Do you know what your business will look like in 12 months' time? A lot of people will say forecasting isn’t worth bothering with. After all, why would you forecast and look back at the last couple of years and what happened in that time? I firmly believe that you should always be looking to know where you’re going. Because if you don’t know where your business is headed, you’re just going to keep drifting around and missing potential opportunities and growth.
When you have a plan for the next 12 months, you have a good direction of travel. You know what you want to do, where you make your money and how you want to make money in the future. Now you might want to carry on the way you are, or you may wish to change what you’re doing every three months, and that’s ok. But do you want to create lots of done-for-you products? Do you want just to have five clients and spend a day each week delivering for them? And if you do,...
Your tax bill is probably one of the most unexciting things to talk about. But it’s something that can often keep business owners up at night. There’s a real fear and lack of understanding around taxes and if that’s something that worries you, know you’re not alone! After all, you don't want to suddenly be surprised on January 25th by a £5,000 tax bill and have no idea where you will get the money to pay for it.
So it does pay to understand your tax and educate yourself on how tax works because that’s the best way not to be surprised by your tax bill when it arrives!
There are several different types of tax, depending on the type of business you have. So if you are a sole trader, all of your income is taxable as income tax and National Insurance. Remind yourself that you should be putting aside 30% of your income less costs if you can. Put that money into another account at the end of each month.
Last week, I had some interesting questions with two of my clients. One said that they were putting me on hold as they didn't have enough work for me due to coronavirus and another said they were so glad they were working with me as they need to plan for the lost of income due to the events side of their business.
Now is the time to know your numbers. Look at the following:-