We are seeing a lot of restrictions being eased and it is the closest to normality for a very long time. The bonus of the sunshine is something to make the most out of. While we enjoy ourselves and plan for an entertaining summer, we should not forget about business. We should take steps in to planning on how to bounce back stronger.

As the country opens slowly and the opportunity arises to mingle with other business owners, you should make time to try and attend where businesses are likely to be. Nearer the end of 2021, we are likely to see trade fairs taking place, with all businesses on the same boat, getting the business name out there.  

If you do not have the budget or time to be a part of the trade show, then you should try and attend as a visitor. It will be a great way to connect and being a visitor will give you the freedom on your timing as you can leave when you feel like you have made the most out of the day. Who knows, you may even bump into some familiar faces, for a long-awaited catchup.

Our usual go to for these types of events are The Welsh Business Show, Zokit and Introbiz. Some may have updated dates for the events, some may be posting later. Keep an eye out on social media as we are sure there will be a buzz. Click here to look at what is out there with trade fairs https://10times.com/cardiff-uk/business-consultancy/tradeshows

To get your company to achieve the highest levels, you may need a hand by employing staff. This may seem a scary step to take, especially if this will be your first time employing someone. There are many things to consider. Due to the disruption of jobs during the pandemic, the government have introduced a Kickstart scheme. This scheme is to provide funding to create new jobs for 16- to 24-year-olds on Universal Credit.

It does not matter on the size of your business, everyone can apply. The funding will cover:

·        100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months

·        Associated employer National Insurance contributions

·        Minimum automatic enrolment pension contributions

Further funding is available for training and support so that young people on the scheme can get a job in the future.

More info on how to apply, please click here https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant

If you already have staff, and are bringing them back in to work, remember the furlough scheme is flexible and available until 30 September 2021. You will have to contribute for any hours worked by your employees. From 1 July 2021, the level of grant will be reduced, and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages.

You can continue to choose to top up your employees’ wages above the 80% for the hours not worked at your own expense. This is completely up to you and not a requirement.

Let us try and finish 2021 strong and push past this pandemic. It has been tough for everyone, but with planning and preparing, we can start looking ahead.

Improving your credit score

We are seeing an increasing number of our clients looking for mortgages and loans with their banks. It’s a good thing because it means that our client base is looking ahead at moving home, moving up the ladder by getting a more expensive house, or expanding their businesses.

As owners/directors of a business, your business and personal lives cross over, so these tips to get that dream house or expanding your business to meet your strategic goals will be similar.

The banks and finance houses look at a number of things when deciding whether to loan you money.

Can you pay it back ?

Do you meet their risk assessment criteria ?

What assets do you own ?

As a soletrader or Director of a Limited company your accounts to a bank are just as important as the personal income you are taking from the business.

They generally look at three years accounts, wanting to see that not only is the director taking an income, there is a defined growth year on year, the director is not taking out the complete amount of disposable profit, and keeping the balance sheet positive. This also needs to show year on year growth.

There are two main figures which are of high importance on a balance sheet ive discussed previously, the Net Current Assets, which is an indication of working capital, or cash in the business. The other figure is the overall total balance sheet value, this again needs to be positive.

The more money you wish to borrow the stronger the balance sheet and directors income needs to be.

This is not an overnight task but needs to be planned ahead over a period of time, but by putting in some self restraint and leaving funds or assets in the business you are over time improving your credit score.

Another scoring technique the bank uses is the amount of credit the company is taking and asking for. Whether is through credit with suppliers, a credit card, or a short term loan, ie overdraft. The bank will be checking your records demonstrating that you are being given credit by 3rd parties and are paying it back on time and within the terms of those agreements.

We have a number of clients who have been able to self sustain their businesses by not needing to apply for credit. This will unfortunately go against you if you are looking to expand. You need to be applying for credit every so often so that your credit history is gaining information. Even if you don’t need the money, and don’t want to pay any interest. You can apply for a credit card and just make sure you pay it off at the end of the month, you are naturally improving your credit score just by applying for the credit.

If you have an overdraft already in place its worth having a meeting with your bank manager keeping them informed of your plans for the future. We as a business put it into our routine to have a meeting every six months. As a company did this recently not only did the bank provide us with a larger overdraft than we had originally asked for, but as we had built up a good credit score, and were considered low risk to them they reduced the interest rate voluntarily by half for a much larger credit facility. It is definitely worth staying in touch with your bank manager.

Your own operational processes within the business. If you are giving credit to customers, make sure you are keeping on top of chasing the debt. Keeping your cash inflows at regular intervals this means to a bank that you are very active and have good controls in place, making you low risk to them. Next time youre reading your bank statement take a look and check not only the value of the cash inflows but the number of transactions. Frequent transaction is gold dust to a bank you are demonstrating large activity.

The cash outflows, if you are using an overdraft be sure to come out of the overdraft and into positive at least once a month. And never go over the overdraft. You will be penalised badly by the bank for doing so and can even have a much needed resource taken away. Remember an overdraft is very short term, it can be recalled and cancelled at anytime. I hope you find this article useful and use it a planning tool for your future, both personal and professional.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.