How exciting! You’re looking to expand your business for perhaps the first time and if you’re ready for a little growth and have room for an extra shop or opening offices perhaps overseas, then have a look through this little guide on how you can expand your business.
Expansion, while exciting for you as a growing and successful company, can actually adversely affect your customers, profitability and the nature of the business and expansion may not always guarantee you success. Your accountants that you work with from companies such as http://www.mhumeandson.co.uk can actually assist you in laying down the expectations of an expansion and what that will mean for you. It’s not to say you shouldn’t go for it, absolutely you should but you need to make sure you’ve implemented some very careful planning with your expansion.
There are a lot of questions to ask yourself as a company such as whether you will make any profit, and can you afford to sell things either at lower cost or invest more money in products to sell. You need to look at whether your competitors are also expanding in the same market as that will increase the choices from your customer’s point of view. You should check with your accountant or financial advisors whether you can afford your expansion or whether you need to add debt and borrow money to finance it. If you head over to http://www.mhumeandson.co.uk they’ll be able to advise you on whether that would be possible.
How will your expansion fit your customers’ needs? Will there be delays while you restart? Is your expansion likely to affect current operations? All these questions are valid and ones that need addressing before you go ahead. If you are ready to go ahead with growing your business there are a lot of ways to go about it. Before you can even go ahead, you need to make sure you understand every part of your business so you can build on it. Revisit your business plans and make sure you know what your original plans were.
Fix all the problem areas that you have in the business and evaluate your current strengths and weaknesses. The last thing you want to do is expand the deadweight as well as the exciting parts. Look at continuity and contingency plans if you suffer interruption to your business. Check out who your top clients or customers are and expand on that, work out your strengths and play to those wholly and you will be able to transition better in your growth phase.
With expansion comes new customers and targeting your new audience you should diversify into new markets if that’s something that is available to you. If you’re able to and there are companies open to it a merger could be an idea. Having an additional hand in the business and extra customers may be an excellent and supportive way to move forward.
Being an agency worker doesn’t mean you give up your rights at work, far from it, but there are differences in the rights of an agency worker than there is for a permanent employee hired through an agency. Agency workers are often called ‘temps’ and benefit from many employment rights as they will have different rights to employees. You need to know your rights before you go ahead into any contract but especially when it comes to temp employment.
What is an agency worker? Well, most recruitment agencies have temp desks where they have smaller contracts that can last for days, weeks or months at a time. You would be hired onto a temporary basis where any issues and wages for the job come directly from the agency you’re hired by rather than the employer you work for. The firm who hire you will have paid a fee to the agency for you to work there and the agency has to pay you whether the hiring firm has paid their invoice. Agencies as a rule cannot charge you for finding work, ever. The charge goes to the firm hiring you. If you are working for a mixed agency like http://www.goldhawkassoc.co.uk you may find that once you’re marketed to and hired permanently by a company, you no longer work for the agency but for the firm that hired you as a permanent employee. This generates a one off fee to the agency rather than temp fees in the long term so it’s advantageous for a firm to take you on rather than hire you as a temp.
There are a lot of benefits to being a temp of course. Temp jobs can help you gain experience into the field you want to work in and be used as a stepping stone to colour your CV with new experiences. Temp work tends to be more flexible and more shift work so you’re able to balance home responsibilities with the independence of a job. You can move between jobs easily with no or little notice and your agency that you worked for can assist with this and it makes the recruitment process more streamlined for you. You are also able to dip a toe in the water for different industries and different types of work. Flexibility is actually the biggest attraction for temp work but not just for you as the temp but also the employer. Employers use temps as a way of identifying who would be a great asset as a permanent employee to their company.
It does work both ways though in that you can jump from job to job but the agency also has the ability to move you to another job without much notice. Also a drawback, is the fact a busy CV makes you look flighty to potential permanent employers so making sure you clearly mark each contract as a temp job is beneficial to you.
A members voluntary liquidation is a cheaper, more tax efficient process which is used to close down a solvent company and allows them to distribute its assets to its shareholders after all of the company’s creditors have been paid. There are companies out there like http://www.bridgenewland.co.uk which are experts in company insolvency procedures.
Members’ voluntary liquidation is used as an alternative to striking off and it is most widely used by construction companies who complete certain build contracts or companies whose trading has changed. It also allows you to close your company and take out your funds without paying the full capital gains tax rates. Your company can then continue to trade through new or other existing business providing its operation is not identical to the company closing down, as that would be considered tax avoidance and no one wants to get into legal trouble while closing down a business.
Insolvency practitioners like https://www.bridgenewland.co.uk tell us that current legislation allows for distributable company reserves totaling up to £25,000 can be treated as capital and taxed. Anything above this threshold should be treated as a dividend and will be taxed at the shareholders income tax rate. If your company is eligible for a solvent liquidation, you are likely to be entitled to claim entrepreneur’s relief on your capital gain and tax savings are significant.
As soon as it is decided that an members’ voluntary liquidation is appropriate, the directors call a meeting of shareholders to consider a resolution to close down the company and to appoint a liquidator. Shareholders can appoint a Liquidator of their own choosing if they disagree with the directors’ selection but usually they happen to agree!
Prior to the meeting, the directors must swear a statutory declaration of solvency before a solicitor and the declaration embodies a statement of assets and liabilities, and states that having made a full enquiry into the company’s affairs, the directors are of the opinion that the company is capable of paying all of its debts, including statutory interest. The resolution to wind up the company is advertised in the Gazette for 14 days, and filed with the Registrar of Companies within 15 days. It is normal practice to advertise for creditor claims, although these may well be settled prior to the liquidation commencing and once the Liquidator is in office, he must then take steps to deal with any outstanding matters. These can include realising the company’s asset, which may be as straightforward as cash at bank, or may be in the form of assets or property) and distribute the surplus to the shareholders once all the company’s liabilities, costs and taxes are paid. Assets may be distributed in cash. There is no requirement for the liquidator to conduct an investigation into the company’s affairs or the conduct of the directors, as is the case in an insolvent liquidation, as the directors have sworn a statutory declaration of solvency.