So you have managed to secure advance assurance from HMRC that your company is a qualifying company for the purposes of raising funding under Seed EIS and / or EIS. Congratulations!
You may now be the one of many Founders who fall into the "What now?" mode of thinking...
This perfectly understandable as the journey is just beginning for you and your company under the strict (yet often complex) requirements of the SEIS and EIS tax rules
Here we share some tips that you might like to take into account as you seek to issue shares to your business angels in return for this tax advantaged funding:
Understand your obligations to your investors. Take professional advice particularly in relation to your offer document and any shareholders agreement. It is fresh issues of shares only that qualify under SEIS & EIS. Also, remember your obligations extend for at least three years beyond the issue of the SEIS / EIS shares to your investors
No Founder should be without a detailed spreadsheet share cap table with each step mapped out from the Founder (subscriber) share issues and then for each round thereafter (SEIS, EIS and onwards). This allows the Founder to keep track of respective valuations, % shareholdings, notional options pools and to observe dilutions at each stage
That order ONLY. So if you are planning on fundraising for both (and you have advance assurance for both) ensure that you allow at least ONE day to pass between the issue of the SEIS shares and the EIS shares thereafter
A ‘nice to have’ problem that many Founders would be envious of (!) but make sure that any share subscriptions from investors do not breach the ‘gross assets’ test at the time of the share issue. More likely to be a problem under SEIS with its lower £200k gross assets limit
This is where your nifty spreadsheet will come into play. Make sure that % shareholdings are shown and that no SEIS / EIS investors ever exceed 30%. Watch out for “associates” whose shareholdings will be aggregated e.g. spouses, parents, grand- parents, children, grand-children (brothers & sisters are okay)
Rather than settle for just 5 tips, we thought we would round it up to 10 and deliver it in a downloadable one-page PDF. You can access it for free by following the link below
Note that this article was originally posted at ip tax solutions
Today’s podcast is about Counter-Intuitive Marketing – what do I mean by this?
Simply, marketing without specifically mentioning your product or service – there’s novel!
Make me interested in you and your message first. If I identify with you, I’ll be magnestised toward buying from you.
It makes everything so much more interesting (OR we could go on hearing you banging on about your widget or service along with the undifferentiated millions of others).
Dive into to listen and please leave your thoughts below.
How can you scale your service-provider business without adding more and more people?
Today we discuss ways of scaling your service-led business. How? By using technology to deliver services that might typically be provided on a one-to-one basis but this time on one-to-many basis.
We discuss the opportunities provided by webinars and online closed client platforms to help deliver your services – this time, with scale…
Today we explore how your business might become “Mission-Led” and transcend the day-to-day transactional nature of most businesses.
Having a wider mission or cause can help focus your business on something bigger than itself. We discuss books such as Spiritual Capital, Firms of Endearment and good examples of successful businesses such as Toms Shoes that are mission-led.
Your mission or Big Why could be to improve your village, town, city, country or the World. No mission or cause is too small or too big. Just so long as it transcends your day-to-day business.
Let me know your thoughts on how you are applying these principles to evolve your business?
There are two opposing views:
“Strategy is the rare and precious skill of staying one step ahead of the need to be efficient”
“Your margin is my opportunity
Jeff Bezos -Founder, Amazon
Neither perspective on strategy is right or wrong – today we discuss the importance of understanding which end of these extremes your business is positioned?
I once asked a successful entrepreneur what made a great accountant / adviser- his answer was to be both:
1. Timely AND
Something to chew over in today’s podcast – look forward to your comments
Listen in to hear 3 powerful questions to help you focus on working ON your business rather than IN your business.
Let me know if this helps or if you have any other powerful questions that you can share to help other entrepreneurs and business owners?
Thoughts on how we can communicate more effectively in a B2B environment without interrupting people using the phone nor adding to the deluge of email – all the while seeking to enhance the all important personal touch!
Please add your thoughts and comments.
A personal story about how a white hot desire to seek to achieve something can move mountains (or dare I say, The Universe…)
Have you ever felt it?