Growth Has Pitfalls!
27/03/2011 by Geoff.
Many small businesses grow but can hit some pitfalls:
- Reaching capacity - if you hit this ceiling and you have orders the the only option is to get larger premises. These come at a cost but beware of saying no to potential clients. Bad news travels fast.
- Investment is like plants they grow! This can be a problem - you need to know where its going to come from. It also pays to interrogate you original budgets thoroughly and have a contingency
- Don’t forget to draw a proper salary or budget for it. If you don’t it’s not a real business or financial picture
- One route to investment can be to offer a supplier a stake in your business. But be careful who you share your bed with
- Like investments your plans will probably overrun. This can have positive and negative effects. Know them
- Know your costs - like salaries don’t fool yourself
Like most businesses its about profit.
VAT On Some Postal Services!
27/03/2011 by Geoff.
Although the First and Second Class postal rates are unaffected, as are franked mail and standard parcels, there are a number of postal services that will include VAT from 31 January 2011. These include:
Express and tracked services
- Special delivery 9am, stamp, franking and account customers.
- Special delivery next day, account customers only.
- Royal Mail tracked and tracked next day
- Royal Mail Same Day
International Services (EU destinations only)
- International contract services
- International Airsure
- International Admail and Admail Packets
- International redirections
Advertising, Catalogues and Magazine services
- Big Book
- Royal Mail Heavyweight
- Mail Media
Unaddressed Mail
If you are a business user of these services you should be able to reclaim the VAT. However businesses that use these postal services who are not VAT registered or have Exempt Services may have to absorb the 20% VAT increase.