3a. Location
 

Location, Location, Location. Many people claim that for retailing, location should be listed 9 out of 10 times, if the business is going to operate from a successful site. Location is important for all businesses, but it takes on a crucial importance for some businesses, particularly retailing and also for businesses which must operate within specific council zones or in close proximity to other infrastructure eg shipping ports, railways, CBD offices etc.

Some of the questions to consider are:-

· - Will the location be suitable in 5 years time?

· - Can you expand from your present site?

 

· - Are your neighbours compatible to your business?

· - Are your customers comfortable in your location?

· - Is your location going to be affected by a change in roads, highways, bridges that might affect traffic flow?

 

3b. Experience 
 
 Business people need to honestly assess their experience in the industry in which they are operating and also in the peripheral business skill areas (marketing, human resources, management, budgets, cashflow management and understanding financial accounts etc).  Some of the questions to be considered include:-

What is your experience in this business?
 
What business are you really in?
 
Prepare a SWOT analysis based on your experience.
 
What are your plans for personal development, especially in the areas that are not
your strong points?
 
3c. Customers
 
 
The preparation of a Business Plan involves a significant concentration on reviewing customers/clients.  Questions to be considered include:-

How many customers do you have?
 
What is the value of your annual sales to the individual customers or types of customers?
 
What is the average sale per customer or type of customer?
 
Why do your customers come to your business?
 
What is the frequency of their transactions with you?
 
Do you conduct customer surveys?
 
Do customers like your products?
 
Have you classified your customers into 'A', 'B', 'C' or 'D' categories?
 
Have you reviewed your customers utilising the '80/20' rule?
 
What percentage of your business is represented by 20% of your customers?
 
Do you encourage customers to give comments and feedback on your products, services, warranties, product information after sales service etc?



 

Tax Tips - Saving and Investments

 

You can invest £10,200 each year in an ISA, up to £5100 tax free in cash and the remainder in stocks and shares. If you are over 50, this will come into effect on 06.10.2009, and if you are under 50, it will come into effect on 06.04.2010.

Interest on savings

Non tax payers can complete an R85 form on each non Isa savings accounts and interest will be paid free of tax deductions.

Personal allowances

To save on income tax, married couples should transfer savings into the lower earners name if that person is a non-taxpayer or in a lower tax bracket.

Tax codes

Check that your tax code is correct. Coding notices go out in February and March but mistakes are made and you could pay too much or too little.

Investment allowances

Investments into venture capital trusts and enterprise investment schemes carry attractive tax breaks, but bear in mind these are high risk investments.

Offset investment losses

Selling shares at a loss can make sense when you offset against gains elsewhere. If you have no gains then register any losses on your tax return so you can offset them against future profits.

Inheritance tax

Before inheritance tax kicks in at up to 40%, you can make gifts totalling up to £3000 a year, and larger gifts if you live for seven years after making them.
 
 

Also, our website is currently being 'made beautiful', so if you need any help or advice, please call us free on 0800 612 2008.