News that the UK’s economy is growing at the fastest rate since 2007 will help bolster business confidence, but small businesses in Yorkshire need to grow with the times, according to a local specialist.
The Office for National Statistics (ONS) figures demonstrate that the UK economy grew by 1.9 per cent in 2013 and 0.7 per cent in the fourth quarter most recently.
Will Swift, who runs TaxAssist Accountants in Horsforth, said:
“There’s definitely a light at the end of the tunnel for local small businesses, but after years of being conservative and making cut backs, Horsforth’s small businesses need to look to grow with the times.
“The Chancellor has given small businesses a helping hand by capping business rates and freezing fuel duty rises and business owners we’ve been speaking to are now looking carefully at the challenges and opportunities for growth.”
Will is advising local entrepreneurs on the financial planning and reporting tools they need to access finance in order to sustain and grow their business and has put together some top tips:
- Work with your advisers to produce a clear business plan and cashflow forecast backed up by reliable evidence and a good demonstration of your skills
- Banks will expect to take some form of security and see at least 30 per cent of your own money injected into the proposal – if you do not have security available, enquire about the Enterprise Finance Guarantee Scheme
- Show that the borrowing requested will be paid back and that it’s enough to run the business and fund your living costs
- Avoid borrowing too little as under borrowers could be forced to go back to the bank within a year
- Make sure you don’t borrow too much or you will pay more in interest than you need to
- Keep in touch with your bank and provide them with up to date information including good news and bad news – banks do not like surprises!