In today’s post, I want to talk about the three biggest fears that I see among small business owners—fears that can absolutely haunt both them and their businesses. Let’s dive in and explore what these fears are and, more importantly, how you can turn them into advantages.
1. Feeling Like You’re Paying Too Much Tax
A common concern I hear from many business owners is the feeling that they’re paying too much tax. It’s not a great feeling, especially when you’re juggling a million tasks to run your business. This constant worry can feel like a grey cloud hanging over you.
The first step to addressing this is understanding what you think you should be paying in tax. There’s often a gap between expectation and reality. A major driver of how much tax you pay is profit, particularly corporation tax. But there are legitimate strategies to reduce your taxable profit, which in turn reduces the tax you owe.
For instance, pensions can be a very attractive option for business owners as we sit here in 2024. A detailed tax review could reveal some easy wins for you. If you’re interested, I’ve got a little gift for you—our book, “75 Ways to Pay Less Tax.” It’s filled with useful strategies. Go through it today and see which ones you are or aren’t taking advantage of. It could be a game-changer!
Remember, any tax advice you follow should align with both your personal goals and your business strategy. At MDH, we often talk about the entrepreneurial journey. Make sure your tax decisions are relevant to where you are on that journey and that they work for you and your business.
2. Running the Business in the Dark Due to Poor Bookkeeping
The second major worry I often see is related to the quality of bookkeeping. How many businesses are essentially running in the dark? You get to the year-end accounts meeting or even a quarterly meeting, and it’s white-knuckle time. You’re nervously asking, “How did I do?”
Nobody wants to run their business like that! What you need is a constant “scoreboard” that shows you how well you’re doing. This should highlight the key drivers you need to hit to make your business successful. While sales are always critical, there are other non-financial metrics that are equally relevant.
If your bookkeeping is subpar, you’re not getting accurate numbers, and that can lead to making bad decisions. Thankfully, this is the best time to improve your bookkeeping, thanks to the cloud systems available. At MDH, we’re massive fans of Xero, which allows for regular bank reconciliation and easy invoice capture through tools like Hubdoc or DEXT. Done right, this can provide you with a clearer picture of your business, helping you avoid running it in the dark.
3. Growing Your Business Without a Clear Plan
The third worry is about growth—specifically, how to grow your business strategically. According to the latest stats, two-thirds of business owners want to grow. So, if you look to your left and right, one of them, including yourself, is probably thinking about growth.
But growth needs to be strategic, with a clear plan. What’s the point of growing if you don’t know what you want to achieve? What profit will it generate? How will it impact your future and your family? These are crucial questions to answer.
Depending on where you are on your entrepreneurial journey—whether you’re in startup mode, growth stage, or beyond—you need to make the best decisions for that stage. For instance, do you have the right finance and cash flow to support your growth? Are you prepared for any additional investments, like hiring more staff or purchasing new equipment?
If you’re just managing your business from your bank account, that’s not a strategy—it’s more like running on hope! You wouldn’t go from point A to point B without a map, so why grow your business without a clear plan? Having a detailed growth strategy can provide you with the roadmap you need to reach your goals effectively.
Final Thoughts
I hope this post has provided you with some valuable insights. If you have any questions, feel free to click the link below to schedule a discovery call. We’d love to get to know you and your business better, with no pushy sales pitch.
