During the month of July, we were delighted to be the primary sponsor for Chichester BID’s Proudly Independent, Proudly Chichester campaign, which was an initiative created to celebrate and support the city’s independent business owners.
As an independent business ourselves, with an office right in Chichester city centre, we are hugely passionate about supporting local independent businesses by helping them to grow and succeed.
As a small independent business owner, it can be difficult to manage all the different aspects of your business, whilst trying to ensure you are maximising the company’s potential for success.
In the below video, our Director Katie Wilson, has 5 tips for Independent Businesses, to ensure that they are getting the best out of their business.
Lets explain in a little more detail….
1) Business Structure
Whether it be a Limited Company, Sole Trader or Partnership, the business structure that you choose affects how the business operates, including how you register your business with HMRC, the amount of tax you pay, and how and when you pay it.
There are many advantages and disadvantages in choosing the right structure for your business.
At Blue Spire, we can help to advise the most appropriate structure for you to ensure that your business is running in the most cost-effective and efficient way possible.
2) Pricing
Making sure you get your pricing right is essential for your business success. Pricing can have a significant impact on the way your customers view your business.
If your pricing is perceived too high, then you risk losing customers, but if you price too low for the perceived value of your business, you risk not making profit and your brand looking cheap.
To determine you have the right pricing structure for your products/services, you need to make sure you have a pricing strategy in place.
This involves a complete analysis of your competitors, industry, demand, costs etc, and an understanding of your brand value and whether you consider your business to be a high-end, mid range, or a discounted option.
With inflation and the market constantly changing, it’s important to choose prices that offer a large enough profit margin, so you do not need to constantly increase your price points with inflation.
3) Tax Efficient
There are many legitimate ways to reduce your tax bill for your small business which can improve cashflow and expand your profit margins.
Making sure you understand how best to minimise corporate taxes and extract profits from your company, will help the overall financial health of your business.
This is where your accountant can help save you money by advising you on the most tax-efficient way to run your business by ensuring you are claiming any tax-free allowances available to you, and making sure you are not paying any more tax than you need to.
4) Cashflow
By keeping a close eye on your Cashflow, you will always have a clear understanding of your businesses overall financial health so you can be prepared for any unexpected costs or taxes to pay.
It is really important to keep accurate records so you can pinpoint exactly where the cash is coming from and where it is going, which will help you identify any areas that need improvement or if certain products are generating less demand than anticipated.
Try to implement ways to cut costs, such as identifying non-essential expenses or speak to your suppliers about negotiating better prices or payment terms.
5) Hire a great Accountant
There are many benefits to hiring an accountant to look after your company’s affairs. They can make sure you are fully compliant, reduce mistakes, potentially save you money, as well as providing you with valuable business advice.
This will then give you the time back to concentrate on what you’re good at…. running your business.
At Blue Spire, we provide services for all your business needs such as, Accounting, Bookkeeping, Taxation, Payroll, VAT, and Business Growth.
We want to make your life easier and that starts with making sure you feel welcome and reassured from day one.
| If you would like to speak to someone about outsourcing accounting support, then please get in touch with us today and we will be happy to help. |
