FINANCE
The importance of business plans
A business plan is a summary of the aims of your business and how you are going to achieve them . The more time and effort you put into planning before you actually start will massively improve your chances of success .
A business plan is a summary of the aims of your business and how you are going to achieve them .
The more time and effort you put into planning before you actually start will massively improve your chances of success .
The level of detail that you need is dependent on the size and complexity of what you intend to do . You might make one for your own guidance or you might have to produce detailed projections of profit and cash flow for a bank or business loan . And , it goes without saying that you should involve your accountant in this process .
Planning around cash is very important . Remember , it is possible to have lots of orders , be very busy , and then run out of cash because customers don ’ t pay you on time .
Once you are up and running you should monitor your actual results against your plan . The standard method is to produce monthly or quarterly management accounts . These will show you where you stand and help you decide on actions to take to keep your plan on track . You should modify your plan to take account of changing conditions .
Some questions to ask yourself when you are starting a business are :
• What are you going to sell - describe the product / service ?
• Who are your potential customers ?
• Who are your competitors ?
• How much demand is there for your new business ?
• Do you need business premises ?
• Could you save money and minimise risk by starting at home ?
• Do you need staff and how many ?
• Include marketing costs . In summary Create a plan to help you clarify what you want and how to achieve it . Monitor your plan and measure profitability and deadlines to ensure you are on the right track . Forecasting and monitoring cash flow is essential for the wellbeing of any enterprise .
Revisit the plan if you want to develop a new product or service .
Peter Bromiley ACA , partner at AMS Accountancy
@ AMSAccountancy
RFS included in 1000 Companies to Inspire Britain list
Swindon-based Regulatory Finance Solutions ( RFS ), the financial services compliance consultancy has been included in the 1000 Companies to Inspire Britain list .
1000 Companies to Inspire is the London Stock Exchange Group ’ s celebration of some of the fastest growing and most dynamic small and medium-sized enterprises ( SMEs ) in the UK . In its fourth year , the annual publication also examines the opportunities and challenges facing SMEs and investigates the trends and sectors that will shape the future of British economies .
Companies featured within the 1000 Companies to Inspire Britain are considered the lifeblood of the UK economy .
Within the 1000 companies listed , 119 organisations represented the South West region . The report lists companies within a 49-sector-title that includes Leisure , Retail , Healthcare , to Legal and Accounting ; with a revenue band from £ 20m to £ 125million .
RFS was one of 82 companies from the financial services sector listed within the 2017 report and one of four professional services firms based in South West England .
John Turner , chief executive of RFS said : “ It ’ s a real milestone to be recognised by the London Stock Market as one of the top 1000 Companies to Inspire Britain . As RFS continues to enjoy an exceptional growth rate , we have reinforced our strategic team to drive forward scale-up opportunities to ensure we remain leaders within our field .”
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How can I know what affects my tax position and what to change ?
See your accountant ANNUALLY to plan going forward and find tax efficient ways to pay money out from your business .
New tax rates and laws . Tax rates and allowances change annually and , for example , from April 2016 , new calculations have been required to minimise the impact of the new dividend tax which will affect the higher salary levels ( for director / shareholders ), ownership changes , and pension strategy .
Retirement plans . If it ’ s roughly known when a business will cease / be sold , it may benefit the owners to reduce regular payments as income and plan to take monies out as Capital ( and pay Capital Gains Tax ) at the closure / sale of the business .
VAT . If the type of customer changes , say , from retail customers to other businesses , ( or vice versa ), then consider voluntary VAT registration / deregistration .
Peter Bromiley ACA
60 + videos on YouTube . ‘ Ask AMS Accountancy ’ @ AMSAccountancy www . ams-accountancy . co . uk
12 THE BUSINESS EXCHANGE 2017