Category: bookkeeping

As a small business owner, you probably feel like there’s never enough time in the day to get everything done. Between handling immediate tasks like dealing with customers, meeting deadlines, or attending events, it can be easy to overlook activities that are crucial for the long-term growth of your business.

Building good habits and regularly dedicating time to essential business activities can help set you on the path to greater success. Here are some strategies to consider.

Stay on Top of Your Finances

Many business owners lose track of how their business is performing on a daily basis. However, keeping an eye on your income and expenses is crucial for making informed decisions that promote growth.

Here are some tips to stay in control of your finances:

• Switch to online accounting software: Using an online accounting solution allows you to access real-time financial data from anywhere, whether you’re at the office or working remotely. Many solutions also integrate with UK tax systems, making compliance easier.
• Monitor your finances regularly: Set time aside to review your finances daily, weekly, monthly, and quarterly. This should include income, expenses, and cash flow. It’s also helpful to schedule regular check-ins with your accountant to ensure everything is on track.
• Track other business metrics: Keep an eye on your website traffic, marketing performance, and sales data. These insights can help you assess whether your lead generation strategies and campaigns are working.

Update Your Business Plan

Your business plan is a living document and should be reviewed and updated at least once a year, or more frequently if significant changes are on the horizon. Whether you’re planning a product launch, entering new markets, or exploring exporting opportunities, revising your business plan ensures you stay focused on your long-term goals.

Many small business owners fall into the trap of operating on autopilot, losing sight of their original goals. The beginning of the year is an ideal time to revisit your plan, set new objectives, and create a roadmap for the next 12 months. Since this often aligns with the completion of your year-end financial reports, you can base your plans on the most up-to-date information.

Delegate and Hire Help

While many entrepreneurs are used to being self-sufficient, learning to delegate is key to growing your business. Hiring the right people can relieve the pressure of doing everything yourself and allow your business to scale.

Take some time to reflect on how you spend your working days. Are you still trying to manage every task on your own? The ultimate goal of any business should be to reach the point where it can run smoothly without you being involved in every detail. Whether you want to take a holiday, pass the business on to family members, or eventually sell it, delegation is essential.

Finding the right people can take time, but it’s worth the effort. Consider working with a recruitment agency to help craft compelling job descriptions and find candidates who fit your business needs. This frees up your time to focus on higher-level strategies that bring greater success and satisfaction.

Building Good Business Habits

Developing new habits takes time and commitment, but the results are worth it. Regularly reviewing your finances, updating your business plan, and learning to delegate are all steps that will help your business grow and thrive.

What habit will you focus on this year to take your small business to the next level?

Looking for a Fulham accountant to help you manage your business finances? Reach out to our team today to get started – we’d love to help.

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

Kind Regards,
The Team at London Accountants

“How much should I spend on marketing?” is a question many small business owners ask at some point. In the UK, like elsewhere, figuring out the right marketing budget can be a challenge. For many small businesses, allocating funds for marketing is not always straightforward. This guide outlines five common methods to help UK businesses determine their marketing budget for the year.

It’s important to remember that these are marketing budgets, not just advertising budgets. Marketing covers everything that raises awareness about your business, from advertising to brochures, events, sponsorships, and more.

1. The “No Idea At All” Method

Some businesses operate without any formal marketing budget. They might only advertise when sales dip, or when tempted by a limited-time offer from an advertising salesperson (“Buy now, and get 50% extra free!”). There’s usually a reason for these offers—perhaps because it’s a poor time to advertise and regular clients have held back, leaving the sales rep in need of business.

Many businesses are too busy during peak times to focus on advertising, and when they do, it’s often too late. If you only advertise when sales drop, you’re likely wasting money. It’s a reactive approach, typically resulting in advertising at the wrong time, targeting short-term sales that rarely materialise.

2. The “Spend What You Can Afford” Method

This approach involves spending whatever surplus cash is available on marketing. During good periods, businesses may invest more in advertising, while in leaner times, they cut back. The risk with this strategy is that if business slows and you reduce marketing spend, it can become a vicious cycle. Without adequate marketing, it becomes harder to attract new customers, worsening the situation.

3. The Percentage of Sales Method

This method is popular among small businesses. You set aside a fixed percentage of your annual sales for marketing. For example, if last year’s sales were £200,000, and you decide to allocate 5%, your marketing budget would be £10,000.

While this method provides a structured approach, it has its flaws. You may not actually need to spend the full amount to meet your sales targets. For instance, if £4,000 is enough to keep you fully booked, spending the additional £6,000 could be wasteful. On average, businesses spend 3–6% of sales on marketing, but the percentage will vary depending on your industry.

For example, typical UK marketing budgets as a percentage of sales might look like this:

• Restaurants and cafes: 5-7%
• Retail: 4-8%
• Professional services: 2-5%
• Tech companies: 6-10%

If you’re in retail, your marketing spend may be higher compared to a business focusing on B2B services, which might rely more on personal selling.

4. The “Copy the Competition” Method

This method involves mimicking what your competitors are doing. While it might seem logical, it carries obvious risks. What if your competitors are relying on the ineffective “No Idea At All” method? Just because a competitor spends large sums on advertising doesn’t mean it’s working for them.

Even large companies often spend on unsuccessful campaigns, as seen in some ineffective TV adverts. Copying competitors can be a poor strategy—focus instead on staying ahead by finding innovative ways to market your business.

5. The Objective and Task Method (Recommended)

This is the method I recommend. Start by setting specific goals for the year. For example, you may aim to attract 100 new customers or increase average customer spending by £100. Next, work out the marketing tasks needed to achieve these goals and estimate the costs.

Once you’ve outlined the objectives, tally up the costs for each marketing task. This total will be your marketing budget for the year. Some key points to keep in mind:

• Always keep a cash reserve: This allows you to take advantage of unexpected opportunities or respond to competitive actions. Flexibility is one of the biggest advantages of small businesses, so be prepared to adapt to market forces.
• Set specific targets: Clearly define your goals so you know when you’ve achieved them. Once you’ve met your objectives, you can decide whether to stop spending or invest further for more growth.
• Do a break-even analysis: For example, if you spend £1,000 on marketing to attract 50 new customers who each spend £50, you’ll generate £2,500 in sales. Ensure this covers your marketing spend and turns a profit.
• Stick with what works: If you know certain marketing strategies have been successful in the past, include them in your plan. Just be sure to measure their continued effectiveness.
• Retain existing customers: Part of your budget should be dedicated to retaining your current customer base and maintaining market share. Review these efforts regularly to ensure they remain effective.

Monitoring Your Results

Whatever method you choose, always track and evaluate your marketing efforts. Many small business owners fall into the trap of not measuring results, leaving them in the “No Idea” category. To make your marketing spend more efficient, refine and improve your strategies based on data.

Final Thoughts

Determining a marketing budget can be challenging, but with careful planning and monitoring, it can be one of your most valuable investments. Whether you’re a local café in London or a tech startup in Manchester, a well-thought-out marketing budget helps ensure long-term growth and sustainability for your business.

Looking for a Fulham accountant to help you manage your business finances? Reach out to our team today to get started – we’d love to help.

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

Kind Regards,
The Team at London Accountants

In today’s competitive marketplace, setting your business apart can be tough. One of the most effective tools to help you stand out is the testimonial—a genuine account of your customers’ positive experiences with your brand. These stories not only establish trust and credibility but can also boost your sales and elevate your brand reputation. If you’re a small business owner looking to harness the power of testimonials, this guide will help you get started.

1. Why Testimonials Matter

Why do testimonials make such a difference? Research shows that 81% of consumers read reviews before making a purchase. When potential customers see authentic, positive feedback from others, they’re more likely to trust your brand and move forward with a purchase. In fact, testimonials can increase conversions by up to 34%.

These endorsements serve as social proof, demonstrating that your product or service delivers as promised.

2. Collect Authentic Feedback

The first step in using testimonials is to gather real feedback from satisfied customers. Reach out to clients and ask them to share their experiences with your product or service. Use methods like email, Google Forms, or even social media to gather this valuable information.

Here are some key questions to ask:

• What problem did our product or service solve for you?
• Why did you choose our brand over competitors?
• How has our product or service improved your life or business?

By directly asking for feedback, you not only gain valuable testimonials but also show customers that their opinions matter.

3. Highlight Specific Benefits

An effective testimonial goes beyond generic praise. It should emphasize the specific benefits and outcomes your customers experienced. For example, instead of a vague “Great service,” a more powerful testimonial would be: “The customer support team was incredibly responsive and resolved my issue within hours, saving me both time and money.”

Detailed examples add credibility and make testimonials more persuasive.

4. Create a Consistent Format

Using a consistent format for your testimonials makes them more engaging and easier to digest. A solid structure could include:

• Attention-Grabbing Start: Begin with a positive, impactful statement.
• Problem: Outline the challenge the customer faced.
• Solution: Explain how your product or service addressed the issue.
• Results: Share the benefits or results the customer experienced.
• Recommendation: End with a strong endorsement of your product or service.

Here’s an example of a well-structured testimonial:

“Before using [your product/service], I struggled with [customer’s problem]. After trying [your product/service], it became easy to [solution]. Thanks to [your product/service], I’ve seen [specific results]. I highly recommend [your product/service] to anyone facing similar challenges.”

This approach ensures every testimonial covers all essential points, making it thorough and convincing.

5. Showcase a Range of Testimonials

Diversify your testimonials by collecting feedback from a variety of customers. You can include written testimonials, video testimonials, and even social media shoutouts. This variety will appeal to a broader audience by showcasing different aspects of your business.

Diverse testimonials highlight various strengths of your product or service, helping potential customers connect with your brand in multiple ways.

6. Make Testimonials Easy to Find

Once you’ve collected and formatted your testimonials, it’s important to make them highly visible. Place them prominently on your website—on your homepage, product pages, or even in your blog posts. You should also share them across your social media platforms and incorporate them into your email marketing campaigns.

The more visibility you give your testimonials, the more likely they are to influence potential customers.

Final Thoughts

By understanding the power of testimonials and using them effectively, small business owners can build a stronger brand narrative. Genuine customer stories build trust, highlight the value of your offerings, and ultimately drive more sales. Start gathering testimonials today, and watch your business reputation grow as more customers come to trust and choose your brand.

Looking for a Fulham accountant to help you manage your business finances? Reach out to our team today to get started – we’d love to help.

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

Kind Regards,
The Team at London Accountants

As a business owner, you often find yourself juggling numerous responsibilities. Prioritising tasks and tackling the most time-consuming ones first can be overwhelming.

Why is it so hard to start or finish seemingly minor tasks? Why do these small duties become the bane of our existence, leading us into procrastination? Let’s explore why we get stuck on even the smallest tasks and how this might be holding you back.

Understanding the Psychology Behind Procrastination

Procrastination affects many people and often leads to frustration. Understanding the psychology behind it can help us overcome it. At its core, procrastination is linked to negative emotions like stress, anxiety, and fear of failure. By avoiding or delaying a task, we temporarily alleviate these unpleasant feelings. However, this relief is short-lived and ultimately creates more stress. By recognising this pattern and learning to manage negative emotions, we can break free from the cycle of procrastination and become more productive.

Breaking Down Tasks into Manageable Parts

When faced with a daunting task, it can be overwhelming to know where to start. The key is to break down the task into small, manageable parts. By dividing larger projects into smaller, more achievable tasks, we can focus our attention and energy on one step at a time, leading to a greater sense of progress and accomplishment. Whether it’s a work assignment or a personal goal, mapping out the necessary steps and tackling them one by one can make all the difference in achieving success. So next time you’re feeling stuck, take a breath and ask yourself: what’s the next small step I can take?

Using Rewards as Incentives

Sometimes all it takes to get things done is a little extra motivation. Rewards can be a great incentive to get started. Whether it’s a tasty treat, a fun activity, or some well-deserved relaxation time, a reward can give you the push you need to begin tackling a task. Studies have shown that implementing a reward system can increase productivity and help you achieve your goals faster. Choose a reward that suits you and your task, and see how much more motivated you feel to get started.

Identifying Your Procrastination Triggers

Have you ever found yourself staring blankly at your to-do list, unable to muster the motivation to tackle any of the tasks? Identifying your procrastination triggers can be the key to overcoming it. Maybe certain types of tasks are more daunting, or perhaps you get easily distracted by social media or other entertainment. Whatever it may be, pinpointing your personal procrastination triggers can help you create a strategy to combat them and finally get back on track.

Developing a Plan and Timeline for Success

Success doesn’t happen overnight. It requires careful planning and a well-thought-out timeline. Whether it’s starting a business or working towards a personal goal, having a plan in place is essential. The first step is to define your goals and establish a time frame to achieve them. Map out the smaller steps needed to reach your ultimate objective and assign realistic deadlines to each. Regularly evaluate your progress and make necessary adjustments to your timeline or plan. With a clear plan and timeline in place, success is within reach.

Planning Ahead to Avoid Distractions

In our fast-paced world, distractions are everywhere. Notifications, social media, and emails can quickly derail our day. The solution? Plan ahead to avoid these distractions and potential delays. By setting clear goals, creating a schedule, and arranging your workspace to help you focus, you can reduce distractions and stay on track toward achieving your objectives. With a bit of forethought and discipline, you can turn your day from one filled with distractions to one of focused productivity.

Letting Go of Perfectionism

Perfectionism can drive people to do their best, but it can also become an obstacle to personal growth. The constant pressure to achieve flawlessness can lead to fear of failure and procrastination, ultimately limiting your potential. Accept that mistakes are a natural part of the learning process, providing experience and insight. Embracing imperfection requires a shift in mindset, but by acknowledging our flaws and being willing to make mistakes, we can move forward with confidence and creativity.

What Next?

Remember, there is no one-size-fits-all approach to overcoming procrastination. People are different and have unique needs and motivations for goal setting and habit formation. Be patient with yourself and accept that change takes time.

Use rewards, identify your triggers, create a plan and timeline for success, set up a system to avoid delays or distractions, and give yourself grace for mistakes. You’ll be able to achieve your goals and accomplish them faster than ever before!

Looking for a Fulham accountant to help with your business? Get in touch – we’d love to help.

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

Kind Regards,
The Team at London Accountants