The spread of (Covid-19) Coronavirus from Mainland China throughout the world is having massive effects upon small and medium sized businesses. A lot of small business owners are so busy with running their busy everyday that they have not had time to try to figure out a plan to safeguard their employees, customers and profit lines.

The British economy is reliant upon finance, tourism and to a lesser extent manufacturing. Data presented earlier this month showed British economic growth slowed to a stand still at the end of 2019. Supply chains from China have dropped off and many travel operators are slowing down or closing services. This means limited supply and increases in costs. And because small to medium sized (SME) businesses often do not have the cash flow and financial resources to absorb sudden increases in costs this can mean a serious problem, not to mention the health and well being of their staff.

Unlike the press, we don’t just present the problem but provide an answer - So here is what SME business owners need do to manage the coronavirus problem:

1. Increase suppliers and look for different origin source countries - often SME's have one supplier and a cannot order in bulk. So shop around and look for similar products and suppliers importing from other countries other than China. Think about pooling together with other buyers into a self made buying group and ordering in bulk. Sharing purchase and storage costs can make it affordable.
2. Ensure your staff well fare - keep them safe from infection, and provide hand sanitizers and anti-bacterial wipes etc for surfaces where customers may touch and pass on infection. Ensure all staff are told to clean their hands with soap and water for at least 20 seconds several times a day. Ask them to minimise physical contact with customers and minimise usage of public transport if possible, even working from home if possible.
3. Speak to your bank - ensure you have access to cheap loan and overdraft facilities to get a cash injections in case you need it. Think old school, borrow at 0% interest from friends and family or trade in goods and services without money if needed.
4. There is always an opportunity - sell different products or services, think about selling face masks, hand sanitizers and anti-bacterial wipes etc. Think of changing the way you do business and your market even.
5. If imports from China are falling then home produced suppliers and exports are an opportunity for many businesses to fill in the gaps. Look for current gaps in your industry supply chain and see how you could fill them. eg if you find a great supplier that no-one knows about, think about becoming a wholesaler and reseller not just a retailer ot the public.
6. Raise prices - SME businesses often fear raising prices and losing customers. They often absorb increased costs without touching the price. This means they are earning less net profit as time goes by and take home less pay each month. Don't be afraid to lose some customers if you raise prices due to rising costs, your not running a charity.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Epsom they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Growth Vouchers Scheme can be invaluable for business to gain the advice and support needed to expand and grow their profits and business.
This government programme is basically designed to help small businesses get strategic business advice on:

• finance and cash flow
• recruiting and developing staff
• improving leadership and management skills
• marketing, attracting and keeping customers
• making the most of digital technology

Some businesses will be randomly chosen to get a voucher of up to £2,000 to help finance strategic business advice for themsleves.

The voucher can pay for up to half of the cost of the advice from a recognised business adviser such as Tax Affinity Accountants can serve as a real helping hand to boost your business.

It is structured in such a way that the supplier will claim this fee from the programme making it easier for the business owner to quickly get the support and advice he/she needs.


There are some simple eligibility criteria as below:
Your business must:

• have 249 employees or less (including any employees of companies that own a stake in your business)
• be registered in England
• actively sell goods or services
• be independent (ie no more than 25% is owned by other businesses or organisations)
• have a turnover of less than €50 million

And then you will need the following things to complete your application, as available by your accountant:

• Companies House registration number or Unique Taxpayer Reference (UTR) from HMRC
• registered business address
• business turnover details
• VAT registration number (if you’re registered)
• PAYE number (if you have one)
• contact phone number
• email address

A recognised business adviser such as Tax Affinity Accountants will automatically collect this information for you and fill the necessary form as required. You will also be asked to take part in some surveys about the programme by the government body running the scheme.


So how does it work?

Either speak to your chosen adviser and they will make the necessary arrangements for you or sign up on the government’s growth voucher website (open until March 2015).

Once you have received the voucher, simply use it for the advice and support. The growth voucher scheme has been running for few months now and it is growing in success.

However, be careful because the scheme is not intended for company owners seeking to subsidise practical guidance on how to engage in precise tasks relating to running a business. It’s for tactical advice that will lead to growth of the businesses.

The quickest way to get support for the is to call 0800 043 4051 or visit www.taxaffinity.com and speak to one of our experienced business adviser's and growth coaches at Tax Affinity Accountants.

By Tahir Malik at Tax Affinity Accountants

Tax Affinity Accountants are experts in business coaching and are based in Kingston upon Thames they are considered to be experts in their field. Helping and supporting businesses and individuals throughout the UK.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The bridge between having a good business idea and implementing such idea into a business model can be wide and daunting. Getting the necessary funding to kick start your business can be a difficult process and different sources of finance may not be appropriate for everyone due to varying circumstances.

Whether you require investment for start-up capital or are looking to expand your business, the cost can be astronomically different depending on a few variables. Here is a list of things to consider when looking for a source of funding for your business:

The “Right” Amount

There are a few questions that should instantly appear on the forefront of your mind when you are seeking finance. 

1. How much money do I need?
2. What time scale am I looking at to pay it off?

Doing your homework from the start will help you avoid many future problems. A shortfall in funding may jeopardise your business in its entirety, you may miss out on that explosive launch you was hoping for or realise that a particular project didn’t produce the desired results because you ran out of cash.

There’s a subtle understanding in business that goes like this; “you need to spend money to make money”. Making big changes in your business requires money and not everyone has that money in their bank accounts. However, funding must not only be sufficient but efficient as well.

There’s no point asking for more than you need, it will just result in more interest and a larger repayment towards the end. Plan out your budget by listing a breakdown of the different components the funding is used for. You may spot areas in which you can forgo and others that you may have missed out. And once you get the funding, you’ll know exactly what to do with it.

Timing is Key

Timing is essential in many aspects of life and its no different in regards to funding. Having a realistic time horizon to pay off your borrowings can make repayments easier and more manageable.

Pacing your repayments can avoid interest payments from siphoning your cash flow.

Tip: If your business is performing better than expected, think about repaying back the debt earlier to decrease the amount of interest accumulating.

The Correct Choice

Here comes the most difficult part when seeking for funds. How do I choose between so many options?

Well unluckily for most, they don’t have as much choice as they think they do when it comes to the selection of finance. The most common for small businesses to get funding is through their own savings. This is, by far, the cheapest source of funding and the only opportunity cost associated is that you lose out on the interest on your savings which quite frankly is nothing compared to the potential interest payments you make for other sources of finance.

However, a lot of the time, the money is not enough to fuel the business which leads to people opting for the next best choice; a bank loan. This may be the most appropriate option for many individuals seeking funding as terms can be flexible and mutually agreed upon by both parties.

Tip: Try browsing through the different types of loans you can apply for, you may believe that there is some standard rate banks tend to charge for certain loans but be very surprised that the conditions of such loans can be as different as night and day.

Take every percentage point at face value; there may not be much difference between 7% and 8% but over the long term you’ll end paying back significantly more in aggregate.

Borrowing money through a loan or equity share from family and friends can be a good source of financial investment. Loans offered in this fashion tend to have a low interest rate compared to traditional loans and possess more lenient terms. Offering a piece of your business via equity distribution can motivate your family and friends to help grow your business.

Be warned though that any business problems don’t end up trickling down to family matters. Also, make sure any loan agreement is in writing just to avoid any legal problems that may arise in the future.

Another alternative of funding is through an outside investor. This is usually not a loan but an equity investment. This means that the investor becomes a shareholder in the business and is entitled to a percentage of the business profits (depending on his/her equity share percentage).

Furthermore, the investor may have some degree of control in your business. Depending on the investor, this could be advantageous or disadvantageous. The outside investor could bring new ideas and contacts into the business which would help accelerate the growth of the business. On the contrast, the investor could be in disagreement with any business decisions made and hinder the progress of the business.

It is up to the business owner to make sure the interests of both parties are aligned. One thing to note is that debts can be paid off but equity is fixed for the lifetime of the business which could result in equity being much more expensive if the business grows rapidly.

At Tax Affinity Accountants we provide free tailored advice to help grow our clients business.

By Wilson Law at Tax Affinity Accountants.

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they are considered to be small business experts helping and supporting business in the UK. They regularly help new business start up and provide valuable support for new businesses.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Start Your Own Business in 2014- Top Tips

With the jobs market as saturated as ever, 2014 may be the year to cut loose and set up your own business. Figures from ‘Start Up Britain’ report that over 500,000 new businesses were incorporated in the UK in 2013, employing approximately 7 million people.

Here are some tips to give your new business the highest chances of success:

1. Business Plan- One of the keys to starting up a strong new business venture is to ensure you have a well-structured, yet flexible business plan. By planning thoroughly your business model and strategy, you improve your chances of eliminating costly mistakes. Take time to assess the market and your competitors and ensure you have a USP (unique selling point) to differentiate your product/services. Have a strong grasp of sales forecasts, costing and investments so you can track the progress of your business and also attract funding from lenders.

2. Break-even Analysis- This is very useful tool to ensure you don’t jump into a new business venture without properly assessing the risks. By working backwards and summing all your fixed costs, you can work out approximately how many units you will need to sell at a given price in order to break even. This allows a straightforward check to ensure the business is viable.

A simple formula for this can be calculated as follows:
Break-even point = fixed costs/ (unit price – variable costs)

3. Know your product (and its competitors) - Do your homework. Make sure you have fully researched the competition. What are their strengths/weaknesses? Know your customer and who you are targeting in order to tailor your product/service to the clients’ needs. Also ensure you have a competitive pricing strategy.

4. Marketing- Although some forms of marketing can be expensive, it is highly important to increase brand awareness and start attracting a wider customer base. Use free marketing tools such as social media platforms like Facebook and Twitter to spread the word. Even basic techniques such as asking customers to tell their friends and family can be highly effective.

5. Ensure the Right Image- The perception of your business is extremely important to its success. Ensure a professional image by creating a clean, easy-to-use website and business cards. You should also consider using a 0800 number which will be free for customers to call from landlines. This is a simple way to make the business more customer-friendly.

6. Home Business- Consider setting up your business from home initially. There are a range of benefits to this. Aside from extra flexibility, you will also avoid the costs of renting an office space, utility bills and other expensive bills. Furthermore, you can claim certain household expenditure as tax deductible. A portion of telephone, internet and utility bills can be deducted from your tax liability.

7. Build the right team- Going it alone in business can be highly stressful so it is imperative you build a strong team around you. Depending on your circumstances, you may also benefit from starting up with a partner in order to increase ideas and share the load. Look for someone with the same aspirations but with a different skill set that can complement yours.

By Thomas Hoadley at Tax Affinity.

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they are considered to be small business experts helping and supporting business in the UK. They regularly help new business start up and provide valuable support for new businesses.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.