Month: May 2011

Sharing Profit without losing Control

Retaining talent or to give special rights to specific investors or creating an incentive for associated businesses to use your company are all good commercial reasons why you might create multiple share classes.

Normally you would have Class A Shares with voting rights (so that the ownership is kept unchanged) and the other Classes of Share (for example Class B etc) would receive a share of the profits via dividends. Setting these classes up is quite straight forward and guidance is available from Companies House.

But watch out for the Settlement Legislation(rules which seek to prevent individuals diverting income to pay less tax), take a look at this link

http://www.rossmartin.co.uk/index.php/sme-tax-news/35-sme-tax-news/451-a-new-settlements-case-with-a-twist

steve@bicknells.net

If the taxman comes knocking…….try ESC A19

The recent press has been full of details of HMRC investigations into small businesses and individuals to try to get more tax in and penalties, the taxman is trying to recover £3.8bn in PAYE. Current figures (quoted in the Sunday Telegraph today) show that 25000 people have had their debt written off by citing the Extra Statutory Concession A19.

The Low Income Tax Reform Group has some excellent guidance on A19 and template letters, check out this link for details

Click to access LITRG_ESC_A19_Guide_Oct2010.pdf

steve@bicknells.net

How I use Linked In

When I first joined linked in, I didn’t join any groups and just added key contacts, but over the last few months I have changed my approach and discovered the true value of linked in. I am now in 50 groups, some which a flit in and out of, when I join I always contribute with comments, discussion items and polls. When I see other group members I would like to meet I generally invite them to link in to me.

Recently I have discovered that putting your e mail address in your header information helps and people who would like to contact you can then make contact.

I know that Linked In say you shouldn’t connect to people you don’t know, but that seems crazy to me, when I go networking I don’t say I am not talking to you because I don’t know you. I believe making contact with people you don’t know gives you a chance to make new contacts, if you later don’t want to be associated with them you can delete them.

steve@bicknells.net

Think strategically! make yourself a cunning plan

If you don’t know where you want to go, how do you know which direction to head off in? sounds simple doesn’t it, but I know for a fact that most businesses don’t have a plan and start in business because it seemed like a good idea at the time.

Let’s not go mad, but start by setting out 5 things you want to achieve this year relating to income, markets, clients, systems etc. Then try to think about some overall objectives for the next 2 years, before you know it you will have a strategy for the next 3 years.

Then you can set some milestones and regularly check if you are on track.

Steve@bicknells.net

If my business is profitable, I will have lots of cash, won’t I?

If only it was that simple, I have seen lots of profitable business killed by cashflow. One of the major causes of this is slow paying clients or none paying clients, the problem is often made worse by having to pay staff and suppliers quickly or needing to invest in capital equipment.

It is true, that in time, profit will become cash, but be careful not to over trade and take on more work than your cashflow can sustain.

steve@bicknells.net

What is the most important thing to know about return on investment?

In short, if there isn’t any return, why are you doing it? what could you do instead?

It may seem odd, but many people go into business with no plan and no idea what return they might make, unfortunately, the reality is that without a profit sooner or later your business will die.

I know there are somethings you have to do, like pay tax and other compliance activities, but even these have a return because they save you from fines or worse.

So before you spend money ask yourself this question – what is my return on investment?

steve@bicknells.net

Can you help?

Bartercard are looking for the following businesses to join due to demand, all referrals gratefully received, we can guarantee business for them

Coffee Supplier

Payroll

Dry Cleaning – Hampshire, Devon, Cornwall

Equipment Maintenance – Garden Machinery, Catering Equipment

Tool Hire

Business Insurance Broker

Promotional Items

Contract Cleaners – Regular office cleans, kitchen deep cleans, Duct cleaning

Car / Van Hire or Leasing

Garage in Bournemouth

Restaurants – All areas, Southampton especially

Hairdressers – all areas

Retail – Shops of all types in all areas

Thank you my e mail is steve.bicknell@uk.bartercard.net