As always our Budget Report will be live on our website the morning of 25 March 2010.

• Delegate or outsource some of your work.
  
  Busy, busy, busy there are always things to do when running a small business and never enough time to do it in. Even though there are a lot of tasks to be completed, there is nothing in the rule book that says the business owner or manager needs to do it all themselves. Give clear instructions about the tasks that need to be done, the desired outcomes and then delegate or outsource the task. Outsourcing or delegating tasks can bring in new expertise into your business.

• Conduct a weekly review of your business.
  
  Reviewing your business at regular intervals is vital if you want to develop a healthy, growing business. A regular review enables you take stock of what has worked well and what adjustments will be required in the coming week. Taking small steps and plotting a new direction on a weekly basis often results in significant goals being achieved. Setting aside time each week to review, adjust, and plan will help to keep your business focused and avoid costly mistakes.

• Set realistic goals.
  
  Setting and measuring goals for your business is a valuable habit to cultivate and maintain. Achieving goals increases confidence and helps to chart the direction your business. It is important to set achievable goals that challenge as well as add value to your business. If your goals are too simple you will lose interest and if they are too difficult you may feel defeated if they are not achieved.

• Take the time to analyse what does or does not work for your business.
  
  Not all of your products or services are going to be super sellers. Some of your sales strategies are going to be more successful than other methods. Not all business opportunities are going to be suitable for your business, nor is your business going to require all the services or products that it is offered. Slowly but surely you will need to phase out whatever it is in your business that is not working.

Making a success of your business in 2010 will be a lot easier if you take the time to apply the aforementioned action points to your business. Working on your business strategically is just as important as working on your business practically. 2010 should be the year of working smart not working harder.

Improving management and leadership skills is often a task that remains on the ‘to do list’. It is understandable given the nature of a small business. That is many small business owners frequently work long hours or take on several tasks within the business – hence there is little time left to focus on professional development.

Taking time out to engage in additional management and leadership training can lead to improved productivity and employee performance. Motivating employees and sharing your vision with them can go a long way towards improving business productivity. Your business can only develop as much as the owner develops professionally.

Traits of an Effective Leader

Being able to create and share your vision

Everyone involved in your business should be aware of your vision. As employees work, the organisation’s vision should be in the forefront of their mind. Understanding of how roles and responsibilities aid the business promotes a feeling of being involved in the business and a set of advocates that will promote and advertise your business freely.

A leader must have passion

Passion is an important ingredient in motivating employees. If you are not passionate about your business and its future then you cannot expect your employees to be. Connecting employees to your vision will help to build an effective team that is capable of producing good results. Employees buying into your vision will create enthusiasm about driving your vision forward and growing your business.

Be a great decision maker

Making the right decision is never easy having too much information can be as bad as not having sufficient information.

• Decisions should be made in a timely fashion not too hasty but not at a snails pace.
• Provide the necessary resources to support your decisions.
• Be committed to your decision but not too rigid.

A leader must be a team builder

A fantastic team can dramatically change your business for the better. Being able to choose the right people and build a great team is a must for any leader. Being able to delegate, recognise and reward good work are essential ingredients of creating an effective team.

In conclusion, it’s important not to forget about personal and professional development when running a small business. The right support and training can improve management and leadership skills and facilitate quality decisions and actions.

Often good leadership is what separates the successful business from a failed one.

In essence what the Dragon’s are looking for is how saleable your idea is, how much thought and planning has gone into your business and what the future projections are likely to be. At first glance meeting this criteria may seem simple – however, putting it into practice is a different story.

Most people have a plan that they are following, whether that’s a formally written business plan, something scribbled on the back of an envelope, or just a rough guide in their head. The majority of these plans focus on improving the product, getting more sales or growing the business.

Frequently a missing component of a business plan relates to what would happen to the business if something happened to you. It is possible that there may not be a business without you. Taking the time to think about a continuation or exit plan is vital for every business.

Food for Thought

• What measures could you take to ensure your business can exist independently of you?
• What processes and procedures are initiated in order to deliver products or services?
• What are the quality checks within your business?
• If you employ staff are they aware of what their roles and responsibilities are?

Some of the answers given to these questions will form the base of an action plan that can be used to create a business that is independent of you. Creating a business that is independent of an individual also offers more avenues for investment, growth and sustainability. Ensuring that there is someone to take the reigns if needs be will make your business more attractive to prospective investors.

Preparation is Key

If you are planning to tender or bid for contracts or specific pieces of work you will need to demonstrate that thought and planning has gone into this area of your business plan. You are unlikely to be successful in your endeavours to secure new or larger contracts if your business is entirely dependent on you.

Taking a step back to look at your business through the eyes of possible investors can be a valuable experience and a good learning curve. What would happen to your business if you fell ill or were unable to work for awhile – could your business exist without you?

In the meantime, here are a few highlights of the Pre-Budget 2009:

• VAT will return to 17.5% on 1 January 2010 as planned.
• In April 2012, the point at which people start paying 40% income tax to be frozen for one year, hitting those earning more than £43,000.
• Employer, employee and self-employed rates of National Insurance to rise by a further 0.5% from April 2011.
• Starting point from which National Insurance is payable to be raised so that no-one earning less than £20,000 will pay any more in contributions.
• Individual Inheritance Tax allowance to be frozen at £325,000 for the next year.
• No windfall tax on banks.
• Bank Bonuses above £25,000 will subject to a 50% one-off tax.
• Enterprise Finance Guarantee scheme for bank loans to small businesses to be extended for a further 12 months.
• The Time To Pay scheme allowing firms to spread tax payments will be extended for as long as needed.
• Empty property relief threshold to be extended so that 70% of all empty properties will be exempt.
• Increases in Corporation Tax for smaller companies to be deferred, leaving the 2010 tax rate unchanged.
• Super-fast broadband to be extended to 90pc of population by the end of 2017, funded by 50p-a-month duty on landlines.

Taking an active interest in the financial side of your business is a dual responsibility which should be shared between you and your accountant. Having a good accountant is an essential ingredient in running a successful business. Likewise it is important for business owners to be financially astute. Simply liaising with your accountant once a year is unlikely to result in a successful business.

Below, are some useful tips that can help to make your business fighting fit.

Are you aware of what allowances can or cannot be claimed?

Her Majesty’s Revenue and Customs (HMRC) produces lots of information on what expenses are allowable. Needless to say the information produced is often long-winded. It would be advisable to either do some research or to seek some professional advice.

Meeting deadlines enables you to avoid tax related penalties.

Procrastination often results in the late filing of annual tax returns. The knock-on effect is often a penalty fine from HMRC. Paying unnecessary fines is akin to burning money. Logically you would never set fire to £100 – so why pay fines that are avoidable. The objective of running a business is to create wealth, not to give it away.

Be clear about your terms of business.

Do not be shy about asking your clients for payment. It would be prudent to state when payment is required. The best possible outcome for a small business is to be paid in advance before work commences. If you do offer credit terms, you should make it clear what these are.

“Dig the well before you are thirsty”.

In an ideal business world you should have a constant pipeline of prospects waiting for your services or products. However we know this is not always possible. Erratic or confusing advertising is often expensive ad non-productive. It may also damage your brand. Careful consideration needs to be given to where you are going to advertise, who your target audience is and the frequency which you are going to advertise.

Why bother to implement tax planning in your business?

Would it be better to leave money in your company this year and take a lower salary? Managing your own accounts may save a little but you may also miss valuable tax saving ideas. Tax planning strategies equates to being wise about how your taxes are arranged – not simply just trying to avoid tax obligations.

Separate bank accounts

Where possible you should always opt for FREE business banking. Additionally you should not leave excess funds in your business bank account. Move any excess funds into to a high interest saving account. There are still a few savings accounts that offer a good interest rate.

Your finances will not get themselves into shape – a regular workout for them will do wonders for them!

It’s CRAZY, or is it?