As the UK moves forward from lockdown restrictions many businesses are starting to capitalize on the resurging economy, growing their businesses to increase profit they may have lost out on over the past year. Additionally, one in five Brits are planning to start a business by the end of 2021, making the current market extremely competitive.
The team at private and commercial banking firm, Arbuthnot Latham have provided a guide for both new and old entrepreneurs with top tips on how to successfully grow your business.
1. Be prepared for growth: Although this step can be dauting at first, it is a vital step forward to getting results you aim to achieve, staying true to your values while remembering the reason you started the business can make this step feel less exhilarating.
“The entrepreneurial ecosystem is full of networking events, mentors, advisors, and peers who have been through – or are going through – this transition. Having the right people around, both in and outside your company, will make a stark difference. Identify efficiencies in the business, including areas you can automate, which will help you spend time on the areas which need your attention the most. Paul Beach, Director of Private Banking and Head of Executives and Entrepreneurs,
2. Find the right team to help your business to thrive: Making an honest assessment of the barriers to growth for your business is key in deciding who to bring in to help you achieve your goals.
“It is important to be honest about your skills and qualities, as those qualities enabled the business to grow at the outset. These skills may have protected the business during the last 18 months; however, they may not be what is required to take the business to the next level. . Bringing in a new managing director, allows the business to re-assess and get set for growth.” Rob Stapledon, Head of Media Banking,
3. Securing the right funding for you: This step is fundamental when looking to grow your business.
“Business owners are now starting to see an increase in sales with many companies now in danger of overtrading from a relatively low base, which means working capital is now more critical than ever.” Andrew Rutherford, Commercial Director.
4. Invest in marketing: Marketing is one of the best ways to increase brand awareness, reaching more customers and allows business owners to gain a better insight into their audience and the industry.
“Clearly defined objectives and integrating traditional and digital marketing can help drive revenues. Today, it is not enough to blanket email customers, but there is a real need to understand different customers and target them with appropriate communications, whether through email marketing or using other digital/traditional channels” Virginie Dafforn-Gorgemans, Marketing Director.
5. Being tax efficient: There are many ways to structure your finances to increase tax efficiency. It is important to structure your assets tax-efficiently when you’re a high-net-worth individual as better tax efficiency helps you to protect and grow your wealth while enabling for better investment returns.
The use of relevant tax allowances and exemptions can make all the difference in achieving personal financial objectives.
6. Business protection: Ensure your business is ready for the future by having business protection in place, this works by providing a financial cushion when you need it most.
That cushion may be used to settle debts, replace profits, cover recruitment costs, or provide benefits to your employees or their families. It may even ensure you maintain control of your business in the event of a shareholder passing away.