Most people see a business plan as a set of numbers mainly designed to get finance. It will normally comprise

• Outline text
• Projected financials i.e. P + L, Balance Sheet and Cash Flow

The plan will be done at start-up. It will be dusted down when new finance is needed

What’s wrong here?

There are several things wrong with this approach. These are

• It avoids asking the key business questions like
  • who are our customers, how do we get and keep them
  • who are the competition
  • what are our strengths, weaknesses, opportunities and threats
  • We never measure performance against the plan. That’s like setting off for Bedlfast and arriving in Cork..
  • We may not understand how the numbers hang together e.g. how payment options affect cashflow

How should we use plans?

• Look at the key business stategy first. What are you offering? What is the market
• Based on your strengths and weaknesses develip yourtactics, pricing, advertising etc
• Put put numbers on your projected results
• Debate the plan with partners, advisors, family etc. This helps you identify weaknesses and argue your case convincingly
• When in business continuously monitor performance against the plan

How we can help

We can help you in several ways

 We have broad commercial experience in project appraisal  We can help you in the strategic and financial planning phase.

We support you in presenting to your case to lenders and grant agencies.  We are approved Enterprise Ireland advisors.

Measuring performance against plans can be difficult for small businesses. We vcan provide accounting services to givy you ongoing information on how you are doing.

Most business owners face the decision whether to be a sole trader or a company at some stage.here, we briefly outline some issues

Tax Rate

Depending on the nature of its income, the company will pay tax at 12.5% or 25%. This is better than your high rate of 41% plus income levy. This is relevant when the business makes more than you need to draw out.

Pension contributions

The company can contribute on top of your own contributions, subject to revenue limits on fund values.

Another advantage here is that this avoids income levies. Your contributions are not exempt from these.

You should always get professional pension advice

Exit

Severance payment options may be available on retiremment as a director

Passing on the business

For example, company shares are easier to manage when pertitioning a business between family members. Particularly with second families, it may be useful to use different share classes.

Becoming a company

There are Capital Gains Tax exemptions on transferring to a company. There are possible stamp duty implications.  Your solicitor and tax adviser can help with these.

Important Note

The above is only as a brief guide. It is not meant to replace professional tax advice.