Leading consumer brands like Subway and McDonalds have set the global yardstick when it comes to Franchising, especially in the UK where hundreds of businesses have grown using this business model.

Franchising has become popular in all industries – from restaurants to supermarkets and ice cream parlours.

Franchising boasts a simplistic business model and this has transformed the way businesses expand, allowing first timers to try out their luck as entrepreneurs.

The process is low risk, as it basically involves a franchisor selling an initial business idea, along with numerous supporting materials and resources, to someone else – the franchisee. The franchisee’s opportunity is to set up an already established business but in a different geographical area. In this article, we will be exploring the process of franchising in order to understand why this is often a good choice for anyone wanting to start their own business.

What / When / How?

The most enticing aspect of franchising is that the risk factor is a lot lower than that which comes with starting a business from scratch. Franchisees pay a one off fee to the franchisor, which means that the exclusive right to operate the business in a defined territory is purchased. Aside from using the brand name, a franchisee has access to the training and support that comes with an already established business with proven techniques and processes.

The franchisor is expected to provide everything needed to succeed in exchange for the initial fee – this includes vehicles and equipment, stock, documentation, systems, software, operating procedures and new employee training.

Additionally, a franchisee would normally pay an on-going percentage of sales to the franchisor and a portion of that money is often collected, from all franchisees, and combined to use for marketing the brand across the entire franchise network.

…And then there was paperwork

Franchisees operate independently from the franchisor, hence they need to complete the financial and tax paperwork associated as with any business.

Regulations, paperwork and decisions come thick and fast when starting a franchise, and while this can be distracting, it is vital that aspects such as: business structure, forming a company, registering with HMRC/Companies House, VAT schemes, business insurances, business banking, remuneration structuring, tax planning, life cover and pensions are covered.

As soon as the business is up and running, it’s important to maintain control of tax and finances and stay on top of things like: payslips, tax and NI deductions, monthly payroll returns, directors’ loans, dividends, VAT returns, company returns, annual accounts, corporation tax and self-assessment returns. The finances of the business need to be monitored and managed and its tax affairs kept up to date with..

Efficiency is key

Business owners often feel like they can do everything themselves, but that idea quickly dissolves when they see the amount of paperwork that needs to be dealt with. The quickest and smartest way to get help is to have an accountancy solution that has the ability to deal with all the issues above safely and with minimum hassle, whilst providing up to date financial information and traditional support and advice – all at a reasonable cost.

So it’s probably safe to say that the best thing to do is to go digital! There are so many benefits to an online accountancy solution, the most important being that they offer a cost-effective and hassle-free way of helping franchisees in becoming more efficient. It only takes approximately 24 hours to set yourself up, meaning that you get instant access to a modern way of viewing your finances, with no fear of delays and no extra costs. Your accountant can submit all the necessary information in real time, and you will be able to see how much will be needed to be set aside for tax bills.

Accessing advice and support whenever it is needed is one of the beauties of technology. It makes life simpler and allows you to have full control of your life and business; yes, the two go hand in hand. The admin burden is removed and you, the franchisee, can focus on the more important aspects of your business, such as growing the brand, with the comfort of knowing the tax-man won’t come knocking on your door.

John Hoskin is a director of CleverAccounts.com, an online accountancy firm that seeks to simplify the task of business accountancy. Paying a fixed monthly fee, small businesses, limited companies, sole traders, freelancers and contractors have access to accountancy, business-set up and tax planning services, simple-to-use online bookkeeping, a 24/7 view of their figures and on-going tax advice.

Read more:
How to be a successful franchisee

As it grows from a mere thought into a living and breathing entity, it’s an obvious success – that is, of course, until the cash runs out, which is likely to be the end of the line.

Therefore, it’s safe to say that it makes sense to put as much effort into keeping the business alive and well, as you do in creating your masterpiece. The way to do this is by very realistic forward planning.

Keep the money flowing
Start with a week-by-week cash flow plan for the year ahead. This plan must be made up of a realistic assessment of what income will be coming in, and when, but that also covers all the major outgoings like:

– Tax Payments
– Subscription fees
– Technology
– Utilities
– Travel
– Staff
– Premises
– Stock and raw materials
– Insurance

Don’t assume the worst-case scenario, as thoughts like that may hold you back from starting the business in the first place. The plan does need to be based on the lower end of the estimated sales range though, followed by an attempt to monitor your costs closely, ensuring you stay within budget.

Try to be disciplined and leave out sales revenue or contracts that you are unsure of – they don’t fall under the ‘realistic’ category. The basis of a cash flow plan is to know whether the business can make it, even if everything doesn’t go your way. . Follow-ups, or ‘reforecasts’ are as important as the initial draft, so review and amend the plan often to see how it compares to actual results and to make sure it reflects the latest trends and impacts on the business, such as: better or worse sales than expected, new contracts, changes in staff or supplier pricing.

You can always get more cash.
Some businesses are non-cash businesses, so if yours falls under this category, you should think about customer payment – try to figure out how payments will be taken. You could ask for customers to pay via direct debit or you may want to offer a small discount if some choose to pay early. This will ensure regular cash flow and valuable time will be saved as you won’t have to deal with chasing payments – two things that will benefit you more than a little extra revenue.

The success of any business is in its customer service and the relationship that’s built with customers. Delivery of service/products must be on time, high quality and consistent, as it’s the number one way to keep customers loyal and happy. Notwithstanding this however, try and keep your fixed overhead costs as low, and lean, as possible – especially in the early days of the business. This way, more cash is free for covering any difficult periods and you’ll have greater flexibility to respond to changing customer demands or issues with the business.

The tough times don’t need to be so tough
In some ways, a business is like a living organism – a myriad of internal and external things can impact on its fortunes, so it’s possible that at some point there will be tough times. If so, it makes sense to cut out any discretionary costs and only allow money to be spent on vital things that keep the business running. Try and cut costs wherever possible and look to working out cheaper ways to get the same results.

If you have a good track record and enough credibility you can try talking to your bank – it works a lot of the time. By maintaining a good relationship with your bank you could get the support and help you need, such as a short-term overdraft.

The taxman knows where you live
If you forget to pay the taxman, he will get you! There’s no shame in admitting that you might be struggling, so the smartest to do is to let him know of your troubles. You won’t be ignored, so by contacting HMRC and explaining your cash-flow issues you are spared the dreaded phone call from them later on.

If you act early, the chances are that you will be allowed a ‘time-to-pay’ arrangement, where you will be given time to pay outstanding amounts by instalments over an agreed period. This may avoid penalties or interest and the HMRC won’t be knocking down your door to collect overdue tax payments.

John Hoskin is a director of CleverAccounts.com, an online accountancy firm that seeks to simplify the task of business accountancy. Paying a fixed monthly fee, small businesses, limited companies, sole traders, freelancers and contractors have access to accountancy, business-set up and tax planning services, simple-to-use online bookkeeping, a 24/7 view of their figures and on-going tax advice.

Read more:
Cashflow Management – the only way to keep your business alive

Any successful businessperson will tell you that good bookkeeping is the bread and butter of any business. It basically involves keeping an up to date record of all of income and expenses and therefore the business’s financial position, enabling the owner to make educated decisions regarding the future of the company.

Bookkeeping is also necessary for a business to comply with a number of regular legal and tax obligations – from filing of accounts and VAT returns to corporation tax – all of which have to be filed accurately and on time with HMRC or Companies House.

As a business owner, it’s necessary to keep track of all aspects of the business; including trends in sales and profit, costs incurred, how much you can afford to pay yourself, amounts owed, taxes due and whether there are financial problems ahead.

Without records, it would be difficult to make decisions, know what’s working and what isn’t, plan for the future or decide on any potential investments. If the income and expenditure of the business were not recorded, there would be no control – something that would make basic management impossible.

Bookkeeping – The Traditional Way

The traditional way of bookkeeping involves doing everything manually. This includes paper records, spreadsheets, or using an accounting system to record transactions. However, even when these records are painstakingly and immaculately kept up to date, unless the business has an in-house finance function, they periodically need to be collated and sent to your accountant.

When the accountant receives all the basic data, the records will be processed and it then takes some time to produce management reports that can actually be used to evaluate the business and for decision making. These reports also set out the business’s financial position in a specific format that is often required by external parties. The accountant would also have to use this information to complete VAT returns, company tax returns, and annual accounts – AKA your tax compliance burden.

Realistically, you have two options: you could do the bookkeeping yourself, or you can pay someone else to do it. Either way, there is normally a significant delay between the collating the bookkeeping and getting back any meaningful information on the business – management accounts or your tax liability calculated. In addition, you will have to pay for these extra management reports and tax returns.

Let’s look at the facts – stats released last year by the Federation for Small Business:
• Half the owners of the UK’s smallest businesses spend up to eight hours per month on tax admin and one in five said a lack of understanding about the tax system has led them to miss tax deadlines.
• For 11% tax admin takes an astonishing six days per month.
• Two thirds of owners estimate the cost of dealing with tax obligations at over £3,500 pa.
• One in three said a lack of cashflow planning led to not paying taxes on time.

The 21st Century – the end to bookkeeping as we know it?

Looking at the stats, it’s obvious that doing things manually just isn’t working very well. The solution is clear – just get digital! All of the data is already there in electronic form and can be easily shared by using a modern, online accounting service.

This means that all sales invoices can be automatically recorded in your accounts and online business bank account statements can be uploaded directly into your secure records, meaning there’s no re-keying to keep your books up to date. – Or you can quickly enter everything via your phone.

Furthermore, the online system automatically takes this data and provides management reports from it – so you always have 24/7 access to an instant real time picture of your business’s position and tax owed. Your accountant always has access to the data and can use it to complete the necessary tax returns and accounts, without chasing you for the info. This way, a deadline is never missed and you are always safe from paying penalties.

By using an online accounting service, the accountancy and tax advice you need is included as well – you’ll have easy access to a named single point of contact, a real person, for unlimited advice and support. There are no surprise bills, commitments or exit fees, and for a competitive, transparent, fixed monthly fee you get everything a small business needs to deal with accounts and tax.

Modern “bookkeeping” is the best tool in the arsenal of any start-up. As an additional bonus, an online accountant can provide quick business set-up and tax planning advice. There are no spreadsheets to deal with and no delays to getting your business on track. By using online accounting software, business owners save time and money and are hassle and stress free, while always maintaining control and visibility of their company.

Read more:
“BOOKKEEPING” – Is this the end?

The number has grown sharply in the past five years – since the onset of the recession – as more people, either having lost their jobs or facing that prospect, took the decision to go it alone.

However, while setting up a business is exciting, as you are in charge of your own destiny and can potentially earn a lot more, you will rarely be successful without the basics in place.

And the most basic part of any business is the financials. Unless a company’s numbers are managed correctly, and carefully, it will generally not succeed.

Now you don’t need to be a maestro of accounts to run a small business successfully, but a basic understanding of the principles of bookkeeping and finance will go a long way.

Bookkeeping

Good bookkeeping is the bread and butter of any business. There are various ways of tackling this — from manual records to snazzy accounting software based online. Creating, issuing and chasing invoices, recording expenses and monitoring outgoings, and paying employees (if applicable), is integral to most businesses. If you haven’t got the time to do it all yourself, find someone or use a service that can.

Annual Accounts

This is a formal record of your business’s financial performance over the year, including sales, costs and amounts owed, and is laid out in a prescribed format. When they are due depends on whether you operate as a sole trader or limited company. In either case, you can choose when your accounting year ends, but since taxable income for sole traders is calculated on an April to April basis and accounts need to be sent to HMRC for this period, it often makes sense for sole traders (and partnerships) to have an accounting year that runs from 1 April to 31 March. The accounts will need to be completed before the following 31st January, so they can be used when completing your self-assessment tax return which is due on this date.

Corporation Tax

Paid by all UK limited companies, CT is currently charged at 20% on any profit generated within the year, for profits up to £300k (and slightly higher for companies with profits above this). A corporation tax return must be completed, with tax due for payment to HMRC within nine months of the accounting period.

Self-assessment income tax

This is the form that must be filed to calculate your personal income tax on all of your income for the year 6 April to 5 April. It must be completed and filed, and any tax paid, no later than the 31 January following the previous 5 April tax-year.

Income tax rates

Everyone receives a tax-free personal allowance on which no tax is payable – currently £9,440 (until April 2014). Roughly the next £32,000 of ‘basic rate’ income above the personal allowance is taxed at 20%. Income above this is falls into the ‘higher rate’ band and is currently taxed at 40%, and then 45% for earnings above £150,000. Those earning over £100,000 also start to lose their personal allowance.

National Insurance is also payable on income from employment (salary and wages) at various rates and within various thresholds. Dividend income, from a limited company, is taxed at slightly different (lower) rates and also attracts no National Insurance.

VAT

Regardless of your business structure, if your annual turnover (sales) is £79,000 or more, you must register for VAT. If below this, registration is optional. Where registered, you will generally be required to charge your customers at the standard 20% rate VAT, i.e. add 20% to your sales invoices. You will then be able to reclaim any VAT you have paid on business-related purchases and expenses. VAT returns and payments are due on a quarterly basis.

PAYE

When you take out a salary, or employ staff, you will generally be required to calculate income tax and national insurance and pay it over to HMRC on their behalf. This is calculated and paid monthly and you deduct this from your employee’s gross salaries, so it is not a cost to your business.

National Insurance is deducted at a rate of 12% for employees (although both income tax and NI only kick in once a certain earnings limit is reached). Employer’s national insurance is also charged at a rate of 13.8 per cent on the gross salary (again within certain thresholds).

What next?

Having read the above, you’ll probably have an instinctive feeling about whether bookkeeping and basic accounts are something you can manage yourself or if you’re better off outsourcing it to an expert.

Whichever it is, try to make this decision as quickly as possible and then commit to it. The one thing you should avoid is spending hours trying to do it all yourself and then, having discovered you’re out of your depth, getting someone else to do it.

When you start out in business, spending on something as unexciting as bookkeeping and accounts can feel a bit frustrating, but over time the investments will reap dividends as your company starts to grow. The real benefits are in being in good control of your business and in ensuring that you are set up in a tax-efficient way.

John Hoskin is a director of CleverAccounts.com, an online accountancy firm that seeks to simplify the task of business accountancy. Paying a fixed monthly fee, small businesses, limited companies, sole traders, freelancers and contractors have access to accountancy, business-set up and tax planning services, simple-to-use online bookkeeping, a 24/7 view of their figures and on-going tax advice.

Read more:
Start-up advice: Accounting and taxes – you don't need to be a maestro

There are different legal and taxation treatments applicable to each, but your main options are:
• Sole trader
• Partnership
• Limited liability partnership (LLP)
• Limited company

SOLE TRADER
Under a sole trader arrangement, you and your business are considered one and the same – from both a legal and a tax perspective. You are personally responsible for the business and all its activities and any debts it owes. The profits the business makes (sales minus costs), to 5 April each year, are declared on your annual self-assessment tax return and classed as your personal income in that year, even if it is not paid out as salary, or into to your personal bank account. You must pay income tax and national insurance on this at the standard income tax rates. You do not need to register the business as such but you should tell HMRC that you are operating a business and need to be taxed under self-assessment.

PARTNERSHIP
A partnership is similar to a sole trader arrangement, but with more than one owner. All partners own a specified percentage of the profits (and the liabilities) and paying tax on that percentage of them. Again, each partner’s share of the profits is treated as their income.

LLP
An LLP is basically a partnership that also has some characteristics of a limited company. LLPs tend to be used for professional services firms, such as solicitors, accountants and architects.

LIMITED COMPANY
If you choose to form a limited company to carry out your business, the business becomes a separate legal entity in itself. The company must be formed, or incorporated, and registered at Companies House and it will have certain standard legal documents that govern what it can do and what business it operates in.

The company will be owned and controlled by those who own its shares, in proportion to the number and value of shares owned, and you can allocate shares to any number of people when the company is incorporated. You could retain all of the shares for yourself, allocate some to a spouse, or sell the shares (‘equity’) to raise funds.

You would also be a director of the company and you can appoint other directors. These are essentially the senior employees of the company and it is the directors’ responsibility to run the company in line with all applicable laws and regulations.

BENEFITS OF LIMITED COMPANIES
While it is true that a limited company does require more administration – for example annual accounts being filed at Companies House and an annual corporation tax return – these can be taken care of quickly and smoothly by an accountant. There are also significant benefits to having a limited company, including:
• They tend to be much more tax efficient, due to the ability to receive income in the form of both salary and dividends, where dividends attract a lower tax rate and no national insurance
• They separate the liabilities (debts) of the business from that of the owner(s), reducing the risk if things go wrong
• They tend to convey a more professional image of the business, as far as the perception of customers and suppliers is concerned
• They are easier and more flexible when it comes to raising investment and funding – since equity can be sold

Whatever route you decide to take – whether you’re a one-man-band, or a group of like-minded go-getters driving your small start-up – you will benefit in the long-term by setting out on the right track with the structure in place to set the groundwork.

Read more:
Start-up advice: which business structure is right for you?

Limited companies must pay their Corporation Tax within nine months of the end of their tax year – which for many firms is the end of March. So for these businesses, the deadline is fast approaching.

Your accountant should have told you how much you owe, which should be around 20% of profits if annual profits were less than £300,000. Profits are defined as all sales (less VAT) minus all business related costs (less VAT) in the accounting year.

You will have known when it will fall due – and what it will cost – for months. Hopefully you’ll have set aside a sensible amount of cash each month to be able to pay it in full without causing too many problems.

However, if you haven’t been putting money aside in previous months or have had to use these savings to cover a shortfall, you must act now to as damage limitation.

The most important thing to do if you know you will not be able to cover your bill in full is to tell HMRC before the deadline. If you approach the Revenue early and ask for a “time to pay arrangement”, it is much more likely to be accommodating.

Self-assessment

Unfortunately, this is not the only looming tax deadline for all SME owners, as the January 31st is the date by which company owners, shareholders or directors must complete their self-assessment income tax return.

If you opted to complete your tax return online, as opposed to the paper form which was due on the 31stOctober, you will have a lengthy online form to complete by the end of the month. It will calculate the income from the business, which is salary, dividends and any additional income received for the period to the previous 5th April.

The beauty of completing the form online is that the HMRC website will give you an instant calculation of what you owe. However, this figure shouldn’t come as a complete surprise as although it is best to have an accountant calculate the accurate amount, you can do a very rough calculation yourself.

If you’re a company owner who receives some of your income as salary, that income must be included on the self-assessment form (from your P60) but will not result in any more tax to pay – as you should already have been taxed on it through PAYE.

However, the income you receive in the form of dividends, together with any interest on savings or rent you receive from property you own may result in tax to pay.

For the tax year ending in April 2013, if you earn less than £100,000 per year, the first £8,105 of your total income (including salary) is tax-free. For salary, interest or rental income, the next £34,370 is taxed at the basic rate of 20%, with any additional income (up to £150,000) taxed at the higher rate of 40%.

Top Tips

– Expenses – working out which expenses are eligible can be tricky. It is best to take advice from your account as this could save you a considerable amount on your tax bill

– Estimate in advance – this will give you a much better idea of what you are likely to pay on you income tax bill and should prevent any nasty surprises

– Plan ahead – for both bills, planning throughout the year can make a world of difference

– Financial management – maintaining good, up-to-date records is vital and you should aim to make it a habit and not a chore. It will be highly beneficial to you in the long run

– Understand your strengths – if you struggle with numbers it is wise to hire an accountant to give you a regular financial picture of the business and what your tax liability is

John Hoskin is director of the low cost online accountants for SMEs, CleverAccounts.com

Read more:
31st January Tax Deadline

Unlike the usual vainglorious pledges to lose a stone, learn Chinese or climb Kilimanjaro, the decision to start a business should never be made on the spot. If it is, it is almost certainly destined to fail – and in so doing, cost you a lot more than your unused gym membership.

In the beginning, there was the idea

Or at least there should be. But not everyone is lucky enough to have a Eureka moment, in which they think up something genuinely new and sellable.

Most business ideas grow organically, where someone with a lot of knowledge or experience of a particular field works out a way to provide a product or service better – be it more quickly, cheaply or intelligently.

But even the best ideas need fleshing out with plenty of research. Fail to do your homework properly and you risk falling at the first hurdle.

Many good businesses succeed not because they’re based on a flash of inspiration – but because they evolve an existing idea and combine it with great execution.

Make sure you know who your potential customers are, understand what they want and how much they will pay for it. Once you’ve established that they will buy from you, you must work out how you will reach them. Then you must shape your marketing messages and design your business model around them.

Funding for launch

Funding isn’t easy to come by but with a good idea, presented well, thought through and backed up with knowledge and experience, there’s always a way – whether it be your bank, friends and family, a grant, an ‘angel’ investor, or even crowdfunding.

But whoever you approach for cash, you’ll need a clear business plan. This should set out your stall – explaining what your product or service is all about, why you think people will want to buy it and at what price.

The more you can bolster your bid with solid facts, statistics and maybe some case studies showing what competitors have achieved, the better.

Always be realistic but don’t forget, if you can do something better or differently to what’s out there, or available in your area, you can create a market. Quality service and value for money will always be well received.

Other things to put into your bid include the estimated size of your market, how you intend to reach your customers and as detailed a financial projection as you can make. And don’t forget to give some details of the background, skills and relevant experience of you and your team.

Naturally, whoever you approach for financial help will want to know when and how they will get their money back, so make sure you can answer these questions too.

Blast off

Once you have a robust business plan and your funding is in place, there’s one more tip to follow before you light the blue touchpaper:

Surround yourself with experienced people and a good team. They don’t have to be paid employees; they could be mentors, advisers or investors – the important thing is they can provide insight or expertise to help you test your ideas.

Try to network with key people in your sector who have done or are doing similar things. People are often very willing to talk about their successes and failures, and this can open up new opportunities.

Finally, ask yourself some tough questions:

· Are you providing a product or service you really believe in, and that you know to better than the competition?
· Are you in a market with good prospects, doing something that people want to pay for? However good you are at something, it’s no good swimming against the long-term economic tide. Remember, even the best scribes didn’t last long after the printing press arrived.
· Are you delivering a great service to your customers?
· Is your business scalable? – i.e. can it grow without everything being dependent on you?

If the answer to all the above is yes, you’ve got a good shot at making the business a success. But remember, like those who make running a marathon or climbing a mountain as their New Year’s Resolution, many new business starters will fall by the wayside. It’s not enough just to know what steps to take – the important thing is how you take them.

Ultimately it needs lots of hard work, determination and courage to succeed with a start-up. Those who lack any of these elements risk ending up like the would-be marathoners who get no further than a gentle jog round the park on New Year’s Day, or the would-be ex-smokers who are back on the cigs within a week.

Read more:
Made starting a new business one of your New Year’s Resolutions? How to ensure this is one you keep

Clearly for consumer-facing businesses December is often the busiest time of the year as demand for their products and services skyrockets. However, things are different for B2B firms, December can be a worryingly slow month. Their workload gets lighter, the phone rings less often – all of which can be especially hard to bear as retailers’ tills ring.

Many suffer from bailing clients – those who put their ‘escape plans’ into effect and pull the plug at the end of the year. Lots of small business owners are painfully aware of this habit, and spend much of their festive period waiting for the storm to hit.

Businesses that provide professional services seen as ‘discretionary’ may also find that some of their clients will suddenly want to take an unscheduled ‘holiday’ from their services in December. This can be very frustrating for any firm that has spent a year over-servicing their clients.

If this applies to you, you’ll need to figure out a way to keep your revenue rolling in when most of your clients will be more interested in splurging on festive food and drink than giving that cash to you.

So the big question is, how can you protect yourself from the much-feared December drop-off? If you can’t prevent it, you can mitigate its impact by making good use of the downtime.

Some things to bear in mind:

· MAKE SURE IT’S ALL IN PRINT. Your contract should clearly state your position during the Christmas period – the holidays may slow things down for a few days, but this doesn’t mean clients have the right to put everything on hold. People are enjoying themselves more in December, fair enough, but that doesn’t mean that everyone should stop working. So, to avoid doubt include a clause about December in your contracts, especially if you offer discretionary services. However, not all clients will be in contract, so if one of those who isn’t asks to take a break in December, just let them know how you feel. If they have been overserviced during the year, you have some moral leverage to keep their foot on the gas in December. Honesty is the best policy; so don’t be afraid to say you are unhappy with their suggestion.

· EVERYBODY LOVES A GOOD DEAL. The holidays are all about being generous so why not make a goodwill gesture to your clients? The truth is that you want your clients’ money before Christmas but they don’t really want to hand it over. With this in mind you could offer a seasonal discount for those who are willing to settle their invoices early in the month. Your clients will appreciate this gesture, and you will be making sure your cash-flow remains intact right up to the end of the year. Long-standing clients should are likely to say yes if you broach the topic diplomatically.

· LAY DOWN YOUR GAMEPLAN EARLY. You are likely to know in advance if your business is susceptible to the December drop-off – either through client desertion or falling revenue. A great way to deal with it is to assess your overall financial position, and to make sure that you have the funds to cover the “downtime” – you could even think about it over summer. Imagining the worst-case scenario forces you to prepare a sufficient buffer to carry you through until the New Year, when everything should fall back into place.

Some sectors are quieter than others; so if this applies to you, make use of the relative calm. The winter slowdown is a period to be taken advantage of – a moment where you can turn your attention to aspects of your business that may go unnoticed during the year’s busier months.

Mid-December is the perfect time for future target setting, intelligent strategic planning and staff reviews. Any other admin continually gets knocked down the list when everything is hectic, so order is much needed.

Conclusion: if there is a drop-off, be sure to make it a positive rather than a negative.

Read more:
How to avoid the dreaded December drop-off