How mums can give birth to new businesses

 

 

How mums can give birth to new businesses

 

Chartered Accountant MARK HJERTZEN,Managing Director of HW Associates Limited, has worked alongside a number of ‘mumpreneurs’ and is convinced that it’s definitely possible to achieve business success while raising a family.

 

It’s easy to think that being a mother and owning a start-up business are incompatible. Anecdotal evidence, however, suggests that the phenomenon is becoming more and more common.

My advice is that if you have a good idea and the confidence to pursue it, you should follow your instinct. Don’t automatically assume that having a young family is going to stop you.

Of course, there’s a need for discipline if you’re going to balance work with family life. If you’re not organised and efficient in the way you work, then you won’t be able to achieve a sense of equilibrium. But it’s usually a matter of working smarter rather than working longer.

Are you generally flexible and adaptable? If so, you’ll be able to deal with the unexpected, which is an inevitable part of running a successful business. Looking after kids may demand many of the same skills, in fact!

It’s important that you set the terms. You need to work in a way that suits you and shouldn’t think that what someone else has done is necessarily a good model. This is a personal balancing act.

Finding a good accountant and taking their advice is a critical first step. They will advise you on how to get started, the different structures you might consider and the way in which you’re going to remunerate yourself. They’ll also have plenty of advice on potential pitfalls.

At a practical level, your professional adviser can take charge of admin such as book keeping, payroll, VAT and tax. All responsibilities which can often become a troublesome burden for a fledgling entrepreneur.

So don’t let being a mum stifle your business ambitions or creativity. There’s plenty of help out there and you can make it work.

 

How’s your relationship going?

 

 

How’s your relationship going?

When your business is a partnership, it’s worth watching out for warning signs of trouble on the horizon, suggests MARK HJERTZEN of HW Associates. If you can act early, you may pre-empt costly disputes.

Working together in a formal partnership certainly has its advantages. It’s a structure favoured not only by many small and medium-sized enterprises, but also by their accountants and solicitors.

Of course, the nature of the arrangement means that two, three or more people come together to make a collective contribution to the firm. In the eyes of the law, they can be equal players, but the reality may turn out to be slightly different.

People’s personal circumstances are different and so are their levels of effort, ambition and motivation. One partner might put in long hours and go above and beyond the call of duty, for instance. Another might seek more of a work-life balance and reduce their level of commitment, but still expect to be remunerated at the same level.

Very often, there will be irritations and disputes, but understandably – in the interests of a smooth-running business and a quiet life – there’s always a temptation to brush them under the carpet. No one said you had to be friends, but if you’re working towards a common goal, it makes sense to be civil.

As a professional adviser, however, I’d tell my clients to watch out for the early signs of trouble. If you can’t deal openly and honestly with friction and conflict, things will eventually flare up – often over a relatively trivial issue. At that point, everyone suffers, including your staff and your clients.

It may be that you haven’t thought of your accountant as a place to turn with these kind of issues, but it’s much better to get things out in the open now than to find yourself talking to lawyers a couple of years down the line.

If you sense the ship might eventually be heading for the rocks, it might be better to start preparing the life raft. Perhaps you need to start thinking about raising cash for a buy-out, for instance? Much better to do it on an agreed basis than find it enforced in a situation where you have no options.

In a world in which many accountants market themselves as ‘one-stop shops’ for book-keeping, payroll, tax and a range of more functional services, there’s a danger we can lose sight of their more strategic role. Qualified professionals will be able to act as an intelligent sounding board and intermediary, bringing that quality that seems all-too-elusive sometimes in the modern business world: integrity.

So, think ahead and maybe start the process of talking things through. It’s what your adviser is there for.

Building for the future with bricks and mortar

Building for the future with bricks and mortar

Property investment can undoubtedly bring rewards, but it’s important to recognise the potential pitfalls too, writes Mark Hjertzen

Although there are all kinds of possibilities when it comes to investing for your future, property understandably seems an attractive option for both individuals and businesses. It’s worth bearing a number of factors in mind though before taking the plunge with bricks and mortar.

First of all, there’s no guarantee of a quick profit. You may well see a good return in the long run, but it’s important to be patient. It’s also not particularly wise to see property as a way of releasing easy cash. Although it’s always possible to remortgage, it’s difficult to predict fluctuations in property prices and the ratio between loans and value. And who can forecast all the political and economic changes that might influence the price over a particular period of time or in a specific region?

Think about your objectives

One of the attractive features of property investment is the possibility of seeing an increase in capital value over time, while also receiving a rental income. You’ll need to be clear, however, over which your priority is.

If rent is your primary focus, are you confident you can attract reliable tenants in the area you’ve chosen to invest? With your mortgage and tax commitments, you’ll need to generate enough regular income to cover your outgoings and make some profit on top.

If you’re aiming for an increase in the value of the property, how well are you able to read the market? Can you be sure that demand is likely to increase in a particular geographical area?

Factors you can’t ignore

It’s sometimes easy to forget the inconvenient, yet essential, costs associated with property purchases. Surveys, solicitors’ fees and stamp duty are just the start. You also have to factor in the time involved in management and maintenance. And don’t forget that mortgage rates will inevitably fluctuate over time.

The best advice is to go into any new property venture with your eyes open. If you’re patient and prepared to invest for the long-term, then the potential for good returns is definitely there. But don’t underestimate the challenges.