Sunday Thoughts: What Tasks Could You Take Away This Week?

As I sit here and plan my week ahead, the list of tasks that I need to complete seems to get longer and longer. Week on week.

We all seem to have ever-expanding “to-do lists”!

So at times like these I think to myself: maybe I need to ask myself a better question… And I came up with this question:

What tasks could I take away this week?

Hmmmm, thinking about what I do in a typical week, I need to consider what tasks I could either: eliminate, automate or outsource/delegate?

Writing down a list of repeated tasks on a piece of paper, I add these three columns with these three titles. And start to allocate tasks between the columns where possible. Already I can see possibilities to free up time.

I recommend you try this for the week ahead. See what tasks you might be able to stop doing altogether or automate (using apps like Zapier and IFTTT) or outsource/delegate.

We can’t keep adding more. We need to explore ways to take tasks away.

Rules to Live By #001

Two things you must never delegate or hand over control in your business:

  1. Managing your bank payments to suppliers etc
  2. Sales and marketing activities

The rest is all fair game to be delegated, outsourced or whatever you care to call it…

Are You Asking the Right Questions?

“The Quality of Your Life is Determined by the Quality of the Questions that You Ask Yourself”

If this quote is true, it begs the question whether we have been digging deep and asking ourselves those powerful questions that might help shape our lives…?

Here are a few to get you thinking:

  1. “Who” not “How”? (don’t try to do it all – find those that already have the skills and hire them)
  2. Do you want to work for your business or do you want your business to work for you?
  3. What are your unique skills? What could you do all day and feel in the flow?
  4. If money was no object, what would you be doing right now?
  5. What is stopping you doing that thing that you answered for Q.4. (hint: it’s probably not solely down to ‘money’)

What are the most powerful questions that you have heard or live by…?

FGB002: Modwenna Rees-Mogg talks raising funding |Crowdfunding | CrowdRating

Fast Growth BusinessWe are delighted to bring you this second episode of the Fast Growth Business podcastthis week we are pleased to welcome as our guest, Modwenna Rees-Mogg, founder of leading private investor news service, Angel News, amongst other entrepreneurial ventures including a new venture aimed at entrepreneurs called CrowdRating.

This podcast is brought to you by ip tax solutions | the innovation tax specialists.

Useful Resource of the Week

Our resource of the week is Rapportive – a useful Gmail extension that brings your social media connections, such as Linkedin, directly into your inbox. It is a good way of keeping in touch with existing contacts and for reaching out to potential new connections…

Guest: Modwenna Rees-Mogg: Angel News | CrowdRating

In this conversation, we cover how Modwenna made the transition from corporate financier to entrepreneur and founded Angel News which brings thought-leadership and insights into the field of private company investment – aimed at both investors and entrepreneurs.

She penned a book on crowdfunding: Crowd Funding: How to Raise Money and Make Money in the Crowd – at a time that was arguably ahead of the curve (much of her forecasts fortunately came true!) – and has she since co-launched a new venture called CrowdRating – the ratings agency for equity crowd funding. This new venture will be of particular interest to founders and entrepreneurs who might be considering raising funding via crowd funding platforms such as Crowdcube.

Modwenna shares her thoughts and views on the private company investing landscape (including SEIS & EIS) plus her view that most founders’ investors might be closer than they think….

You can listen below or access via iTunes.

Seeking your input

Please get in touch with your questions and feedback via Twitter: @iptaxsolutions and/or #fgbpodcast

If you are a UK entrepreneur and would like to share your story, please get in touch as above. Also, if you are involved in advising entrepreneurs on building scalable businesses, we would be delighted to hear from you and to get you involved if you’re the right fit.

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Listen to this week’s podcast here:

Get a great new car like a Tesla Model S and save tax too!

I have been salivating over the new Tesla Model S that has recently been introduced in the UK. It carries a fairly hefty price tag but given its space-age interior, high performance and ‘cheap as chips’ running costs (its 100% electric) its hard to ignore.

The good news for company owners is that there are some nice tax incentives that can sweeten a deal in getting your mits on one of these cars.

Ordinarily it rarely stacks up from a financial perspective to acquire a car through the company as the driver gets stung for high benefit in kind income tax charges and the company gets sloooooow tax relief in the company. 9 times out of 10 it makes more sense to acquire the company personally and take advantage of the Approved Mileage rates to claw back some of the running costs on business mileage. But there are a handful of exceptions – and this is one of them.

The Government wants to encourage people to invest in low Co2 emission and electric cars so they offer tax incentives. A Tesla Model S ticks all the boxes (for now…)

  1. As it is electric, you can get a 100% write-off against taxable profits in the company. This is huge. A £70k P85 Tesla Model S bought through the company (either outright or via HP) would save corporation tax of c£14k!
  2. There is 0% benefit in kind charge – watch out, this is scheduled to run out on 5 April 2015
  3. No road tax
  4. No London Congestion Charge

There have been tax incentives like this around for a while for low emission cars but, to be frank, these cars have been fairly uninspiring.

The Tesla Model S is a bit of a game-changer in this respect and hopefully opens the doors for more innovative performance cars that both help the environment whilst being functional and fun too (oh and tax friendly!).

Your Virtual Accountant

Today was like many others, but perhaps a world away from just a decade ago for an accountant and client working together.

We wrestled through bank reconciliations, talked through accountancy adjustments, mulled over cost-drivers and shared insights around areas for growth.

We were face to face and looked at the same screen with the same figures. Perhaps nothing particularly strange so far.

Yet we were 100s of miles apart.

We worked together all day. Like we were in the same office (but we were far from it). This was made possible by Google Hangouts, online banking and cloud accounting software (Quickbooks today).

Don’t be restricted by geographical boundaries when seeking financial and tax advice for you and your business. Get the best accountant and tax advisor you can – no matter where they might be….

 

Share Equity: Once it’s gone, it’s gone

Equity Sometimes there is little alternative but to issue shares to investors, employees and other stakeholders. If the company’s an early stage company then it has little else to ‘sweat’ to release some cash.

You might be able to benefit from the Seed Enterprise Investment Scheme (SEIS) or the Enterprise Investment Scheme (EIS) but – although technically related to your company – it is the investor that pockets the tax relief (not you). You might be able to squeeze some more cash out of the investors by virtue of the tax relief they will receive but (as the rules currently stand) you have to issue shares to them in return for their investment.

Whilst money for salaries is tight, employees may benefit from an approved share option scheme like the Enterprise Management Incentive Scheme (EMI). Although they only hold a piece of paper entitling them to the shares at some point in the future (say on an exit), you must still take into account the post dilution shareholdings once their shares are issued.

So you started with 100% of the company and very quickly you might find that your shareholding is down to not much over 50%. And then there’s that big VC round you’re contemplating in a year or so – further dilution to come…..

There is only ever 100% to divide up. For each 1% that goes it has gone (probably) for ever. Often it is a price worth paying as the old saying goes,

“its better to have 40% of a successful large pie than 100% of a failing tiddler”

But at every stage you should try to ensure that you have explored incentives that do not require you to part with your equity in your company. 

So you could look at R&D tax credits and grants. Also, further down the line the Patent Box could shave some much needed cash off your corporation tax bill.  These Government tax incentives and grants do not require you to give up any of your shares in return for the cash and so could allow you to get further down the line to achieving your milestones with no further decrease in your shareholding.

Often in practice, companies have little alternative but to push through with investment for shares in the company but its always useful to remember that there are other (non-equity) funding avenues available.

Image: Creative Commons License Richard Potts via Compfight