What to consider if you want to run a successful business in 2023.
No one said running a business was easy, and running a truly successful business is definitely not without it’s challenges. The past 3 years has been particularly challenging for small to medium sized enterprises(SME’s). The extended uncertainty of the Covid pandemic, continued international instability caused by the war in the Ukraine, established banks leaving the Irish market and the effects of Brexit have all had an impact on the security of Irish businesses.
However given the small size and open nature of our economy it could be viewed that there are simply more opportunities than there are risks. Brexit for example has created more opportunities for our economy and made us a desirable place to do business. We have become the logical step into Europe for many businesses with our highly skilled, friendly and English speaking work force.
Outside of environmental/economic challenges a successful business needs to ensure effective planning for growth and embrace change. Putting a proper progression plan in place can be the real difference between just surviving and truly succeeding in business. Successful businesses have strong leadership and seek opportunity where others only see challenge.
Consider where help is available and how this might inform your future choices. Always be thinking of who can assist me in growing and protecting my business. This could take many forms, be it networking with fellow business owners, seeking professional advice or listening to staff and the ideas that they may have to share.
Some of the areas where business owners commonly require some guidance include:
- Debt management: A sizable part of managing a successful business is understanding your debt and ensuring that it is managed in the most efficient way possible. For many businesses this may include looking at loans and managing your requirement for finance. Ensuring that you truly understand the implications of a loan agreement whose term may spread well beyond the usefulness of a purchased asset for example a company vehicle/ machinery and even a building. Discussing your requirements for loans with your advisor can be highly beneficial as there may be alternate ways to proceed with new finance that you have not considered and are in the best interest of your business.
- Planning for growth: A growing business needs to consider their future needs and responsibilities. Talk to your advisor to receive expert guidance on how to plan your resources for the future of your business. Consider areas such as requirements for staff, physical location and cash supply.
- Securing grant aid: Make sure you are aware of what is available to you from a grant perspective. Knowing what is potentially available to your business can make a huge difference as the availability of another form of finance may be the real decider in how you proceed with a new project. Your advisor will have an excellent overview of the type of schemes which are available, they will understand how to determine your eligibility and which schemes are best suited to the needs of your business.
- Tax planning: Naturally ensuring tax compliance is absolutely essential for your business, but the most successful business will have taken the time to discuss their taxation strategy. Perhaps you are paying too much tax, discussing any concerns with your advisor will ensure that you are making full use of any tax allowances and reliefs that you can claim.
- Future planning: Planning for your retirement and the financial resources you will require to maintain your lifestyle, needs to be balanced with whether the business is to remain as a going concern or not. There may be considerations around family members wanting to continue the business, tax implications and tax reliefs to be considered. The key to approaching this correctly is ensuring that you have enough time to work through the required stages and have fully understood your own needs and that of your business.
- Pension planning: It is never too early to consider your pension and having a concrete plan in terms of how you will fund your retirement has never been more important. Taking into consideration recent changes to pensions under the Finance Act 2022 business owners with good planning can guarantee themselves a full, secure and active retirement.
There are many types of successful businesses all choosing to operate their businesses in different manners. What they have in common though are business owners who believe in their business, who are willing to take advice where required, who can implement a plan to succeed and who remain resilient in this every changing economy.
DBASS has had the great honour to work with many such businesses over the years and as always are happy to discuss how we might assist your business.
To talk to one of our advisors <ph. 01 849 88 00 or email firstname.lastname@example.org>
by Eoghan Farrelly
DBASS Tax Manager
DBASS Chartered Accountants
This article is for discussion purposes only. For further information on any of the topics covered in this article please contact a DBASS adviser on ph. 01 849 88 00.