|
88. A business plan was produced
for the start of the business that changed your
life. Now is the time to take that plan a stage
further.
89. Prepare a budget for the
next year of trading, - learn from the best
of last year and do not repeat the mistakes.
The budget needs to be assumption driven just
like the business plan was. Firstly review your
original assumptions, retain those that worked,
adjust or discard those that did not work out
90. Once the assumptions have
been updated remember to show last year’s
comparative figures as a guide. Look at the
actual figures achieved against that which was
forecast. Adjust the projections for the new
assumptions.
91. Recalculate the budget
starting with known established costs, i.e.
Rent, wages etc and build the budget up from
there.
92. If your turnover of over
a certain limit you must register for VAT. This
limit is reviewed in the Budget each year. Be
aware of the limit because you could end up
with a penalty for late registration without
realizing it.
93. Additionally it
may be in your interest to register for VAT
even if you are below the limit. The reasons
for doing this would be:
o Integrity factor - the customers you are dealing
with would expect you to be registered, if not
it sends out a signal that you are a very small
business
o The purchases you make all attract VAT and
therefore this can be recovered by registering.
However you must bear in mind your customers,
if retail would the extra 17.5% price increase
have an effect upon your business.
<<
Back | Next
>>
|
