If you have recently started your own business or are unemployed or furloughed and thinking of starting your own business, this blog should help. Hopefully it will give you the confidence and the boost needed to get started.
Why Start a new Business?
In the current climate, many businesses have and will continue to fail, mainly due to a lack of cashflow. With these businesses closed, a gap is created and opportunities arise for new and different entities to open and thrive. Together with high unemployment, starting a new business in the worst recession we have ever known is not such a bad idea. Due to our changing lifestyles we have different needs, which can be fulfilled with new business ideas.
Here are a few that are in demand:
Online teaching and training
Vegan food and supplies
Hairdressing & beauty
Where to start
Once the idea has formed, a strategy is needed. So work through the following list as a starting point and seek advice, which can be found online. i.e.
The pandemic continues and the way we live our lives and do business has had to change. Even when a vaccine is found and rolled out, life will never go back to what it was before – it has changed. Many businesses will not survive, and this leaves gaps with diverse consumer needs and altered markets, that need to be filled. Opportunities are available.
If your business is to survive, it may not be enough to save cash, with government grants and cost cutting. Our new business world has changing needs. If your business is still struggling, then now may be the time to think about rotating and repositioning your business.
Rotating and repositioning your business is to change the direction your business is going and offer something unique in a different way, to tap into our new lifestyle needs.
How to Rotate and Reposition
First draw up a plan.
Identify what has changed regarding business trends and consumer behaviour
Work out what you need to change in your business by what is not working and think about changing your target market.
Which skills and abilities does your business have that you can adapt?
Remember to keep your mission statement and core values
Let you and your employees be creative in thinking of new ways to change how your business goes forward
Do not waste time looking into an idea that the business does not have the experience or skills
Work out if the new idea is going to be profitable and sustainable
Do not invest, until the new idea has been tested
Engage customers in your new rotating idea for the business and request their input and feedback along the way
Continue to communicate during […]
By Francesca Revelo|2020-11-12T17:54:54+00:00November 7th, 2020|Categories: frevelo|Comments Off on Rotate and Reposition Your Business
Most businesses are working, within the constraints of social distancing and reduced capacity. However, with increased costs and reduced revenue together with a possible No Deal Brexit, businesses need to work hard to recover.
In addition, there is the possibility of a second wave, tax increases from the Chancellor to repay the increased deficit and there are the Brexit negotiations, with no sign of a deal, and the consequences.
This all sounds depressing but there are things that can be done to keep your business on track to recovery and growth.
Recovery and Growth
In this period of uncertainty, be prepared to adapt and evolve your business. In addition, use our basic six step plan to recovery and growth:
Funding– It is not too late to apply for a government backed loan. https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Curb Spending – Stop all unnecessary spending, except for marketing
Credit Control – Be on top of receivables, this is essential to ensure a steady cash flow
Marketing – Now is the time to invest in advertising and anything that will boost revenue
Revise Internal Processes – Time and money is often spent on duplicated or unnecessary processes. Check Direct Debits
Scenario Planning and Cash Flows – It is essential for businesses to have cash flow forecasts with scenarios based on different economic outcomes.
As December 2020 will soon be here, do not forget to plan for a no deal Brexit. This relates to all businesses involved with European transactions.
The CJRS has been running since March and from 1st July, the Flexible Furlough scheme has been introduced, so that employees can work part time, if requested.
For employers, this a good way to ease out of the lockdown by bringing staff back to work on a part time basis.
Prior to starting the Flexible Furlough scheme from July, the employee needs to be informed that they are required to work part time and they will still receive their 80% gross salary. The business will pay the hours the employee works and claim back the hours the employee doesn’t work. Hours need to be agreed and tracked. Consider the impact of holiday, sickness and possible maternity pay whilst on furlough.
From 1st August employers will need to pay all the employers NI and pension. In September, the furlough claim will be reduced to 70% and 60% in October.
HMRC will be checking claims over an extended period. If your business has an annual audit, the CJRS claims will be audited.
Check with your accountant or bookkeeper, furlough claims are to be shown as income in the accounts. For tax purposes, this is offset against payroll costs.
Your accounting software will need new nominal codes set up, to show the furlough claims.
Make use of the HMRC guidelines and take advantage of their calculation’s calculator
Welcome to July and another phase of easing the lockdown.
Many businesses are still working from home, while the retail and hospitality sectors are adjusting to the new social distancing measures.
Whatever the situation, businesses have spent time planning to come out of lockdown. Armed with several scenario plans, cash flow forecasts and changing budgets. In addition, the financial help from the government. Grants, and loans of up to £50K for small businesses, two self-employment grants and of course the two furlough schemes. Cash has always been King, now it has become a Dynasty.
On the subject of cash, it is critical to have a cash flow forecast, ration capital purchases and secure additional finance sooner rather than later.
The Government financial help has been crucial in keeping businesses going through the lock down, however funds are useless without a new financial plan on how best to utilise the funds effectively.
Re-establishing control over a new financial plan, involves changes to the way the business worked previously with adjustments as it moves forward. Control is the key word. All failing businesses have this in common, lack of financial control.
This is particularly true from July onwards in utilising staff. From July, furloughed staff can work part time, paid by the employer. The Corona Virus Job Retention Scheme (CJRS) runs until the end of October.
To be able to make vital business decisions, it is critical that businesses are kept informed. There are many resources of information available, all aiming to help businesses move forward and this website is one of them. See our twitter feed or go to @FreveloLlp.
Although this is a challenging time and July will see many redundancies, it is also a time of optimism. Remember the businesses […]
By Francesca Revelo|2020-07-08T17:20:29+01:00June 19th, 2020|Categories: frevelo|Comments Off on Welcome to July and another phase of easing the lockdown
Welcome to the first blog from Francesca and Chris, being Frevelo LLP.
Starting up a business during the Covid-19 pandemic would seem a terrible time to set up a new business. Or is it? We have and here we are, full of positivity.
We believe in the professional and personal service we have to offer and we know that we can help small businesses move forward and strive.
May is the month for planning
May has seen a lot uncertainty as to when and how we will all emerge from lockdown and at the time of writing this blog, we are all unsure of how it will work out. Whatever happens, we are not going back to ‘normal’. We will all strive forward but in different ways and inevitably, there will be winners and losers.
We are already winners. Winners will be the businesses who are prepared to change, do things differently and come up with new ideas to get around social distancing.
As a nation, we have already proved that we have adapted to work from home, using all the latest technology available to us, especially for meetings.
So, for office workers, my question is why not make this way of working permanent, starting on a part time basis? This staggers the number of employees in the office and their commute to work. Let us know what you think and if this does or doesn’t work for your business?
The lockdown has been difficult for everyone, some more than others but out of adversity there are always opportunities. Let’s tap into these opportunities, change how we work and offer something different. Whether this means winning customers and clients online and changing your current advertising strategy or doing business online rather than […]
By Francesca Revelo|2020-05-07T13:22:41+01:00May 7th, 2020|Categories: frevelo|Comments Off on Welcome to Frevelo LLP
Capital Gains Tax (CGT)
In the last six months HMRC have issued fines totalling £1.3m in late filing penalties.
The law changed from April 2020 and the time limit for declaring and paying CGT is one month from the date of completion on a second home.
Remember to claim the costs of starting up a business. Allowable expenses can be reclaimed up to 7 years prior to the start of the business. The receipts must be available.
Which expenses are allowable and are they legitimate?HMRC's definition, 'wholly, exclusively and necessarily during the course of running the business'. Anything personal is disallowable. Keep receipts as evidence.
CJRS Claims have been extended to 30th September.
1st Jul - employer pays 80% of employee salary and claims 70% of hours not worked. Capped 2,187.50
1st Aug - 30th Sep - employer pays 80% - claims 60%. Capped £1,875
Employers pay 'ers NI/pension.
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