Having your own business can be fantastic. Lots of creative ideas, a new found energy and positivity and an opportunity to make some great business decisions with potential financial reward!
Of course, profits are vital to the success of your business as they help to fuel growth which leads to sustainable cash flows. Without them, a business would simply fail.
The guide below offers tips on how you can keep your business productive, as well as taking a look at the areas where we can potentially help and assist you, should you need it.
Having supported sole traders and small and large businesses for the past 46 years with accounting and tax advice, we understand why it is essential to have your business evaluated to maintain your success in your relevant marketplace.
As we mentioned earlier, having sustainable profits in your business increases its value. If you have a poor profit level this will hamper your attempts to plough money back into your business and keep it growing. It also means it will be harder to attract finance into the business from outside sources, and the knock on effect could mean that you will have less investment in new products, new technology, and even the ability to take on new staff.
We can’t stress enough how important it is to have a good working relationship with your bank, as maintaining regular dialogue with them means they will have a better understanding of your business’ needs, and be able to provide appropriate support and advice when you need it.
Ask yourself these key questions:
- Do I have a strong business proposition?
- How much is my business in profit?
- Which areas of the business are bringing in the most profit, and which are not?
- Is this the perfect opportunity to review my 3rd party relationships?
- Are there areas of the business where we could be more cost effective?
- What are my competitors doing? Are we being competitive?
Streamlining and cost saving
In asking yourself these questions you can start to identify where the waste in your business is coming from and closely manage your costs. Look at making savings with the type or number of suppliers you use, and whether, for example, you can buy cheaper materials, product or services, limit and reduce overheads and your tax liabilities where possible.
Look at how you use your premises – achieve lower rents by negotiating longer contracts, and if you have unused office space, maybe rent it out or promote it as a conference facility? Remember, it is a question of balance, so do not let your cost-cutting come at the expense of driving down the quality of your products and services.
How can our firm help you?
If you are looking for assistance with any financial or fiscal aspects of running a business and the support of a trained team of experts that can help you to succeed, we will review and make recommendations in the following areas:
- Evaluate your business ideas in a constructive and realistic manner.
- Decide on the most suitable structure for your business - sole trader, partnership, or limited company.
- Prepare a business plan, cash flow projections, budgets, and trading forecasts.
- Assess your finance requirements and potential sources of finance.
- Help to facilitate a good working relationship with your bank.
- Complete any registration procedures with Companies House, and HM Revenue & Customs.
- Deal with company statutory issues.
- Set up a recording system for your internal use and for complying with statutory requirements.
You can find out more about our Business Start Up service on our website, or if you prefer, fill in an enquiry form on the right and we’ll call you straight back and answer any questions you may have.