It’s never easy to ensure the success of your business. Probably the best way forwards is to future proof your finances by planning ahead.
The tough question is exactly what do we need to include when mapping out our roadmap to ensure your business doesn’t struggle when it hits an unexpected problem. To help you put your plan in place, we’ve created some signposts to help you.
Banking on your future
It starts with having the right account. Even if you’ve been trading for a while, it’s essential that you have the right account that has maximizes internet banking, stuff like in-credit interest, low electronic action fees, and if you’re a cash based business, a local branch could come in handy. You need to go out of your way to develop a good relationship with your bank and stay in communication regularly because if things get tough they are on hand to help or sink you.
If possible, you need an account that is able to show real-time transactions so you are able to make well-informed decision based on real data
If you’re already operational and have been for a while, it could well be a good time to review your banking and if your current account meets your banking need.
For new businesses or businesses going through the process of optimizing their banking, you should be looking to get a minimum of 18 months’ free banking, with some banks you might even get offered up to 24 months. That’s just a quick heads up.
These are obviously enticing, but be careful. you need to make sure you understand the other details of the accounts including banking costs when the 24 month period is up.
Right at the extreme end of the scale, There are some banks that even offer a lifetime of free banking, but nothing in life is free especially from banks. When you think banks, you should be thinking some of the best sales processes in the world.
You need to really look at the fine print, how are they making their money? Do they have inflated fees elsewhere? It could be that it’s still a good deal for you, but make sure you know what you’re looking at.
You need the right amount of money in your business
As with most things in life, it’s about finding the right balance. The optimum level. You want to endeavor to make sure you have the right levels of money in your business.
Your estimated funding requirements should be as accurate as possible – over-borrowing has a habit of costing you in unnecessary interest; but on the other hand, not borrowing enough could lead to it’s own problems and possibly higher costs, with the banking charging more for financial aid.
Have in mind that for a startup business you’re going to be needing a cashflow forecast, where as for a operational business, you need a P&L account on the the go
Death and Taxes
You need to make sure your business is on solid footing. That means making sure you are aware of your responsibilities with the HMRC. If you’re a basic tax payer, you should be putting aside 25-30% of your income so you’re not running around trying to find the cash when the tax bill is due, because HMRC has almost zero tolerance.
You don’t have to be VAT registered, unless you know or are about to reach the £83,000 threshold, if you are VAT registered you might to look into if it’s the best way forwards for you, normally it isn’t unless you pass the threshold. Make sure you’re on the right VAT scheme too, because it can be costly to make a mistake.
Ignorance is rarely bliss for long
It’s always a good idea to use professionals in your business. You need someone to build your website, get a professional. Need your tax done, get an accountant. You should always seek professional advice. One of the major benefits of an accountant advising you is they can walk you through your options regarding company structure, accounting and reporting, dealing with Big Brother.
Staying clued up
Don’t stand still. Because your industry won’t. Go out regularly, visit your competitors and see what they’re doing. Make Google your friend for your research. Know what’s happening oe you’ll get left behind. It’s better to be leading the way than trying to play catch up.
Spread the word
Advertising is the lifeblood of any business. Online gives you so many options, you have to understand pretty quickly which are going to be beneficial to your business or industry and maximize them. There’s a chance that your competitors are not a switch on as you, so you get to take advantage of that.
All businesses need a website, social media platforms, email lists and should probably take advantage of pay per click advertising. It’s the modern day equivalent and putting your business in the Yellow Pages. Pretty much the same as before, get an expert it to do it for you, or advise you how to do it. It takes far too much time, and requires expertise to get it right. As with everything else, you have to approach it from the perspective of getting a Return On Investment
No better time to act than now.
To be ready for what the future holds, it’s better to get ahead of things and be proactive. To do that, you should be acting now. When it comes to the finances, we’re able to help. Get in contact to find out how we can help you.