When should you start to plan your business exit strategy? Possibly sometime ago, but today would be better than next week!

Most entrepreneurs start their business with a good idea of how they would like it to develop and what it will look like as it changes over the course of time. Whether the vision covers months or years into the future is down to the individual. But the truth is that very few have a definite vision of how the end will look. But this may be the most important, most profitable/expensive decision that the business owner ever makes for themselves, their family and the business.

Who can plan for the future?

There are some businesses, where the business is so dependant upon one person that there is little chance of any residual value and the exit plan will effectively be to extract maximum value from the business over the it’s lifetime. However, even in this situation it is likely that a decent customer list will have value to someone. If this is your business, then you should already be well into maximising the value of your work and preparing for the future.

For most businesses, however there is a definite opportunity to sell to one of a number of interested parties, when the time is right. Businesses for sale will attract a variety interested parties. In the main these will be trade sales of some type, either competitors, suppliers or customers. But you should not discount your existing management, extended family, entrepreneurs looking for a new opportunity and anyone else.

Your plan does not need to be set for when you are 65 or any other date unless that is what you have special circumstances, but bare in mind that the  time may not be the best time, so some flexibility needs to be built in. The best plan will have your business primed and ready for the roll out at the opportune moment.

How long will it take?

In an ideal world, you would have started to develop you business with a view to how you will step down from the start, but for a reasonable sized business it is likely to take at least twelve months to get all the pieces of the jigsaw in place and perhaps longer to make yourself dispensable and be able to produce accurate management information at the drop of a hat. There will be a considerable investment in time and some money to make sure that you maximise your final pay day from your business.

What’s the worst that could happen?

Lack of planning can mean that if the end suddenly appears out of the blue, there could be only one exit strategy, closing the doors and loosing the value that had been built up over the years.

This happened to a friend of mine, who had been building his business for around 10 years. One year, just before Christmas, he had a bit of a cold so he went to bed early. Unfortunately, the cold developed into something much more serious and he was rushed into hospital where he stayed for nearly 6 months. His wife, who did not work for the business, tried to keep the firm running, but by the end of January, only six weeks later, she had to take the decision to close the operation down and make all of the staff redundant.  All those years of hard work and money invested were wiped out in around 40 days.

It is certainly difficult for smaller businesses to plan for a lynch pin of the organisation to taken out with no notice. But whilst planning for the future, you should be looking to strengthen the core of the business to buy some time to exit with the maximum value possible.

So the ideal time to start planning your exit from your current venture is probably now!

If you would like to receive our FREE guide to Exit Strategies to be published in March 2012 “7 KEY STEPS OF EXIT PLANNING” click on the following link with title 7 KEY STEPS: info@profitabilitygroup.co.uk

Alternatively, if you would like to discuss your situation, please call Brian Russell FCA on 01661 872004

Brian Russell FCA is a Chartered Accountant specialising in advising small and family run businesses on how to maximise their returns when exiting their business or handing it on to the next generation.

Alan McCord has taken on the role of  accounts preparation manager and will oversee the work of the team. His background, which has seen him work in both the accountancy and business world will allow him to assist the firm’s client base of small and medium sized businesses to improve their accounting systems.

The other new member of the team is Sophie Ditchburn, who has joined as a Trainee Accountant, on a Modern Apprentice scheme through Access Training. Sophie left school in the summer and plans to train to eventually become a qualified Chartered Accountant.

Business Director, Brian Russell, said “Both appointments leave us well placed to achieve our expansion plans over the coming months and years. Taking on a trainee allows us to mould a team member so that they do the job our way rather than bringing bad habits from elsewhere, as well as, helping a young person to fulfil her ambition.

For further details contact Brian Russell on 01661 872004 or info@profitabilitygroup.co.uk

This new role will be to assist the director in the control and completion of all assignments within our portfolios of over 80 clients. You will supervise and train junior staff and have daily interaction with clients and their staff.

Your knowledge of all taxes, including Corporation Tax, Income Tax, VAT and PAYE will be regularly utilised and expanded. The firm uses Iris software (full training will be given) and you will be allowed the opportunity to enhance the internal systems used within the firm.

To apply for the position, please send us your CV with a covering letter either by email to info@profitabilitygroup.co.uk or post.

A brief description of the role is found below. If you require any further information please do not hesitate us on the above email address of by telephone on 01661 872004

Accounts Manager/Senior

Job Description

The accounts manager role is to manage the efficient running of the accounts production and tax compliance work of the practise, assist with the supervision and training of junior team members and to undertake accounts preparation as required.

Key Responsibilities

●          Managing workflow in the office

●          Completion and submission of accounts, Income Tax returns and Corporation Tax returns

●          Training of junior team members

●          Assisting the partner as required.

Main Duties

All aspects of the management, review and preparation of:

●          Accounts files

●          Income Tax Returns

●          Corporation Tax Returns

●          VAT returns

Also:

●          Review of work of junior staff

●          Review of payroll

Key Skills/Qualifications

●          Up to date knowledge of taxation and company accounts

●          Ability to instruct and monitor staff

●          Able to set own targets

●          Willingness to work in new/different areas

Hours

The role is part time (16 hours per week) which can be organised to suit the candidate although it is expected that the time would be split over 4 days. A degree of flexibility would be allowed on both sides.

As the firm grows the role could expand to be full time, if appropriate.

Location

The work will be based at our office in Ponteland, as well as, at client’s premises as required.

Salary

Salary is negotiable for the right candidate and will benefit from 28 days holiday (including statutory holidays).

Our client is based in Newcastle upon Tyne, has recently qualified to be able to instal and repair gas boilers following a change of career and needs an accountant for the first time.  We gave him a number of pointers at the initial meeting, when we also gave him a fixed price quote to cover his basic accountancy compliance work for his first period of trading.

For further information, contact Brian Russell on 01661 872004 or email: info@profitabilitygroup.co.uk

The client is a small business, based in Newcastle upon Tyne, that operates across the country in a specialist niche and has customers that range from individuals through to government agencies.

The client is currently operating as a sole trader and will be accessing our basic compliance service, but he is likely to require to further advice in relation to personal tax, VAT and possibly incorporation of the business to a limited company.

For further information, contact Brian Russell on 01661 872004 or email: info@profitabilitygroup.co.uk

The owner of the business has had quotes from a number of other accountants, including large regional practices,  and chose to come to us as he believes that he will get a more personal service, and in particular, that the business advice that he needs to drive his company forward in the current harsh economic climate will be easily accessible.

The original introduction came from an existing client in the Ponteland.

If you would like any further information, please contact Brian Russell on 01661 872004 or by email: info@profitabilitygroup.co.uk

Below are some of the key qualities

Positive – If rejection makes you depressed then working for yourself could be bad news.

Proactive – Sitting waiting for things to happen rarely makes a successful business.

Hardworking – 9 to 5 Monday to Friday is a dream in the early years for most small businesses.

Resourceful – Being able to turn your hand to many jobs, administration, bookkeeping, etc. can reduce the need to employ expensive assistance and gets the job done when the pressure is on.

Opportunistic – Entrepreneurs can spot gaps in the market, new complimentary products and better ways of getting the job done.

Family Values.

It is often a lonely way to make a living being self employed with limited opportunities to bounce ideas off your peers or employees. It is therefore vital to to make sure that your family are with you 100% and that you are able to discuss ideas and problems with your family. If they resent that you are at work for long unsociable hours or that your standard of living has fallen in the early days of the business, then you may need to consider what the consequences may be for your family life and if you are willing to take the risk.

Money

Many businesses are highly seasonal (including accountancy) with money fluctuating from month to month or even day to day. For sole traders, their first large tax bill payment has to be made on 31^st January, just as they are paying for Christmas. It is extremely useful, if you and your family can accept living on limited funds at times and that you realise what is at risk if things go wrong.

Advice

Do you realise when you need to ask for advice and do you have good instincts when you receive advice. Many new businesses portray an air that they know what they are doing and then stumble straight into the traps that experienced entrepreneurs are taking action to avoid. They say that experience is what you have 10 minutes after you needed it! Professional advisors, mentors and friends in business are there to help you to miss the putfalls that only come with experience.

If you would like to discuss any of these matters or any opportunities that you have, please call Brian Russell on 01661 872004.

 The couple run two businesses.  The first is a mortgage brokerage in Ponteland  and the other is in the retail sector based in Durham.

 We will be providing accountancy, taxation and payroll services for both businesses.

For further information, contact Brian Russell on 01661 872004 or email: info@profitabilitygroup.co.uk

The work for the current year will be limited to tax only compliance work, but it is likely that further work will come out of the assignment.

Russell & Co now act for approximately 65 clients including Sole Traders, Partnerships and Limited companies. For further details contact Brian Russell on 01661 872004 or email: brian.russell@profitabilitygroup.co.uk.

Alison Moore is joining the office in Ponteland on a part-time basis as the company’s first dedicated administrator.

Brian Russell commented “Due to the firm’s rapid recent growth, our team has been spending more and more time on non-chargeable administration. Alison will take over much of this work and  allow us to improve our service to new and existing clients by being increasingly proactive. I see her appointment as a key moment in our short to medium term growth of the business.”