I ran an event a while back and when I asked the business owners in attendance how much more profit they wanted to make I was met with SILENCE. Now you’d think that would be a fairly easy thing to answer as we know how important it is to set goals and be able to measure what we’re doing so we can see how near (or far) we are from those goals.
Imagine my surprise, which turned into shock and then disgust when ALL of the business owners told me they got so much conflicting advice from their accountants and had been told to stay under the VAT threshold. In fact one owner said she was frightened to make any more money because of what her accountant had told her. All the business owners in the room ran hair or beauty salons, so I wonder if this advice is only given to this sector?
How on earth are you supposed to grow your business if you do that? Does it suppose because it’s run by women they shouldn’t get ‘ideas above their station’ or is it because it’s assumed you can’t make a good business out of hair and beauty? Whichever it is, it truly hacks me off (I did want to use a stronger word than this!!)
Let’s take Kerri for example, she runs a specialist Wax Bar. Most accountants wouldn’t know what this was, would assume it was a really small business with no chance of growth. In the past 7 months we’ve helped Kerri grow this to a turnover of £250,000. She couldn’t do that if she was keeping herself under the VAT threshold or if she was just working by herself. She has a team behind her, providing employment in the local area and contributing to the economy. She pays VAT and tax – more than can be said for many international companies or many ‘mobile beauticians’.
It takes good business skills, confidence to keep going and passion to help you make a successful business, no matter what sector you’re in. So if you’re accountant is trying to keep you small or asking you how much tax you’d like to pay then they’re giving you the wrong advice. Ask yourself do you want to make more from your business, work less hours and feel pride in the business you’ve built? If the answer is yes and you’d like a chat send me an email to info@murrayassoc.co.uk. We’ll arrange a telephone call to talk you through the advice you’re getting and tell you if it’s appropriate or not, simple as that.