An accountant is for life, not just for year end.
Our job is to make your life easier and to make sure you can run your business in the most efficient and profitable way possible.
Sage advice can be found at every stage of the business lifecycle - just get in touch with us today to find out more…
Step 1: Startup
Being passionate about something (running a professional trade, technical service or construction company) is a great beginning - but it's just the start of your journey into business; it's no guarantee of success.
If your business is just one person and no finance is required, it could take as little as a month or two to get started. If it is a larger company where several employees and startup funding is required, it could take up to a year to get the business off the ground.
First-time business owners will need to understand the fundamentals of business as they launch their new venture.
How we can help:
Research the market. Identify your main competitors and define what your ideal customers look like.
Identify what you’ll sell. Whether you plan to offer a product, service or both, narrow in on what you’ll sell and how you’ll make it stand out in the marketplace.
Write a business plan. A business plan is a roadmap for your business, written in a calm environment away from the day-to-day of your business. The roadmap to success includes assessments, goals, funding ideals and growth opportunites.
Set financial goals. Get specific about how much money you’ll need to invest, borrow, spend and can reasonably make during your first year in business. Some businesses aren’t profitable for the first few years - a good plan will factor in several possible scenarios.
Consider partnership. If you don’t have the funds or expertise to launch a business on your own, consider partnering with someone who has complementary skills or money to invest.
Secure funding. From getting small business loans to crowdfunding campaigns, there are many ways you can raise money to start your company.
Create your business. Make it legal; consider what structure to choose for your company, when to register for VAT, make sure you are registered with PAYE / NI / Workplace Pensions - consider trademarks, how you store and value your IPO... it can be overwhelming when starting out to get the legal side all complete - we're here to help!
Step 2: Growth
Once your business has established a customer base and become known for a product or service, you can focus on ways to grow your sales and operations. During a growth stage, your business may begin to make more money, breaking even, becoming profitable or increasing profitability.
It could be time to seek additional funding from investors so you can expand your business. You may need to invest in equipment, hire more employees to expand your best-performing products or services. It may also be time to discontinue or try to improve the products or services that haven’t been selling well.
Throughout the startup stage, most of the burden of running the business might have been on you as the owner. If your business is growing, you may be able to hire and train employees to help manage day-to-day functions. With staff in place, you’ll have more time to focus on marketing the business and managing others.
How we can help:
Hire employees. If you hire workers, you'll need policies and contracts, insurances, desks... it can be a minefield taking on your first employees. We can reach out to our network of trusted suppliers to help you fulfill your roles and welcome them into your new business without breaking the bank or taking on too much stress.
Monitor cash flow. We offer quarterly meetings to all our clients to discuss the direction of the business. Cash flow is one of the main reasons that companies in the UK fail, so we'll help you to plan your cash flow and help you manage invoices and expenses easily using your PC or Mobile phone.
Manage your money. Putting your money to work for you in company investments and ISA’s can be both tax-efficient and help you to plan for a rainy day.
Major Review. Our quaterly meetings offer a quick overview of your financial health, but a major review can take longer and really drill down into the what truly is the least and most profitable areas of your business. The review is also a good time to compare your position to your expected position from your business plan.
Growth Strategy. Expertise in marketing, advertising, branding and more is just a phone call away. We work with excellent local suppliers who would love to work with you - we can help network you with people you can trust.
Tax Efficiency. During growth periods it’s essential to be up to date with the latest tax, NI, and VAT rules. It’s our business to be experts in this field; therefore, we can advise you on your options to help you make well-informed decisions that will see your business grow from strength to strength.
Step 3: Maturity
After several years in business, it's likely that your company is more stable and profitable than it has been before.
When you started out, you may have taken a limited salary, now, as an owner, you can start taking a regular salary from the company.
Mature businesses should have strong brand recognition and a secure or growing customer base that allows them to expand product lines into new or existing markets. At this point, you can count on your employees and business processes to manage the day-to-day operations as you focus on long-term goals.
How we can help:
Reviews. Glad you’re doing well and you’ve built your company to maturity. This is no time to take your foot off the pedal. Continued reviews of all areas of the business will ensure you spot challenges early and get advice if you need it.
Staying in Control. Digital accounting means you can see at a glance how your cash flow is doing, if there are anomalies in management or payments. Keep your accounts well maintained and up to date, and they will reward you with real time information invaluable to your stability.
Build a dashboard. Real time data monitoring could be the key to success for your business - integrating your accounts software into a complete tech package is an investment worth considering.
Blue Sky thinking. Now is the time to innovate and look at your business model again – where do you go from here? Advice from your accountant will be invaluable.
Step 4: Transition
The transition stage represents a period where a company is forced to deal with change. The transition may be positive or negative, and it could be due to many factors, such as:
Declining sales
Market conditions that are impacting the business
Better competition
An opportunity for rapid growth
A personal situation
When you’re faced with these threats, you need to figure out how to retain and attract customers.
The transition stage can also be a period of immense growth. Opportunities to partner with much larger companies or groups of customers may be presented to you.
How we can help:
Opportunity Planning. Before taking on a large order from a bigger company or national chain store, make sure you can meet the demand in addition to your other orders coming in. Is the deal truly profitable or could it cripple your company? If you are unable to meet the demand, it could damage your reputation and business.
Company audit. You may need extra funds to invest in production and sales staff, but it could be months before you reap the rewards of the sales. Managing these large expenditures and inflows of money can be a challenge that you’ll need to address to survive a period of rapid growth.
Company valuation. You may be looking forward to passing your business on to a family member, or selling it, or taking on higher-level management to run the company during your retirement. Valuing the company is the first step to beginning these delicate discussions.
Step 5: Succession
The final stage of a business’s life cycle is when an owner decides to close, sell or bring in a successor to take over the company.
For small business owners, a successor is often a family member, friend, or current employee who wants to take over and run the business. However, your company may be sold into a larger company where they will absorb your entire business into theirs.
Succession can be a tense and emotional time - for many, it’s the end of an era, and for a business, it’s often the start of a new chapter.
How we can help:
Prepare your financial documents. Potential buyers will want to review your business’s records, financial statements and tax returns to get a better understanding of the business’s financial situation and sales history.
Negotiate terms. As with many transactions, expect the buyer to negotiate the sale price and terms of the agreement. Working alongside your solicitor, we can provide evidence that will help negotiate the final deal.
Close the deal. Once you come to an agreement, it’s time to make the sale official by signing the legal contracts that turn over control and ownership to the buyer. These contracts can be difficult to write and understand, and your solicitor should likely be involved in this final step.
Let’s Work Together
It’s good to stay in touch - contact us via email (click this button) or give us a call on 01449 798444; and if you’d like to arrange an appointment to see us in person, please book a meeting with us so we can make sure we’re stocked up with your favorite biscuits.