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t h e b e st magaz i ne s p eci f i ca l ly f o r bus i n es s o w ne r s
THE BUSINESS
OWNER MAGAZINE GET WELL, STAY WELL Being physically, and mentally, unwell can have a huge impact on your business - take a few minutes a day to get well so you can concentrate on growing your business.
COULD YOU USE FRANCHISING TO GROW YOUR BUSINESS? We take a look at the ins and outs of franchising and see how you could use it to successfully build your business to new heights.
HOW’S YOUR DATING GAME? An d wh at o n earth has that got to do with you r bu s ines s ? F ind ou t in s ide .
Letter from Good grief, it’s February already and having spoken to a great deal of small business owners last month, there is plenty of hope for this to develop into a great year. Although it goes without saying that the current restrictions have caused some immense issues to some businesses, opportunities are out there and as Business Owner’s and Entrepreneurs we are the ones to take them. Disruption to our lives, our economy and world politics all lead to change that we embrace and challenge. The only constant is change. We hope you enjoy this bumper issue, please feel free to share on social media to help share the positivity.
the best maga z i ne sp eci f i ca lly f o r b u si ness o w ner s
THE BUSINESS
OWNER MAGAZINE
Business Owners come in all shapes and sizes and have a variety of dierent needs and wants, but what we all have in common is the desire to build something and share it with the world. This publication aims to share those stories, struggles, innovations, tips and glories, positively. NO click bait, NO hard sells, NO doom and gloom, NO whining, NO rehashed PR content.
RISK MORE THAN OTHERS THINK IS SAFE. DREAM MORE THAN OTHERS THINK IS PRACTICAL. - howard schultz
table of 06
Grow your business through FRANCHISING
10
Maximise your r&D tax credit claim
14
Get well, stay well
15
Protect your business
18
business is personal
21
How is your dating game?
24
company Overview - ExcelWraps
26
Making the most of pensions
28
Meet the boss - Matt Blewett
No material may be reproduced in any way, or translated, without written permission of the publishers.
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Disclaimer: Every effort has been made to ensure that adverts and articles appear correctly, but The Business Owner Magazine cannot accept responsibility for any loss or damage caused directly or indirectly by the contents of the publication.
The Business Owner Magazine is published by iPlus Media. Editorial: hello@iplusgroup.co.uk Telephone: 01242 312121 | Website: iplusmedia.co.uk Head office: Suite 2, 14 Union Street, Stroud, Glos, GL5 2HE
The views expressed in this magazine are not necessarily those of its publisher or editor.
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operational
could you
your business
through FRANCHISING? Join us as Louise Bruce takes us through the ins and outs of Franchising
Chances are if you’re reading this article, you’re a business owner. You’ve probably spent years grafting, day in, day out building up your chicken/tyre/swimming lessons/gym/burger/accounting/delivery business. You know every square inch of your sector you’ve enjoyed the good times and you’ve ridden out storms; it would be fair to say your knowledge of your marketplace is second to none and frankly, you’d like to expand, maybe start laying down the path
for your retirement, or simply stepping back so the business can carry on without you. But how? Of course, you could go down the ‘regular’ route and simply employ more staff, lease more premises, buy more vans etc. The only problem with that method is that all the costs and responsibilities remain yours. Yes, your business could double in size but so will the administration and headaches. Twice as many staff to manage, twice as many buildings and vehicles to be maintained etc.
What if you could expand your business but let someone else share the load? Someone who is financially invested in making it a success and who will stick to the brand exactly the way you’ve developed it?
What is franchising?
When you franchise your business, you are allowing someone to buy into the brand and reputation that you’ve spent years building up. They in return are self-employed, often with no experience in your sector, looking for your help and guidance in how to run their new business. They have the cash to invest and the hunger to build a sustainable business and you have the knowledge to help them do that. You know your business model works, you’ve proved that over many years, now you can share that knowledge with them and watch as they replicate your success across the UK…or further.
Important things you should know The BFA (British Franchise Association)
Franchising in the UK is unregulated however, the BFA is the industry’s self-governing, ‘go to’ trade association. Their board, made up of experienced franchise professionals, lays down stringent financial and ethical standards that franchise operations must meet, before being accepted as members. Membership is not cheap or easy to obtain, so you can be assured that if you are looking at a BFA franchise, it will have been thoroughly checked and found to be worthy of membership. If you are looking to franchise your business, becoming a BFA member should be high on your list of priorities. The BFA website www.thebfa.org is full of useful information for anyone interested in buying a franchise or franchising their business. Always use a BFA recommended solicitor for the legal work – franchise law is NOT the same as general law and you may come to rely on the strength of your franchise agreement in time. Make sure it is done right first time.
BFA NatWest Survey
Every year the BFA runs a survey of the previous year of franchising in the UK, in conjunction with NatWest (banks are historically happy to lend money to finance the purchase of a franchise as they see them as low-risk investments) the most recent survey, 2018, turned out these headline figures.
Jane Masih, head of franchising at specialist solicitors, Owen White, said,
Your franchise agreement should be a reflection of the way in which you want your network of franchisees to operate, in your particular business system. This is a situation where one size definitely doesn’t fit all – but sadly some franchisors only discover that their agreement doesn’t protect their business, when it is too late. We have drafted numerous franchise agreements for a wide variety of businesses operating in different sectors. Taking the time to discuss your franchise plans with experienced franchise lawyers at the outset, will provide not only a strong legal framework, but access to years of experience of dealing with the issues that every new franchise system faces.
How do I franchise my business?
There are various ways to go about franchising your business. Many people employ the services of a franchise consultant who will guide you through the process. This is not a cheap process but needs to be viewed against the cost of purchasing new premises/staff/vehicles. There is another way, being pioneered by franchising entrepreneur Darren Taylor, owner of Taylor Made Franchising. Taylor (43) bought his first franchise territory, Stumpbusters in 2006, going on to buy a couple of neighbouring territories very quickly and not long afterwards, the entire franchise. Following that initial purchase and with the franchising bit well and truly between his teeth, Taylor purchased four more franchise operations over the following 15 years,
the facts
- Franchising contributes £17.2 billion per annum to UK GDP, employing 710,000 people, with 93% of franchisees claiming profitability and less than 1% of franchisors closing per year due to commercial failure. - There are now 48,600 franchise units in the United Kingdom, a rise of 10% from 2015. - There are also 935 business format franchise systems, around double of what there were 20 years ago. - Franchising is ahead of the wider business world when it comes to women owning and running their own business. 30% of all franchisees are women. - Currently, 18% of all franchisees are under the age of 30, a significant rise from the previous survey in 2015. More young people than ever are becoming franchisees. - Franchisees are increasingly choosing to own more than one franchise unit, sometimes with the same brand and other times with separate franchise systems. 36% of franchisees now run multiple units, a rise of 7% from the previous franchise survey. Stumpbusters, PVC Vendo, Wilkins Chimney Sweep, Thomas Cleaning Franchise and most recently, Iconic Window Cleaning. He has also sold a Stumpbusters Master Franchise which operates in the Netherlands. The UK based businesses are all part of Taylor Made Franchising, which have an annual network turnover of £7.6m a year.
The Deal
Such is his belief in the franchising system that Taylor is now offering owners of small businesses a strategic partnership deal. In return for a small percentage of the company, Taylor will bring the company into the Taylor Made Franchising brand and use
his many years of experience and that of his head office team, to franchise the company. As the owner of five successful franchise operations, Taylor knows a thing or two about how to run a business and sees this new format as a simplified way forward for many business owners who wish to franchise. Discover more about Franchising: Request a copy of the BFA NatWest Survey here:
thebfa.org/about-us/industry-research Get expert advice on franchising here:
thebfa.org/expert-advice-zone
darren Taylor has recently signed contracts with Andy Hiscock from Iconic Window Cleaning, which will act as a test pilot for the new system.
Hiscock said, By going directly to Darren, I am short cutting the franchising process and putting an expert directly in my business. His knowledge of the franchise sector is second to none and he has an experienced management team in place ready to help. Also, as a co-owner of the business, I know he is going to do his very best to develop it into a successful franchise operation. I am really excited for the future and know the sky’s the limit with Darren’s help. Taylor responded, This is a new and exciting opportunity for everyone involved and my team here at Taylor Made Franchising are raring to go. Between us, we have many years of experience of the franchise sector, which we are looking forward to sharing with Andy. Iconic Window Cleaning is the perfect example of a business ready to franchise, Andy built it from the ground up, he knows his product and service inside out and now he’s ready to expand and, with our help, 2021 is going to be a great year for him. We would welcome enquiries from any other would-be franchisors to help them on their way to franchising success.
accounting by Michael Newman from Quantum Tax
seven ways to
Maximise r&D The SME Research & Development Tax Relief scheme supports companies that work on innovative projects in science and technology. The average R&D claim is currently more than £80,000, and is usually taken as a BACS payment, paid directly into the company’s bank account. It is an important relief which all SMEs that solve technical problems should consider. So, if you carry out one-off projects, do bespoke work for clients, engage in trial-and-error developments, then you may well be eligible for R&D tax credits.
So, let’s move on to how you can maximise your R&D tax credit claim…
DON’T MISS YOUR DEADLINE This is the big one. If you were to make a claim now, you could claim for all the activity done in the two years up to your last year end date. As an example, let’s say your year-end is 31 March 2021. If you file your R&D tax return before 31 March 2021, you can include all of the development work done in the two years from 1 April 2018 to 31 March 2020. If, however, you file after 31 March 2021, then all of the work done from April 2018 to March 2019, is lost – you can’t claim for it.
KEEP GOOD RECORDS
2
An online bookkeeping system is a good solution. In most online accounting systems, there is an option for departmental analysis. Which means you can set up a department called ‘R&D costs’, and, as you enter your purchase invoices into the system throughout the year, you can assign your R&D invoices to that department code. This will help you reduce the risk of missing something that could be used towards your claim. You will also be able to run an expense report to see your total costs on R&D at any point in the year.
CONSIDER THE EFFECT OF GRANTS BEFORE YOU APPLY Many grants are classified as state aid. You cannot claim SME R&D tax credits on projects that are also state aid (you may still be able to claim under the RDEC scheme, which is much less beneficial, and not discussed here). So, before applying for a grant, look at the value of the grant, and the total costs involved. It may be that the SME R&D tax credits scheme is more beneficial to you than receiving the Grant.
3
PAY DIRECTORS SALARY RATHER THAN DIVIDENDS Many directors of SME businesses take a small PAYE salary, and boost their earnings with dividends. This is often the most tax efficient way for the directors to extract profits from the business. But dividends can’t be included in an R&D Tax Credit claim. So, where a director contributes significantly to R&D, it may be worth considering putting a higher salary through for the director, to potentially claim more in R&D tax credits. This would of course need considerable review to determine the benefit, because every director’s personal tax situation is unique.
Subcontractor costs are allowable for an R&D tax claim but are restricted to 65% of their total costs.
SUBCONTRACTORS Consider bringing your subcontractor onto your payroll. This would allow you to claim 100% of that person’s R&D costs, and VS EMPLOYEES you would then get the 130% R&D uplift too -i.e. a total of 230% of their costs!! Again, this needs careful consideration. It only really becomes an option if you have confidence that you will have enough work for the subcontractor(s) throughout the year.
6
TRAVEL COSTS One of the strange rules for R&D tax credits is on travel costs. Travel costs are NOT allowed if they are paid from the company’s business bank. They ARE allowed if the member of staff pays the costs themselves and claims the costs back from the company later. So, where your employees have to incur travel specifically for R&D projects, see if it is an option for them to pay for it themselves, and reclaim it on a monthly expense form so that you can use the costs in your R&D claim.
CREATE AN INNOVATION CULTURE IN THE BUSINESS
You should do this, anyway. This is an entirely separate discussion, but simple things you can do to nurture an innovation culture are:
- Actively look for problems and conflicts to solve - Work closely with “lead customers” on new ideas, and on pushing your products beyond their limits - Give staff time for creativity - Encourage ideas, and act on them
- Provide flexible working - Share the company’s values and goals
- Recognise and reward innovative ideas throughout the business
Looking for more information? Quantum Tax has all the answers quantumtax.co.uk
we are specialists in public relations & social media www.bigredboxpr.com louise@bigredboxpr.com 00441242245137
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wellbeing
stay well What a start to this year. Speaking to most people dry January went out the window on the 5th, veganuary by the 7th and stress levels went right back up!!! Hardly surprising with the restrictions and difficulties this pandemic has created socially, commercially, physically and mentally. This is why structure to our food and fitness is paramount to getting through this year and beyond. Accountability and tracking health stats/progress are extremely helpful when creating structure in the working week. Many people in January sign up to further restrictions in terms of diets and unobtainable, unrealistic fitness routines. This often leads to rebellion and refusal which is interesting seeing as it was the individual who decided to set these. With over 20 Januarys experience in the fitness industry, I come to realised that
The main factors in creating a healthy sustainable enjoyable lifestyle are: - Exercise regularly without it taking too much of your time - Eat healthily 90% of the time - Sleep well (granted easier said than done)
people need to live their lives in amber. Most people spend their time bouncing between two extremes – green and red. Red being those harsh weeks or months where people pin themselves down to a very harsh restrictive lifestyle and green when they can handle the red and let loose – alcohol, late nights, overindulgence and bad food choices. This way of living month in month out, year in year out is physically draining and mentally exhausting – yet in times such as now this way of living is at least the one thing we can control. A life in amber may sound boring but it is not. All in moderation. So eat well and exercise regularly, but also enjoy the odd night where alcohol and less healthy food are prominent. The key is that these choices happen less often and are not the norm!!
REMEMBER AMBER is the way forward and has been my ethos for Xerlife! Sign up for a healthier life for you and your employees from as little as £1.99
xerlife.com Watch below as Paul from Xerlife takes you to a short session of stretch and flow exercise. It’s the perfect antidote to the confines of the desk and the stress of a working day.
- Stay hydrated - Find exercise that you enjoy both physically and mentally - Eat food closest to its natural state - Track your health stats and progress to increase motivation - Laugh and socialise (abiding by our current rules!!)
stretch and flow
finance
protect from the WORST EVENTUALITIES
Running a business is never easy – and the past year in particular has certainly brought that statement into sharp focus. One of the big questions – perhaps the biggest – that businesses have to face is what would happen to their business if a key member of the team were to die or suffer critical illness. Sadly, the coronavirus pandemic has brought this question uppermost in many owners’ minds and provided them with the impetus to review their current protection. Businesses spend a lot of time and money insuring their property, machinery and equipment and on a range of benefits for their staff. However, in our experience, far fewer seem to consider the impact of the loss of a key person or business owner on the business itself. This is despite research published by Legal and General in 2019* that found 52% of businesses say they would cease trading in under a year if a key person died or became critically ill.
So, what can businesses do to protect themselves against these kinds of risk? There are a number of options available. Key Person Protection Businesses can take out an insurance policy (with or without critical illness cover) to protect their business against the loss of a key person or business owner and the resulting impact on profitability. The definition of ‘key person’ is anyone who has specialist skills, knowledge or contacts and whose loss to the business would cause significant financial difficulty. In the event that the insured person dies (or suffers from a critical illness, if covered), the business would receive a financial lump sum in compensation, which can sometimes be payable in instalments.
PREPARE THE UMBRELLA BEFORE IT RAINS. - a malay proverb
Shareholder / Partnership Protection Plans These plans allow surviving partners or directors of a business to remain in control, should the worst happen to one of them. Shareholder / Partnership protection
policies pay a sum to the remaining shareholders / partners, which enables them to cover the cost of buying all or some of the shares from the shareholder’s / partner’s estate, whilst ensuring that the deceased’s family members receive a fair value. Without this protection, the deceased’s share in the business may be passed to their family. This could result in the surviving shareholders / partners losing control of some or all of the business, or the family could decide to become involved with the business, or decide to sell – perhaps to a competitor.
£175,000. If your business takes out Business Loan Protection, it will pay off outstanding loans if the business owner(s) of that loan were to die or to fall critically ill (if covered). Businesses face many risks, but many of them can be insured against. By taking out one or more of the policies outlined above, your business can gain peace of mind that should the worst happen, you will be protected. Although there is obviously a cost associated with the policies, they could make the difference between your business surviving or dying.
Business Loan Protection According to the Legal and General research mentioned above, over half of businesses have some form of borrowing; the average amount in their survey being
For more information on each of these protection solutions get in touch with Brunsdon Financial
brunsdonfinancial.co.uk
*Source: ‘Business Protection: State of the Nation’s SMEs report’, 6 th edition, published by Legal and General, October 2019.
the pros
PROS: - An excellent financial safety net in the event of the death of a key person. - It can be a very affordable form of insurance - Ensures business continuity - Provides funds for remaining partners - Ensures that family members of the deceased receive a fair value of the business CONS: - There are strict rules which must be complied with in relation to a company buying back its own shares.
- Company buy back arrangements are generally not suitable for new companies since the shares must have been held by the seller for at least five years.
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people
is
personal Do you remember that moment on the film ‘Taken’, when Liam Neeson is searching for his abducted daughter who is being trafficked? He is in a lift and is pointing a gun at the perpetrator? The evil man says, “it was never personal, it is just business” and Liam replies “It is personal to me”. Well, I identify with that within the business world. Several years ago, a pivotal moment in my self-worth, and the direction of my life that I took, was when an investor, who was brought onto a Board of a Company that I Founded, by one of the other major Shareholders. As we left the first meeting that she attended, she turned to me and said, “You know Penny, I don’t have to like you, it is just business, it isn’t personal.”
Wow, I thought, this is going to be hell, and I was not wrong. My business was personal to me. It is where I place my values, my passion, my time, my energy and my desire to have impact. I am in my 4th decade of business, thirty-seven years of commitment to the focus, disciplines and tenacity of business. Twenty-five of these years have been as my own boss, a business owner. Business has always been personal to me. The way I treat others, the values I hold, the integrity I live by and the joy I seek for myself and others. For many years I thought that business was my own private battle, I felt isolated from what appeared to me the reality of others. I had a mantra of ‘one day I will be a proper
I stated ‘cope’ with, as I never wanted to be like ‘them’. I could hear words my mum said to me when I was a little girl, “Penny, never drop your standards to those of others.” I never did. However, that meant the daily grind of my ambitions and my inaccurate belief that I had to cope with how others behaved, take nastiness, bullying at times, on the chin. Afterall, I had to have shareholders in the businesses I was fast scaling, and I had to focus on the money that clients would provide to achieve the revenue targets, so abuse, assertive control and allowing my life to feel out of control by adapting to client’s was critical. A study on mental health was published by Michael Freeman in 2015. This amazing psychiatrist and professor looked at anxiety, depression and stress, so commonly felt by those striving to build their own business. His statistics on his findings are exactly what I would imagine, ‘entrepreneurs are 50% more likely to suffer depression’. There will be a vast number of reasons for this, and perhaps you can think of the ones that resonate with you. For me, I discovered in 2017 following years of financial challenges with our global business, and many emotional traumas that impacted my family, that I had a type of depression, called ‘The Curse of the Strong’, a term coined (and a book by the same name), by Dr Tim Cantopher, Consultant Psychologist at The Priory. This is a hidden form of depression that impacts our resilience, self-worth and in time our ability to achieve success. Those of us in business that are driven by helping others, are very susceptible to this. I discovered that I was not mentally unhealthy, however, I was just not mentally fit enough. I had poor self-care around my own needs, gave myself very little time to relax, placed myself at the very bottom of a large pile of tasks and had lost the reason I was working so much.
Since publishing my book “Business Is Personal’*, in January 2019, I have been overwhelmed with the number of business owners that have read (or listened) to it who have said that their business careers have been the same and that they too have reassessed the way they are now treating themselves. As the greatest asset within our business is ourselves, yet we treat ourselves so poorly. My decision was to close the gap between my identity in the world as the ‘Founder of the first Social network, the ‘Penny Power OBE’ with the shiny life, and my truth. A determined effort to normalise the life of an entrepreneur so that anyone that feels they are ‘sub-normal’ in business, achieving less, finding it harder than others appear to, will feel ‘normal’ and let’s face it, the gap between normal to being exceptional is a lot shorter than the gap between ‘sub-normal and exceptional’. My truth shared, will help others.
penny power obe
businessperson’, able to ‘cope’ with the nasty, the ruthless, the selfish and the self-focused. How times are now changing, thank goodness.
email. Not knowing when we will have the life that we all left before lockdown and this pandemic. This is a time to reflect, create new habits and to really ask ourselves, how can I pivot my business life so that I am leading the life and business I truly want? It starts with acknowledging that Business IS Personal, then the rest is up to you.
My journey after this self-discovery was the most powerful period in business I have ever had and has led me to build a business that is both lucrative, rewarding and completely around my personal definition of success. As a result, those clients I work with learn, like me, to lead a business and life that is right for them. Once that is discovered, it is amazing what hidden joys you unlock and the financial rewards that ensue. We live in unprecedented times, a feeling of ‘being out of control’, of days and days sitting in our homes working on Zoom and
DISCOVER MORE AT JPRENVIRONMENTAL.CO.UK
Finally, we are all craving truth, and as we regularly hear, “be the change that you want to see in the world” first know your truth, and then live it. Are you looking for a bit of inspiration? These books may help: The Curse of the Strong by Dr Tim Cantopher
https://amzn.to/3pnAKUN Business is Personal by Penny Power OBE
https://amzn.to/3qUJFgX Or find out more about Penny Power OBE here:
pennypower.co.uk
how’s your and what has it got to do with business? TURN OVER TO FIND OUT...
sales
our top tips for following up: - Always follow up. - Follow up within 5 days of your pitch or proposal and agree a time with the prospect when you will follow up. - Try to follow up using a phone call in the first follow up. - If you can’t get hold of the person then plan a follow up every 4/5 days. - After 3 follow ups trying the phone then move to email follow ups for a response. - After 6 follow ups move to a text message or WhatsApp message. - After 7 follow ups (this might be after 6 weeks) then plan a follow up every 3 weeks via email. - After 9 follow ups then close off the follow up process with a polite email. - Add the prospect into a 3 monthly follow up if you still have not heard from them. - Never stop following up. There may be a time when they are let down or the prospect changes jobs, so always keep in touch.
the courage When you are dating, so much is reliant on the first date; not just how the first date goes but what happens after the first date. Can you remember waiting to either receive the call or the text or make the call or text after the date? The fear of them saying that they did not enjoy the date and would not want to see you again, or the excitement that they do want to see you again. Sales is so similar to the dating game and the follow up after the date is usually a similar story. You worked so hard to get the date and then you don’t pursue after the date! Many people decide not to follow up out of fear or making their own assumptions as to how well the date went. It is natural to feel fear because there is a chance of rejection. The number of salespeople that do not follow up, or only follow up once and then most of the time do not actually speak to the person or get a reply to an email, is astounding. The average salesperson only follows up three times and then stops, just think what would happen to your close rate if you started to follow up four times or more!
The sales process is really simple and has not changed through time, admittedly elements of presentation have, but the fundamentals have stayed the same for hundreds of years. Prospects either need your product such as machinery oil, or they need your service to solve a problem they have. You need to get to speak to the prospect then find out what they need, present what your product/service can do for them, answer any objections and ask for the sale! A follow up can take many different formats today, it can be a call, an email or even a text message, but make sure you follow up in some form. The follow up is normally an opportunity to answer any objections, questions or to seal the deal and close the sale. You must never see the first follow up as the end even if the person says no. It simply means that you will follow up again with them in the future. Without following up fully you will not close the sale and you will not keep your pipeline fresh. Within this article we are really looking at solution selling or services or capital items, transactional follow ups follows a different path because a prospect may well take a digital marketing pathway where they self-serve on the purchase, this will be covered in another article. When you are following up always remember that your prospect might be busy. Keep in mind that your competitors may not be following up as well and as often as you do and most of all, be timely with your follow up and don’t be afraid to ask for the sale.
NOT FOLLOWING UP WITH YOUR PROSPECTS IS THE SAME AS FILLING UP YOUR BATHTUB WITHOUT PUTTING THE STOPPER IN THE DRAIN. - Michelle moore
write a follow up email what is your objective? It is important to include a strong CTA in your follow up email and in order to do so you need to be clear on your objective. Take some time before you start writing to decide what this is.
Give it some context Many people receive a lot of emails a day, so it is important you include a personal connection that could help your prospect pick you out of the crowd.
be straight forward about your purpose To avoid sounding spammy be sure to clearly state the purpose of your emails. Be specific, and don’t waste their time.
Create a catchy subject line Try writing your subject line after you’ve identified your purpose, context and objective. That way you can ensure it is an accurate representation of your email.
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company overview
excelwraps
Welcome to the Business Owners Magazine quick interview – conducted in a very socially distanced fashion! Here we try and get an insight into a company leader and their industry to find out what makes them tick and how their challenges and lessons could help you in your business. - Name
John Doyle
- Company
ExcelWraps
- Position
Director
- Industry
Railway
(Rolling Stock Technology)
What does your company do? Enables railway engineers to build cloud software solutions to bring control to any business process without any specialist software development skills. What changes or challenges do you foresee for your company in the next three years? Persuading the whole railway industry that they can put themselves in a position of control by harnessing our technology. Are you optimistic, realistic or pessimistic about 2021? Optimistic! What is the most important task you carry out each day? Meeting new prospects and showing them how we can make them operate more efficiently. What is your company’s most important KPI? Number and growth of users. What positive effects has your company experienced during lockdowns? Clients much more readily use screen
meeting software, and we all benefit from shorter more frequent meetings and less time wasted in the car. Clients more readily see the benefit is expanding use of cloud-based software allowing their own teams to work remotely. No wasted car journeys! What causes you the most stress in your business? Banking, billing and red tape. If you could instantly change one area or thing about your business, what would it be? To be known as the de facto software platform for any railway company. How would you rank the following in order of importance (1 most, 5 least) - Enviromental (1st) - Team communications (2nd) - Sales Pipeline (3rd) - Strong Financial Data (4th) - Social Media (5th) What do you do to unwind? Cherish my favourite people.
OFFICES
WORKSHOPS
Flexible Terms, Co Working Space, Serviced Offices, Workshops, Storage. Ideally located near M1 Situated in Northamptonshire and it is the perfect creative environment to work in.
E: space@the-depot.uk
Lockdown Week 5 1: We didn’t move our staff to cloud working. (We moved thousands of yours.)
IT Support Cybersecurity Software Hardware Telecommunications
www.lineal.co.uk | 01271 375999
STORAGE T: 01327 341303
W: the-depot.uk
people
Making the
of pensions
Pension schemes may not always be the top of anyone’s agendas – however, what is often overlooked is the ability to use the additional flexibilities of certain pension schemes to dovetail with business requirements, all whilst allowing the business owner to benefit from the main purpose of a pension scheme and save for their retirement at the same time. In this article I will explore some of these flexibilities.
Not all pensions are created equal. Like many things, different pensions offer different flexibilities – ultimately the need for these depends on a person’s objectives. Certain pensions, known as Self Invested Personal Pensions (SIPP) and Small Self-Administered Schemes (SSAS) offer the highest level of flexibility in UK pension legislation, including the ability to lend money back to connected companies, purchase commercial property and even invest in connected company shares. Lending This flexibility is specific to a SSAS, given this pension scheme is established by a
company, and therefore has the flexibility of lending up to 50% of its net value back to the employer.
There are wider conditions to bear in mind including: - Interest rate should be commercial but must be at least 1% above the average base rate for the 6 leading high street banks. - At least equal annual repayments of capital and interest. - Security by way of first legal charge on an asset(s) of equivalent value to the loan plus interest. - Term of no more than 5 years, although can be rolled over once. If all the above can be met, this can be an excellent way of creating an investment strategy for the scheme whilst also assisting a business with a particular project or cash flow need for instance. There is the added benefit in that the interest is typically a
deductible expense for corporation tax purposes. Property purchase This strategy is available for both SIPP and SSAS and can work most effectively for a business if they are trading from an existing property they own or are looking to perhaps expand. In this instance, the pension fund purchases the commercial building, which is then let out to the company. The market rent is paid into the scheme, again, funding the business owners’ pension as well as (in most cases) being deductible for corporation tax. Payments into the pension as rent are not subject to income tax. The pension fund can also borrow up to 50% of its net value to assist with financing the property purchase if necessary. The added bonus here is if the property is sold within the scheme, any gain that is made is free of capital gains tax, like all assets within a pension fund. Share purchase Dependant on the structure of the pension scheme, and indeed the pension provider, there are different limits in which a pension scheme can invest in a connected business owner’s company via the purchase of shares. However, the broad premise is this option allows the business to potentially raise cash, whilst the pension fund has an asset from which to benefit from ongoing dividends/capital growth in a tax-free environment. Although it is worth noting stamp duty costs and potential capital gains tax may be applicable to the seller. Word of caution It is important to note that, although sounding a great idea on paper, sometimes the above may not be the most suitable investment for an individual’s pension scheme. Given the connected nature, this often makes the transactions relatively higher risk than most, for instance what happens if the company goes through a period of difficulty
or ceases to trade and there is an outstanding loan/shares owned by the pension scheme? Or if the only pension asset is a property that is then unable to be let if the business does not survive, along with if there is also a debt/ borrowing to service. These are all questions and risks that need to be weighed up with an appropriately qualified adviser however there is no doubt that the transactions, and pensions in general, can often assist many different types of business as well as enabling owners to grow their own pension pots for retirement. Final thoughts Gone are the days where a company would cater for an individual retirement with a gold-plated final salary pension – now the responsibility is on the individual. However, this has also led to pensions becoming far more flexible than most believe and therefore often being overlooked when they should be at least considered as part of a well-rounded financial plan.
Do you need a bit more help or advice on pensions? Get in touch with Martin Jarvis from Mattioli Woods for more information.
martin.jarvis@mattioliwoods.com
meet the boss
Matt Blewett - Name
Matt Blewett
- Company
Shuttercraft
- Position
Owner director of a franchise
- Industry
Shutters and blinds
Gloucestershire/ Oxfordshire
What was your first job or role after education? I left school in 1982 and when on to do an apprenticeship in arpentry and joinery, qualified after three years with a City and Guild Advanced Carpentry and Joinery certificate. Could you describe your career path for the reader? Since I left school in 1982, I have never been out of work. In 1990 I got involved in the blind industry, and I started as an employed fitter and worked my way up to selling and installing blinds in an area in the South West and South Wales. I then got headhunted by a conservatory manufacture for 2 years until I was asked to return to the blind manufacture. I took on a role as a Regional Sales Manager, responsible for the South West sales team of 9 people, turning over a £2.3M in the region. In 2008 my role changed again, due to the credit crunch, I was asked to be a Senior Sales Designer for the same company for 12 months and returning to a self-employed role again for the next 3 years. This where I began looking for another opportunity to do something for myself and being my own boss. I approached a shutter supplier S:CRAFT, to become a trade partner in the
Gloucestershire area. This became an opportunity to buy a franchise business in shutters and I’ve never looked back. Over the last 9 years owning the franchise, I have grown to employing 4 people and acquiring a 2nd territory in Oxfordshire to a £500K turnover business. What is your current role and what is your favourite part about it? My current role is business owner and director of a shutter franchise, where I carry out a day to day selling directly to the homeowner, a supply and installation service of very high-quality plantation shutters in the Gloucestershire and Oxfordshire areas. My favourite part of my day is meeting new customers and making their homes look amazing with newly fitted stylish shutters. Their reaction on seeing the shutters fitted on their windows speaks volumes, “that looks amazing, what a difference the shutters make on the room, it makes the room look bigger, and I don’t feel like I am in a goldfish bowl!” Are you optimistic, realistic or pessimistic about 2021? I am very optimistic and realistic about 2021. The market in shutters is still
growing at a very good rate and I believe I will grow by an another 10% on what turnover we did last year. There is a realistic growth in the current circumstances of the blind and shutter market. Last year we at Shuttercraft grew by 34% from the year previous and if we take all the opportunities that are given to us, the 10% growth is very achievable. What is the most important task you carry out each day? Wake up! It’s a new day and new opportunities are there to be taken. I make sure I have prepared for all the surveys you are going on for that day. Never make promises you cannot keep to a customer; be honest, be yourself always, no matter what you are trying to achieve. Most of all sell! Sell! What advice would you give to your 21 year old self about your career journey? Believe in yourself. You can achieve anything you put your mind to, by working hard. Set yourself realistic goals that are achievable. I was told by very wise old man - my father! “The world is your oyster”, you do anything you want, as long as you work hard and set yourself achievable targets. Have there been any positives about 2020 and lockdown for you? The positives of 2020, if you are able to adapt your operation into how you cope with Covid-19, we used an online service to an amazing effect and taking orders online by using the ‘Customer Guide to Measuring’ service. This involved a video call with the customer, showing the customer how to measure their windows, using the website as to what product is best, what colours and styles of shutter is best suited for their windows. If the windows were a more complicated design, we would give them an estimate and arrange for a site survey under the social distancing rules. What causes you the most stress at work? Not being able to deliver what I promised to
the customer. I am not very good excepting failure in not giving great customer service from the day we make contact to delivering their shutters on time and fitting perfectly. I thrive on customers giving me great feedback and perfect satisfaction of our quality shutters and fitting service. If you could instantly change one area or thing about your business, what would it be? Being able to let go of the reins on areas of the business that take up most of my time, which would allow me to sell more, which what I am good at. I have now employed 2 new fitters, of which one will become a survey and fitter. This will give me more time to grow the sales in both areas, by dividing the 2 areas into two halves to maximise the territories to either full potential. What do you do to unwind? I am a keen cyclist and try get on my bike 2 or 3 times a week. I love watching rugby and cricket. I also have a love for sailing, and have done it most of my life, either in a dingy or on a yacht. We have just got a Dalmatian puppy called Lola, who keeps me on our toes and allows me to go on nice walks too. If you could give a single piece of advice to a start-up entrepreneur what would that be? Make sure you do your research and know your market. Be very committed and believe in yourself that you can achieve your goals and ambitions. Be realistic in what targets and goals you set yourself and stick to it. Never be afraid to accept help and know your weaknesses. You work with your weaknesses to be your strengths in running a successful business. Surround yourself with the right people, who may even be better than you in aspects of your business, this could turn you into being more successful. Thank you for taking the time Matt, great to hear from a successful franchisee. If you are interested in Matt’s services, please head to: shuttercraft.co.uk/locations/gloucestershire shuttercraft.co.uk/locations/oxford
do you want to the business owner magazine? There are a number of exible options available to you. The Business Owner Magazine is a great place to advertise your business to other business owners.
Get in touch to ďŹ nd out all the details. hello@iplusgroup.co.uk 01242 312121
t he be st magazine sp ecifically for business owners
THE BUSINESS
OWNER MAGAZINE
HOPE IS.. Hope is a word written deep in the heart and thoughts of every human being, that makes our mentality ďŹ rm. Hope is an expression, what keeps us inspired to do, that we fails to do today, hope for a success tomorrow. Hoping for a better tomorrow, we work hard today, hoping to earn more, invest in sustainable business.
- norbu Dorji
t he b e st magazi ne spe c i fic a lly for busine ss owne rs
THE BUSINESS
OWNER MAGAZINE
