How to Get Your New Business Off the Ground

Had an idea for a business? All businesses start with an idea, but you need to take the next step and transform that idea into something tangible.

It’s at this stage that you may start to feel overwhelmed and lost at sea. However, it’s not actually as challenging as you might think, especially if you break the overall task list into smaller, bite-size chunks that you find more manageable.

The following advice should help you segregate the process and get moving with your business idea.

Draft a Short Business Plan

Before you start groaning at the thought of putting a lengthy plan together, you needn’t worry because all you really need is a one or two page document with the aim of getting straight on what resources, time and budget you are going to need to get you up and running and trading safely for the first year.

The early stages are all about road testing your ideas, so it’s definitely not worth spending too much time on your business plan. Having said that however, you do need a structure to follow and defining your vision, mission and objectives is vital, as is putting together a basic action plan including outline strategies.

Set a Budget

No business should get off the ground without a budget set out for starting up, operating and marketing. You’ll need to be realistic and allow a contingency for unexpected costs.

You’ll need to work out how much you are spending each month so you can see how long you can continue to operate without turning a profit – that’s how long you’ll have to start making it work. Ideally you’ll want to start earning profit wise within one to three months, but do try to keep a contingency fund untouched so that you have a reserve should things not go quite to plan.

Work out a Legal Structure

Whether you start up as a sole trader, a partnership or a limited company must be given due consideration. Talk to a local bookkeeper or accountant for tailored advice, as the advantages and disadvantages of each option will vary. There will be administrative and financial accountability differences to think about, together with risk considerations, so be sure to consider all your alternatives carefully. If you are setting up with partners, then you must have a partnership agreement in place to protect all your interests, regardless of how sound you believe your relationships are.

Start Marketing Early

Even whilst you are still in the set-up phases, you can start getting organised with your marketing. You’ll need a website and online presence and this can take some time to pull together. At very least be sure to secure your domains both for your website and social platform, so you know you’ve got them. You can also start networking early on and spreading the word about what your new venture has to offer.

Take Professional Advice

It’s important to take professional advice when setting up a business. Financial advice, legal advice and, if you need it, business development advice. Listen to those who’ve done it before; ask for advice online on business forums; talk to people at networking events; read, read and read more. The more support and knowledge you have, the better chance you will have of success.

Good luck! And if you could use some guidance from a team of experienced bookkeepers, please get in touch!

Autumn Budget 2017 Predictions

The Autumn Budget of 2017 is set to take place on Wednesday November 22, with the major annual financial update by Chancellor Philip Hammond switching from the spring.

Here we take a look at what is potentially on the cards.

Stamp Duty

There has been talk for some time that Stamp Duty is putting off potential home buyers and movers and therefore putting pressure on the housing market in the UK. Whereas Stamp Duty income has reached a record high, home sales have taken a dive. There are therefore calls being made on the Government to remove Stamp Duty altogether for older homeowners, with the aim of encouraging downsizing so that larger family homes are freed up for younger families.

Homebuilder McCarthy & Stone has recently conducted research revealing that pensioners would be more inclined to make a move to a smaller property if there was no Stamp Duty to pay. It is also thought that Stamp Duty has brought higher value sales to a halt, creating a knock-on effect throughout the remainder of the market.

Nick Leeming is Chairman of Jackson-Stops. He said: "Philip Hammond must view the property market through the eye of the homeowner and come up with a solution in the Autumn Budget.

"If they were to take steps to reform the impact stamp duty has on the top end of the market, even just marginally, they would not only see their revenue dramatically increase but it would also get the market moving again at all levels.”

Alternatively, the liability for the tax could be switched from buyers to sellers, suggests the AAT (Association of Accounting Technicians). The AAT says this would boost mobility at all levels, because people on their way up the ladder would be paying duty on the lower-priced house that they are selling rather than the one they are buying. They say it would also give more first time buyers a leg up onto the property ladder, whilst keeping the Treasury’s income intact.

Phil Hall, head of public affairs and policy for AAT said: “It’s widely accepted that Stamp Duty adds a burden to any homeowners seeking to move - especially first-time buyers - because they must pay the tax as an immediate upfront cost together with finding a deposit, surveyors and solicitors fees and so on.

"This stunts mobility, impacting on employment and productivity as well as reducing the supply of new homes, which adds to the affordability crisis.

"Switching liability to the seller would be a relatively simple way of solving these problems.”

Pensions

It is thought that pension tax relief may be under threat. The current system links relief to the income tax rate of a saver. This means that tax payers in the higher rate band enjoy a 40 per cent relief rate, whilst those on basic ate get 20 per cent.

There is talk of a flat rate of 33 per cent, which means earners in the middle band would be hit harder. Pensions director at Aegon, Steven Cameron, feels that tax relief should not be changed until Brexit is done and dusted however, so that savers have some security for the future. He says that consideration should be given to combining pension and stamp duty policies instead.

"Reducing stamp duty would encourage pensioners to downsize, freeing up family homes with benefits across the housing market while boosting funds to pay for retirement," he suggested.

It remains to be seen of course what will actually transpire on 22 November, but rest assured we’ll be reporting it right here, so keep us bookmarked.

To Sit, or to Stand – Modern Working Methods Examined

Sitting at a desk for hours on end has never been considered conducive to healthy working, but what is the alternative?

Well according to CIS Products, UK employees could benefit from standing desks and anti-fatigue mats.

Working days are getting longer and breaks are getting shorter. Sitting down for hours without much movement can have a negative effect on health. It can lead to cardiovascular issues as well as diabetes. A British study undertaken in 1953 revealed that sitting continuously could contribute to health problems and more recent research from 2011 demonstrated that a 112 per cent increase resulted in the risk of diabetes and a 147 per cent increase in cardiovascular events were apparent between the shortest and longest sedentary periods.

So is it time for employers to start considering alternatives? In Scandinavia, sit-stand desks are commonplace, with more than 90 per cent of PC-using office personnel making use of them. The benefits are said to be manifold.

The Benefits of Sit-Stand Desks

Sit-stand desks offer flexibility. Employees can choose their preferred working posture depending on how they are feeling at the time. They can divide their working hours between sitting and standing, without risking injury or ill health through poor posture because their PC and documents are equally and perfectly accessible however they decide to work.

The good thing about sit-stand desks is that they do not cover any more of any area than regular desks. They provide employers with the opportunity to promote healthier working practices, and a healthier workforce means reduced sickness absence and boosted productivity.

Employers can choose from electric, gas lift or manual crank desks depending on budget and preference.

Employee Sit-Stand Education

It should be considered that standing for long periods of time is probably just as unhealthy as sitting and could lead to issues such as back, neck and hip pain as well as swollen legs and vein problems due to pressures on the circulatory system. A balance is ideal, and this should be promoted through employee education.

Employees should therefore be advised to vary their sitting and standing periods as well as taking regular breaks away from their workstations and using a standing desk mat.

Standing Desk Mats

Standing desk mats have built-in anti-fatigue properties. They are made from high-density foam designed to support and cushion the user and encourage regular movement of the feet. Such movement helps activate the pumping of the veins which in turn boosts blood flow and alleviates the pain normally associated with standing for long periods.

If you are considering ways of boosting employee health and comfort, it’s well worth having a look at sit-stand desks.

Beware the Employee Private Admin Cyber Security Risk

As we’ve discussed in previous articles, cyber security is a major issue for any business of any size, and this includes even the smallest, home-run operations.

It is a much discussed fact that one of the greatest threats to data security is the human factor, rather than technology. Whilst you may invest heavily in firewalls and virus protection, cyber-attacks so often come down to human error.

It is said that employees using company networks to carry out private admin is one of the most significant risks, and employers need to realise just how serious this risk could be.

82 Per Cent of Employees Undertake Life Admin in Work Time

We spend a great deal of time at work without a doubt, so it stands to reason that at some point we are going to have a need to undertake some form of personal task. ‘Life admin’ as it’s referred to is a necessity, and if we’re at work for the majority of our day, then some of that admin time is going to occur within working hours. But it’s the making use of company technology to carry out this admin that’s the issue.

Research by Altodigital reveals that 82 per cent of full time UK employees spend a certain amount of time carrying out personal admin tasks whilst at work, and that more time is spent on these tasks during work time than within lunch breaks.

The most common personal tasks include organising finances, booking health and beauty appointments, dealing with bills, and seeking alternative employment. Whilst some of these tasks may seem acceptable and necessary, the security risks that go with them really must be considered. The worrying thing is, four in ten of those questioned for the survey did not feel there were any security risks related to inputting their personal data into work networks, whether via company computers or their own devices.

Cyber Risks Very Real

The truth is, however, that there ARE numerous cyber risks. Storing passwords, credit card details and banking logins in a web browser or cache could prove exceptionally precarious. Personal data stored in emails is also very risky. Company networks are generally accessible by more than one user, offering simple in-roads. Even sending documents to unsecured network printers is potentially risky, particularly if the documents contain sensitive information. The same goes for photocopier hard drives.

As a business owner you’re going to have enough on your plate with the upcoming GDPR legislation kicking in. Allowing employee life admin tasks to be undertaken on company networks is going to raise even further problems because as soon as personal data is entered and stored on a company system, the company becomes immediately responsible for the security of that data.

Jas Sura, Security team lead at Altodigital says, “Although it may seem like simply ordering a new outfit for the weekend and quickly transferring some money to a friend is a quick and easy task, it may introduce problems further down the line. Site login and bank details may be stored automatically onto your device, meaning that if other staff members have access to it, or you leave your laptop unlocked while you are away from your desk, it could be a confidentiality disaster waiting to happen. 

“The explosion in growth of cyber hacking, in both capability and frequency, has caught short businesses of all sizes because it is so easy to do at a basic level. Hacking methods are becoming more and more sophisticated at times capable of fooling more tech-savvy individuals.

“Our recent research revealed that 18% of UK SMEs have been hacked in the last 12 months, with sophisticated email phishing the most common form of hacking. As technology progresses, it’s really important that businesses make steps towards improving their business security – whether that be regularly changing passwords to be more secure, using encryption, having a managed firewall, or making regular backups!”

Take Advice, Set Policies

Businesses really should be taking serious steps to ensure the security of their data, and consideration towards the allowance of personal admin really must factor. Consult with your IT security consultants and legal advisers and put a policy in place so that you are protected.

Charity Urging Businesses to Increase Employment for those with Learning Disabilities

Registered charity Mencap is trying to encourage employers to make use of apprenticeships to boost levels of employment for potential employees with learning disabilities.

Mencap says that research from the Health and Social Care Information Centre shows that fewer than 6 per cent of adults with a recognised learning disability are in paid employment, and that people with these disabilities are up against various barriers when seeking work. These barriers include complex application forms; negative attitudes from employers and rigid interview processes that don’t allow any flexibility.

Lack of Training for Learning Disabilities Apprentices

Even when people with learning disabilities do make it into employment, they regularly face a lack of training and onward opportunities, according to Mencap.

Last year the Government announced a reduction of the minimum requirements for maths and English standards to make it easier for people with learning disabilities to pursue certain apprenticeships.

According to Mencap, “By ensuring people with a learning disability are able to access apprenticeships, it will provide a route into work better suited to people with a learning disability where they can demonstrate their skills”.

According to Government data, during the period 2014-2015, fewer than 1 per cent of apprentices declared a moderate learning disability.

Plans set to Ease the Route in Apprentices with Learning Disabilities

Chief executive of Mencap Jan Tregelles, said: “The introduction of these plans are a welcome recognition from Government that people with a learning disability cannot be left behind when accessing such a vital and valuable route into work as an apprenticeship.

“Lowering the Maths and English requirement for people with a learning disability on apprenticeships could allow a whole new generation to experience the pride, joy and independence that employment can offer – something that just 5.8% of people with a learning disability currently do.”

Furthermore, Secretary of State for Work and Pensions, David Gauke, added: “People with a learning disability deserve the same opportunities that others have in every aspect of their lives, including in the workplace. Almost 600,000 disabled people have entered work in the last three years, and we must build on this progress.”

Apprenticeships should act as a valuable route into employment for those with learning disabilities, who have an incredible amount to offer in many ways.

For more information about taking on an apprentice, speak to your local bookkeepers.

Regular Voluntary Overtime Included in Holiday Pay

Towards the end of last year, we discussed in an article how holiday pay must now include results based commission.

The ruling in the Court of Appeal followed a case involving a British gas sales person who had claimed his holiday pay had been incorrectly calculated as it did not include any allowance for the commission he would have earned during the period he was on holiday. We discussed at the time how the decision made by the Court was set to have serious consequences for any business with employees on commission schemes.

Further to this and no doubt of even further concern to business owners, the Employment Appeal Tribunal (EAT) has recently confirmed that payments for overtime undertaken on a purely voluntary basis should be included in holiday pay, providing they are paid regularly enough to constitute ‘normal pay’.

The Case of Dudley Metropolitan Borough Council v Willetts

The ruling came about following the conclusion of the case of Dudley Metropolitan Borough Council v Willetts and others in which 56 council workers brought employment tribunal claims for unlawful deductions from wages in connection with how their holiday pay was calculated.

The council workers claimed that their holiday pay should have included payments for voluntary overtime. The Tribunal concluded that the workers’ voluntary overtime payments were sufficiently regular to constitute ‘normal pay’, which, according to vast volumes of past case law, must be included in holiday pay.

All Cases Must be Judged on an Individual Basis

The EAT said that where a pattern of work extends for a sufficient period of time and recurs regularly, it should be classed as ‘normal’. However, the EAT did issue a warning that cases do vary and that it is down to the individual Employment Tribunal to decide whether or not overtime payments are adequately ‘regular and settled’ so as to be included in the holiday pay.

This recent decision provides further clarification on a one of the most discussed subjects in employment law.

If you are unsure as to whether your methods of calculating holiday pay fall in line with the latest rulings and case law, seek advice from your local bookkeepers.

GDPR to Become Law Next Month

A new Data Protection Bill is due to be published in September 2017, bringing the EU’s General Data Protection Regulation (GDPR) into UK law.

Under GDPR, individuals will be awarded a new right to request that their personal data is completely erased. UK law will extend this right by requiring social media providers to delete all of a personal’s posts from before they were under 18, if requested.

Support will be provided to businesses to make sure they are in a position to manage and secure their data correctly. The Information Commissioner will also be given greater powers to defend consumer interests and will be able to levy increased fines of up to £17 million, or 4 per cent of global turnover for the most serious data related breaches.

Changes in Favour of the Consumer

 The new Data Protection Bill will allow people to enjoy more control over their data. They will get a greater say in what it is used for as it will be easier to withdraw consent for its use. Parents and guardians will be responsible for giving consent for their children’s data to be used, and ‘explicit’ consent will be necessary in order to process sensitive personal data. This means opting in rather than opting out, which should lead to consumers receiving less cold calls.

Furthermore, the definition of ‘personal data’ will be expanded to cover DNA, IP addresses and internet cookies. The Bill will make it easier and free for individuals to require an organisation to disclose any personal data held on them, and it will be more straightforward for customers to migrate their data from one service provider to another.

Strengthening the Law to Reflect Today’s Digital Economy

Many of the changes being introduced are based around the aim of strengthening the law to reflect today’s digital economy. With the introduction of the Bill, it will be a criminal offence for an organisation to recklessly or intentionally allow someone to be identified from the use of data that has been anonymised, in other words, data that has been adjusted in such a way that the holder should not be able to be identified. In addition, criminal charges could be faced by organisations found tampering with data that an individual has requested.

Challenging Changes?

Some of these new requirements may lead to challenges for businesses, particularly those that do not have their data stored digitally, making it more difficult to sort it. Many experts have warned that numerous businesses are by no means prepared for the new rules.

The extent of the new legislation is also presently unclear. There is talk of some exemptions depending on the type of data in question, but nothing has yet been confirmed.

As soon as more details come to light, we will share them. Follow us on Twitter and check back to this news feed to stay up to date.