Small Businesses - the Pressures
I read an article in the Evening Standard earlier this week about a former civil servant who had set up a business 5 years ago and was finding life tough. He cited the usual reasons, 3am carpet sweats, keeping employees in jobs, cashflow, peer pressure - desperate to be successful when asked "how's it going?". And so on.
A recent study found 58% of business owners have experienced depression and anxiety.
The business owner from the Standard's piece referred to the Government's hostility towards small business, quoting certain leading politicians and some less than savoury comments!
The comment which really caught my attention was this:
"Another example of how life is more difficult than it should be for British entrepreneurs is the shortage of good advice and support as you grow your business. This is very different to the US, where there is a much deeper culture of business education..."
I have to agree.
I have spent the last few months making contact with various business support agencies and their main offering seems to be networking meetings, proliferated by the usual crop of social media experts, IT consultants and of course, financial advisers. I am sure those who represent these organisations mean well but many focus on offering grant funding towards specific consultancies like a new web site, or a social media campaign. For some this might help.
Most accountants focus on compliance - meeting filing deadlines, submitting Returns etc. Payroll and VAT returns are all important - ALL compliance is important as the penalties for non-compliance are severe.
BUT - this is not the reason we get up each and every morning.
WHY do you get up each and every morning?
To earn money. To pay bills, put food on the table and build a life.
On average, a Director drawing more than £27,000 in dividends this financial year has an effective tax rate of over 50%.
The personal allowance is the amount you can earn before you start to pay income tax; where income exceeds £100,000 the current allowance of £11,850 reduces by £1 for every £2 earned over £100,000. So, anyone earning over £123,700 loses this allowance altogether. This creates an effective tax rate of 60% - and this before NICs.
My question: do you feel adequately rewarded for all you do, the sacrifices you make, the risks you take, the 3am carpet sweats?
If not, you may be interested to learn about a new kind of accounting practice; one where the focus is on you. Ensuring you are properly rewarded so that you remain motivated. The compliance work will be done of course but it will not be the sole reason for joining this firm.
Life is short, working life at 100% capacity shorter still. Life without adequate rewards is a drudge.
If you are feeling demotivated, get in touch.