you their opinion on
something that they have no or very little experience in.

43. Raising your profile
Being visible and getting noticed is a big benefit of
networking. Make sure you regularly attend business and
social events that will help to get your face known. You can
then help to build your reputation as a knowledgeable,
reliable and supportive person by offering useful
information or tips to people who need it. You are also more
likely to get more leads and referrals as you will be the one
that pops into their head when they need what you offer.

44. Positive Influence
The people you hang around with and talk to do influence
who you are and what you do, so it is important to be
surrounding yourself with positive, uplifting people who
help you to grow and thrive as a business owner.
Networking is great for this, as business owners who are
using networking are usually people that are really going for
it!

45. Increased confidence
• By regularly networking, and pushing yourself to talk to
people you don’t know, you will get increased confidence
the more you do this. This is really important as a
business owner, because your business growth is very
dependent on talking to people and making connections.
• Networking is great for people who aren’t confident as it
really pushes them to grow and learn how to make
conversations and lasting connections with people they
don’t know.
• I was certainly not confident when I started networking,
in fact it completely petrified me! But as I did it more, the
more confident I get and the easier it becomes, the more
benefit I get from it.

46. Satisfaction from helping others
I really love helping other people, and networking is a
fantastic way to do this. Networking is full of business
owners who at some point or other, have faced problems or
issues within their business that need solving, and there is
great satisfaction from helping someone solve a problem.

47. Friendship
Lastly, this one is more personal than business related, but is
a big benefit none-the-less. Many friendships form as a
result of networking because (mostly) you are all like-
minded business owners who want to grow your businesses
- you meet and help each other regularly, so naturally strong
friendships tend to form. Some of my strongest friendships
originated from business networking.

48. Human resources
• In the UK the Advisory, Conciliation and Arbitration
Service (Acas) provides free and impartial information
and advice to employers and employees on all aspects of
workplace relations and employment law. They support
good relationships between employers and employees;
something which indubitably underpins business success.
But when things go wrong, they too help by providing
conciliation to resolve workplace problems.
• There are eight step-by-step guides for small businesses
on how to hire, manage and get the best from staff.
• The guides are practical, concise, easy to understand and
designed in a way that they can be picked up and put
down as you need them.
• You can work through them in sequence, or go straight to
the one you need right now.

49. The advice will tell you what you must do to stay on the right side of the
law, and how to get the best out of your employees.
• Recruiting an employee.
• Settling in a new employee.
• The new employee's contract.
• Managing a complaint at work.
• Managing staff absence.
• How to get the best out of your staff.
• Handling small-scale redundancies.
• Handling pay and wages.
The guides are available here:
• http://www.acas.org.uk/index.aspx?articleid=4231
• It is tailored to small firms and covers recruitment, contracts, settling in
new staff and managing people and their performance.
• Acas also has a full range of other training courses on hiring, managing
and getting the best out of staff.