Want to pay just 10% tax on exiting your business?

Yes?

I don’t blame you – well after all you’ve paid tax on all your profits over the years, haven’t you? Wouldn’t it be great if you could reduce that ‘tax on tax’ payment when you exit your business?

Well you can… and it’s completely legal… and it’s just a process!

Follow this link…

https://sway.com/VLz7XgI5AqBSokfb

Many owners of small businesses are using Entrepreneurs’ Relief to reduce the tax they pay on exiting their business to just 10%.

Call me for more information… 01902 672323

Don’t judge each day by the harvest you reap…

Hello

It’s been a good while since I last put my thoughts into a newsletter… sorry, I’ve been incredibly busy.

And do you know why that is?

… I’ve been taking some new technologies by the scruff of the neck and integrating them into my business – and it is that, rather than a glut of insolvencies (I wish!), which has been taking up my time.

The title of this newsletter is the start of a quotation by Robert Louis Stephenson, it ends with …. ‘but by the seeds you plant’.

I’ve been planting a lot of seeds.

You see so much is happening out there on the new technology front, great stuff that could be integrated into my business, that I’m going to be making it the subject of several of my next few newsletters – you see there’s a chance that you, or the people you know, could benefit from my triumphs and my pain (some of my seeds fell on barren ground).  My newsletters will be in the nature of both observations and tips.

So why, when there are a lot of other important things that I could be doing, did I decide to focus on new technologies and for so long?  These are the first of the observations – my why.  Because you might just share some of them.

The first reason is

… the pace of change in technology – and thus in me maintaining my competitive edge (just how important is that for a small businesses?) – has accelerated massively in recent years.  And it’s only going to get faster.  I simply had to invest my money and time here if I wanted to maintain my lifestyle and retain the control I, and not others, have over my life.

The second reason is

… by bringing me into regular contact with people outside of my profession and normal sphere of operations who are great at technology, some of what they know and do rubs off on me such that by doing different things and the same differently I get to create my own opportunities to win some fantastic new ‘quality’ business that would otherwise be invisible to me.  Unless I do this unpaid r&d type work exploring the new technologies there would be no high margin work – I’d be scrabbling around doing the low margin work my competitors do.

The third reason is

… in the past if a business were not to embrace new ways of working or new markets, most of the time it would only hurt them slowly, over time.  Nowadays, I don’t think that it is always the case, the pain caused by ignoring new technologies and ways of working is acute, sharper and quicker to come on, it’s not chronic.

The fourth reason is…

… Having low overheads means I have both the time and resources to make it my focus.  This is the first instance of being in the right place at the right time, it’s luck, and most others do not have this luxury.  It would be negligent of me if I didn’t take advantage of this massive commercial advantage.

The fifth reason…

… my nature and a lack of accountability.  This is where I’m lucky again.  As a member of Generation X, I didn’t grow up with a mobile phone in one hand and a rattle in the other so technology isn’t something that comes easy to me.  But unlike most others in my peer group who have targets to meet, are accountable to someone else, or need to maintain an aura of invincibility, I am prepared to make mistakes, Lots of them!

Here are a few questions for you…

  • How important to you is getting a good grasp of new and emerging technologies either in your business maintaining or gaining a competitive edge or in you maintaining your lifestyle?
  • Do you share any of my 5 own personal reasons for this focus? Or do you have your own compelling reasons?
  • Are you and your business where you need to be in order to attract in the sort of opportunities you really want?
  • Should you be spending your time with a different set of people/organisations to gain a different mindset?
  • What new, high margin, products or services could you create by adopting technologies borrowed from outside of your sector?
  • What’s your attitude to spending, even potentially wasting, money or time on this sort of thing?

I have a request… quite an important one…

It’s partly to do with GDPR, it’s partly to do with me measuring how effective my newsletters really are.  I’m having a massive clear out of my circulation list.  I shall be deleting all the contacts my system is telling me aren’t regularly reading my stuff.  So if this is you, or if you read from mobile (my systems don’t always recognise you’re opening things), but you still want to receive stuff from me, please email me separately asking to remain.  If you’re a new reader and aren’t yet receiving my newsletters direct, but would like to, click on the following link to subscribe.  Click here

Finally, because sometimes life is just too serious, do you remember this classic comedy sketch about new technology? Ronnie Corbett and Harry Enfield in the greengrocers.

Fantastic!

Hope you continue reading, and if you have any insolvency business, I’m still here!

All the best

Paul Brindley
Midlands Business Recovery
T 01902 672323
M 07813 102014
paul@midlandsbusinessrecovery.co.uk

Top tips for ensuring a phoenix company doesn’t go the same way

Many phoenix operations fail.   It’s not that easy to make a phoenix succeed.

Trusting to luck or assuming things will somehow improve once the company’s debts are written off does not work.

Here are our top tips for making sure your phoenix business won’t go the same way…

  • You might find it difficult to get all the support you would ideally want from your bank, customers, suppliers or even key employees.  They could reduce the support they’re willing to give or even shun you entirely.  Insolvency is divisive, people tend to look after their own interests first and foremost: for example your customers could use the failure of the business to re-appraise what they do, how they do it and with whom.  You will lose some business, it’s inevitable.  Plan for the worst, hope for something better.  Ask yourself what support you need, and from where, for the business you want to create.  Then go get it, even if it means giving something away.
  • Although freeing a business of its debts deals with the symptoms of its problems, it doesn’t deal with the causes.  Identifying the causes for the problems of the business often means real soul searching.  You may need to bring in more help or resources.  You might need to improve your own skills.   You might need to stop doing something or start doing something differently.  Do you have all the entrepreneurial, managerial and technical skills, in the right mix, to succeed? – your business is only as strong as the weakest of your skills in these key areas.  Are you prepared to make all the changes you really need to?
  • There are major issues re-using a liquidated company’s ‘name’: not dealing with these in the best or proper way can lead to personal liability for the debts of the new business and a criminal record.  Do not ignore these rules, implement a properly considered plan for dealing with them;
  • Obtaining the right level of funding can be a real problem.  Some banks won’t touch phoenix operations on any terms.
    How much money do you need?  Add 50% more than you think, then ask yourself how you are going to get it?  Think about looking at alternative sources of finance, sources you haven’t considered before.  But be careful, sources such as Funding Circle get personal guarantees, and you could end up in even worse problems.

Only by fully investigating these issues with a firm interested in securing a long term solution rather than short term fee will you give yourself the best chance of things working out second time around.

Credit union still banking with the Co-Op Bank?

You might have seen today’s – I have to say not completely unexpected – news news that the Co-Op is up for sale.

It’s been coming for a long time.

So, you’re a director of a credit union that is still banking with the Co-Op that still has hundreds of thousands of pounds in it?

Let me ask you something …Why is that?

Is it simply that because you believe in the co-operative movement you will support it where ever you can?

That’s great, the co-operative movement has done and continues to do a lot of really very good things.  But the problem is if you’d been acting on purely commercial grounds – which is the test you are required to satisfy as a director – you would probably have moved the money out of the Co-Op a long time ago.

Let me ask you, given that there’s no certainty that the Co-Op Bank can be sold, and won’t instead be either broken up or go bust, do you think you might be playing Russian roulette with your members’ money given today’s news – which after all followed a pretty inglorious few years (facts like this will be relevant to the points below, it’s not as if you’re in the dark about the Co-Op Bank’s problems or that they’ve happened overnight)?

The point is you might only have a short period of time now to get your members’ money out of the Co-Op and into something safer…

And if you don’t do so, let me ask you another question…

If your credit union should be forced under by the problems at the Co-Op Bank and your liquidator took you personally to court for negligence, would you be able to defeat such an action?

It might just be worthwhile you asking your lawyers this question… you see, your following a principle that is not built on hard commercial grounds is probably no defence.

Oh, and an afterthought… some directors of your credit union will have deeper pockets than others and will therefore be the main targets of such a negligence action.  Are you one of the prime targets? You see it’s easier for board members who have nothing to lose personally to stick to their principles, but if your home and savings are on the line, then it’s a completely different proposition.