Category: accounting news

As a small business owner it’s hard to juggle your work and outside responsibilities. It’s important to run your business effectively and still have a life outside the office.

You need a good balance between work and play for your health and well-being. Small business owners often fall into the trap of working too hard, ending up exhausted from the constant work demands associated with self-employment.

Why you need balance

Working too much without taking time out for yourself and your family can quickly become counterproductive. You’ll be tired, stressed and irritable, leaving you unable to perform optimally. As a result, you’ll be more likely to make mistakes and snap at people who are important to you and your business.

Some dangers of overworking include:

• Missing opportunities because you’re too busy
• Being short-tempered with your staff, affecting their attitude and performance
• Treating your family poorly, resulting in an uncomfortable home life
• Working to the point of burn out or illness
• Losing the passion that prompted you to start your business.

Avoid burn out

There are a number of things you can do to scale down your workload and regain a sense of balance.

Start delegating

Delegating will take some of the pressure off you and free up time for more urgent and important tasks, allowing you some leisure time to relax.

Create good systems

Develop a clear operations manual for each process in your business. This lets you and key staff take a break, and speeds up training when someone new comes into the business.

Stretch and walk

Take a few minutes every so often to get up from your desk and stretch. It’s good for your body and will help you stay focused.

Talk to your family

Ask for suggestions and input – they’ll see things that you can’t.

Network with other business owners

Chat to fellow business owners who seem to be working normal hours. You’ll stop feeling so isolated and you might get some valuable advice.

Take mini-breaks

Put mini-breaks into your diary. Schedule a day off once a month, a week off every 12 weeks, or perhaps take every second Friday off.

Re-evaluate your client base

Do you have customers that take up far too much of your time for very little gain? Find a polite way to stop doing business with them or pass them on to staff members to deal with.

Stay motivated

Staying passionate about your business and motivated to do your best is important. If you find you just don’t have the energy you once had, your staff and business will suffer. Take action before you start to enter a negative spiral.

You could try the following:

• Set exciting and challenging new goals.
• Share your goals with your staff so everyone understands what you want to achieve.
• Set measurable ‘stepping stones’ to the main goals and celebrate each achievement.
• Refresh your daily routine. Allocate blocks in your diary for key daily activities, such as checking emails, meetings, and visiting clients.

By staying motivated and avoiding burn out you’ll have the foundations in place to enjoy running your business again, while also retaining a fulfilling life outside work.

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

The same advice for building a healthy investment portfolio applies to your business: diversifying will lower risk and increase growth.

Adding a recurring revenue stream (or two, or three!) can provide a predictable, ongoing source of income which will improve the accuracy of your projections, increase profits, and provide a buffer for any unexpected sales dips.

Here are four simple ways to start earning recurring revenue for your small business.

Auto-renew subscriptions

The most tried and true recurring revenue model? The subscription that automatically rolls over each month unless cancelled.

Think newspapers, magazines, Netflix, and those delightful subscription boxes that arrive each month featuring food items, craft kits, cosmetics, specialty teas, books, or clothing. Some B2B examples are cloud based accounting software, document storage, anti-virus protection, and web hosting.

Customers depend on their evergreen subscription services because they make their lives easier or more pleasant. As long as they feel they’re getting value for their money, your customers won’t give the small monthly fee charged to their credit card a second thought.

Tips for getting started: Research what your competitors are offering, and talk to your customers about the kinds of products and services they’d be happy to pay for on a monthly basis.

Membership sites

If you’re an expert in your field, a membership site can provide a lucrative opportunity to serve more clients on the web—and earn more income.

In addition to paid, password protected content, your membership site can offer your clients an online community portal, where they can socialize and connect with you for group mentoring outside your office hours.

Ideal for location-independent minded entrepreneurs, coaches and consultants, a membership site allows the freedom to serve clients all over the world.

Tips for getting started: If your website is built on WordPress there are a number of membership site plug ins available to let you accept secure credit card payments and provide member-only access to certain content.

Affiliate subscriptions

Unlike set monthly subscriptions, being an affiliate may offer a less predictable income stream, but, nonetheless, an opportunity to earn some passive income.

With the affiliate model, brand ambassadors are paid a set fee or percentage of each total sale for each successful referral. If you’ve built credibility and trust in your brand, some of your customers will likely be willing to pay for the products and services you recommend.

How to get started: Make a list of the businesses that you regularly buy from. Check each company’s website to learn how to become an affiliate. Once you’ve signed up, you’ll be sent a unique link to share with your customers. Every time a purchase is made using the link, you’ll earn a referral fee.

Final thoughts

To learn more about the benefits of setting up recurring revenue streams, take a look at John Warrillow’s, The Automatic Customer: Creating A Subscription Business in Any Industry.

In addition to increasing sales and profit margins, recurring revenue can lead to better customer retention as well as greater growth for your business.

Now that you know a bit about recurring revenue streams, which model is right for you?

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

As a small business owner, you know the importance of getting the word out about your company and engaging with customers. Social media platforms are indispensable tools for achieving this. 

The following is a guide to help you leverage social media to increase your brand’s awareness, engage with customers, and generate leads.

Step 1: Define Your Goals

Before diving into the world of social media, it’s crucial to identify your business goals and understand how social media can help you achieve them. Some common objectives for small businesses include:

• – Increasing brand awareness
• – Building customer relationships and loyalty
• – Generating leads and converting them into sales

Step 2: Choose the Right Platforms

While there are many popular social media platforms, not all may be suitable for your business. Choosing the best platforms for your business will depend on your target audience and the type of content you create.

Some of the most popular platforms include:

• Facebook: Offers a wide reach and flexible options for engaging with customers.
• Instagram: Ideal for visual content and targeting younger audiences.
• TikTok: A hub for viral trends, music and educational content, TikTok is primarily focused on younger audiences. For business owners it offers a unique opportunity to connect with a  global audience, boost brand awareness, and promote products or services in a fun and engaging way.
• LinkedIn: The best platform for B2B marketing and professional networking.
• Twitter: Great for real-time updates and sharing news about your business.
• Pinterest: Excellent for businesses with visually appealing products, especially in the fields of fashion, home decor, and food.

Step 3: Develop Engaging Content

To make the most of social media, you need to create content that resonates with your audience. Here are some content ideas you can use to engage with users:

• Share behind-the-scenes looks at your business operations or new product launches.
• Post customer success stories and testimonials.
• Share educational and informative content related to your industry.
• Publish promotional content, such as limited-time offers, contests, and giveaways.

Step 4: Content Distribution Plan

Now that you have created engaging content, it’s time to decide how to distribute it across various channels. To do this:

1. Create a content calendar with a detailed timeline for posting on each platform.
2. Consider the optimal times to post on each platform for maximum engagement.
3. Consider using scheduling tools like Buffer or Hootsuite to automate the posting process.

Step 5: Measure Your Success

To ensure that your social media strategy is effective, it’s crucial to track key performance indicators (KPIs) over time. Tracking these KPIs will help you understand the effectiveness of your campaigns and make necessary adjustments:

• Number of followers, likes, comments, and shares
• Reach and impressions
• Engagement rate
• Click-through rate
• Conversion rate (number of leads and sales generated). 

Step 6: Align Content with your Brand Story

Lastly, make sure that all content pieces align with your company’s brand guidelines and convey a cohesive narrative that tells your brand’s story. This will help create a consistent brand image and reinforce your brand identity in the minds of your audience.

Small businesses can get a big boost by using social media to spread the word about their brand, connect with customers, and find new opportunities. Just follow these steps and you’ll be on your way to an awesome social media marketing plan for your small business.

Enjoy sharing!

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

It’s hard to go a day without reading something in the news about the state of the economy. Whether it’s interest rates rising or the cost of living, there’s no getting around the fact that in 2023 there are many doing it tougher than a few years ago. But while there are some economic challenges for individuals and businesses, it’s important to not go too far down the rabbit hole. Remember – economic conditions are forever changing, and one thing history tells us is that things can change at any point.

If you’re concerned about the economy’s impact on your business or have already experienced its effects, read on. In this article, we’ll explore ways to adapt and improve your business during slowdowns, so that when the market bounces back, your business can emerge stronger.

Take the time to really understand your market conditions

The news can often overwhelm us with negativity. While it’s crucial to stay informed, consuming every opinion piece and social media commentary can lead to a negative mindset. Instead, focus on your own business and industry to identify the real challenges you’re facing. Research might even uncover some opportunities too.

Consider the following:

• Have there been changes in your industry or customer behaviour?
• Can you identify any new, untapped opportunities?
• Are there any emerging trends that you can take advantage of?

Understanding your business’ position in the market and identifying opportunities to differentiate from competitors is crucial. It guides your marketing budget allocation and shapes your products/services.

A chance to improve for efficiency

If your business is experiencing a slowdown and you have some extra time, it’s a great opportunity to work on improving your business. Many business owners find it challenging to make improvement initiatives a priority over customer or administrative tasks, but now you can focus on executing those long-standing plans. These activities can make your operations more efficient, and this will be even more beneficial once things pick up again.

Documenting processes

Capturing your business processes is a valuable way to improve efficiency. Documenting procedures and creating visual aids can help onboard new team members faster and safeguard against knowledge loss. It’s essential to protect your business from the risk of key personnel leaving.

Automation

AI and automation are changing everything. Explore how these technologies are used in your industry to streamline tasks like data entry, reporting, and inventory management.

Update old systems

Migrating from one system to another can be complex and time-consuming. Businesses often stick with legacy systems for longer than necessary. But new tools can speed up daily tasks, benefitting long-term business growth. These new tools are good for business long term.

Exploring different revenue streams

Consider exploring additional offerings if there is a decline in demand for your core services or products.

Service related businesses

Consider your team’s existing knowledge. Can you broaden your work to capture more customers? For example, if you’re a builder who completes new builds, think about how you can communicate your skills for property maintenance, custom carpentry, outdoor living spaces, or project consulting. Your skills and industry knowledge can be used in various ways – just take some time to think about it.

Product related businesses

Consider expanding your product offerings to include items that align with your brand and are cost-effective to source. This can help diversify your revenue streams, keep your brand current, and provide marketing opportunities through email campaigns.

Nurture customer relationships

Focus on your existing loyal customers as a top priority, as their satisfaction is key to maintaining a successful business. While acquiring new customers is important, remember that the cost of acquiring them is often higher than retaining the ones you already have. In today’s digital age, providing great customer experiences is crucial, as online testimonials and recommendations greatly influence potential customers. Take advantage of any quiet periods to add spontaneous value to your loyal customers, whether it’s offering advice, checking in on their satisfaction, or surprising them with something free. Going the extra mile for your customers and thinking beyond transactions will earn you their trust and respect, resulting in positive word-of-mouth and referrals that can significantly impact your long-term success.

Expanding B2B opportunities

Consider if your business, focused on serving end users, could also extend its offering to cater to other businesses. This can provide a consistent revenue stream with less time and management compared to direct consumer engagements. Assess whether pricing for businesses could be lower than for consumers. Estimate potential revenue against reduced margin. If the numbers align, explore this opportunity while maintaining your core business.

Keep track of your finances and budget

Regularly reviewing your finances is crucial to improving your business’s health. During quieter periods, you have the opportunity to implement cost-saving practices that can have a lasting impact. For example, consider reviewing your suppliers for cheaper options to save time and money. Conducting a comprehensive expense review can unlock savings without significant disruption.

Understand natural business cycles

Keep calm and avoid making hasty decisions based on short-term events. While it can be difficult to ignore the constant commentary on the economy, it’s in your business’s best interest to rely on concrete facts and data when making decisions. Having a long-term business plan serves as a reference point for guiding your choices.

If you need help balancing short-term actions with long-term goals, reach out to our team for advice.

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

As a small business owner, you may be considering enabling a remote work environment. With the rise of technology and the pandemic shifting the way we work, managing a remote team has become a popular option for business owners looking for new and unique ways to grow their business. 

However, there are both benefits and drawbacks to consider before making the switch.

We’ll start with the benefits.

1. A larger talent pool: With a remote team, you have the ability to hire employees from anywhere in the world. This opens up the talent pool and allows you to find the best fit for your business regardless of location. If the best person for your company is outside of commuting distance, that’s no longer an issue for you.
   
2. Lower overhead costs: Managing a remote team means you don’t need to rent office space or pay for utilities, saving you money in the long run. You also don’t need to provide equipment, as your team members can use their own devices. Of course, if they need highly niche equipment to effectively do their job you may want to consider reimbursing them.
   
3. Increased agility and adaptability: Remote teams can often be more flexible and adaptable to market or industry changes. Workers can more easily adjust their work schedules or routines to accommodate new projects, client needs, or unexpected events.
   
4. Improved employee satisfaction: Remote work can be a huge benefit for employees who value flexibility, autonomy and work-life balance. By offering remote work options, you can attract and retain top talent and boost employee satisfaction and loyalty.

While there are many benefits to having a remote team, there are also some drawbacks to consider.

Because it can be harder to read tone and body language over text or email, communication can be more of an issue with remote teams than onsite teams. This can lead to misunderstandings and miscommunications among team members.

Additionally, without the opportunity to chat in the breakroom or grab coffee together, it can be harder to get to know your team members on a personal level, making it difficult to build strong relationships with colleagues. This can be especially difficult if colleagues work in different time zones and don’t often overlap or have an opportunity to interact with each other.

Finally, managing a remote team can make it harder for you to hold employees accountable. Without the ability to check in in-person, you may have difficulty ensuring that everyone is on track and meeting deadlines. You may rely more heavily on self-reporting, which can cause additional issues. 

If you do decide to manage a remote team, there are a few things you can do to make it successful. These include:

• Being clear about your expectations in terms of communication, availability, and deadlines.
• Making sure you have the right technology in place to facilitate communication and collaboration, such as video conferencing software and project management tools.
• Checking in with your team regularly to ensure they’re on track and to address any issues or concerns before they become major issues.
• Building relationships with your team members. 

Final thoughts

Managing a remote team can be a great option for small business owners, but it’s important to consider both the benefits and drawbacks. By setting clear expectations, using the right tools, checking in regularly, and establishing relationships, you can help ensure that your remote team is a success.

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

If you’re looking to grow your business, you might consider expanding your service offerings. Adding additional services is a good way to increase your profitability, diversify your income and expand your market. But there are important things to consider before adding to your income streams.

Here are 4 important things to keep in mind when you consider adding to your services.

1. Does the expansion complement your business?

The best way to expand your service offerings is to add value that complements the work you’re already doing and is attractive to your current client base. While it takes more effort to bring new customers in, adding something that your current clients need and that you already have the capacity for is an efficient way to increase your profits.

If you already offer lawn maintenance, find out what other yard work your clients need done, for example. It might be fairly simple for you to offer those services to your clients, and they’d probably be happy for you to do it rather than hiring someone new.

2. Is your profitability consistently high?

Spending money to hire new people and buy more equipment if your business isn’t consistently profitable is risky. It might be tempting if you make a lot of money in one year to jump into offering a new service, but hold back until you’ve got a couple years of high profits behind you. That allows you to save money to cover the increased expenses and ensure that the one year wasn’t an anomaly.

Invest in your business, but expand your services when your profits are consistently up, not when you’ve had one really good period.

3. Is there a potential partnership or merger that makes sense?

There are times when forming a partnership or otherwise merging businesses makes sense. Is there someone out there who works in a similar capacity that you could work well with? Maybe they are great in their field but need help running a business. Explore a partnership or a buy-out.

For example, if you offer immigration consulting and you know someone who offers relocation services, you might form a partnership so the new company can offer both immigration help and relocation services. That can lead to new clients for both you and your new partner.

4. Are you doing it for the right reasons?

There are many good reasons to add new services, but there are also reasons that can increase your risks. Competition, for example. While competition can drive innovation, it’s not the only reason to add a new service—and doing so just to beat your competitors can lead to mistakes being made and money being lost. Rushing to expand is when companies find themselves in trouble for adding services there’s no market for or without a fully-formed plan.

Final thoughts

Expanding your business is exciting, but it’s important to consider some issues before you commit your time, energy and financial resources. If you’re adding new services, do so because it makes sense, you’re in a financial position to do so, your clients want it and you have the capacity for it.

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

When you’re busy running and growing your business, it’s generally not a priority to think about who will take over when you can’t or don’t want to be so involved. Transitioning leadership can be a challenging task. It demands an insightful and systematic approach to ensure that the process runs smoothly. Achieving a successful handover requires detailed and strategic planning that will benefit both the departing leader and their successor.

Here’s how to prepare:

Understanding the Current State of your business:

Before embarking on the search for a successor, it is crucial to have a clear understanding of the current state of your business. Evaluate its strengths, weaknesses, opportunities, and threats. Identify the key challenges and goals you want the successor to address and achieve. This analysis will serve as a foundation for outlining the qualifications and skill sets required for the role.

Identify Key Qualifications for a Successor:

Consider both technical skills and leadership qualities. Evaluate the core competencies required for the role, such as industry expertise, strategic thinking, financial acumen, and the ability to build and motivate teams. Additionally, assess the values and cultural fit that align with your business’s vision and mission.

Research Potential Candidates and Their Skillsets:

Look within first, considering employees who have shown promise and commitment. Additionally, explore external talent pools, such as industry associations, professional networks, and educational institutions. Seek out individuals with a track record of success, relevant experience, and a strong work ethic.

When researching candidates, consider their past accomplishments, leadership roles, and their ability to adapt to changing business environments. Look for individuals who have demonstrated the capacity to learn, innovate, and drive results.

Create an Outline of Job Responsibilities for Your Successor:

Create a comprehensive outline of job responsibilities for your successor. Clearly define their roles and responsibilities, taking into account the challenges and goals you identified earlier. Develop a detailed job description that outlines the scope of the position, reporting lines, and key performance indicators. This will provide a clear roadmap for your successor’s future success.

Develop a Comprehensive Training Program to Prepare the Successor for Leadership:

To prepare your successor for leadership, develop a comprehensive training program tailored to their needs. Assign them progressively challenging tasks to develop their skills and provide constructive feedback to foster growth.

Encourage your successor to take on cross-functional projects to gain a holistic understanding of the business. Offer opportunities for exposure to different aspects of the company, including finance, operations, marketing, and human resources. By providing a well-rounded training program, you will equip your successor with the necessary skills and knowledge to excel in their new role.

If you need assistance with this process or want advice on how best to prepare for succession planning, our team are ready and waiting to help. Contact us today

Good luck!

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

Q. I am finding it tough. Sales are slowing but I can’t figure out exactly why. No-one seems to be unhappy with what we do, and no competitor has entered the market.  People seem to be buying less often and in lower numbers.

Your existing customers are your most valuable asset. This is because it’s easier and far less expensive to get an existing customer to buy off you again than to find new customers. So here are 17 ways to gain repeat business from existing customers, or to get your customers to think more positively about your business. The golden rule for success in business is to get your customers to believe that they are more important to you than anyone else.

Because small businesses are very diverse, not all these tactics will be relevant to your particular business. But many will be, so make a commitment NOW to try at least one, if not more, of these tactics.

1. Send a thank-you letter within two days of the customer buying off you. If at all possible, send a note the next day. It only has to be a handwritten note on a standard card—though a professionally typed letter is better. Other variations include sending a cartoon with your caricature to say thank you, or even a cartoon card (depending on who the customer is and how much they have spent).
   
2. Send an offer of a product or service that’s related to what they bought, usually after one month. Offer a discount or special deal. If you don’t have any complementary products or services, then find a business that does and offer their products. Then get that business to do something similar with their customers, but this time with your products or services as the offer.
   
3. If you sell products (such as printers) that use consumables, use your database date-of-sale records to predict when they might be ready to buy these consumables so that you can send them a ‘special offer’. Use the same technique for products that have a definite use-by date (such as timing the letter for when a lease arrangement on equipment is about to expire and newer technology is available).
   
4. Send out a questionnaire once every three to six months to see what your customers now want, and to see if your market has changed. Use the feedback to update your database and refine your product and services mix.
   
5. If you have a small number of highly loyal customers, then continue to acknowledge their custom with simple ideas like sending birthday and Christmas cards to them.
   
6. Try a telemarketing exercise. Ring up the customer with a brief message about a special or new product they may like to try. If possible make the offer free, or offer some incentive that provides a genuine saving or deal for existing customers only.
   
7. Send out a regular or email newsletter to your customers (even once every six months). Inform them about what is happening in your industry, community or area. Give tips relating to whatever business you are in. If you run out of ideas, then contact another business to share the newsletter (you can also share costs). Note: an email newsletter costs only a fraction of a conventionally printed and posted newsletter and the Internet offers a huge resource of useful information.
   
8. Run a customer contest that only existing customers can enter. This rewards them for being your customer — not the competition’s.
   
9. In appropriate instances you may be able to ask for referrals. Something along the lines of: ‘If you thought that we did a great job, then we’d really appreciate it if you could send us the names of three people who could also benefit from our product/service’. Or you could simply ask for your name to be passed on to any people the customer may see as needing your help. Sometimes you can also include a special deal for their friends. Be careful here, though: don’t make this deal better than the one the original customer received!
   
10. If you have a new product or new technology just about to be released, then hold a ‘customer-only’ preview. Supply refreshments. This could even relate to someone else’s technology. For example, if you have just bought a new colour printer, invite your customers to see what it can do. Get them to bring in some printing so you can demonstrate on their work. You can also the supplier of the equipment to share the costs – it’s promotion for the supplier too.
    
11. Have a sale that is available only to existing customers. Send them an invitation that selects them out as special and points out that the public will be excluded.
    
12. A variation on the above is to offer existing customers first choice at your sale for a certain period (such as a few days or a week) before the sale is opened to the public.
    
13. Try sending a letter or card or email that does not try and sell anything, but just keeps them informed of interesting facts or information for their use. This way, they don’t always associate hearing from you with hard sell. Instead, they come to look forward to receiving helpful information from you.
    
14. If your customers spend lots of money, and the profit per item is large, then send your customers relevant CDs or videos. For instance, if you sell to other businesses, you could send them CDs or videos on selling or marketing, or motivation. Or even in the case of especially good customers a video on their interests: find out from the survey you sent them what sports they follow, and then send them the corresponding video tape of rugby’s greatest tries, soccer’s best goals, highlights of the netball series or whatever. Stick your business name on the video.
    
15. Send customers a catalogue of all your products, and offer to direct mail to them anything they need.
    
16. A variation on this if you have a website is to offer preferred customers a special PIN number or password that allows them to log in to sections of your website (special discounts, sales, etc.) that others can’t access.
    
17. Come up with a special anniversary offer one year exactly after the customer first bought off you. If the offer is taken up, repeat the idea every year.

There must be something for every business in this list. The whole idea is to keep in contact with your existing customers, to build goodwill and positive word of mouth. By making them feel privileged and special you’re preventing the possibility that YOUR customer will be lured away by the competition. They couldn’t possibly after the way you look after them!

Looking for a Fulham accountant for your business, or a tax advisor in London? Get in touch – we’d love to help.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants