Blog entries

How to prepare a budget

mark

't know where you are going, you are sure to get somewhere if you only walk long enough". The budget provides you and your investors with a numerical map that leads somewhere specific.

What is a budget?
A budget is a forecast of revenue, expenditure and profit. Most budgets are revised annually.

What does it achieve?
There are two (often overlapping) reasons for producing a budget. One is to persuade potential investors that your company is a good bet. The other on [...]

There are only three and a half ways to grow your business!

bev

your existing customers to buy more. Almost easy.

The way to do this is to think about what you can provide as an 'extra' to your existing customers, then build a system to make sure they get offered the chance to buy this, and offered in a way that they are unlikely to refuse. So if you run a fast food burger chain, you might train your staff to say "would you like to supersize that, for an extra £x" every time any one orders anything. What additional products or [...]

10 Bookkeeping mistakes made by small businesses

bev

1. Taking everything on yourself

The business owner and/or their spouse try to do it all themselves (even though they don't really understand what they should be doing, even though they really don't like doing it, and even though they are busier than they've ever been in their lives before trying to do all the things that go with running your own business).

&n [...]

Should I incorporate? - Budget hits small companies

bev

In Gordon Brown's 11th Budget, the Chancellor announced an increase in the rate of corporation tax to be paid by small companies. Yes this was the same Chancellor who had just a few years ago introduced a zero percent starting rate of corporation tax to encourage small companies (since abolished).

His reason for the increase - to deal with individuals artificially incorporating as small compani [...]

Energy prices (What's a crystal ball worth?)

bev

I watched a documentary on Channel 5 last night, on consumerism, part of a series called 'Big Ideas That Changed The World'. This episode was by Jonathon Porritt, co-founder of the Green Party and former chairman of Friends of the Earth. Porritt argues that consumerism, a subject never far from the news headlines today, has a dark and destructive side and is in danger of destroying the planet.

[...]

VAT Flat Rate Scheme

bev

The Flat Rate Scheme was introduced as an easy way for small businesses to calculate their VAT liability.

The Flat Rate VAT scheme is available to businesses with a taxable turnover below £150,000 excluding VAT (also exempt and non-taxable sales should be below £37,500).

Under the flat rate scheme, you simply keep a percentage of the VAT charged to your customers. The percentage y [...]

Should I register for VAT?

bev

Those setting up a new business sometimes think they cannot register for VAT until they have reached a certain turnover (wrong), others feel the last thing they want to do is register for VAT, its just more admin and more tax isn't it?

Well maybe. But it could mean a significant amount of extra profit for your business!

VAT is a tax on consumers. If your business supplies consumers, then you will want to delay registering for VAT until your turnover means you must register. [...]