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Issue 51 | www.hwca.com

Backing Your Business

It was Haines Watts’ expertise that helped Michele Cassandro, former owner of hospitality recruiter Neway International, to find the right buyer for her business.

Sterlingservice

2 magazine | Issue 51 | hwca.com

A fresh-thinking approach to your business

opinionstrategysourcemagazine

3Backing your business

contents

Co

ve

r: A

lun

Calle

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10

4 Break down those Brexit trade barriers.

10 Find the right finance products for you.

picture

success

12Do you really know what your

team is thinking?

14Our Budget tax low-down.

strategy

15Develop a brand with bite.

source

17It’s time to insure your people.

self

It’s good to think differently to

everyone else. It’s only by having a

different attitude that you’ll stand

out from the crowd. No one wants a

‘me too’ product. We all strive to have a

product that’s different from that of our

competitors – we know that differentiation

is necessary to be successful in sales. But

often attempts at differentiation go no

further than external image.

Many businesses are finding that sales

are good, but attracting the right people

is becoming harder. So, why don’t we

apply our ability to differentiate internally

as well as externally?

Is your management style and culture

the same as the one you adopted last

year? And the year before? And yet, we

I want to be the odd one out…

the bottom line

Andrew Minifie, Group Managing Partner

know that “if you always do what you

always did, then you will get what you

always got”. But we want to make a

difference.

Maybe, instead, we should look at

our business from a team member’s

perspective and think about how we

can differentiate between what it’s like

to work for us and the experiences they

would get elsewhere.

Refreshing our environment and

management style can reinvigorate

our relationship with our team. In fact,

pretend you were starting your business

again – we all know we would do it

differently. Why not be brave and make

those changes now?

This magazine’s articles reflect

our thinking on how businesses can

operate differently. Go on, be radical.

Think differently about your business.

It will help you lead it into the future.

“If you always do what you always did, then you will always get what you always got.”

12 magazine is published by Haines Watts and produced by

6

“A renewed focus on upskilling

staff proved to be a true game-

changer.”Michele Cassandro

strategy


strategy

Pushing theboat out

after Brexit

“Today’s digitally savvy companies can easily enter a market without a physical presence.”

Business owners see huge

potential to build their revenues

on the back of Brexit because a

weak pound means UK exports

are more price-competitive, according to

Andrew Jones.

Overseas buyers are also keen to snap

up high-quality British goods, he says.

As a result, new markets are opening

up and, while some SMEs have avoided

exporting because of the cost of opening

international operations, today’s digitally

savvy companies can easily enter a

market without a physical presence.

“Simply translating your existing

website into the target country’s

language, and accepting payment in the

local currency, is a great way to test the

waters in a location,” Andrew explains.

“You can follow up by employing a

salesperson on the ground, or setting up

an overseas branch or limited company.”

SMEs have been quick to seize export opportunities offered by Brexit. But successfully setting out your stall in a new market requires research, explains Haines Watts’ Andrew Jones.

strategy

Software firm’s answer to a hard BrexitSo how can businesses prepare for

what lies beyond a ‘hard Brexit’?

One software company has taken

the strategic, yet low-cost, step of

setting up a subsidiary in Ireland,

says Peter Wright, Haines Watts

business adviser.

“A departure from the EU could

mean this company’s customers

in markets like Germany will face

additional barriers during the

purchasing process,” he explains.

“There are plenty of competitors out

there, so a frictionless sale process is

all-important.”

The subsidiary might only be a

temporary measure, but Ireland

offers a shared language as well as

similar tax and legislative regimes,

and it’s a move that buys the firm

more time to decide where it is best

to base its operations in future.

“For the moment, this company –

which has a global annual turnover

of about $30 million and around

30 staff – uses this subsidiary to

service its Irish business, but it can

be quickly and easily expanded,”

Peter says. “It is an important part

of their longer-term planning.”

Top 5 exporting tips

1 Get your market right. Demand for your product will vary

from country to country.

2 Don’t cut corners. Poor quality or service, even when

sold cheaply, is not a sustainable

business model.

3 Find a reliable logistics partner. If your goods arrive broken or

damaged, they’re no good to

anyone. Your reputation relies on

top-notch logistics.

4 Don’t overstretch yourself. Start small. Try a digital presence

first. Then get a reliable local

workforce and infrastructure in

place as you start to grow.

5 Get expert advice. Avoid false moves – let local tax

and legal experts do the hard work

for you.


Information rulesFinding the right market isn’t about trial

and error, it’s about homework – and

the Department for International Trade

and local Chambers of Commerce are

a great place to start. However, it’s also

important to understand the tax and

legal implications of trading overseas,

Andrew emphasises.

“HMRC will want to check whether

you are moving profits away from the UK

into a country with a lower tax rate. This

‘transfer pricing’ is a complex area and

you’ll need expert advice,” he says.

“Setting up your overseas entity

to pay VAT, or the local equivalent,

and producing year-end accounts in a

different language, is where it’s useful

to have access to local accounting, law

and consulting firms, such as those which

belong to the Geneva Group International

(GGI) network.”

This makes sure you know about any

cultural expectations or sensitivities,

which is particularly important in markets

like the Middle East, he adds.

Never plain sailingDoing business in new regions is a risk –

but that’s precisely why it appeals to

SME owners, as they know that with risk

comes opportunity.

And, if a UK exporter gains overseas

customers while the pound is weak, those

customers will not necessarily drop away

as soon as the pound strengthens again.

“If you get your export strategy right,

you’ll have an opportunity to keep new

customers on-board, regardless of

currency fluctuations or tariff changes,”

Andrew explains. “Even if the tide

turns two or three years down the line,

you’ll still make additional profits in

the meantime.”


story

Sector: hospitality recruitmentTurnover: £9.2 millionLocation: LondonEmployees in group: 22 full-time staffChallenges: low margins, yet high standards requiredOpportunities: understanding of client requirements

factfile that led to the idea for her business. Her

‘eureka’ moment was understanding that

managers and executive head chefs are

always in need of chefs who already have

the skill sets required by fine dining and

catering outlets – and that she knew just

the people for the job.

Neway International was founded and

today places up to 600 people a week in

roles at some of the most luxurious hotels

in the capital.

As the story goes for many successful

SMEs, Michele and her business partner

at the time identified a need that wasn’t

being met. But her talent for identifying

Selling a recruitment business –

where the value is captured in the

quality of your people and their

relationships with your clients –

is always a challenge, particularly for a

low-margin, high-turnover sector such

as hospitality.

One Haines Watts client, Michele

Cassandro, is only too aware of the

difficulties of placing a price tag on

people. She recently completed the sale

of her business, Neway International – a

venture which she has transformed over

the past 22 years from a start-up to a

company with an annual turnover of

almost £10 million.

The firm supplies highly experienced

staff to four and five-star hotels and other

high-end establishments around London

and relies heavily on Michele’s ability to

form strong networks.

In fact, it was the realisation that she

had developed an extensive contact book

during her time working for a food retailer

In hospitality recruitment, success comes from the strength of your relationships with clients and staff. But, at exit, it pays to bring in an expert who knows how to sell your business to the outside world, says Michele Cassandro.

The rightrecruitment

recipe


story

“With Brexit on the horizon, we have kept her up to date with all the latest employment law changes.” Amilios Costa

people with the right attributes meant

that she has also been able to place them

on longer-term contracts, providing

certainty for both parties. This is a

strategy that has built a tremendous

amount of loyalty on both sides.

A new train of thoughtIt was a renewed focus on upskilling staff,

however, that has proved to be a true

game-changer for the business.

“When we spoke to our clients, we

heard that they were struggling to find

the right staff. And, while they trust us

to find good people, and knew we could

Ph

oto

gra

ph

s: Alu

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offer the continuity that is such a rare

commodity in hospitality, there was

still a need to improve skills or achieve

certification,” Michele says.

She realised that a logical next step

was to expand into hospitality training.

“I have always preferred to invest capital

back into the business, and that meant

we were able to buy a freehold premises

outright,” she continues.

The property was transformed into

a training centre, which is dedicated

to providing Chartered Institute of

Environmental Health-accredited

programmes. “Being able to train our

staff before sending them out to clients

really differentiated us from other

agencies,” Michele says.

Neway International was soon asked

to provide onsite training too. “Clients

valued being able to train staff at their

establishments in their own style of

service, but they also like to hand-pick

talent. Over the next four to five >

“As our exit from the business progressed, he made sure that we received advice on how we should model the sale.” Michele Cassandro

story

years, this aspect of the business grew

to represent about 70% of our annual

turnover,” she says.

Solid foundation of supportHaines Watts partner Amilios Costa has

been on the journey with Michele since

the beginning – and it’s this depth of

knowledge about her operations that has

proved invaluable.

“Amilios – Moss, I call him – has always

been my rock,” she says. “He referred

me to other experts in Haines Watts,

when required, whether it was to arrange

the purchase of our property through a

SIPP pension or conduct an end-of-year

audit. And, as our exit from the business

progressed, he made sure that we

>

magazine | Issue 51 | hwca.com8

“Over the past two decades, I’ve been

working alongside Michele and seen

her transform her start-up venture into

a successful business that she has

gone on to sell.

Haines Watts has provided a range

of services to her over the years, from

accounts and audit to payroll and

business planning, but a large part of

my role has been to look after Michele,

the person.

expert

AMILIOS COSTA, Haines Watts Partner

When she was looking to diversify

the business, I helped her to purchase

a property through a SIPP pension, for

instance. And, as the business reached

a certain turnover, we also ensured her

end-of-year audit went smoothly.

We advised her to expand her client

base and supported her in tendering for

new business so she could reduce the

risk of over-reliance on one key client.

Finally, because this is a high-

stress, low-margin industry that relies

on finding good quality staff from

across Europe, we have kept her up

to date with all the latest employment

law changes.

When she finally decided to sell, our

exit strategy involved making sure she

became less essential to the everyday

running of the organisation, as this is

always a first step in making a business

more attractive to buyers.

Now Michele is looking to her next

opportunities, I will continue to be

there to look out for her interests,

whether that is business planning,

personal finances or investments.”

received advice on how we should

model the sale.”

As with any sale, there were stumbling

blocks, and Moss was able to step into the

role of negotiator between Michele and

the new buyer. “There was an impasse

over details such as holiday money

accruals and how much the ‘good will’ was

worth,” she explains. “But because Moss

knew the business so well, he was able to

push the deal over the line.”

It is a close relationship, so it’s hardly

surprising that Moss is now helping her

to set up her next challenge. “I worked

16-hour days, so he’s now making sure

the next venture is modelled so I only

have to work a more normal six hours a

day!” she says.


source

Watching TV, hailing a

cab or finding a place

to stay while travelling?

Market disruptors have

transformed a host of everyday activities

over the past few years.

But disruption isn’t just for the likes of

Netflix, Uber and Airbnb. Businesses of all

sizes across every sector need to be aware

of the threats and opportunities, according

to Haines Watts Partner Kapil Davda.

“No firm can afford to be complacent,”

he says. “Businesses in every field

need to be constantly reviewing their

offerings so they can identify how they

can be improved in the light of new

technologies.”

How do you stay ahead of game-changing market innovations? Simple – be prepared to shake up your own business, according to Haines Watts’ Kapil Davda.

a big issue as Brexit starts to affect the

labour market. That’s when investment

in technology comes into its own –

whether that’s introducing robotics in

production facilities, or adopting the

latest software that reads and analyses

legal documents.”

So, while this perpetual disruption can

be overwhelming, the best strategy is

to stay alert and open to change. And,

as Kapil points out, SMEs have an edge

here: “Smaller businesses don’t have

legacy systems and they can move fairly

nimbly to adopt the most cost-effective

technology.”

disruptionEmbrace

5 ways to stay ahead1 Review your products or services

constantly in the light of changing

technology.

2 Benchmark your business against

your competitors’ offerings.

3 Review your strategic direction

– and be prepared to alter your

core purpose if needed.

4 Analyse the latest technologies

to assess how they could improve

your operation.

5 Think about the range of

options to fund innovation, from

traditional channels to angel

investment or even R&D credits.

Natural disruptorsKapil works with many high-tech SMEs

with ambitions to shake up the markets

they operate in. “Small businesses are

natural disruptors,” he says. But, he

warns, disruptors need to be prepared

for the side-effects of success.

Uber, for example, has been in the

news of late for several reasons, including

a data breach that took place during its

rapid growth phase.

“Disruptors need to get their products

to the market as quickly as possible, but

sometimes they don’t always consider

all the management and compliance

implications of that,” he says.

Alternatives to labourEven SMEs that are not seeking to disrupt

their own markets need to be prepared

to take advantage of market-changing

technology. Breakthroughs in artificial

intelligence are transforming industries

from manufacturing to accountancy –

but many firms have held off investing.

“Labour costs have been cheap, but

this may change,” Kapil says. “Many of

my clients are already finding recruitment

“Smaller businesses don’t have legacy systems and they can move fairly nimbly to adopt the most cost-effective technology.”


picture

financesyour

Flex

SMEs know they need to be flexible and dynamic in this changeable economy. But, says Simon Green, non-traditional forms of finance can open doors to opportunity.


picture

“Bank funding isn’t right for some

businesses because of their risk profile,”

says Simon. “These are ventures which

are looking for investors who are willing

to take a longer-term perspective and

take more risk.”

Telling a storySuch SMEs can achieve more success

through angel investment or crowd-

funding platforms, particularly if they

offer something “new and sexy, or come

with a rousing story”, Simon explains.

“There is potential for us to end

up with lots of cool new breweries

and not enough waste management

companies, which would not

necessarily be good for society,”

says Simon.

Avoid being dragged down the ‘garden path’With a growing number of finance

options available in the UK, it’s vital

for SMEs to seek the right advice

and choose the most appropriate

method for them.

“The biggest risk is trying to raise

inappropriate kinds of finance in an

ineffective way – either by chasing

the wrong type of investor or selling

the business too short. You just end

up wasting time,” he says.

“Just because something’s perceived

to be new and exciting doesn’t mean

it’s right for your business.”

Keep focused on the customerSecuring investment is – and should

always remain – about building

a strong business with a solid

proposition and a spotlight fixed on

the end customer.

“Sometimes there is too much of

a focus on how to raise investment

rather than building a strong

business,” Simon adds. “Ultimately, if

you’re winning customers you’re likely

to be more attractive to an investor –

no matter who that investor is.”

Raising finance for a business’s

next phase of growth is

daunting. Whether it’s for

proving an idea, taking a

product to market or expanding into

new regions, tapping into the right

investment channels can make sure your

company reaches its potential – without

wasting valuable time.

New crowd-funding platforms offer

an alternative route for new, higher-risk

or emotively engaging businesses, but

many of these are more traditional than

they appear at first glance.

“If you look at syndicates investing

in businesses – people have been doing

this through the stock market for 300

years,” says Simon Green, Executive

Director of Innovation SuperNetwork for

North East England.

“Effectively, the origin of the stock

market was a crowd-funding mechanism

for business ideas. It’s not necessarily the

models that are new, but rather the way

people can now share information and

get themselves out to a wider market.”

A new perspectiveFor many businesses – particularly

well-established companies – traditional

funding options such as bank loans

and asset finance often remain the

most appropriate approach. Flexible,

innovative finance options can represent

good value for budding businesses

which don’t have the same level of

security behind them, however.

“They can potentially raise money

more easily and at better rates through

crowd-funding than they might do

through more traditional routes,”

he adds.

The risk, he says, is that it can be

difficult for more complex companies

or those with less emotionally engaging

back stories to tap into crowd-based

investment markets. That, in turn, could

skew investment towards more emotive

products or services.

“Just because something’s perceived to be new and exciting doesn’t mean it’s right for your business.”


success

There is a problematic

disconnect between business

owners and their management

teams, new research by

Haines Watts has found.

Most senior managers see themselves

as fully aligned team players. Four-fifths

(83%) of top executives are under the

impression that they understand the

business owner’s goals. And an even

larger proportion (87%) are confident

they would be trusted to run the firm in

the owner’s absence.

Unfortunately, their bosses don’t agree.

Lack of trustAccording to the study of 500 UK business

owners, some 42% of owner managers

believe their firm wouldn’t survive beyond

a single week without them.

Even among businesses with a

full, formal management team, only

60% believe that they really have the

full support of their senior people.

“Management teams don’t just face a

lack of trust – they don’t even know the

trust doesn’t exist,” explains Haines Watts

Partner Darren Holdway.

Some owners may have real grounds

for doubt. Many management teams

and business partners lack experience.

Over half are growing a business for

the first time.

Does your management team share your vision for your business? And how can you tell? One explores the challenges of forging a united leadership.

Left in the darkOn the other hand, it’s not surprising

that managers are in the dark – because

many SME owners aren’t sharing their

concerns. Over half (52%) say it’s

important they don’t show vulnerability

to their leadership team.

According to Darren, this lack of trust

and honesty only serves to sideline their

senior managers. “They’re unable to take

on more of the day-to-day running of

the company and take the pressure off

owners,” he says. “That matters because

it leaves owners with less time to think

“A lack of trust and honesty only serves to sideline senior managers – and leaves owners with less time for strategy.”

Aretheythinking

whatyou’rethinking?


success

and plan strategically –

which, in turn, prevents

them from reaching their

growth ambitions.”

Indeed, owners who

are able to step back and

focus on strategic planning

are twice as likely to build fast-

growth businesses. Sadly, these

strategy-focused leaders are a

small minority – fewer than 10%.

Tough decisionsAlexandra Garner, Director of HW

Human Resources, says business owners

need to release their grip and allow

senior managers to step up.

And where teams truly lack

experience or skills, she says, some

tough decisions might need to be made.

“The first step is to make an honest

assessment of your team’s capability,

and then act to close any gaps and

weaknesses,” she says.

It’s equally important to present a

firm leadership style, she adds, such

as clearly articulating a vision of the

business that everyone can unite behind.

SME owners who develop a strong

team, focused on shared goals, will be

freed up to think more strategically

about their business ambitions.

“Owners need to take the initiative,

involve senior managers in the planning

process, share their fears and future

vision – and then hold their teams

to account for taking the business

forward,” Alexandra concludes.

5 steps to a united team1 Assess your top people: Identify

weaknesses in the management

team and work with them to

develop skills – and bring in new

talent if needed.

2 Practise honesty: Spell out your

long-term business vision – and

your concerns. Your team will

work better when they know the

full picture.

3 Learn to let go: No business owner

should be indispensable to day-to-

day operations.

4 Delegate responsibility: That

means giving your top team

freedom and accountability.

5 Think strategy: Devote your time

to strategic planning as much as

possible – it’s the proven way to

faster growth.

“Owners need to take the initiative, involve senior managers in the planning process, and share their fears and future vision.”


A pril brings with it a host

of new and updated tax

regulations off the back

of the autumn 2017

Budget. That means January is a

great time for business owners to

begin planning, according to Graeme

Miller, Tax Partner at Haines Watts.

One of this year’s changes – which

he says many SMEs are still failing

to take advantage of – relates to

research and development. “Small

business owners should be exploring

whether their company could

potentially benefit from relief based

on new R&D projects,” he says.

“At the moment, this is an

EU-governed relief which will

hopefully be maintained post-Brexit.

But a huge number of businesses are

failing to realise that they could be

entitled to claim relief for research

and development.

“For any business, the question

should be ‘have you discussed it with

your accountant?’. Just to illustrate

why – at Haines Watts, we have

As our tax year-end approaches, Haines Watts’ Graeme Miller looks at what owners should keep in mind as they plan for the year ahead, from corporation tax and indexation allowance to R&D tax relief.

helped our clients to claim enhanced tax

deductions of over £150 million.”

Timing is everythingIt can seem that there is never an ideal

time to make a large capital investment.

But, says Graeme, if an owner has

identified that buying a piece of

machinery could make all the difference

to the future growth of the business, now

may be the time to act.

“Businesses should consider

making this kind of purchase before

their business year-end as it may speed

up the availability of the tax relief under

capital allowances,” he says. “The

timing is of great importance.”

Doubling upFor some growing businesses, new

funding allowances could influence

fundraising timings and act as a ‘game-

changer’ for securing investment for

growth, Graeme continues.

“There used to be a £1 million limit

on how much an individual could invest

under the Enterprise Investment Scheme

(EIS) – but that’s likely to be raised to

£2 million from April,” he explains.

“If you’re looking at a start-up that

needs real venture capital private-

equity backing, could potentially help

them double what they bring in.”

Proposals have also been put

forward to double the £5 million limit

for companies receiving investments

under the EIS and Venture Capital

Trust, though there is still a lifetime

limit of £20 million for companies.

“It’s a complex and shifting

regulatory area, so now is the time

to speak to your tax planner,” he

concludes.

Ringing intax reliefsthe

“A huge number of businesses are failing to realise that they could be entitled to claim relief for research and development.”

strategy


Your brand isn’t just about

your name and your logo, it’s

about intangibles like customer

loyalty. As such, your brand

needs careful looking after – just like any

other business asset.

Here are a few budget-friendly, yet

effective, tips for keeping your brand happy.

1 Think carefully about your brand name.

Companies with a strong name are more

scalable and sellable. It helps to explain

your story and the quality of what you

do. If you can rebrand, pick something

exciting, compelling and memorable. If

you can’t, think about adding a strapline

to help your brand shout louder.

2 Think global, not local. SMEs are competing against big

businesses with big marketing budgets

and start-ups who’ve branded for the

global, digital world. If you sound like

a global brand from the start, you can

grow into that reputation. But think

about cultural sensitivities for when

your brand reaches overseas.

3 Go to town on your business cards.

Business cards are one of the few

physical branded items that people keep,

so it’s worth spending money on a good

design, perhaps with a unique feature.

Your imagination is free – at Man Bites

Dog, we have a chunk bitten out of our

cards, for instance.

Claire Mason, CEO of B2B marketing and public relations consultancy Man Bites Dog, shares her secrets to building and maintaining a killer brand.

Improve and protectbrand

4 Trademark your brand. Protecting your brand is relatively

cheap and easy to do – so it’s well worth

it. Don’t just register your trademark in

the UK; think about the other markets

you’d like to enter and get the correct

intellectual property protection for your

name and/or logo there too.

5 Don’t be afraid to call in a professional.

It might sound expensive, but if your

brand comes up against a crisis, a DIY

approach is unlikely to be good enough.

Professional help can be invaluable

– and once the fire-fighting is over,

consider adding a permanent brand

representative to your team.

“Your brand needs careful looking after – just like any other business asset.”

reputationyour

source


panel

“How do you keep lines of communication open with the people you manage?”

PETER WRIGHT, Haines Watts Partner, Reading

”Start by keeping your door open

and encouraging a two-way flow of

ideas – people will naturally respond in

a positive way, particularly if you give

them freedom to express themselves.”

easySpeak

KAPIL DAVDA, Haines Watts Director, High Wycombe

“I have built it into my daily routine.

We have a catch-up first thing in the

morning – about the same time as my

first cup of coffee.”

“We have a monthly team meeting for

the whole office and share information

on office performance, sales pipeline,

other service lines, etc. We also actively

encourage people to ask questions, so

we can discuss them in the meeting.”

ANDREW JONES, Haines Watts Partner, Birmingham

AMILIOS COSTA, Haines Watts Managing Partner, Finchley

“We have regular one-to-ones and an

open-door policy, as well as frequent

lunches and informal meetings.”

“Start by keeping your door open and encouraging a two-way flow of ideas.”Peter Wright, Haines Watts Partner

SIMON GREEN, Executive Director of Innovation SuperNetwork for North East England

“I make a point of walking round the

whole office, daily, talking to the team

and offering my assistance and advice on

any of the jobs they’re currently working

on. Having been part of a professional

sports team, I fully embrace the adage

‘teamwork gets results’ and happily give

up my time to sit and talk with anyone

and everyone.”

“We’re in an open-plan office

with everybody together, so

communication happens very

naturally. We also have a meeting

at the beginning of every week that

everybody is involved in and that sets

the tone for the week.”

GRAEME MILLER, Haines Watts Tax Partner, Edinburgh


Most SMEs are insured

against sales and

operational risks, but

business owners sometimes

fail to consider the risk of losing key

people, including themselves.

“Thinking about what will happen

after they have passed away or become

seriously ill doesn’t come naturally to

many business owners,” says Tilney’s

Mike Wardlaw. “We can help them think

about what would happen if they or

another key person in their company died

or became incapacitated, as this can have

a catastrophic impact on their business.”

Reducing riskThere are many ways you can protect

your business from unforeseen risks. If

a business owner or shareholder dies

unexpectedly, their shares may be passed

onto family members or other individuals

who lack relevant experience.

As Mike explains, shareholder

protection ensures that business owners

are able to purchase the deceased’s

shares, thereby protecting the remaining

partners, shareholders and members.

“It also gives peace of mind that loved

ones will be financially secure.”

Some people are essential to the

running of a business and hard to

replace, he says. So taking out key

person protection allows a business to

mitigate any loss in revenue from their

death or incapacity, and offset any extra

costs. “This lump sum payment allows

the business to continue without financial

disadvantage until a suitable replacement

is found,” Mike adds.

Another risk worth considering

is that when someone who has

guaranteed a business loan dies, the

funds may be recalled by the lender.

“But with loan protection,” Mike

continues, “the business can pay off any

outstanding loans following the death

or illness of covered individuals during

the policy term, so it may be worth

seeing if this cover would be of benefit

to your business.”

Protection as an executive benefitLife insurance is also relevant, as it

provides individual death-in-service

benefits to directors and senior

employees. Mike summarises this form of

protection as a useful incentive to retain

or attract top staff. “The premiums are

paid by the business and can be offset

as a business expense, providing tax

advantages for both the employer and

employee,” he says.

to insure your

Owners insure their business premises, machinery and equipment, but it’s just as important to cover the value of key people, according to Tilney’s Mike Wardlaw.

“Thinking about what will happen after they have passed away doesn’t come naturally to many business owners.”

Talk to usTo find out how Tilney could help protect

your business against unexpected risks,

speak to your Haines Watts adviser.

key peopleDon’t forget

self


update

Winners of the 2017 Haines Watts Young Entrepreneur of the Year competition have been revealed – Lauren Prentice, of Sense Theatre, and Bruce’s Doggy Day Care’s Bruce Casalis.

Lauren started Sense Theatre in 2011

when she was just 21, offering children’s

after-school drama clubs. In 2016, she

sold this part of the company so she

could focus on themed ‘sense parties’

for children. Her rapid plans for growth

also include children’s cookery classes

in schools. “I’m constantly adding new

revenue streams so that we can face

anything the future throws at us,” she says.

In 2009, at the age of 24, Bruce Casalis

started multi-award-winning business

Bruce’s Doggy Day Care (BDDC). He

now has two dog crèche centres in

Entrepreneur award announced

Cobham and Ripley, Surrey, each set in

the countryside with swimming pools,

agility courses, trampolines, heated

indoor areas, gazebos and a grooming

parlour. “I identified a gap in the UK

market for a better alternative to dog-

walking services and now BDDC has

grown into the UK’s largest dog day

care provider of its kind,” he says.

Part of its success has been thanks

to cloud-based CRM software and

the development of bespoke apps for

customers and staff which track every

detail. It now plans to expand and

become the UK’s most respected and

recognised dog day care service.

The winners received free

mentoring, cash and publicity as part

of their prizes.

HWYE 2017 winners Lauren Prentice and Bruce Casalis,

with Jane Wills (left), David Smy, and Jane Gregory from Haines Watts.

Successful sleepout fundraiserLaura Evison, Administrator and Marketing Co-ordinator for the Haines Watts Liverpool office, took part in the Goodison Sleepout on 10 November raised £640 for Everton in the Community.

The charity delivers a range

of programmes to promote

health, education, social

inclusion and equality to

more than 30,000 people

every year across Merseyside

and North Wales.

A perfect DayAn annual campaign to promote small businesses in contrast to phenomena such as Black Friday involves 100 of Britain’s most innovative and creative SMEs.

Small Business Saturday promoted

one of its listed businesses every day

on social media, up until its event on

2 December 2017. Michelle Ovens,

Director of Small Business Saturday,

says: “The annual campaign has

really captured the hearts of

communities and it gains traction

year on year.”

R&D boost promisedMore support for research and development, and encouragement for firms to embrace new technology, are part of the government’s Industrial Strategy White Paper.

Measures include an extra £725 million

to support innovation in construction

and life sciences through the Industrial

Strategy Challenge Fund.

The number of smaller businesses in the UK has reached a record 5.7 million, according to figures released recently by the Department for Business, Energy and Industrial Strategy.

The UK’s small businesses contributed

£1.9 trillion to the economy this year.

SMEs hit new high


Publication Date: January 2018

© 2018 Haines Watts Limited. All rights reserved. All published material remains the property of Haines Watts Limited and is replicated with the permission of Haines Watts Limited. All contents of the publication are correct as of publication date.

Haines Watts and The Haines Watts Group generally refer to the network of member organisations, each of which is a separate and independent legal entity. Each entity has signed a participation agreement with Haines Watts Limited, or is controlled by such a firm. Member organisations are not members of one legal partnership and are only liable for their own acts and omissions, and not those of each other.

The majority of these firms are not authorised under the Financial Services and Markets Act 2000, but because they are licensed by the Institute of Chartered Accountants in England and Wales, are able to offer a limited range of investment

services to clients if they are incidental and / or complementary to, or arise out of, the other professional services they have been engaged to provide.

It is Haines Watts Group policy to refer most investment business, excluding corporate finance work, to Financial Advisers, authorised and regulated by the Financial Conduct Authority. The Financial Adviser will take full responsibility for compliance with the requirements of the Financial Services and Markets Act 2000.

This magazine is designed for the general information of readers. The information represents Haines Watts Group’s present understanding of current and proposed legislation and HM Revenue and Customs practice. Whilst every effort has been made to ensure accuracy, information contained in this briefing may not be comprehensive and recipients should not act upon it without seeking professional advice from their usual adviser. The values of investments may go down as well as up and are not guaranteed.

Haines Watts announced in November that it had acquired Westbury Chartered Accountants, a firm based in Farringdon, London.

The deal means the addition of six

partners, 34 staff and a combined

turnover of over £10 million in Central

London and £25 million in Greater London.

Capital news

Banking good willIn the run up to the festive season, staff from 45 Haines Watts offices collected edible and non-food items for local foodbanks to help people living in food poverty this Christmas.

For anyone who is

unable to drop off a

donation, a JustGiving

page supporting the

Trussell Trust will offer an

alternative way to give to

over 400 foodbanks nationwide until

the end of January: www.justgiving.

com/fundraising/haines-watts3

Call to safeguard ATMsSME champions have called for the UK’s cash machine network to be protected, amid concerns about proposals to reduce fees for ATM providers. “Cash is still king for thousands of small firms, particularly those in tourist hot spots and rural areas with poor connectivity,” said Mike Cherry, Federation of Small Businesses National Chairman.

Making merrySmall business bosses were set to shell out £593 million on staff Christmas lunches last year.

Firms in media and financial services were

expected to spend most, at over £50 a head,

while education companies were anticipated

to spend a frugal £21.31, according to research

by Hitachi Capital Business Finance in 2017.

HELPING OVER

BUSINESS OWNERSREACH THEIR GOALS

35,000

VIA OUR INTERNATIONAL ALLIANCE

WINNERACCOUNTANCY FIRM

OF THE YEAR

FUNDRAISINGFOR OVER 100 LOCAL CHARITIES

WINNERAUDITOR OF THEYEAR FOR SMES

2012 & 2013

OVER 1,000 PEOPLE

AROUND THE UK WORKING TO SUPPORT CLIENTS

ACCESS TO

SPECIALIST SERVICES

TO HELP WITH EVERY ASPECT OF LOCATIONSAROUND THE UK YOUR BUSINESS & PERSONAL NEEDS

OVER 100

EXPERTS IN OWNER-MANAGED BUSINESSES

OVER

60 SMES AT FD EXCELLENCE AWARDS

WINNERACCOUNTANCY FIRM

- LARGER CLIENTS

PRESEN

CE

IN

OVER

100 COUNTRIES ARO

UN

D T

HE

WO

RLD

Having advisers that can add expert advice and value to both your business and personal wealth aspirations is important for most business owners. By understanding what you want to achieve, Haines Watts is able to work with you to identify opportunities for growth, saving money and managing risk to help you reach your goals. If you have an hour to spare, why don’t you arrange a meeting with Haines Watts to find out

how we can help you with your business needs? Contact your local office: www.hwca.com/offices

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