However, if you are a business owner in need of capital, where do you start? The following may be of use:

• Before approaching investors, get your house in order.
• Ensure the business’ accounts are up-to-date and all necessary returns are filed.
• Prepare a realistic business plan based on reasonable projections.
• Determine how much capital is needed, what form it will take and what return you can offer investors. It may be the case that you want to enhance the offering by making it more tax efficient for investors (i.e. using pensions or the BES).
• Next, confirm investor interest in your offering. Initial feedback may allow you to adjust your offering to make it more attractive to investors. Investors can come from your own contacts, financial advisers and/or investor networks. The Halo Business Angel Network is a government sponsored body charged with aligning investors and businesses (see www.hban.org).
• Once all parties are ready to proceed, your professional advisers should produce formal documents. An offering document will ensure investors are clear about what they are investing in and what return they should expect. Transaction documents will govern the relationship between the investors and the business. Investors will normally conduct legal, financial and technical due diligence and you should be ready and willing to facilitate this.
• Also, it would be sound governance practice to provide investors with information on the business’ performance on a regular basis during the lifetime of the investment.

Seeking to raise capital through private equity should not be seen as a last resort but rather an alternative to bank finance and government funding. Investors will be attracted by a sound business proposition, a good balance of risk and reward and, if available, tax breaks.

Paul Brady is a Registered Tax Consultant with TaxandLegal.ie. Visit: www.taxandlegal.ie

The income tax filing deadline of 31 October 2010 for 2009 tax returns will shortly be upon us. Now with the kids back to school once more, it is an opportune time for those who wish to claim additional tax relief to examine the options that are available to them.

Increasingly it is government policy to encourage people to provide for their retirement through generous tax breaks given to pension schemes which are approved by the Revenue Commissioners. Personal Retirement Savings Accounts (PRSAs) were recently introduced in an attempt to extend overall pensions coverage.

Here’s an outline of how these PRSAs work.

Retirement Annuity Contracts (RACs) {A.K.A. Tax Saving Pension Payments}

Subject to certain restrictions, tax relief is available on premiums paid by an individual under an approved annuity contract to secure a life annuity in his old age. Before Revenue will approve an RAC, there are many conditions that must be satisfied with regard to the provider of the RAC and the contract itself. Some of the main points are that:

• The contract must be with a person lawfully carrying on an annuity business in Ireland; once non-Irish providers fulfil certain conditions then are also regarded as approved providers;
• The contract must provide for only payment of sum by annuity to the individual;
• The contract must pay the annuity between the ages of 60-75;

Relief for Premiums Paid

An RAC will be allowed from an individual’s ‘relevant earnings’ for the year of assessment in which the premium is paid.

Relevant earnings means:

• Income arising in respect of remuneration from a non-pensionable office or employment;
• Income from the carrying on of a trade or profession, i.e. self employed.

The maximum amount which can be deducted in any year of assessment depends on the age of the individual and can be summarised as follows:

Age                            Percentage

Up to 29                    15%
Age 30-39                  20%
Age 40-49                  25%
Age 50-54                  30%
Age 55-59                  35%
Age 60 and over       40%

In the case of certain ‘specified individuals’, (e.g. certain sportspeople and occupations of a limited duration) the 30% applies regardless of age.
Net relevant earnings means the amount of the individual’s relevant earnings (as defined above) less:

• Losses and capital allowances
• Charges on income

Net relevant earnings are capped at €150,000 per annum for 2009 and 2010 (the cap amount was €275,239 for 2008).

Topping Up – Additional Voluntary Contributions

One of the most efficient methods of reducing one’s tax bill for 2009 is by way of making an AVC to one’s pension scheme. Relief for the RAC is normally allowed in the year it is paid, however where a premium is paid before the tax filing deadline for that year it may be claimed as if it were paid in the earlier tax year.
Perhaps an example would help bring this to life:

Joseph is 54 years of age and has net relevant earnings for 2009 of €150,000. He made pension contributions to his approved scheme of €20,000 during 2009. The maximum he is allowed to claim tax relief on is 30% * €150,000 = €50,000. As the filing deadline for 2009 Income Tax returns is 31 October 2010, Joseph can make a ‘top-up’ payment before the deadline of €30,000 which will reduce his taxable income by €30,000, thus saving him tax of at the higher rate of 41% for 2009.

This not only reduces Joseph’s 2009 Income Tax liability but also his 2010 preliminary Income Tax liability. (Preliminary tax for 2010 must also be paid by 31 October 2010 and is based on 100% of an individual’s 2009 liability or 90% of their 2010 liability).

As you can see this is a very worthwhile tax saving and one which effectively transfers what would be paid as tax at the highest rate into a personal pension fund.

Simon is the Principal of SB Tax Consultants and specializes in the areas of corporate and personal tax planning work and the preparation and filing of returns for both companies and individuals.

simon@sbtaxconsultants.com
www.sbtaxconsultants.com

You must offer your products for a price your target market is willing to pay-and one that produces a profit for your company-or you won’t be in business for long! There are many approaches to pricing, some scientific, some not. This article provides a framework for making pricing decisions that takes into account your costs, the effects of competition and the customer’s perception of value.

A quick note about how the terms “cost” and “price” are used in this article:

• Cost is the total of the fixed and variable expenses (costs to you) to manufacturer or offer your product or service.
• Price is the selling price per unit customers pay for your product or service.

So, when customers ask, “How much does it cost,” your answer is your price.

The Fundamentals: Price Floors and Ceilings

Think of cost as the floor-you must set prices above the floor to cover costs or you will quickly go out of business. (If you decide to set prices at or below cost it should be for a temporary, specific purpose such as to gain market entrance.)

Think of customer “perceived value” as the ceiling-this is the maximum price customers will pay based upon what the product is worth to them. This is sometimes described as “what the market will bear.” Perceived value is created by an established reputation, marketing messages, packaging, sales environments, etc. An obvious and important component of perceived value is the comparison customers and prospects make between you and your competition.

Somewhere between the floor and the ceiling is probably the right price for your product or service; a price that enables you to make a fair profit and seems fair to your customers. Consequently, once you understand your cost floor and your value price ceiling, you can make an informed decision about how to price your product or service.

In summary, while you must be mindful of costs in setting your prices, don’t limit your thinking only to cost-based pricing. Value-based pricing makes you think about your business from the customer’s perspective. If the customer doesn’t perceive value worth paying for at a price that offers you a fair profit, you need to re-think your game-plan!

For further information on Busy Lizzie contact

Tel: 01 514 3401

Email: hello@busylizzie.ie

Skype: busylizziesales

Web: www.busylizzie.ie

But what intrigued me most was the amount of people looking at social media from an academic perspective: doing research on the data that is shared across the streams in our social networks. One of the speakers, John Conroy of NUI Galway, has done his own research about the Twittersphere in Ireland, confirming a lot of the trends we may have suspected.

He’s featured in the Irish Examiner today below, so we thought we’d share the findings with the O2 ideas room community.

Click here to read the article

Have a read and let us know what you think. How do you like to use twitter?

There is always an element of luck required for any new enterprise but by putting the right processes in place and gathering the right information the chances of success can be greatly enhanced.

A few points worth considering might be:

1)    Research - the business sector you wish to enter thoroughly, it is great to have an idea for a business but you need to know what’s already in the marketplace and how you will compete. How will your competitors respond to your entry, will they drop prices and how will you respond? Check’s can be anything from online search’s and visiting competitors to see how they operate to obtaining copies of their filed accounts from the companies office.  Anything that gives you information that you can use to your benefit is worthwhile.

2)    Skills - Now is the time to be completely honest with yourself about what you can or cannot do, make a list of what you believe to be your strengths and weaknesses and how they may affect the success of your venture.  Ask for feedback on this, preferably from people you believe will be brutal in their assessment as there is no point people just telling you what you want to hear.  If it is within your means, hire people with the abilities that you lack or consider training in these areas to get up to speed.

3)    Finance - Most start up’s take time to get on a level footing financially and it is the exception where breakeven can be achieved within the first year or two. This makes it vitally important to consider how you will finance operations during this initial phase.  How will the funding be achieved, will this be from savings or will it be through borrowings from financial institutions? Prepare a breakdown of all costs and expected earnings but as with evaluating skills this must be realistic, be conservative in this approach and build in a contingency figure for any nasty surprises along the way.

4)    Structure - In what form will you operate the business? the most common are as a) Sole Trader b) Partnership c) Limited company.  There are different risks and benefits to each of these so consider the options carefully.

5)    Professional Advice - The information that can be gathered from consulting with a professional advisor such as an accountant or solicitor can be invaluable and may prove to be the difference in making your efforts successful.  Try to talk to more than one in each field before making your decision, the initial meeting should not incur a charge so choose based on the quality of the advice offered, not the price.

6)    Business Plan - This is probably the most important preparation to get right before you dive in. A good plan will be a logical, well thought out document, clear and concise in it structure and description of how the business will operate and be profitable. It can also be revisited at any time and updated to reflect any changes that occur in the business.  A good plan will encapsulate a lot of the points already mentioned and is a basic requirement when approaching financial institutions for funding.

I have avoided the temptation to put a lot of detail in as each of the points above could probably have their own chapter.  There have been some excellent blogs posted previously on most of these areas which go into more detail and are well worth a read.

While this is not the most exciting part of starting a business for some, it is crucial to get right.

As Roy might say ‘Failure to prepare…’

Happy to say that Féile Icarus have 75 people already signed up for the first collaborative business planning workshops to be held in Letterfrack, Co. Galway at the end of August 2010. The crowd-planning workshops, to be run on the 27th and 28th August, provide a supportive platform for entrepreneurs, start-ups and creatives to identify their passions and strengths and to devise practical ways to plan their business future.

We’re delighted at the response so far. The website was put up just 4 weeks ago and the online and offline buzz has even surprised us. Obviously we have struck a chord in entrepreneurs, creatives and start-ups judging by the bookings, e-mails and phone calls we’ve received. Entrepreneurs are driven by their passions and learn from their failures. Through this event, we endeavour to make use of those learnings and devise actionable plans that will capitalize on the passions.

During the workshop, participants work through a number of exercises and business critical questions, drawing on the expertise and insights of the group. All delegates will develop a ‘flight plan’, and identify a ‘tag-team’ partner, who they will continue to collaborate with after the event, as they put their plans in place. Féile Icarus is inspired by the Greek tale of Icarus who fashioned makeshift wings to aid his escape, only to fall fatally from the sky due to flying too close to the sun.

I think that Modern entrepreneurs have a lot to learn from Icarus. Icarus had the passion to succeed and the creativity to devise an innovative solution. His biggest mistake was not recognizing when he was failing and changing his focus accordingly. As people driven to create we know that failure can be a fantastic catalyst for change and learning, however we must learn and plan based on our individual needs and resources.

Tickets for the events are priced at €19.50 per day and can be purchased at www.feileicarus.com. This site also contains further information on the event, in addition to accommodation information for those visiting Letterfrack in Galway for this event.

Really hope to see some of you there!

Chris Mortimer
Féile Icarus
www.feileicarus.com

The first thing you must do - is to treat your customers like you would want to be treated. The Golden Rule is “Do onto others as you would have them do onto you.” If you want someone to treat you with respect and take care of you, you have to do the same for your customers. If you expect FedEx to show up at your door when they say they are going to, you need to show up on time for your clients. It is a two way street.

Second, use discretion when it is needed. Just because you have rules and policies in place does not mean that you can’t bend or break them when a situation calls for it. If your policy is to charge a cancellation fee when you are not given a sufficient amount of notice, but a client explains to you that they had been in a car accident that morning and were unable to be there for the appointment, do you really think that it is reasonable to push a cancellation fee on them? Now if you have a client who cancels on you frequently, then that is a situation where you would want to implement your cancellation policy.

Third, solve problems that may be presented to you. This is good for both in and out of the office. When you are in the office you can handle problems such as taking care of a customer’s complaint or meeting their needs, which for us includes helping them attain more time or less stress. This is why they are coming to you in the first place.

You are sometimes presented with problems outside of the office that can generate not only good public relations, but that thing many people like to say, “What goes around comes around.”

Fourth, have a great “I’m sorry” plan. It doesn’t matter whether you are just starting out or have been in business a while with customers who have been with you for a while. The minute you make a mistake, how you take care of the situation will make or break whether that customer stays with you or not. You want to not only fix the problem, but get down to the root of what happened and make sure that it doesn’t reoccur.

For further information on Busy Lizzie contact

Tel: 01 514 3401

Email: hello@busylizzie.ie

Skype: busylizziesales

Web: www.busylizzie.ie

These are becoming very popular right now. You simply create a few e-mails’ worth of content to spread out over a certain amount of days. You’ll need an e-mail auto responder to do this, which allows me to sign up for your course automatically. Many sites seem to offer five- or seven-day courses, and many of them are awful. So here’s a chance for YOU to stand out: Make sure yours offers really useful or interesting content that’s more “how to” than sales orientated. Then in the last e-mail, tell me how your services/ products will further help me — lead me on to the next step.

A special VIP/promotion list.

If I like what I see, and you give me the chance to receive *special offers* that will save me money at your site, I’ll be sure to sign up for your list. Get users to sign up for “discounts, exclusive offers, and first looks.”

Free special report or e-book.

Give people a special report or short e-book related to your topic of interest. Not sure where to start? Try a top-10 list of tips, a list of relevant resources, or a collection of articles you’ve already written. The more “how-to,” the better - give me real, useful information. But of course make sure it implies that YOU and YOUR BUSINESS are the best resource in the end. This is a delicate balance to achieve, but it’s not as hard as you may think. And at the end of your content, tell me how your services/products will further help me.

Give real-life examples.

Describe a problem you’ve solved for a client/customer, and use that as a springboard to offer more general advice. Show your readers how you’ve helped customers address challenges - “case studies” if you will. This positions you as the expert in your readers” minds more than your coming out and saying so.

Think of three areas in which you’d like your clients to think of you as a resource. Now develop content in those areas.

Jot down 8 questions your clients have asked you in the past. You know,

the ones they ask you over and over. Answer each in a short article. If you publish weekly, that’s two months’ worth of content, right off the bat! And if you can’t think of any questions, send all your current clients/customers a quick e-mail, asking them what topics they’re most interested in learning more about.

Learnt anything from an industry conference, workshop, seminar, or insightful article? No one says you have to reinvent the wheel of information! Pass on any gems of advice you’ve learned elsewhere - just give them full attribution. Or give your opinion of the event or article itself - your readers will appreciate your frankness.

Offer a list of your top 5 or 10 tips on a certain subject. It’s much easier to bang out a list of tips than to put together a real article. Of course, the tips can evolve into an article if you wish! Be sure to list your best tip first, or at least close to the top.

Recommend books and resources that you use, and offer full reviews on them.

Invite readers to write you with their own questions, and answer one in each issue. Right after their question, publish the person’s name, business, e-mail, and Web site address. They’ll enjoy the attention/publicity!

Invite readers to send in profiles. Ask them to tell you about themselves - their names, businesses, locations, and how they use the information gained in your e-zine. Feature one profile in each issue or one every few issues.

Reach Out for Help

Have a question you’d like answered? Why not ask your readers for help?  Ready to brainstorm your angles? Here are seven article “formulas” to get you started and get your juices flowing! Some elements of each may overlap with each other, but each formula is truly a distinct animal.

The Mini Case Study

Raise a provocative question and then answer it with three or four real-life examples. Example: For an article titled, “Should You Quit Your Job and Go Freelance?” you could begin with a few stats on how today’s workforce is leaving the corporate world in search of solo bliss. Then you could feature a few real cases, each with different outcomes to show all sides of the issue.

The Trend

Trends aren’t just for fashion! Whenever a trend sweeps a certain profession, you’ll suddenly see dozens of articles covering the topic.

The Study Finding

These articles report the results of a study or survey. If you do a bit of research, you can probably dig up a recent study on which you can base your article.  Copy written in a story format has great appeal. By telling a short story that relates to the reader’s situation, you create empathy with her.

For further information on how Busy Lizzie assists SMEs with their marketing on and offline Contact

Tel: 01 514 3401

Email: hello@busylizzie.ie

Skype: busylizziesales

Web: www.busylizzie.ie

Here are ten pointers to consider doing before September to develop your business.

1.    Update your profile on LinkedIn. If you haven’t got a profile on LinkedIn then set one up. Look at other aspects of social media and see if they are relevant to your business - Facebook, Twitter. If you’re not familiar with these tools, set an aim to learn about them before September.

2.    Update your website, or at least the home page. Even minor changes to your website make a huge difference from a search engine point of view, but also from your customers point of view. If you don’t have a website, start to put one together. It can be far less expensive than you might think.

3.    Change your work routine. Start radically early e.g. at 6:00am and finish at lunchtime. It’s a great way to make the most of the summer while the kids are off school but also allows you to think creatively about your business when you break the routine.

4.    This is a great time to write to former clients / colleagues and say Hello. Many will be away / busy / preoccupied… but about 2 out of 10 will be really glad you took the time to connect with them.

5.    Raise your fees, with effect from September. Most of us don’t review our fees / salaries / prices often enough. Why only once per year for example? If you are getting excellent customer feedback, you already have the basis to act. If not, how about exploring the value of what you are already doing. The easiest place to test a new price is with a new client.

6.    Make plans for the next four months of the year. Review what you have achieved since the start of the year. It’s amazing how time goes by so quickly. Then detail out exactly what you want to achieve by the end of the year.

7.    Write an article - typically between 500 and 1,200 words, and send the draft to three editors of publications that your potential customers regularly read. It is a great way of getting exposure for your business.

8.    Take one small step to improve an internal system or procedure ideally by simplification and to ensure reliability.  For example, if your main computer were to crash now, how well are you backed up? How do you know?

9.    Do some simple research to keep your marketing message topical and relevant to your customer’s world, and use this as a basis for service-development.

10.   Measure your business pipeline at each key stage. Relate to numbers from previous months, forecast future business, and identify what could be improved at each key stage to increase your conversion.

If you are doing some of the above suggestions, you will probably experience some new energy for your business. As new power flows in, use it to focus on longer-term plans rather than shorter-term catch-up. This will serve to inspire you for the months ahead.

To obtain a free copy of our Shocking Report “The 7 Big Mistakes That 72% Of Business Owners Are Making…” simply download directly from our site www.davisbusinessconsultants.com

Paul Davis FCMA CMC
Davis Business Consultants
Business Growth Specialist
Tel: (01) 288 5563
Email: paul@davisbusinessconsultants.com
www.davisbusinessconsultants.com
Copyright © 2010 Davis Business Consultants all rights reserved.

Google has launched it as part of their small business series.

So we thought we’d share it with our readers!

You can visit the new blog here