RAISING THE MONEY TO START YOUR STUDENT COMPANY
There are three ways to raise the funds to get your business up and running.
The simplest way is to invest your own money into the business, which is known as selling shares. You can also sell shares to friends and family.
Shareholders will need proof of their investment in the business. If you make a profit, they are entitled to receive a return on their investment plus any dividend agreed at the end of the programme.
If you choose to sell shares, you must issue the shareholder with a certificate and keep an accurate record of the shares sold. You can download a share certificate example by clicking here and a share register by clicking here.
The maximum number of shares you can sell to any one person is £25 and the total number of shares you can sell is £500.
You may choose to raise capital by organising events in your school such as cake sales or organising another event.
The following points provide a guide to how sponsorship can or cannot be used.
- Junior Achievement companies can enter into a commercial agreement with a company to carry their logo or advertising on a product at a price, e.g. selling advertising space.
- Straightforward sponsorship or donations are not allowed without providing advertising in return.
There are some important rules that we put in place to protect you and the charity. It is important that you read and understand them. If you have any questions email [email protected]
- If you hold a fundraising event, you will be under the umbrella of Junior Achievement, which is a Manx-registered charity. This means that any money you raise has to be used to pay for your business activities. This is to be recorded on your accounts spreadsheet, which is available on the finance page. If you do not use all the cash you made from a fundraising event, this is to be donated to Junior Achievement.
- Your team cannot raise more than £500 in total to get your business up and running.
- If you wish to donate any of your profits to a different charity, this has to be done at the end of the programme, but this must be from the sale of your product or service and not through fundraising.
- You cannot raise money by holding a backpack or any gambling activity.
- Junior Achievement must approve any fundraising event held outside the school. Please contact [email protected] for approval.
- At the end of the programme, you can split the profit between team members and your shareholders. This profit must come from selling your product or service not from fundraising.