Are you looking to start a new business over the course of the next year, or looking for increased growth and profitability from your existing SME?
If you are then you’re going to need a business plan. How can Steven Glicher accountants be so sure about this? Well, in our experience it’s only those businesses that have defined strategies that survive in what is an ultra-competitive market. Why is that so important? Well, simply because statistically roughly 50% of new start-up businesses fail within the first five years of trading, whilst only 20% will still be trading in 5 years’ time.
If any further proof were needed, then SMEs need look no further than the latest survey by business and finance software provider, Exact. The new study found that the UK’s small and medium-sized enterprises are unquestionably more profitable with a business plan. Exact’s research suggested that up to 70% of firms with a plan made a profit, in contrast to the remaining 52% of businesses who didn’t have a business plan.
The report was commissioned to provide a better understanding of the many challenges SMEs face in achieving their business goals: goals such as increasing profits, increasing revenue growth and attracting new customers. The research worryingly found that more than a third (34%) of small business owners surveyed said they didn’t have a business plan in place. The thinking behind this omission was even more worrying from an accountant’s point of view: 68% of respondents citing that they didn’t see the need, whilst 10% thought they didn’t need one in the first place.
Speaking about the survey, Lucy Fox, general manager of UK cloud solutions for Exact, said:
“The findings clearly show there are many SMEs that are missing out on the added value a business plan can offer, the consequence being that many may be failing to reach their full growth and business potential as a result.”
“While the results should serve as a bit of a wake-up call, they also highlight that more needs to be done to address some of the misconceptions over what is involved in the planning process. Many don’t seem to realise that with the help of a trusted financial advisor, like an accountant, creating a plan can be done easily and the benefits can be enormous.”
So what sort of help and advice can Steven Glicher offer to start-up businesses and SMEs?
Steven Glicher offers a range of core business start-up services. We’re here to help you build your business and turn it into the success it deserves to be. However, successful businesses are not built in a day. They need to be planned, and it’s vital that every aspect of the business model is carefully and critically examined. Our expert business advisors are here to help you with services like:
- Tax planning:
We offer advice on the areas of tax planning we feel are likely to be of most importance to you from the start.
- Business structure:
We will advise on what we feel will be best for your business in the longer term. Should you be a sole trader, a Partnership, a Limited Company or even a Limited Liability Partnership? We will explain what options are available to you and recommend the solution we feel is most appropriate.
- Raising finance and business plans:
When the time comes to expand and develop the business, out advisors will identify the type of funding you need, find the most suitable sources of finance, and calculate the cash-flow projections, budgets, and trading forecasts.
As qualified accountants we are in the best possible position to show you how to keep your books, either manually or on a computer. We can also advise and train you on suitable accounting software.
- Business planning and growth:
Our experts will take an in-depth look at your business and discuss its potential with you. Together we will work out a plan of action and set future goals, and draw up a structured plan so that your business will be able to overcome all of the challenges it will inevitably face during the first years of trading.
- Notifying the authorities:
It’s vitally important that you let HMRC know within 3 months of commencing self-employment that you are in business. Failure to do so results in substantial automatic fines. We will help to complete all the necessary forms, set you your national insurance payments and if necessary complete any VAT Registration forms for you.
As part of our mentoring role, we can introduce you to local banks, solicitors and other professionals you may need assistance from in the coming years.
- Company Formation:
We can also set up your Limited Company should you choose to trade through one.
- VAT Registration:
We can give small businesses helpful advice on the advantages and disadvantages of VAT, and take care of any issues you may encounter.
For further information call Steven Glicher accountants on 0161 485 8007 or email email@example.com.