What will the coalition mean for entrepreneurs and growth businesses?

This is no time for heroics. With a freshly squeezed coalition government, a fiscal deficit as deep as Loch Ness, a monster-sized public sector and an unfolding Greek tragedy, it is difficult to envision an entirely calm and rosy future. Indeed, the chickens that were hiding just around the corner have now come home to roost and we can only hope that some green shoots of recovery will tempt them out again. We have all had quite enough of recessions and sovereign defaults and would now like normal service to resume. Thank you!

With that off my chest, there are plenty of opportunities out there. Well run businesses will be using these still difficult times to improve their systems and processes, increase their efficiencies and work out how they will out-market and outsell their competitors, as and when circumstances permit. They will be looking at acquisitions and other strategies to increase their market share and may also be considering how our weak pound can increase their international opportunities. Above all they will be carefully managing their working capital and making sure they don’t run out of cash. Are you one of these businesses that will be ready to take advantage of the real recovery, when it finally arrives? It’s worth thinking about…

We predict that VAT will rise to 20% in the not too distant future and that business and property owners will be considering asset sales in advance of an anticipated hike in the Capital Gains Tax rate from its present 18%. We also look at a little known way for owner managers and Management Buy-In (MBI) teams to get EIS relief on their holdings of shares in the companies they work for – provided they own less than 30% and certain other conditions can be met. EIS relief can mean 20% income tax relief on your investment in your business and tax-free capital gains on its sale – well worth a look to see if you can qualify either now or in the future.

In case you’ve forgotten, we are here to help entrepreneurs grow great businesses. To test your business fitness and to prepare for the future, take a look at our range of free reviews for entrepreneurs to see how these can help you.

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