Which
Airport are you going to?
A client recently
described his business  as
a jumbo jet. It was in mid-air with an excellent cabin crew,
providing a good service to its passengers and picking up
speed. The only thing was he wasn't sure where it was going
to land. For most businessmen this is a common problem. Very
few sit back and think what their long term overall objectives
are and their financial and tax implications. This means that
many hours of hard work can be spent on areas of the business
which do not achieve the owners goals.
The majority of small businesses are
started because the proprietor needs an income. Once that
target has been achieved longer term questions must be considered.
Can the business sustain an income until retirement? Is it
the sort of business that can be sold? Are there other members
of the family that could take over the business?
Loads
of Money
Many
businesses are run for short-term profit. It may be that circumstances
dictate this - an expensive standard of living or big family
for example. The trade could have a Limited life, perhaps
an entrepreneur taking advantage of a recent change in governmentlegislation
before other competitors move in. The trade could have a Limited
life, perhaps an entrepreneur taking advantage of a recent
change in government legislation before other competitors
move in.
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Businesses
such as these should avoid long term commitments such as leases
and high salaries. Short tenancies and bonus schemes are much
more preferable.Many people may be in this type of business
without even realising it. In times of economic boom such
as now, new businesses spring up supplying luxury goods or
services. When money becomes scarce these businesses will
die unless they can adapt.
Building
an empire
Those
who wish to create lasting success and grow their business
need to employ strategies to keep control, such as:-
1. Staying nimble. Dividing the business
into small units to keep the best qualities of a small business
while growing.
2. Driving continual change throughout the business to adapt
to new challenges. Don't get stuck in a rut remember that
dinosaurs once ruled the earth.
3. Setting up a corporate reporting structure so that leadership
can be devolved without losing control.
Alternatively stay small or give up sleep and social life!
If
you would like Stephen Hill Partnership Limited to provide
a review of your business objectives please contact Lance
Clifton on 01634 280500 or
e-mail enquiry@shpaccountants.co.uk
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