Businessplus Winter 2015 | Page 26

Advertising Feature How to incentivise & retain key people? BEF Celebrates Landmark Anniversary What are the options? BEF completed its 10th Anniversary celebrations in 2014 in style with an evening event held at The Leeds Club. Funding boost for Brewery BEF has supported a local new development with a £50,000 loan giving the Bradford Brewery business a major financial boost. This additional funding stream will improve the brewery’s business cashflow and provide an all-important safety net as renovation work begins at the recentlyacquired site on Westgate, Bradford. The £400,000 development will see the conversion of the disused Shaw’s Moisture Meters factory into a huge 10BBL brewery with an initial production capacity of 16,000 pints per week. The brewery and attached Brewfactory pub, due to open in Westgate later this year, already has Bradford City Centre Growth Zone funding and the support of former Dragon’s Den star, Doug Richards. Managing Director of Bradford Brewery Matthew Halliday said: “The Growth Zone grant underpins the building work and also provides capital for the purchase of our brew kit, but this new loan facility will allow us to grow much more quickly and forge ahead with the recruitment of our full staff team. “The cash will give us additional security in our first years – a time when businesses most often struggle. We’d like to thank the team at BEF for the incredible support and enthusiasm they’ve shown for our business. We approached them as they are a Bradford success story in their own right and we’re looking forward to working with them in the years to come”. Finance and Support when BEF is a social enterprise and a Community Development Finance Institution. All profits are reinvested in the company to further socialneed it most Businesses aims. Fund director Stephen Waud said: “Since making our first loan back in 2004, we have assisted almost 2,000 businesses across West and North Yorkshire creating over 1,000 jobs. We are proud to be able to count Bradford Brewery in these figures as it is imperative that we keep hold of the potential and diversity that businesses such as this bring to the region.” BEF has recently entered into a new deal with the European Investment Fund (EIF), boosting its fund for lending to Yorkshire businesses by £2 million. The deal marks the 10th anniversary for the Businessturned my business plan into Start-up funding from BEF Enterprise Fund (BEF) enabling them to immediately issue loans directly to businessessecuring eight North a reality which resulted in the business in West and contracts within the first four focus on SMEs Yorkshire and the newly acquired North East region, with a days of trading. who Steve Wilson, have been turned away by mainstream lenders. Director, Performance Glass 26 FINANCE Clients past and present plus people who have been part of BEF’s growing success over the last ten years met to celebrate BEF’S landmark anniversary. Speakers included Stephen Waud, BEF’S Fund Director and Sandy Needham, CEO of West and North Yorkshire Chamber of Commerce. A special 10th anniversary BEF video giving an insight into BEF’s achievements over the last ten years and the diversity of the businesses that have been supported had its inaugural screening. The video can be seen via the following link: https:/ /www.youtube.com/befund1 “I am so proud of what the Business Enterprise Fund has achieved over the last ten years; lives have been changed through the simple use of finance. We started out in 2004 with £360k to lend and this has grown year on year with BEF aiming to lend £6m this year. We fund those who otherwise would not be able to get their businesses off the ground, to their next stage of development or to rise from the ashes when things go wrong. By doing this, we encourage and maintain the creativity and diversity of both individuals and businesses throughout our region,” said Stephen Waud. Business owners recognise that one of their most valuable assets is their workforce; they are regarded as a vital key to its success. However, in a competitive and challenging employment market it is all too easy to lose key people to competitors if the key people do not consider themselves properly rewarded and incentivised in recognition of their contribution to the business. Businesses may address this by offering flexible working, flexible benefits packages or, for senior people in the firm, providing a share or share option incentive. Share and share option incentives may include the following: Business Enterprise Fund 10 Years Lending to Yorkshire businesses Finance and Support when Businesses need it most Start-up funding from BEF turned my business plan into a reality which resulted in the business securing eight contracts within the first four days of trading. Steve Wilson, Director, Performance Glass 0845 2003919 www.befund.org [email protected] @Be_Fund West & North Yorkshire Chamber of Commerce Enterprise Management Incentive (EMI) scheme This is the most tax advantageous share option scheme.  Capital gains tax (CGT) rules should apply with the potential for the director / employee to qualify for Entrepreneurs Relief (the 10% CGT rate).   Not all companies qualify for EMI. Unapproved share option scheme This is not tax efficient, but it may be the only option where share options are preferred to shares, but the conditions are not met for the more favour X