Steps to be Successful at Guest Posting

You have been writing guest posts for various blogs and websites and yet you are not getting the response you desire. You want to guest post; after all, there are a number of perks you can enjoy when you use this tactic. For instance, it can increase the traffic to your own blog or website, it introduces you to new communities that eventually helps your platform grow and not to mention how good it is for boosting search engine rankings. Yet, you are not able to reap any of these rewards because your guest posts are not being accepted or getting any response. Why is that?

It could be because you are ignoring some of the inherent rules of guest posting. You have to understand that you either have to hire an expert blog posting service or follow certain important steps to be successful at guest posting. Are you ready? The steps are outlined here:

Step 1:
First things first, you need to go over the guidelines carefully. Lots of established blogs, especially ones that accept guest posts regularly, have a list of guidelines set out for anyone who wants to post on their blog or website as a guest. You need to be aware of them and ensure none are being violated or else you will not gain the acceptance you are looking for.

Step 2:
Always choose a blog for writing a guest post after considerable research. You need to select a good blog where you know you can find your target audience. You need to research and find out the voice and tone of the blog and also look for topics that haven’t been studied as yet. This is important because you don’t want to be repetitive and you want to select something that you know will appeal to the audience and will give you a positive response. Furthermore, it could also convince the blog owner to publish your post if they enjoy the subject matter.

Step 3:
Once you have done your research, you can get in touch with the blogger. The best way to contact is via email and you should get right to the point instead of beating around the bush. You can simply pitch your idea or if you have already written a draft, you can send that in. Don’t waste your time with self-deprecation and don’t apologize. Avoid being arrogant as well.

Step 4:
It is time to create the best post possible you have ever done. You don’t just want to blow the blog owner away, but you also want to make a huge impact on the audience. According to experts from  blogger outreach services, the first opportunity could be the last so you need to come up with the right content.

Step 5:
You should give the blogger some time before following up. Usually, the guidelines will mention how long it will take for you to get a response.

Step 6:
If your post is published, you should remember to thank the blogger and then start working on your post. This means sharing, tweeting and emailing to get exposure.

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Effectively Increase Brand Visibility With These 4 Tips

In order for your marketing efforts to be successful over time, you need to be seeing a constant increase in brand visibility for your business. This consistent growth will ensure that your business is on the right path and that your brand is always fresh in the minds of your customers. While there are certainly many factors that contribute to the success or failure of a business, few can match the importance of brand visibility. If you want to learn how to effectively increase brand visibility, then follow these four great tips.

1) Excel At Social Media

Effective social media marketing is absolutely critical to the success of any business in the modern world. If you are not yet using social media to spread the word about your business, then you should change that immediately. Social media communities are gaining more users by the day, meaning that your brand should be prominently displayed there for them to encounter. Interacting with your customers through your business social media accounts is also a great way to get direct feedback about your business from your customers, as well as connect with new potential customers. Social media success for businesses is all about transparency, providing high quality content and engaging with followers consistently. While posting on your social media accounts, make sure to use various types of content, including photos, videos, news articles and more. Within each type of posting there are strategies that work best. For example, if you post a video about your business, subtitling in different languages will show the best results, as people who speak a variety of languages could be interested in your products.

2) Improving Your Search Engine Optimization

These days, people use search engines to find everything imaginable. What this means for your business is that you need to be featured at or near the top of search listings for search phrases that are relevant to your business and industry. This is accomplished through a process called search engine optimization, or SEO. Establishing good SEO practices will increase the visitors to your website from organic search results dramatically. Anyone who manages the website of your business should be fully versed in the latest search engine optimization techniques and best practices. One of the best things about SEO is that even minor changes can create potentially fantastic results, so getting started on your SEO campaign as soon as possible is a good idea.

3) Attend Local And Industry Related Events

While Internet-based marketing methods are all that anyone seems to talk about today, some seemingly outdated strategies are actually still highly effective and should absolutely be included in your brand visibility campaigns. Attending events around your community and gatherings within your industry, such as trade shows and conferences, is a perfect example of this, as these are things that can greatly improve the results of your marketing efforts. At events such as these, you will have the opportunity to speak with others working in your industry, as well as spark conversations with potential customers and members of the community that surrounds your business.

4) Build Off A Fresh, New Design

Something that a lot of businesses today are finding effective as a brand visibility tool are new designs and logos. Having a business logo that is current and up to date with the latest design trends is critical. A logo is something that every customer you have sees each time they encounter or purchase your product, meaning that the better your logo is at sticking in their minds, the better business will be in the present and in the future.

By following these four tips, you will set your business on the right path when it comes to brand visibility. As long as you stay proactive in your marketing efforts and always stay conscious of the constantly changing nature of the marketing world, your brand will become more recognizable and successful than ever before.

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Where To Go When The Banks Say No

It’s becoming much harder to get loans from the bank. Their approach has become increasingly conservative and this is unlikely to change as they try to rewrite their pre-recession reputation.

The good news is, the alternative finance market is predicted to grow tenfold in the next five years. However the options can be overwhelming. Here are a few to consider when the bank just won’t help.

When the banks say no…

Peer to peer lending

The great thing about peer to peer is speed. You can get quick decisions and access to funds within days rather than weeks. What’s more, it’s much more receptive to quirky and tech-led companies because the investors have the insight to recognise the opportunity banks are often blind to. However to make peer to peer an option you really need to establish a network of mentors. Not necessarily people who have the money to invest themselves, but people who are well connected and can recommend you to associates looking for low-risk, high-return investment opportunities.

Crowd funding

The huge pro to crowd funding is that investors usually just require monetary return. They don’t want to be involved in making the day-to-day business decisions. Which means you can continue to run the business to your rules. What’s more, the people interested in crowd funding tend to appreciate the zeitgeist: those ideas that seem too much of a gamble for the bank to finance but see risk takers more than happy to pay £1,000 to see if it will come off.

Venture capital

Venture capitals are currently rich with investors hungry for a slice of the next best thing but who don’t have the time, energy or idea to get something off the ground. Plus, if your plan is strong enough, this route can help you raise up to £1m.

Attracting investment of this kind though comes around to who you know. Venture capitalists hate unsolicited bids. My friend who works in the industry says he’ll look for flaws in every pitch submitted by email. Whereas, if a contact recommends a new start-up, he’ll do all in his power to make it work. So it’s really important that you actively seek well-connected mentors who can open doors.

The one exception to this rule is speed-funding events such as Angels’ Den. This is where you have three minutes to pitch an idea. Very Dragons’ Den, but worth a punt.

Bridging loans

This obviously comes at a premium. But if successful, they can be lucrative for you as well as the funder. Usually the bridging loan company wants their money back within a year. However this gives you time to use the investment and make a difference. Which, in turn, gives you something with a proven track record to instil confidence in the bank next time you approach them for a loan.

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Building Security Systems for Businesses

Public buildings such as large department stores and shopping centers have long been the targets of vandalism, theft, and burglary. More recently, office buildings and small businesses have become targets as well.

This probably happens because vandals and burglars assume that small office buildings are not well secured or protected, so they see them as fair game with little risk of setting of alarms or encountering a security guard. Unfortunately, they are often right about that. So on top of all responsibilities that are involved with running a business, an increased crime rate adds even more.

Building Security Systems for Businesses

The Basics

There are two ways to ensure the protection of an office or small business, and that is technology or personnel. The technology would include electronic devices such as high security locks, alarm systems or cameras, while personnel is literally a person who will stand guard of the building.

Being able to use both methods of protection provides many options for business owners to maximally secure their property. The decision will likely be made with consideration to the budget and physical size of the establishment.

If there are employees that work late into the evening and must cross through the dark to get home, hiring security personnel might be the better option. This would also be appropriate if the location of the building is in a part of town that has criminal activity at night.

Having this sort of security can help to prevent vandalism and protect employees’ vehicles. It’s important to remember that as an employer you can be held responsible for any losses suffered by employees in an unsecured parking lot.

Inexpensive Options

There are many options available on the market but not all of them are budget-friendly. Most of the options below will fit into a limited budget, which can be very useful to small business owners.

Monitored alarm system

Contacts a call center when the alarm is triggered, and the call center will then call the police. The drawback to this is that it ties into the phone lines and can be compromised if the perpetrator cuts them. Even if that does not happen, it still gives the criminal time to steal items from the business or vandalize it.

Unmonitored alarm system

Will set off an alarm outside and inside when triggered, and can even be synced with steady or flashing floor lights that will call more attention to the situation.  This normally scares burglars off before they have the chance to vandalize or take anything. This system can fit a limited budget, because it does not have the fees that are charged for the monitored systems.

Wireless alarm system

May be purchased at any hardware store, and can be installed by anyone. Cameras, sensors and motion detectors operate this system with optional alarms and floodlights. Normally inexpensive, these systems are great for a small business.

Outdoor security system

A system that is designed for the outside of buildings combines motion detectors with lights and alarms. The alarm can be set to trigger if someone is sensed walking a path that is not approved, such as approaching a window or door.

What is the best choice?

This will entirely depend on the needs of the business and its’ owner. Talking to a security installation professional, security personnel, a police officer, and even researching on the internet can provide some valuable insight.

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Make a Great Impression at a Networking Event

Live events bring together people with common interests and give everyone an incentive to interact. They are a great way to build both your personal and professional networks. If you’re willing to introduce yourself, then you have a good chance of making new friends or meeting potential business contacts.

Of course, getting the most from a live event takes more than showing up and saying, “Hello”. If you want to make an impression and build lasting connections, then you’ll need to put in some work. Here are few tips to ensure you make a positive impression that lasts beyond the event.

Make a Great Impression at a Networking Event

1. Be prepared

An event may be your first or only chance to connect with potential customers, employers or new friends. Take the time to review information about attendees and topics being discussed before you arrive. If you’re not familiar with the topic then you can prepare by attending a webinar or using a mobile learning tool for research.

Preparation also means have the right look and supplies for the event. Make sure you’re dressed to impress, or at least fit in. Also, remember to bring plenty of business cards, pens, and something to write with. Practice introducing yourself so you are comfortable walking up to strangers and sharing your key information.

2. Show real interest in the people around you

The worst thing you can do at a live event is spend all your time talking about yourself. Make it a point to ask open-ended questions and listen carefully to what others have to say.

Making connections is about getting beyond the shallow conversation topics and engaging with what matters. The best way to do this is to offer a bit more about yourself at the start, then ask questions that give your conversation partner the same opportunity.

While a live event may be about business, you should make it a point to talk about things other than business. Share a story about your vacation, ask your new friend about their hobbies or suggest a good book to read in order to start building a real rapport.

Remember that your goal is to make a lasting impression and stand out in a person’s mind after the event. That means sharing more than your sales pitch.

3. Be a connector

Sometimes you, your business, or your goals don’t align with the people you’re meeting. But that doesn’t mean you shouldn’t make a connection. Remember that people often change jobs and even industries: someone you meet today could become a client, or an employer down the road.

If your interest and a new connections don’t align at that moment, then try helping them make another connection. This may be another person at the event or someone else you know. Offer introductions to other people at the event or referrals to people you think can help them. You’ll be remembered in a positive light and they may return the favor someday.

4. Keep conversations going

It’s important to keep the conversation going after the event is over. You don’t want your new friend or contact to forget about you.

Don’t be afraid to invite a new connection out for coffee, or invite them for a drink after the event is over. If you feel it’s too soon to ask for another face-to-face interaction, then make it a point to email them the next day.

The trick here is to reinforce the connection, but not be too aggressive. If you talked about doing business, then feel free to bring that up, but you might be better off mentioning the other topics you discussed.

When you make a good first impression at a live event, it will be beneficial to your business.

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Legal Aspects of Running a Business

Launching a small business is a life-changing move for every businessperson. It brings a certain degree of excitement, together with passion for professional improvement. However, there is also another side of being a small business owner – the legal aspects of business conduct. Even before you make up your mind to start your own business tale, you need to master some legal basics, to work in accordance with the law from the beginning of your career.

The importance of a catchy name

Just try to think of a brand whose products you use and ask yourself whether or not you would use them if they had a different name. As you can see, coining a catchy name is one of the most important steps taken along the business-founding avenue. When you look at the names of some of the most famous global brands, they rarely have more than two words. Even if it is a case, they force the use of acronyms. So, try to think of a catchy phrase that would consist of your surname and a common noun depicting your basic business activity. Incorporating your own surname into the name of your business is especially important when it comes to local small businesses. Also, check if the name you wish to give to your business is already taken. For instance, businesses in Australia can check the availability of business names by following this link.

What business type is your type?

This is probably the hardest decision to make when you want to launch your own business. Your whole business policy will depend on the type you choose for your business. From your own personal taxes to your income and your employees’ wages, the type of your company will determine your collaboration with the tax and insurance authorities. Basically, businesses that do not exceed the number of five shareholders should register as Limited Liability Companies (LLC). Also, you can also choose to register as an S corporation. It offers its shareholders a limited liability, but the earnings and losses are part of their individual tax returns. This type of business must have up to 75 shareholders. Finally, a C corporation is an option for larger players, who are planning to go public in the near future. It is based on stocks and is considered a single entity by the tax authorities.

Get in touch with the taxman

No business can work without the knowledge of the tax authorities. So, once you have registered your enterprise, it is time to go and ask the tax authorities in your region, state or country to give you your very own tax identification number. It will be your main business number, with which you are going to pay all your business-related taxes. What is interesting it that this number is called differently in different countries. For instance, in the USA it is called the employer identification number (EIN), while in Australia they call it the tax file number (TFN). In UK, it’s called the unique taxpayer reference (UTR).

Education on employees’ rights

Only sole proprietors do not have a right to hire employees. All other types of businesses are allowed to recruit workers in order to achieve better business results. You have to learn how the payroll is calculated and when the incomes of your workers are taxed. Furthermore, it is necessary to follow the strict anti-discrimination rules and regulations, since this is a delicate area. Also, you have to know when you are obliged to give them a day off, as well as how much they should be paid for overtime work. Since this is a wide area which can be very important for your everyday work, it would be smart to seek business legal advice, so as to avoid unpleasant mistakes.

The legal side of entrepreneurship raises numerous questions. Businesspeople should try to learn as much as they can about the finance and business law. However, sometimes consulting an expert is the only reasonable option to keep their business actions on the bright side of the law.

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How a Bilingual Employee Can Be Vital In Your Company

Bilingual Employee – English isn’t the only important language anymore. Simple as that. While it is still the most dominant one, at least in terms of business, French, German and Spanish languages are getting there very fast. Europe is much like a big family and English speaking people aren’t the only ones that are important for doing business.

Bilingual Employee

In fact, there are a whole lot of positions that would help their business owners greatly if they can speak at least one other language except English and those positions are very common today. Take social workers, nutritionists or marketers for example. The non-English speaking population is growing day by day, and if you want to increase your customer range, you need to consider hiring bilingual employees seriously.

Increasing your customer base with a Bilingual Employee

Having bilingual employees on key positions in your company can make a huge difference. Let’s consider two examples: HR and health specialists (just about any branch in healthcare).

Having a bilingual HR specialist will allow you to hire employees that are great at their work (IT sphere, writers, bloggers etc.), but can’t speak English (or are very bad at English) for any reason. Those employees can become vital for your company since:

  • They will require a lot less salary in most cases compared to similar professionals who are proficient in English, but still be able to do an outstanding job for you.
  • They can help broaden your reach. You will have the opportunity to dip into new markets, ones that still require your product or service, but can’t communicate in English.
  • They can increase your customer satisfaction by a lot. While it may seem a minor thing, but people love to be spoken to in their mother tongue, even if they do speak other languages. If you ever encounter a delicate issue with one of your customers, an employee who speaks their language may become your life saver in those dire situations.

Bilingual health specialists can be even more important. If you are in healthcare business (psychology, therapy or run a hospital/clinic, etc.) bilingual medical staff can be the difference between a loyal customer and a passerby, or in some cases, even the difference between life and death.

If a non-English speaking patient comes to your clinic with some serious health issues and can only speak French or German, your bilingual employees will suddenly become life savers, no matter whether they are nurses or janitors, as long as they can properly translate everything for the doctor.

Training the rest of your staff

What’s really great about bilingual employees is that you don’t necessarily need to have a lot of them to increase your customer reach, retention rate, satisfaction level, etc. Just a handful of them will be able to train the rest of your staff to become more or less proficient in another language, which can lead to even more opportunities.

When communicating with customers, even a few words in their mother tongue can make a big difference. Great bloggers for example, know about this very well and use it to their advantage along with other blogging secrets.

Finally, bilingual employees, regardless of their position, can be very handy when it comes to business negotiations abroad. If you consider entering new markets, those employees can become half-time or full-time translators for your negotiators to ensure that everything goes on smoothly.

You might think that you can always hire professional translators when needed, but there is a difference between hiring a translator and having somebody from your team that cares for your company help you succeed abroad.

This will not only increase that employee’s motivation, but also show your business partner that you have taken the first step towards entering a new market seriously, since you already have people that speak the necessary language, not just hired translators.

When it comes to business, every opportunity should be weighted seriously and taken if there is a positive risk-reward scenario. The absolutely beautiful thing about having bilingual staff members is that there is no risk whatsoever: only opportunities. And depending on your business, those opportunities can make all the difference in the world.

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How to Create an Acquisition Strategy as a Small Business

Many start up companies hope to eventually get acquired but don’t have a clear acquisition strategy or plan on how to get there. In order to create an effective acquisition strategy as a small business, there are several aspect of their business that must be carefully planned out. While transparency is important, the particulars concerning the companies finance and legal aspects play a vital role in the success of the acquisition. In addition, there are organizational concerns, communication tasks and stakeholder assessments required. Let’s take a look at developing a good acquisition strategy…

1. Be Clear With Yourself On Goals And Motivations Before Developing a Acquisition Strategy

The first things you want to consider when positioning your company for an acquisition is your reasoning for selling your business and how you want that goal to be executed. Ensure that you understand the impact of the acquisition, and prepare the company for a smooth transition into that direction. Any company looking to acquire your start-up is going to be interested in understanding the vision you have and the potential you see in your respective industry..

If your vision is not visible to others, chances are you will have a difficult time attracting a complimentary investor or buyer. On the other hand, a clear vision could make the difference between thousands and millions of dollars. Elastica’s recent acquisition by Blue Coat is a perfect example of this.

2. Get Your Business Affairs In Order

The complex and lengthy process of the acquisition will require a full and thorough transparency of the inner workings of your business. Financial statements and other discovery documents will be vital as you make appeals to potential buyers and establish your company’s’ value. Do your due diligence by organizing all pertinent documents, ensure all taxes and licenses are current, and satisfy any outstanding issues that may be viewed as an encumbrance or threat to your company.

3. Get The Experts Involved

As an entrepreneur, your expertise is in providing your service or selling your product. Just like you seek the best personal doctor or the best hairstylist, establish a team of the best investment bankers, tax attorneys and advisers who are experts in their fields. An acquiring company will be impressed by the quality of reports that will be delivered, especially since it will be prepared by an outside expert, as it gives authority to the testaments given.

A business that is being micro-managed and macro-managed by the same person does not give the impression of a serious, established and profitable business worthy of being purchased, but rather more of an entrepreneurial endeavor that needs additional time to flourish before it is sustainable. Besides, if you allow the experts to handle those crucial tasks, that leaves more time for you to confidently focus on the other aspects of the acquisition.

4. Open The Lines Of Communication With Your Management Team

Create an open environment where your talented employees remain involved and informed. Prepare the team for the transition and encourage them to take a personal stake in the transition. By remaining cultivated with the best and brightest on your team, you ensure that you will retain their loyalty and dedication, which make the strength of the business as a unit more appealing.

5. Make Sure Your Key Stakeholders Are Aligned To Avoid Last Minute Crises

Make sure every member of the board and all key stakeholders are on board for the sale. Try to predict any conflicts that might arise at the least opportune time. Large corporations are easily scared away from strife within a company that visibly poses a threat to the companies’ potential success. They’ve seen businesses like Hewlett-Packard lose millions as a result of bad acquisitions, so naturally corporations want to proceed with caution. Any last minute disagreements can stall the acquisition, or even permanently dismantle the agreement all together.

6. Re-Establish Significant Partnerships and Clients

One of the most important reassurances that you can offer is that the current customer base is established, strong and loyal. Part of the process of nurturing that loyalty is to customers them selectively informed. You want to avoid scaring them off towards your competition after the acquisition. Your investors also may want to engage with the customer base to evaluate their level of support and loyalty. This critical assessment serves as a vital reference for investors and buyers when predicting future growth potential of a business in the aftermath of the acquisition.

7. Understand Your Company Narrative

When conveying your journey and passion to a buyer, your narrative will be more effective with it is compelling and credible. Every aspect of your company will be in the spotlight, and it is important that your narrative is inspiring, confident and convincing. The interested parties are not the only ones who need to feel your passion. The stake holders, board member, employees and customers all alike must be in sync based on your conveyance, Without that harmony, you will find it difficult to convince them to sign on the bottom line.

Once you have all of your business affairs in order for your business acquisition will become probable, but almost certain. You will attract the right type of company who will be able to envision your dream and implement strategies that will elevate the value and positioning of your business.

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How to Value Your Business

The market can be a fickle thing, and whether you’re currently running a thriving business that you want to make some money on, or you’ve been having a few issues, it’s not necessarily always the right time to sell. Getting out quickly is one thing, when you finally make the decision to let your business go, but getting out at the right time is a much more sensible way to go, so it’s important that you regularly ask “how much is my business worth?” in order to ensure you’re ready to make a move when the time is right. Read on for some tips on how to value your business…

The benefits of being on top of your company value calculation

Any business is an investment, even if you started up with little or no initial capital, and it should be treated as such, ensuring you look to grow your investment’s value in the time that you have it. Being aware of the value of your business during your time in ownership will give you a clear idea whether what you’re doing to grow your investment is working. If an unexpected offer comes in, you run into health issues, or there’s another reason you’re looking to sell your business – perhaps you’ve found the perfect investment but you only have a small window to raise funds, knowing how to value a company and getting a quick and accurate business valuation can help you decide on your next course of action more easily. Similarly, valuing your business regularly, whether you use a professional company offering company valuation services, or use a company valuation calculator you can trust, will give you an idea of when the right time to sell is.

How to value your business

Whether you’re wondering what you’d get for your business as an idle possibility, or you’ve realised that perhaps you’d like to enjoy retirement or move onto other things, it’s essential that you know how to value a business. There is, however, not just the one ‘how to value a business calculator’. There are several methods of working a value out, and here, we briefly look at some of the most common business valuation methods that are used to come up with a figure.

Multiples of Earnings

Businesses with a well-established financial history sometimes use this method, working out a Price/Earnings ratio, based on the value of the business divided by its profits after tax. However, the ratio will differ depending on the industry your business trades in, and an IT firm for example, may command a higher ratio than one such as a high street estate agent.

Discounted Cash flow

Estimating the cash flow of a business over a certain period of time can also be used as a business valuation method. However, this is not the only value used. The final figure is worked out as the terminal value of the business after the period mentioned above, plus the cash flow is then discounted. This method is normally used for online businesses, and those with few assets but much potential.

Asset Valuation

If a business were to have a glut of tangible assets, such as properties or vehicles, then asset valuation may be used. The net realisable value of all of the properties or vehicles would be used as the valuation for the business.

Entry Cost

This is a fairly simple way to value a business, as it works on the premise of working out how much it would cost to set up a similar start up. Included within the costings would be gaining a customer base, developing services or products, training and recruitment and purchasing any assets required.

If you’re struggling with working out your business value, there are businesses that can help you calculate the value of your business, but do consider running these figures regularly, as keeping on top of your business’ value can give you a great way of working out the best time to sell.

 

 

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A Hangover Cure for Your January Finances

Christmas is a busy time for many small businesses. Paying wages early, an expensive Christmas party, and the increased chance of being paid late by your customers all mean you might find yourself in pain in the first few weeks of the New Year. And just as people make resolutions for themselves at the start of the year, many businesses get ready to hit the ground running in January. It’s not an ideal time, then, to be hit with a big tax bill. But this is exactly what happens to a huge number of businesses in the UK — whether it’s PAYE, VAT, or even corporation tax that’s due, a lot of different quarterly or annual bills can come up in January.

So what can business owners do to avoid a financial hangover caused by their January tax bill?

We’re not going to suggest raw eggs, hair of the dog, or a cold shower — but here’s a few ways you can shake it off and get your business’s New Year’s resolution back on track.

What are the implications if you don’t pay your tax bill?

It’s risky business to delay paying tax you owe. Last year, they ordered 3,000 businesses to shut down because of late tax bill payments. Of course, in some cases, businesses receive a slap on the wrist. This might tempt you to take your chances, but it’s really not worth the risk, and here’s why:

If HMRC take enforcement action because you haven’t paid your tax bill, it can cause your business serious problems. They might take you to court, pass your debt on to a debt-collection agency, or even close down your business. None of those options are good — and it doesn’t matter if you can’t or won’t pay.

So the best thing you can do is pay the bill as quickly as you can. If you don’t have enough working capital to do it, or paying the bill in full would leave you in a tight spot in terms of cashflow, short-term finance might be a good idea. If you’re really struggling, talk to HMRC!

Be honest with HMRC

It sounds obvious, but keeping the lines of communication open is really important in times like this. It’s no use running around trying to get the funds together to pay if HMRC don’t know — they could take enforcement action in the meantime. So make sure you’re honest and open with them, and they know that although you can’t pay now, you’re making plans to do so.

Bear in mind that if HMRC agree for you to delay payment or pay in installments, you’ll still have to pay interest and late fees. In other words, coming to an agreement with HMRC might save you from enforcement action, but will still leave you worse off than paying the bill in full before it’s due.

If you need any more convincing that it’s a bad idea to delay paying HMRC, bear in mind that many lenders will turn you down for finance if you have an outstanding tax bill, which limits your options even further. Overall, you need to be proactive and make a plan — with an overdue bill from HMRC, the absolute worst thing you can do is nothing.

What can you do about it?

If you don’t have the working capital to pay your tax bill outright, you might consider getting short-term finance to see you through the first few weeks of the New Year. At times like this, your accountant could prove very useful — talk to them to figure out an action plan, and see if there is any wiggle room on your balance sheet.

As we’ve seen, if at all possible the best thing you can do is pay the bill in full as soon as you can. If doing that leaves you without much working capital left over, think about what would happen in an emergency. And if there’s no way you can pay it, look at all your options — talk to HMRC, and think about approaching finance providers if you need to bridge the gap. Here are some of the options worth considering:

Overdraft alternatives

If you don’t need a huge amount to make up the difference, a cashflow facility similar to a bank overdraft makes sense. Lenders differ in exactly what they offer, but generally you’ll agree a maximum limit, borrow up to it whenever you need to, and only pay interest on what you use — useful for short-term hiccups like a big tax bill after Christmas!

Short term loans

Term loans aren’t as fashionable as peer-to-peer lending (or so-called ‘marketplace lending’) at the moment, but could be perfect for getting you through a few weeks or a few months of temporary difficulty. They’re suitable for a wide range of businesses, although you will need some kind of security or a robust trading history.

Invoice finance

If your firm trades on credit, January can be particularly bad for late-paid invoices from clients. With invoice finance you can get an advance of cash before your client has paid, so you don’t have to be left hanging. That means you can pay your bills on time, even if your customer isn’t doing the same!

Conclusion

Tax bills catch everyone by surprise — believe it or not, even accountancy firms can get a nasty surprise from HMRC in January. It’s always going to be hard to come up with a lump sum, particularly for the larger quarterly or bi-annual payments, so be prepared and have a plan. If it doesn’t work out perfectly, there’s a range of alternative finance that can help.

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