When to press the button......

There are times when you are running your business that you have to accept that less than perfect is sufficient. You could be launching a website, or implementing change – but being a perfectionist is the worst sin for budding entrepreneurs.

Even if you are contemplating starting a business, of course you need to do your research, if people continually delay the launch you are in danger of never getting to the starting line and achieving what you set out to do.

Once you have 80% or even 60% of your project completed it may be enough to launch it. The effort / reward curve once you have got to this stage tails off dramatically so the work you put in to complete the final 20% is so great that the rewards can appear to be almost lost.

There is a great rule in business called the 80/20 rule - it suggests 20% effort provides 80% of the rules with the reverse being true.

You really don’t need to be a perfectionist and here are some of the things to think about….

• Your idea of perfection may not be the same as your target audience – i.e.: do your customers really want the items you spent the past 3 months doing and want some other features instead.

• Research is your enemy (but your best friend) – have a core product/offering and then add features in time if you wait there is nothing there! For example Google launched their search engine and have been honing it ever since.

• You can start small and build it bigger – don’t be put off because you want a business today that earns you the income you need. Be prepared to start off small but in most cases being a large niche player is a real strategy for long term success.

• Business success is always a long term goal – expanding on the above observation many people still believe that they will make it big in a short time but it will usually take time - by starting small you can hone your skills and lower the risk.

So if you have a new website that’s “nearly ready” or are thinking of starting a business why not launch it today. If you are having trouble getting your business started and need sound commercial advice please contact Richard Dare at Dare Accountancy on 01202 875900.

That business plan to get funding.

We fully appreciate that when you are starting a business it is all encompassing and the excitement of forging out o your own on a new venture can mean that the plan can get overlooked.

All new businesses need to have funding in place be it from their own resources or from a third party.

We have set out below some of the experiences that we have had with our clients securing funding for their businesses...

1 – You must know your numbers

There is an element of having to play the game with business plans. Anyone can produce spreadsheets to forecast profitability and growth - but you do need to know the numbers to convince investors. They have to be confident that you have a grasp of them. If you don’t know them, it shows a lack of credibility.

Remember investors are also backing the person, so they will want to know that you know your subject and have a track record. Our experience tells us is if you grasp your subject and the words will follow.

2 – Be prepared to tweak the plan

Each investor will ask different questions as the answers don’t appear in your plan and your first draft will go through a number of versions. So be prepared to re-write but make sure your numbers and words make sense.

3 – Be prepared for this not to be a quick process

You will need help, a deep resolve and patience – it can take time to get the funding you require so be prepared. If you want a loan a business plan is something you have to have.

The role of your accountant should not be under played in this process – so if you need help preparing your business plan and the numbers that must go with it, please contact Richard Dare on 01425 875900.

Nat West RBS – fund for franchisees

Peter Ibbetson, chairman of small business for NatWest and RBS says: "Everybody wants to see banks funding business growth, as well as helping new businesses get off the ground to create jobs - this is exactly what this fund will deliver. The industry has shown itself to be virtually recession-proof, so for the many people left out of work by the recession franchising is a great way to start up a business - plus they get the support of a big brand behind them."

In the current econonic climate franchisees have grown their businesses whilst the rest of the economy has reduced.

Brian Smart, director general of the BFA comments: "The fund is a great way to encourage new entrants into this vibrant sector. The UK Franchise industry has performed well in recent years and we welcome the further investment to build on this momentum."

The RBS/NatWest Franchise Fund: Key points

 Loans of up to 70% for new franchise businesses

 Two years free banking for new franchises

 Reduced fee of 1%

 Up to 12 months of capital repayment holidays

 Loans for existing franchise businesses

 Access to an unlimited expertise from the dedicated RBS/NatWest franchise team

If your thinking of starting a franchise business please contact Richard Dare so you can discuss the opportunities available to you for funding.

Use your website to promote your business

Let’s face it everyone has got a website but potential customers (existing and new) will compare your website to your competitors.

By creating a relay smart, eye-catching website that is targeted to your audience you can compete with larger competitors and if your e-marketing is managed properly you can have access to a wider audience. E-marketing also provides you with trackable, measurable results, so that you can see how effective your campaign has been.

You can get information about customers' responses to your advertising, allowing you to compare different campaigns. For example, you can see how a visitor arrived at your site - from a search engine, via a banner advert on another website, in response to a marketing email, or to redeem an e-coupon.

The ways of promoting your website are

• Pay-per-click – this is paying for advertising on search engines and other websites, particularly those that will attract visitors who would be interested in your products or services.

• Search Engine Optimisation (SEO) – structure your site so that it appears higher up the list of search engine results. Here you will need help on the keywords or metadata (descriptive information) that you use and employ the right combination of descriptive words when you build your website and update your content.

• Use opt-in email marketing as part of your online campaigns to help drive traffic to your website. Well targeted emails can be a quick and cost-effective way of promoting your website.

• Social media and other Web can help create a community around your brand and encourage customers to return to your website. User-generated content such as blogs will also help keep your content fresh and up-to-date, which will impact positively on your website's SEO.

• Other digital channels such as affiliate marketing, online PR, viral and mobile marketing, can all be used as part of the marketing mix to help drive traffic to your website.

The message is you will have a website – so make sure that is professional, functional and delivers to you all you need.

The website is a fundamental part of the marketing you will do in your business so get professional help and invest in doing it properly.

New Year.......thinking of a new business?

Before making the leap into self-employment, you must make sure you aren’t caught out by red tape or miss out on grants and loans. We have put together a quick checklist below to help.

1 - Make claims if you buy equipment for your business, you may be able to get tax relief in the form of capital allowances. These allowances are for equipment, which you buy to keep and use in your business, such as vehicles, tools, computers and business furniture.

2 - Update your employment status register with HM Revenue & Customs online, and the website will walk you through the process. Make sure you do register as self-employed, because if you don’t you will face a fine.

3 - Prepare your finances remember “cash is king” having efficient cash control in place is essential to ensure the smooth running of any new business. Efficient cash flow is vital as expenditure is high, especially in the first year, and systems need to be in place to ensure that money is coming into the business, as well as going out.

4 - Be organised no-one goes into business to be an accountant (who would!!) but you must keep score Keeping full and accurate records from the start will make it easier to work out what you owe in terms of tax and National Insurance. All records must be kept for six years – both business and private. Failure to keep records could lead to paying too much tax or a fine of up to £3,000.

5 - Keep the taxman happy as a self-employed individual you will also be responsible for making your own national insurance contributions; this includes remitting your contributions on a quarterly basis. It is important to take care of your National Insurance for two reasons: firstly, you may end up contributing too much, and secondly, you will lose out on state benefits that are related to the amount of National Insurance contributions you have made.

Being self-employed requires you to complete and submit your tax returns. If you want to speed things up then you can submit a full tax return online – not only does this save on process time, but it automatically calculates your tax when you file your return online. Whether you submit your return online or offline, make sure you check your tax calculation once you have received it, as this will form the basis of your payment.
6 – Finally .........Don’t wing it

Experienced professional advice can bring essential financial management procedures to your business, allowing you to concentrate on what you do best, so if you would like help in getting your business started then please contact Richard Dare on 0845 2576835

Key concerns for small business in 2011

At Dare Accountancy we deal with a large number of small businesses - the following are some of the key issues facing business in the next 12 months

• Employment remains tough; there will be an increase with an increase in the proportion of businesses reducing staff pay or hours to manage costs.

• Similarly, the proportion reducing temporary staff numbers will increase, and the number reducing permanent staff will increase too

• Maintaining cash flow tops the list of concerns for 2011

• Sales declining further and the increase in the VAT rate

• The biggest driver for businesses moving into 2011, as they attempt to remain in profit, is the ability to diversify their products and services

It is clear that Christmas is a crucial trading period, even more so with the VAT rise in early January. The Governments proposed “austerity measures” hanging over consumer spending for the year ahead.

We know that small businesses are a resilient community but it looks as though the coming months will test them to the limit. Businesses are worried about the coming months so the keys to success over the next 12 months will be;-

1. Be creative

2. Be entrepreneurial

3. Practice good, solid business skills.

4. Plan and prepare. Revisit your business plans regularly to make sure you know how your business is performing.

5. Make sure you keep your staff informed and look to them for inspiration.

6. Keep yourself informed too and make use of the wealth of specialist advice that is available

If you want to review the position your business is in and ensure you are doing all you can to achieve success in 2011 – then please contact Richard Dare on 0845 2576835

Valuing your business for sale

There are two certainties when valuing businesses

1. is the sellers valuation and that of potential buyers are unlikely to tally, and

2. predicting the amount of cash the company will make in the next few years is critical

The starting point - you need to be clear about the amount you need to realise - but your business is only worth the sum a buyer is prepared to pay. Another consideration is whether you and other key staff will be staying on as part of the sale or if you wish to exit the business entirely. This can be a major factor determining value.

Debt depresses value - your record of controlling costs and also the debt levels within the business. If the company owes a lot of money, this will often have to be subtracted from the amount that you finally receive from a trade buyer.

Timing - The value you achieve depends on selling at the right time. Macro factors, such as the state of the economy and conditions in your sector at the point of sale, will come into play, not to mention the question of supply and demand. How many potential buyers and offers are on the table? If there are a few, you might be able to play them against each other and raise the price,

Planning - The whole pricing process should be conducted early, trade buyers prefer a handover period rather than buying an owner-manager out in one fell swoop. Factor in a handover period of at least six months, maybe even longer.

Don’t under-sell intangibles - Intangible assets such as people, brands, patents, copyrights and licences are important. You must quantify these because they can radically alter the pricing of your enterprise.

Your brand has value - Brand value is often a company’s most valuable asset and a thorough brand valuation will help negotiate a better sale price.

If you are thinking of selling your business or want to discuss the opportunities that are available to you then please contact Richard Dare on 0845 2576835