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One | Issue 44 | www.hwca.com

Issue 44 | www.hwca.com

Backing Your Business

Marketer Ian Oswald, of The Works, says success is about finding a team with the right blend of skills

TheGet

WorksNetwork know-howDo more business in person

Top 10 mistakesAvoid planning blunders

Balance that riskBe open to opportunities

Ethical business paysCSR can boost profitability


opposed views, there’s a feeling neither of them can be trusted.

We elect politicians to make big strategic decisions on our behalf. But even respected politicians from all parties seem divided. In the absence of political leadership, we look for help from business leaders such as the CBI and the Chambers of Commerce. Well, the CBI has done a survey to tell us what we think rather than what they think, so that doesn’t help. And the sacking of John Longworth as Director General of the BCC for expressing an opinion means fewer influential people will step forward.

If our leaders are reluctant to voice, and stand by, their own decisions, can we at least implore them to contribute to a valid and rationally argued debate so we, as voters, can cast our vote based on facts?

So my message to politicians is simple, “If you’re not prepared to make the decisions for us, make sure we are given the right information so we can make our own”.

So what’s my own opinion? I’ll be voting ‘in’ on the simple basis that the EU is good for business and we’ll never change the things we don’t like about the EU from the outside!

TALENT

4 Network now Back-to-basics meetings.

14 Start communicating It’s time to engage with your people.

GROWTH

6 Turn on your talent Employing the right people is the

secret to solid growth, says Ian Oswald.

12 Get personal Get to know your customer personas.

PERSONAL

5 Inside UK trading UK fund managers are looking to smaller companies for investment ideas.

13 Claim back control New regulations may be too revealing.

RISK

9 Balance that risk Protect your business, maximise

opportunities.

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Haines Watts is a top 15 firm of chartered accountants which specialises in supporting business owners. We work with over 35,000 owners across a wide range of industries. This experience enables us to provide clients with access to a huge range of expertise and knowledge.

Our fresh thinking and practical approach underpin our values.

Commercial – Translating our technical knowledge into sound commercial advice.

Approachable – Access to your Haines Watts Partner whatever your issue, big or small.

Supportive – As a business owner you can rely on our experience to support your ideas and help you achieve your goals.

Challenging – We act as a sounding board and challenge your plans. It’s our way of ensuring that you consider all the options and make the best decisions.

Practical – We live in the real world. We’ll give you sensible, professional and appropriate advice.

WHO WE ARE

S hould I just flip a coin? …and if so should it be a euro or a good old pound?

I’m talking about the referendum on 23 June, the vote that will determine if we should stay in the EU or if we should leave.

It’s perhaps the biggest decision for over 40 years, since the referendum in 1975 on the same matter. But things were different then: there were only nine countries in the EU, the effect of trade and immigration was less significant, we had 25% inflation (yes that’s not

a typo!) and strikes and a unionised labour force. Much has changed

since then but we’re still faced with the same decision.

I have overheard many conversations on this over the

past few months. There are two ways to make a decision: you can

go with the heart or go with the head. This decision is too important to be made by the heart, so why are so many people talking about how they feel?

It seems people don’t believe that they have the facts and as

the two campaigns have such illogical and diametrically

THE BOTTOM LINE

If you can’t lead, inform us

Andrew Minifie, National Managing Partner

EFFICIENCIES

8 Top 10 misconceptions Get your business planning back on

track.

10 The value of ethics CSR can lead to improved profitability.

18 Haines Watts Update The latest news from Haines Watts.

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One is published by Haines Watts and produced by

ROUND-UP

Probes into underpayment of VAT by SMEs brought an additional £3.5bn into Government tax coffers in tax year 2014/15.

This was almost half of the £7.7bn income generated by tax compliance teams that year, a recent Freedom of Information request by insurer PfP unveiled.

SMEs account for almost half (44%)

A survey of 4,000 business owners by the Federation of Small Businesses found that 42% thought they could still be swayed in the debate over Brexit.

Half cited the impact on the UK economy as being a top concern, 38% thought the administrative burden is a challenge, while 33% want to know how much membership costs.

The poll also looked at the top 10 factors that will influence the EU referendum outcome - top was ‘EU decision-making’, followed by the ‘free movement of people’. In tenth place was ‘competition’.

SMEs undecided on Europe

The number of apprenticeships increased by 115% in 2014/15 compared to the previous financial year, according to Government figures.

They show that for every £1 it invested in apprenticeships, the economy benefited by £28.

Skills Minister Nick Boles said that the Government is committed to achieving 3 million apprenticeships by 2020.

Apprenticeships benefit economy

A recent survey of UK SMEs has shown that while economic momentum has slowed after three years of above-trend growth, business confidence is still strong among smaller companies.

The Lloyds Bank Business in Britain report shows that confidence has taken a dip, yet firms with turnover of between £1m and £5m bucked the trend, with 48% of these businesses expecting an increase in orders in the next six months.

Small businesses remain upbeat

of the UK’s tax gap, or the difference between what HMRC should collect in VAT, and what it actually does bring in the door.

The figures also showed that only £10bn of the £26.6bn HMRC compliance yield was cash. The rest comprises revenue savings made through other means such as preventing fraudulent claims.

VAT investigations pay dividends

Backing your business 3

GROWTH EFFICIENCIES RISK DESTINATION PERSONAL TALENT

Forming a network of business contacts, both customers and suppliers, is a valuable skillset. It’s sometimes dismissed as time spent ‘not working’,

but done right it is a valuable investment in the future growth of your organisation.

But there’s no such thing as a free lunch in 2016, according to David Fort, Haines Watts Manchester Managing Director. Forming strong business relationships requires much more work than it did 15 years ago.

“It’s not about meeting people, but also nurturing meaningful contacts and converting them into genuine business opportunities,” he explains.

Get connected – in person“While LinkedIn and other social media offer some connectivity with potential business partners, you can’t completely replace the face-to-face networking that happens at conferences, or at social and sports events,” he continues.

And he highlights that this skill is particularly difficult for Gen Y. “They are climbing the career ladder and attending conferences for the first time, but they have learned to form relationships on social media and are having to learn some additional skills to succeed.”

Businesspeople like to do business with people they like, so it’s important to appear genuine and well-rounded. Sell too hard or pretend to be something you’re not and you won’t build any lasting relationships, says David.

In this age of webinars and LinkedIn, what is the secret to building meaningful and engaging business relationships with potential new contacts.

“Having said that, before you go to an event or meeting, research who will be there,” he suggests. “Think about what their objectives might be - are they maybe looking for a supplier like you? Or could they provide you with what you need to take your business in a new direction? Be open about why you are there and what your own goals are.”

Tips for successful networking

1 Start the conversation: Know who you’re going to be speaking to, topics you have in common and relevant current affairs.

2 Keep it going: Speak plain English and be honest about who you are and what your business objectives are.

3 Make it last: Get in touch soon after you meet a contact, and mention something you enjoyed discussing. Then touch base regularly.

4 Make it everyone’s business: Staff at all levels of the business should see networking as part of their role.

5 Like what you do and who you do it with: If you don’t engage with someone face-to-face, you’re unlikely to hit it off as business partners. Do business with people you like.

how toKnownetwork

Take along information which can kick-start conversations, he continues: “You can take an educated guess at their interests outside the office, their families and hobbies or if a world event is likely to be a hot topic of conversation.”

Find people you can trust“Reputation in business is important: you’re not only selling yourself, but trying to find people who you can work with - and who will present your organisation well to others,” he points out. “Finding the right partners is paramount.”

And it’s not the sole responsibility of the head of sales or the managing director to make new business contacts. “You can argue that the receptionist is the business’s most important networker as they are in contact with customers and suppliers constantly,” David notes. “Everyone should be adding to their list of trusted contacts.”

And, finally, David has a word of warning that networking is not limited to ‘at work’. “All team members should know how to communicate about the company outside of work, even when at home or socialising.”

Networking needs to be considered part of the everyday DNA of being part of a business, at every level.


Important informationThe value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Funds may carry different levels of risk depending on the industry sector(s) in which they invest. You should ensure that you understand the nature of any fund before you invest in it. Smaller companies shares can be more volatile and less liquid than larger company shares, so smaller companies funds can carry more risk. This is not advice to invest. Past performance is not an indication of future performance.



UK fund managers are invested in significantly fewer FTSE 100 companies than the benchmark. In recent years, this has given them a boost says Tom White, Senior Analyst, Tilney Bestinvest.

“The big FTSE 100 companies have underperformed spectacularly, but this largely reflects the index’s international focus,” he explains.

“The FTSE 100 is dominated by multinational companies that are subject to the whims of the global economy, and the crisis in the Eurozone and slowing emerging markets have hit profits.”

Conversely, UK fund managers typically look to smaller companies for investment ideas.

“This partly reflects the greater opportunities available for an active fund manager to add value. With hundreds of analysts poring over every statement from AstraZeneca to SABMiller, it’s difficult to have an original insight into their potential,” Tom says.

“In contrast, anybody picking up on the prospects of mid caps such as Ocado or Betfair in recent years would have profited handsomely.”

The surge of SMEsIn recent years, it’s hardly mattered which stocks managers have picked, as small and mid-sized companies have generally surged ahead, leaving their larger counterparts trailing.

“This is because big business is typically more exposed to the domestic UK economy and the UK has been one of the fastest growing countries in the developed world,” Tom continues.

As well as looking at companies of different sizes, active managers often invest in a range of company types. In particular, they tend to avoid oil and mining companies.

Given recent performance, it looks like they’ve dodged a bullet, says Tom. “Plummeting oil and commodities prices have hurt companies too and the likes of BP and Glencore have been hard hit.”

Recent years have seen a surge in the demand for index funds. “The idea that passively following benchmarks at low cost is the way to riches has been growing in popularity,” he explains.

“In many cases this is true, but in the UK it isn’t because the benchmark itself has been the problem. UK active managers have profited through their differences to the FTSE-All Share benchmark.”

Looking to the futureHowever, where managers have successfully avoided underperforming areas of the market, it’s largely because structural biases

mean they would have stayed away from them anyway rather than being a reflection of their skill.

“We adjust for these biases to see which fund managers genuinely add value. In the case of commodities, the underweight seems sensible but, given our more cautious house view, avoiding larger companies is more questionable,” Tom highlights.

He concludes by saying that there are skilled UK managers with a focus on investing in larger companies. “When the market turns in their favour, we believe their qualities will shine through,” he says.

UK active managers have profited through their differences to the FTSE-All Share benchmark.”

UK funds: The inside story

With three quarters of active fund managers in the UK All Companies sector beating their FTSE All-Share benchmark in 2015, UK equity funds

have been performing well. One Magazine looks at the real story.


FACTFILE CHALLENGE: Growth | SECTOR: Marketing | LOCATION: Newcastle

Who are you and what do you do?I’m joint Managing Director of The Works, with my partners John Simpson and Barry Pollock. I like to stay active within all parts

of the business, particularly working directly with our clients.

Your business has made a profit from day one. What’s the secret?John, Barry and I worked together at another agency, but we felt the owner

didn’t share our vision for its future. So we resigned in 2006 and set up on our own. We expected to lose money at first but, because we already had a strong reputation in our sector and some of our clients chose to come with us, word of mouth spread quickly and we made a


According to Ian Oswald, of Newcastle marketing agency The Works, the secret to solid growth through a recession is to always hire people who want to make a difference.

turnover of £1.2 million in the first year. It’s since increased to £4 million.

Our ability to build strong relationships, with our own people and our clients, has proved invaluable – you never know when you are going to meet people and work with them again.

You’re in marketing, which is a ‘people’ business. How do you look after your own?A business is only as good as the team

working in it, so we work and play hard. We provide pizza lunches, nights out bowling and champagne and cake for every staff member’s birthday. But gestures don’t pay the bills, so we share the rewards of our success with our colleagues as they’re the ones who have helped the business do well.

Tell me about a moment in your business’s timeline that particularly sticks in your mind, and why.In 2014, we saw a decline in sales and

profits, but we couldn’t pinpoint any one reason aside from market factors. Rather than hiding this, we made everyone aware and tasked them to find better, smarter ways of working, while continuing to live up to our promise to our clients.

The response from the team was amazing – we saw a new energy and an immediate turnaround: 2015 ended up being our best year to date.

A more positive moment will no doubt follow this year – as 2016 is our 10th anniversary, we have planned a series of events to celebrate.

As a thank you, we will give each member of the team their birthday off and will recognise the long service of the three founding team members. We will also host a summer ball and aim to raise £10,000 for charity. It will be a year to remember.

How has Haines Watts been able to help you improve your business’s profitability?Our previous accountant couldn’t, or

wouldn’t, work with our accounting software, and as a result we never had access to timely management information. Haines Watts’ approach couldn’t have been more different.

They sent their own staff to train with us on our own system and now we have the ability to run accurate reports of our own monthly, quarterly and annual management accounts, and use them for our planning and forecasting.

Haines Watts also provides us with a specialist team member for each of the areas of support we need, from book keeping and wages to business tax planning, personal financial planning and personal tax.

arePeopleThe Works

We share the rewards of our success with our colleagues as they’re the ones who have helped the business do well.”


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Each of these people has become a key member of our team and we think of them as part of our business.

Tell me about a challenge that Haines Watts has helped you overcome?In our sector, you have to remain flexible.

To do this, you need to source expertise from external suppliers when the need arises.

We found demand for digital services was growing, so we integrated with a web development company and formed a new division called Works Digital. Haines Watts helped us to manage the integration and the financial implications that resulted.

This division has since exceeded its first year business targets and we expect to double these in the next financial period.

I attend the directors’ quarterly meetings, where we discuss the company’s financials as well as opportunities for business growth.”

DONNA BULMER, Haines Watts Partner, The Works are a great business to work with – Ian, Barry and John are proactive and have clearly defined goals, so we can help them to measure the business’s performance.

We not only provide them with comprehensive accountancy services, but also business advice and support – which is why we’re now treated as part of their team.

I attend the directors’ quarterly meetings, where we discuss the company’s financials as well as opportunities for business growth. But the leadership team also uses these meetings as a chance to sound out new ideas, talk through their personal and business aspirations and to make sure the business remains on track.

This approach has led to the directors making the most of tax planning opportunities, which include investing in the business and supporting their growth plans.

We’ve also been working closely with the directors to help them plan and implement the integration of The Works digital into the wider group.

Donna Bulmer

Describe your management style in three words‘At the helm’. Alternatively, I could use ‘An early riser’, as I get up with the sun and

often get emails from clients who think there is something wrong with my computer’s clock – why else would any sane person be emailing at 5.50am!

What does it mean to have Haines Watts’ support?We know that sound, professional advice is just a phone call away – and it’s available

to everyone on the team.

To find out how we can help your business thrive, contact your local Haines Watts office.


A well-developed business plan is fairly simple in principle: it states what you are going to sell, who you are going to sell it to and how you’ll

make money from it.The business planning process and resulting

documentation will also examine the business’s management and leadership, its people and processes, sales and marketing and its short and long-term objectives.

But there are some common assumptions which can undermine an otherwise strong planning process.

1Be a know-it-allIn truth, no one person, not even the

business owner, knows everything. According to Paul Addison, Director Haines Watts Advisory Services, for a business plan to be effective, it needs buy in from everyone in the organisation, so they adopt it as their plan too.

“Business planning should involve a process of discussion, challenge, review, change and agreement,” Paul explains.

2It’s just a boring guessing game

Any leader who sees planning as dull and doesn’t get excited about the future strategic direction of their business might be in the wrong job. “It’s about building a road map for your entire organisation – from its culture to its target turnover,” he says.

3It’s ‘need-to-know’ onlyA business plan should not be a secret.

“If you don’t communicate with your people

We all claim to do it, but what does business planning best practice look like? One looks at some common misunderstandings.

in a regular and consistent way, they will fill knowledge gaps with their own views – and these are not usually positive,” Paul warns.

4One plan fits allA business plan is a bespoke document

which is unique to your employees, your management style, your company and your sector.

“Does your plan reflect the aspirations and motivations of your people, taking their culture and generational differences into account?” Paul asks.

5I know what I meanA business planning document must be

accessible, written in plain and unambiguous English, without a reliance on jargon, acronyms and tech talk.

6Ready, steady – go!Business planning is not about choosing

a goal and rushing to achieve it.Instead, Paul advises to think of how you

build an extension: “Build strong footings and foundations, on which you can build multiple stories.”

This takes time and investment, and the business may take a step backwards in the short-term.

7We’ll put our people in new rolesAs the organisation grows, so will

the range of roles that are required. Don’t wait until the seams start to unpick before you focus on finding the right people.

8We’ll just work harder…Does the management team know the

industry well enough to see big changes coming or is it on the right track? Paul explains: “This means being informed enough to make good decisions, not just repeating old ones.”

9We’ll just do something differentBefore you make any big decisions about

your product, service or target customers, make sure you have systematically saturated your current market with your current products and services. “It’s here that your investment will have most impact,” Paul says.

10Planning is easyBusiness owners rely heavily on their

intuition – but as their company matures, decisions need to be based on an objective view of the sector, competitors, customers and employees.

And the focus should not just be on the numbers but how the business will get there.

To find out how Haines Watts can help you to plan strategically for growth in your business, contact your local office.

Top 10business planning mistakes


Backing your business 9Backing your business 9


R isk analysis is now an accepted pillar of financial services strategic planning. So it was no coincidence that the Financial Conduct

Authority combined its risk outlook with its business plan for 2015/16.

And with the Institute of Risk Management (IRM) identifying a wide range of challenges for businesses in 2016, from cybersecurity and bribery to fluctuations in both oil prices and financial markets, organisations in every sector should follow suit.

IRM Chairman Jose Morago predicts that in 2016, “leaders who think critically about the future and anticipate disruption to their sectors, while building resilience and agility in their models, will be in a better position to tackle a challenging risk environment and thrive.”

Chris Timms, Regional Partner at Haines Watts, works closely with his clients to identify and mitigate business risk and hears about the difficulties they face every day.

“While taking risks is against some people’s nature, when it comes to growing a business taking no risks is worse,” he says. “It’s about finding that balance so you’re making the most of opportunities, without putting your business in jeopardy.”

Chris says people are central to the successful management of risk. “You have to put the right management team in place with the skills, experience and ability to push back,” he continues.

Setting the scenePlanning should include creating scenarios which map out the route that the owner wants their business to take, and how they plan to achieve

these objectives while mitigating risk.

Most business owners have a great instinct for decision-making and know their organisation inside-out. But, as Chris highlights, they often don’t have the skills and experience – particularly in areas such as operations and finance – to look at risk in a strategic way.

“Instead, you need a management team that can take your vision and map out a route, with risks identified and clear KPIs to measure against,” he says.

This route map will take a strategic view of business opportunities, while ensuring that you are protected against shocks – from the cost of managing a cyberattack, reduced profits because of fluctuations in market prices or the impact of losing a major client.

Growth through diversificationChris gives the example of one industrial building materials manufacturer, which he recently supported in reaching its goal of £6 million turnover.

“We helped them to put the right management team in place and conduct scenario planning. This process meant they could find the ‘sweet spot’ of identifying opportunities and reaching for new business, but at the same time mitigate risk by increasing the diversity of their clients and service lines.”

To protect their business, Chris says that owners need to examine their own strengths – and weaknesses. This is essential so they can recruit a team of people who complement their own talents.

Whether this is to fill an expertise gap or to ensure there is always someone who can push back and say ‘no’ when required – when it comes to managing risk, it is about finding the right balance of people.

balanceIn the

Finding the sweet spot between taking strategic risks and protecting your business is all about putting the right people in place.

While taking risks is against some people’s nature, when it comes to growing a business taking no risks is worse.”


The benefits of taking an ethical approach to business can flow through your enterprise, from cash savings to winning new contracts. It may even make your competitors turn green with envy.

The value of

ethicalbusiness

Business practices which have a focus on both environmental and social outcomes are not just about making you feel good.

The benefits are real and long-reaching.Paul Bennett is Director of B.SSEC, a firm

of business energy consultants which not only advises clients on how to improve their use of energy, but lives by the creed that what benefits your people and your environment, also benefits your bottom line.

“B.SSEC works with companies to help them reduce their energy, by changing behaviours or upgrading equipment, and save between 10% and 50%,” Paul explains.

Tender loving careBut as well as saving cash, businesses can achieve ISO 50001:2011, the Energy Management System accreditation. This can help them to go on to win new tenders with ethically-focused businesses such as Marks and Spencer or John Lewis, as these companies now demand high standards in their supply chain.

“We also assess companies on behalf of the Carbon Trust Standard, which covers waste, water and energy management,” Paul explains. “Businesses are often surprised by the knock-on effects of undergoing this process.”

Carbon Trust has saved its clients £5.5bn in energy costs and cut

their carbon emissions by 60 million tonnes.

Source: wwwcarbontrust.com



His clients are often unaware that, as well as saving energy and money, there are other, sometimes unexpected, benefits.

“Focusing on environmental outcomes can cure sick building syndrome, a phenomenon where a poor quality building ‘environment’ can reduce employee productivity, impact on staff morale and clog up management time with complaints and stress,” he says.

Make caring DNA of businessHaines Watts client, the Nicholsons’ Plant Centre, Landscape and Forestry business is a family venture with a natural focus on the environment.

But, according to founder Niel Nicholson, running a business based on the principle that everyone is responsible for our environmental and social future may mean an initial cash outlay, but also offers substantial returns.

“We have installed solar PV panels on the barn roof and produce as much energy as we use across the business,” he says. “We also collect all the water used in our nursery from our roof, which saves us £10,000 a year. We heat our buildings using a biomass boiler, which runs on our own wood waste.”

The power of learningSome benefits are hard to put a figure on, but the value is easy to see. “We invest about £20,000 a year on external training, but also have an extensive, and unquantifiable, programme of internal training. It allows us make sure our full range of expertise is passed on to our younger staff members,” says Niel.

“We also offer some unique experiences to learn – we recently sent six young employees to Africa to support a charity,

Focusing on environmental outcomes can cure sick building syndrome, where a poor-quality building ‘environment’ can reduce employee productivity.”

Five basic principles of ‘good’ business:1 Be focused on delivering

long-term sustainability: avoid the lure of short-term gains.

2 Be honest and fair with customers and suppliers: the better you treat them, the more flexibility and value they will offer you.

3 Be a good corporate citizen: seeing the big picture will improve your brand.

4 Be a responsible employer who listens: your people have important things to say about your business today and what it could be in the future.

5 Consider the impact of your organisation on future generations: would your children be proud of your business? If not, why not?

called the Rafiki Thabo Foundation, which was founded by one of our own. To say they all grew as people is an understatement.”

The wood management company also regularly provides staff with a voice, be it during their annual performance review or a staff day out. “And instead of finding someone to blame when something does go wrong, we use it as a chance to learn for the future,” Niel emphasises.

All this saw the majority of employees rating their happiness levels in a recent survey as being eight and nine out of 10. “At the end of the day, a team that works together finds solutions to problems,” concludes Niel.

And as a business owner himself, Paul also recognises that people are valuable resources. “We built our organisation on ethical values – they are built into our business plan and we measure our achievements against KPIs,” he adds.

“Building these values into the very framework of a business is the future. Anyone who doesn’t act now may well look back in a few years and wonder why they didn’t adopt a similar approach. It’s a no brainer.”

ISO 50001 is awarded to organisations which have

developed a qualifying energy management system. This helps

them to continually improve their energy management but

also integrate it with their other quality and environmental

management protocols. Source: www.iso.org

Business owners understand that they need to know their customer, but how can they quantify the type of people who are attracted to and loyal

to their brand, and why? How can this information then be used for business development?

Haines Watts has just completed in-depth customer research so its team can better understand their existing customers and the types of business owners that they would like to be their clients. The outcome is a series of customer ‘personas’.

What does a persona do?Personas are fictional characters that represent a cross-section of a business’s existing or potential

client base. A background story is developed for each of these characters, which is then used to help management and sales teams to build relationships, market the company and develop services. As a tool, personas

are particularly effective at making clients more ‘real’ to staff who may never meet their customers face to face.

It also makes sure that unique insights gathered by the owner during years of business development are formalised in a way that can be utilised by the rest of the sales team.

And instead of targeting customers with similar personality traits to themselves, it also helps the leadership team to look further afield to other relevant customer types – and develop bespoke marketing approaches for each.

How are personas developed?A researcher will identify and ‘put themselves in the shoes’ of a series of different types of customer who already do, or potentially could, engage with the organisation.

The research involves collecting insights from existing and potential customers, management and other staff, and examining any previous customer research.

Each persona is built into a fully-fledged character, with a description of their interests, business needs, aspirations and challenges.

Personas are particularly effective at making clients more ‘real’ to staff who may never meet their customers face to face.”

To find out more about how marketing strategies can benefit your business, contact your local Haines Watts office.


This helps the owner, marketing team and other key employees to understand how the company’s products and services meet customers’ needs, how they consume information and their preferred mode of interaction.

Find a personable customerPersonas also map out how each customer consumes marketing materials, be that magazine articles, blogs, emails or social media posts, and show where funds can be best spent for maximum return on investment.

“It’s not that difficult – you just need to ask the right questions and present the information in a way that your people can easily digest and use,” says Samantha Davies, Haines Watts Group Head of Marketing.

A long-list of persona types can then be narrowed to include those most relevant to the sustainability and growth of your business. “You may only need a couple to begin with,” Samantha says.

“You can then add more at a later date once you have tested how well they are understood by your management, marketing and sales teams. At Haines Watts, we identified five in total, but are focusing our efforts on three target personas this year.”

customerKnow

When it comes to business development, most owners would probably admit they don’t have a proper understanding of why their customer chooses them. We explore how you can get better acquainted.

your


• The rights to exercise or control 25% or more of the voting right in a company

• The right to appoint or remove a majority of the board

• Any other rights to exercise significant control over the companyThis means that the ultimate beneficiaries

of a trust will also have to be disclosed and people will be able to find out who these wealthy individuals are.

“What business owners need to be aware of is that this register that sits with Companies House will be freely searchable, so anyone will

be able to login in and search for your details,” says Helen.

Companies House recognises that this will be of concern to business owners, however, so will allow certain information to be concealed from the public – but not public or credit reference authorities.

“The interesting point is that companies have actually been able to apply to have some of their information restricted before the regulations came into force,” says Helen. “But anyone who wanted to do so will have had

to show that making their address public would leave them at risk of violence or intimidation, which would be hard to prove.”

From 1 April 2016, all UK incorporated companies and Limited Liability Partnerships (LLPs) have had to comply with the Small Business, Enterprise

and Employment Act (SBEEA). The Act brings one big change which already

demands companies’ attention, according to Helen Robinson, Partner at Haines Watts Business Law. UK incorporated companies and LLPs are responsible for maintaining a new statutory register which discloses the details of those who control the company, whether located in the UK or abroad.

Personal data made public?This ‘People with Significant Control Register’ (PSC) holds the name, month and year of birth, nationality and residential address of anyone with ‘significant control’ of a UK corporate or LLP.

The date for relevant companies and LLPs to start keeping the new registers was 6 April 2016 and they must file relevant details with Companies House from 30 June 2016.

A person with ‘significant control’ is someone who holds one of the following:• Direct or indirect ownership of 25% or more in

nominal value of the shares in a company

Companies will need to keep their own register and update Companies House on an annual basis.

Who’s

New regulations should bring greater clarity to public authorities like HMRC on who has ‘significant control’ of UK corporates. But what does it mean for you and your business?

in

What do companies need to do?All companies have to keep a PSC register in a particular format. Even if there is no one individual with a controlling stake, that information must be entered on the register – it cannot be left blank.

“The challenges, particularly for smaller companies, will be around getting the necessary information from foreign investors and other shareholders,” she says. If they’ve contacted a shareholder with an information request then that will also have to be entered on the register.

For shareholders, non-compliance can mean that their shares are suspended, but penalties are still likely to be brought against the company. “It’s the company’s obligation to get it right,” says Helen.

Companies need to keep their own register and update Companies House on an annual basis. From April 2017, businesses will need to notify them of all changes as they occur, however.

Investor benefitsOne good thing that’s come out of the Act, notes Helen, is that the PSC register will allow investors to add another layer to their due diligence process. If an application is made to Companies House prior to becoming a shareholder or owner, personal information will not be shared.

The dates1 April 2016: the Small Business, Enterprise and Employment Act came into force. All UK companies and LLPs have to keep a register stating the details of the individuals who ultimately control the company.1 April 2017: companies will have to update Companies House each time they make a change to their register.


control?


Dwight D. Eisenhower is often quoted as saying: “You do not lead by hitting people over the head – that’s assault,

not leadership.” Modern business change management

now draws on this sentiment. Indeed, building a positive culture has been promoted from being ‘nice to have’ to a management essential that could be the difference between success and failure.

Chris Dell, Head of People Development and Communications at Haines Watts, has experience in turning around struggling businesses by shifting the focus to their internal culture. He says the return on this kind of investment in people is always much higher than management teams expect.

comes firstBlueprint for successAs a result, he has developed an insight and change management programme – Blueprint – which helps businesses rebuild their culture so every person has the ability to contribute, is accountable for delivery and has clearly-defined goals.

It is also a framework which organically feeds back into itself and guides the future direction of the company, and Haines Watts has been reaping the benefits over the past 18 months.

“The Partners at Haines Watts have revealed that this has been an eye-opening process for them,” Chris says.

Embodying your business“Culture is about how we think, act and interact – your company’s personality,” Chris continues. “It impacts on everything from business planning to how people perform in their roles.

“An engaged and well-informed team is able to deliver much more for the business and to a higher standard. That means you can shape a resilient, progressive and collaborative business, built for growth.”

Chris also highlights that it is easier for employees to buy into an organisation’s mission and values when their opinion is respected and there is a free exchange of ideas. In short, they can live the business plan and actively drive growth if they know what they’re delivering too.

“A lone business owner cannot develop a robust business plan, and deliver on its actions alone. The successful implementation of a

Frame your company culture around engagement and communication with your employees, and your business will thrive.


Culture

Common company culture calamitiesFive business owner mistakes:

1 Retain a fear of losing control2 Feel positive culture is a ‘nice to have’,

not an essential3 Believe a dictatorial management style

which brings short-term results is the best route to long-term success

4 Lack the ability to listen to their people5 Want immediate returns on any

investment in business improvement.


dynamic, living planning document requires buy in and continuous feedback from throughout the business,” he explains.

An example of how employees can be inspired by their company’s values to perform better is when they are faced with a issue. Every problem is an opportunity, Chris highlights. And if people are empowered to take ownership of challenges, they can turn them into a positive and share in the success.

This, in turn, allows people to focus on how the business can be improved. The result is that decision-makers make

more informed choices.

Turn on the talentAnd this sets a business apart from its competitors. A positive culture means a

lower rate of turnover in people and an ability to attract better talent.

“We’ve found that candidates who would previously have aimed for a career at

one of the ‘Big Four’ are now applying for roles at Haines Watts – because of our Blueprint programme,” Chris says.

An engaged and well-informed team is able to deliver much more for the business and to a higher standard.”

To find out how employee engagement can benefit your business, contact your local Haines Watts office.

questions which business owners can use to measure how employees feel about their workplace environment and inform into their decision-making.

“Ask your people if they really know what is expected of them at work, if they have the tools to enable them to function effectively and if they receive recognition for good work,” Chris advises.

“Do they think their manager cares about them as a person, do they receive encouragement and do their opinions count? All these points build a picture of how happy your employees are, and, as a result, how effective they are at work, how loyal to the business, how resilient to challenges and how creative with idea generation.”

Chris concludes that, ultimately, if employees are engaged in a business with a positive, nurturing culture, they will be better at driving the business forward to a prosperous future for all.

• Assessment 121s: Really get to know the team

• Share: Collective insights shared with management and the wider team

• Collaborate: Building Our Better Business sessions facilitated

• Vision for the future: Company mandate developed

• Get started: Action plans agreed and office ‘toolkit’ launched

• Performance reviewed: Blueprint and Personal Development Plans.

Blueprint programme: steps to a healthier culture

“They are excited by what they see as an innovative approach to people empowerment and realisation of their own personal ambitions within the business.”

But ignore your people, and the consequences can be toxic. “The flipside is that when employees are not kept informed about their employer’s strategic plans for the business, they fill in the gaps themselves, usually in a negative way,” he says.

Measure employee engagementInformation must flow both ways however, to be effective. There is a simple set of


pension


Important informationThe value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This article does not constitute personal advice. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. If you are in any doubt as to the suitability of an investment, please contact one of our advisers. Past performance is not a reliable indicator of future returns. Please note we do not provide tax advice. Carry forward rules can be complex. If you are unsure of their suitability please speak to a financial adviser.

allowancesMake themostof your

Talk to a financial planner about your tax allowances

Tilney Bestinvest’s financial planners are highly skilled in dealing with questions about tax allowances and how to make the most of them. In the current environment, where we’re seeing many changes to rules on allowances being phased in, it’s more important than ever to receive expert advice.

Savers could also make use of what’s known as ‘pension carry forward’, which lets you pay more than your annual allowance into a pension each tax year. It means you can carry over any unused allowance from the three previous tax years.

With the rules on pensions and pension tax relief currently in so much flux, however, it’s natural to want further advice.

Speaking to a qualified financial planner, like our team at Tilney Bestinvest, means you can better understand your individual circumstances and how any allowances or tax breaks apply to you. Stocks and shares ISAs are usually the

first port of call when planning tax-efficient investments. Everyone is

entitled to put a certain amount into an ISA each tax year, but when a new tax year starts, it resets. So timing matters.

While this tax break has been revised in recent years, the ISA allowance for the 2016/17 tax year remains at £15,240.

Time to review pensionsThe UK pension system is undergoing many changes at present, and it’s important to be up to speed with new rules which apply to you.

The Government offers tax relief on pension contributions and, for many, pensions remain an effective way to save.

There are tax allowances and initiatives in place which are designed to encourage people to save. Yet not everyone makes the most of these. We look at some of the most useful tax breaks and what they mean for your personal wealth.


inheritanceisa

Your guide to estate planningThe Tilney Bestinvest Guide to Estate Planning and Inheritance Tax is concise and easy to understand, giving an overview of the current allowances, how they might change and what this means for you. It explores how gifting is often the most straightforward form of estate planning, but also delves into making gifts in trust and other ways to manage Inheritance Tax without making gifts.

Protecting your wealth for future generations

and Inheritance Tax

Estate planning

CGT: the forgotten allowanceIf you have investments outside ISAs and pensions and they have increased in value when you sell or transfer them, you could pay tax on the gains made – known as Capital Gains Tax.

Investors have an annual allowance before they pay Capital Gains Tax, but it isn’t carried over between tax years and many people forget to make use of it.

For some investors, this means an unexpected tax bill when it is time to cash in investments which have performed well over a number of years.

But with regular planning, with help from your qualified financial planner, you can utilise your full allowance each year and potentially save a fortune in the long-term.

Estate planning and Inheritance TaxIf you want to leave an inheritance to your loved ones when you pass away, there is currently a £325,000 personal allowance (with an extra £175,000 allowance for the family home being phased in between 2017-20) before your beneficiaries must pay any Inheritance Tax.

Estate planning means that you can make sure that more money is passed on to your loved ones, rather than the taxman.

Your financial adviser can help you with a range of estate planning, from giving away cash to setting up complex trusts in your will.

For more guidance on estate planning, download our guide at tilneybestinvest.co.uk/IHT

The Government offers tax relief on pension contributions and, for many, pensions remain an effective way to save.”


Publication Date: April 2016© 2016 Haines Watts Limited. All rights reserved. All published material remains the property of Haines Watts Limited and is replicated with the permission of Haines Watts Limited. All contents of the publication are correct as of publication date.

The Haines Watts Group consists of all firms in which Haines Watts Limited is a partner, member or shareholder, or with whom they have signed a participation agreement, or firms controlled by such firms. Generally, “HW”, “Haines Watts” and “Haines Watts Group” refer to the network of member organisations, each of which is a separate and independent legal entity. Member organisations are not members of one legal partnership and are only liable for their own acts and omissions, and not those of each other.

The majority of these firms are not authorised under the Financial Services and Markets Act 2000, but because they are licensed by the Institute of Chartered Accountants in England and Wales, are able to offer a limited range of investment services to clients if they are incidental and / or complementary to, or arise out of, the other professional services they have been engaged to provide.

It is Haines Watts Group policy to refer most investment business, excluding corporate finance work, to Financial Advisers, authorised and regulated by the Financial Conduct Authority. The Financial Adviser will take full responsibility for compliance with the requirements of the Financial Services and Markets Act 2000.

Bestinvest (Brokers) Limited (Reg. No. 2830297), Bestinvest (Consultants) Limited (Reg. No. 1550116) and HW Financial Services Limited (Reg. No. 02030706) are all part of the Bestinvest Group. These companies are registered in England and authorised and regulated by the Financial Conduct Authority.

This magazine is designed for the general information of readers. The information represents Haines Watts Group’s present understanding of current and proposed legislation and HM Revenue and Customs practice. Whilst every effort has been made to ensure accuracy, information contained in this briefing may not be comprehensive and recipients should not act upon it without seeking professional advice from their usual adviser. The values of investments may go down as well as up and are not guaranteed.

HAINES WATTS UPDATE

Haines Watts launched its regional Young Entrepreneur of the Year competition, which saw budding businesspeople competing at regional level this March for a spot in the national finals in November.

Kapil Davda, a HWYE judge explains the benefits: “Previous HWYE applicants have told us that young entrepreneurs need support as their businesses take off, as well as greater publicity.”

Haines Watts will also be sponsoring the competition’s Entrepreneurship Prize for the third consecutive year.

Everyone who is invited to the finals is presented with £250 and a year-long mentoring programme with a Partner at Haines Watts, along with free publicity.

The overall winner will then receive a further cash prize of £750, taking their total cash prize to £1,000.

Entrants must have been in business for over a year and be under 36 years of age on 31 July 2016. Enter for free at www.hwye.co.uk

Children in care from the Northampton and Luton area were presented with 500 chocolate eggs by the team at Haines Watts Kettering during the holidays.

The initiative was part of the office’s focus on giving back to the community and, according to Jeanette Walsh, of Northamptonshire County Council, caused much delight among recipients.

“This donation will make a real difference to these children this Easter,” she said.

But the Haines Watts staff got just as much out of the experience. Stephen Watts, who leads the Kettering office, said it was a privilege to take part in the programme.

“It is important for the Kettering office to be an active participant in helping the local community so I am delighted with the level of support we have had on this. This follows on from our charity work at Christmas and at Harvest time.”

Cash prizes for young entrepreneurs

Haines Watts hosted a black tie dinner at the Sculpture Gallery in Woburn in March to celebrate the growth of its businesses over the past few years.

Staff from Luton, Kettering, Northampton and Peterborough, along with about 70 clients, had an opportunity to hear about the latest developments at Haines Watts over dinner and went home with a signed rugby ball from rugby union superstar Jason Robinson.

Regional Managing Partner Chris Timms says the event was an opportunity to celebrate being successful business owners with valued clients. “Having read some of the early feedback, there is little doubt that this event has strengthened our relationships with our clients.”

Celebrating a bumper year of business growth

Easter support for community

HWYE 2015 finalists with its judges. Could it be you this year?

At One with our clients

Working as One team

One place for all your business needs

One path to success

One-to-One relationship

HELPING YOU REACH YOUR GOALSWe offer a fresh-thinking approach to your business

If you have an hour to spare, why don’t you arrange a meeting with Haines Watts to find out how we can help you with your business needs? Contact your local office. Visit: www.hwca.com/offices

HELPING OVER

VIA OUR INTERNATIONAL ALLIANCE

SMES AT FD EXCELLENCE AWARDS

WINNERACCOUNTANCY FIRM

OF THE YEAR

WINNERACCOUNTANCY FIRM

- LARGER CLIENTS

FUNDRAISINGFOR OVER 100 LOCAL CHARITIES

WINNERAUDITOR OF THEYEAR FOR SMES

2012 & 2013

OVER 1,000 PEOPLE

AROUND THE UK WORKING TO SUPPORT CLIENTS

ACCESS TO

SPECIALIST SERVICES

TO HELP WITH EVERY ASPECT OF YOUR BUSINESS & PERSONAL NEEDS

OVER 100

Having advisers that can add expert advice and value to both your business and personal wealth aspirations is important for most business owners. By understanding what you want to achieve, Haines Watts is able to work with you to identify opportunities for growth, saving money and managing risk to help you reach your goals. If you have an hour to spare, why don’t you arrange a meeting with Haines Watts to find out how we can help you with your business needs? Contact your local office: www.hwca.com/offices

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