Trus t ed Ad v i s or s
Iss ue 1
Group GroupNews News
July July 2017 2017
The Big Brand Reveal Feature:
Cyber Security lessons for businesses
Feature:
Selling was never meant to be a struggle
PLUS
7 Essential Networking Tips When Failure is a Success Raising the Bar with Paul Waite
Also in this issue: It's all in the strategy
Advice and Support for any sized business For us, it's about much more than offering outstanding professional services It's about being there for our clients every step of the way
Proudly supporting ambition Trusted Advisors
Issue 1
Trusted Ad visor s
This issue has been brought to you by: Editor Paul Waite Production Team Carley Jones Ross Curry
Our Bright, Bold New Rebrand
A special thank you to all our guest writers, regular contributors and our readers.
Aspen Waite is pleased to announce the launch of our new brand. The refreshed new look mirrors the exciting and engaging direction we are taking our company.
We appreciate the effort, enthusiasm and comments you all put in to help us make our news. We hope you enjoy!
During our time of continued growth and increasing presence in London, we felt it right to invest further in our marketing strategy and to create a stronger brand presence both online and offline.
Carley
The rebrand reflects our ambition and shows a natural progression from a traditional accountancy practice, to dynamic professional services company offering a range of services.
In This Issue
We wanted to retain our already established values whilst also developing a new, modern identity. We have kept our familiar colours which have long represented a service.
Patent Box 6
With the recent introduction of our new specialist corporate finance division, it seemed appropriate to continue this trend.
A Word from Paul 4
It's all in the Strategy 8 Business Excellence Awards 10 Become the Architect of your Own Success 13 New Insolvency Rules 14 Intangible Assets 16 Essential Payroll 18 7 Essential Networking Tips 20 Failure is Success 23 Cyber Security Essentials 24
The bold colours, clean design and modern font complement our 3 core values - Advise, Educate and Innovate. Our strategy going forwards is to provide a comprehensive range of quality professional services in an accessible way - to any ambitious company, anywhere. For more information on our rebrand please get in touch.
Ross Curry Marketing Manager
Selling was Never Meant to be a Struggle 26 Life as a Trainee 27 Community News 29 Social Media for SMEs 30 Somerset Spotlight 32 The Team 34
Do you want to collaborate with Aspen Waite? Not only can you add value to your business and ours, but also it would be our pleasure to partner with forward thinking, innovative businesses who want to change the way business is done and achieve more! Contact me for more details on how we could work together. Samc@aspen-waite.co.uk
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Issue 1
The Launch of the Aspen Waite Price Promise, My Book Raising the Bar and Proudly Disrupting the Market Paul Waite - CEO
Welcome to Aspen Waite News On a deep level, the last few weeks have been the most defining of my entire life. Going away to Cape Verde in April helped to clear the mind and everything has then fallen into place including: a) b) c) d)
who I am/what I stand for: our message and what we stand for: our position in the market: what needs to be done.
As part of this process, my brain has been working extremely well, including coming up with what I consider to be my best ever business idea (see Patent Box article). It has also been a period of great fulfilment, a sense of a job well done and a sincere belief that some of the things I have done have greatly helped a number of other people. It’s funny how you feel after you really get something. Why did it take so long? How could you miss something so obvious? When I was fortunate enough to work for Ernst & Young, the brand spoke for itself - clients just turned up. At Aspen Waite that just doesn’t happen. So, what we have had to do is to prove just how good we are; by the high quality of works, through proactive and beneficial advice and always looking to add value, delivered by real people who can be trusted and who demonstrably care. Knowing you have talented and fully committed staff is a tremendous position to be in as CEO. It allows me to treat clients in a highly compassionate way, safe in the knowledge that we will deliver. We act for some great people and some great businesses. We literally have clients everywhere in the UK although we are still struggling to breakthrough in Scotland (not for lack of opportunity, it has to be said).
Ideally, I would like to do more for clients than their R&D tax credits. As I often say, “the R&D tax credit service is a tool in my box, not the box itself!”. We will offer a price guarantee to any Aspen Waite customer where we are not currently the accountants. We GUARANTEE to take over their accountancy and tax affairs at the same price which they are currently being charged, FIXED for 2 years. It’s like swapping a Ford Mondeo for a top of the range Jaguar at no extra cost. If this applies to you and is attractive, contact Cora – cora@aspen-waite.co.uk In many cases, especially if we think the customer would benefit from a bit of help, we will also do things like refresh their website, help with promotional literature and much more … My father brought me up to believe in some basic principles, including generosity to one’s fellows. Dad would literally offer someone his last beer; a concept I like, as I do being a friend through thick and thin. Once a customer joins our little family we are always there for them or, as I like to put it, “we are in the trench with them”. This is no idle boast and in this feature there are several examples of things that we have done which really are examples of giving something back. Many of you will know that we have been heavily involved with the organisers of the Thames Valley series of Expos (Allison and Alec). Last year we were represented at the Expos in Windsor, Reading, Bristol, Swindon and Birmingham. Allison asked me to be a Key Note Speaker at the pre-launch event for the Windsor Expo. Even better, I was allowed to talk about anything I chose. So, with my book nearly finished, I started off with the front cover cartoon and talked about Brand Differentiation, whenever I could linking it to R&D tax credits.
Tru s t ed Adv i s o r s I have been speaking professionally in public, on and off, for over 30 years. The Windsor event was the first time where I really felt comfortable. I engaged with the audience, I was witty and, even better, the attendees loved my message. This filled me with confidence and has really helped to show me the way. There is little doubt in my mind that videos (and then things like holographic technology) are the future and I recently did a video shoot for Action Coach. It went pretty well, especially as it was quite ad hoc. There is also a video of my presentation at Windsor which I hope will become freely available. The book is now finished with a few final tweaks being made after the first proof was checked. The cover is in our new “group” colours of purple and green (wait until you see my Aspen Waite tie!). Carley and Ross have always had a highly positive effect on me and, have successfully been converting ideas from my head into reality for some time. They were set the brief of rebranding us so that our brand remained fresh and modern. They have done an absolutely marvellous job and, like most really great things, the theme is relatively simple – Aspen Waite purple combined with a different colour for each business sector. Instead of actually having Green for Group, we have used the words “Trusted Advisers” instead which I really like. Moving forward our biggest challenge is to make sure we invest sufficiently in systems and new people so that service levels do not suffer. With our pledge to look after all businesses wherever they might be, we need to be able to cover the whole country, so recruiting Diane to cover Northern Ireland was a bold but consistent step. This is going to be an exciting challenge.
Raising the Bar DOING BUSINESS THE RIGHT WAY
by Paul Waite
1
Issue 1 I met Steve Collins just before Christmas and we hit it off straight away. When I heard he was available I contacted him straight away and I am delighted to have a man of his calibre (Chartered Accountant) as my Chief Operating Officer. I am very proud of our Management Team, big heart, big talent. Our move to London has gone extremely well, so much so that we are already moving to We Works in Spitalfields given the rate of expansion. My insurance broker told me that of all the firms they acted for we had the highest rate of growth. Our message is compelling and genuine and we will not rest until we achieve our goal of being the leading firm of advisers for ambitious SMEs. Aspen Waite News is a high quality magazine and Carley and Ross do a fantastic job. It is a good showcase for us and is representative of our development. As well as my friends at Sampson Hall with their usual highly relevant and excellent feature, this feature includes the debut contribution from our Intellectual Property Partners at Coller IP.
Paul
"I have been meaning to write a book for some time for lots of reasons but, not least, because I hope that others may benefit from my experiences. I have written factual books before but for my first foray into real authorship I wanted to pass on some nuggets of wisdom to others. I hope you, the reader, have a smoother ride than the one I had" If you're interested in a (signed!) copy, please get in touch with Cora: cora@aspen-waite.co.uk
Issue 1
Ind ustry News
Interested in Paying Corporation Tax at 10%? Patent Box Explained The Patent Box legislation was introduced from April 2013 with a view to encouraging UK companies to innovate and stay in the UK. Also to incentivise international innovators to make the UK their corporate headquarters. The legislation is designed to seamlessly integrate with the R&D tax credits legislation. It applies to UK companies with a qualifying patent (does not necessarily have to be in the UK). The relief can extend to companies that have been granted a licence. It is necessary to calculate the profit stream arising from the patented product or process. This portion of overall profits is taxed at 10%. The patented part of what is being sold can be very small. For example, if a cartridge was capable of being patented, the entire profit from the sale of printers it was stored in would be captured. In the first year of operation, 700 companies made a claim, 225 of which were large (just over 32% in number). However, the large companies were responsible for £327.6m of the £343m claimed in total (95.4%). Therefore, the SMEs claimed £15.4m or around £32,000 a claim. The larger companies claimed not far shy of £1.5m each. Approximately two-thirds of the companies were involved in Manufacturing (£216.9m) followed by IT, Financial Services and Real Estate. In 2015, the figure reached £750m with 2016 seeing a further 17% rise to £875m.
This legislation has been very unpopular with some of our EU neighbours, so much so that the legislation was changed, adding a lot of unnecessary red tape. Brexit should see the Patent Box legislation being greatly improved, something I greatly look forward to. It is difficult to ascertain how much of a mystery the Patent Box legislation is to the market as a whole. My experience with R&D tax credits would suggest wide-scale ignorance, with the possible exception of the really large companies. The number of patent box claims made against patents filed each year would indicate that perhaps 10% of qualifying companies were making a claim. Aspen Waite are on a mission to not only find profitable businesses with patents but to identify new ideas or improvements that could be patented. All of our R&D clients will be reviewed, particularly if we believe a successful patent will reduce the future tax burden. Regardless of what one thinks about Brexit, there is no point doing anything but being positive. Aspen Waite will be playing a full part in ensuring that the UK thrives in the post Brexit world. Statistics In 2016, 5,142 UK patent applications were filed at the European Patent Office, an increase of 1.8% over the previous year and the highest total since 2010. 2,931 patents were granted. Transport and Medical Technology lead the way followed by IT related.
Practical advice on a wide range of accounting and taxation services. Accountants
Issue 1
In si ght - Busi n ess Devel o p me nt
It’s all in the Strategy…
How would you define strategy? And how important do you rate it in your everyday business activity? Samantha Clyde - Chief Commercial Officer
There are a great deal of businesses who have always managed without one and would argue they don’t need one as they have done OK because they are still here.. I have met a lot of these over the years, of varying sizes and success. But this begs the question: How much better could they be doing if they had a strategy? … Maybe they had a 20% increase last year, which might seem significant but that might have been 40% or more had they been working with a solid strategy in place. We live in a world of constantly evolving technologies and forward thinkers, so not having a plan at all will leave businesses vulnerable, on the back foot and open to threat.
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Iss ue 1
Every part of a business or organisation will undoubtedly benefit from having a solid strategy, but does this attitude really exist in the majority of businesses today? Do owners and managers really see the true value in having one? And what about having a strategy for individual parts of the business.. A lot of questions to ponder.
Efforts and courage are not enough without purpose and direction - John F Kennedy
Qualified and extensive research has shown that a clearly defined, well-articulated strategy and execution is essential for the long-term success of an organisation.
“Hope is not Strategy” Does your business have an overall strategic plan? Just think how much better it could be doing if you don’t have one in place at the moment, but you do invest in putting one in place.. And what about a separate strategy for ALL parts of the business? Including - Marketing, Sales, Growth, Social media, Content, Management, Development, Pricing, Operations, Customer services, etc…to name but a few. Too many businesses who do have a strategic plan rely on a general strategy that ‘works’ for all parts of the business, instead of developing individual plans that are all fundamental to the success of the organisation. In a recent Strategy & Global Survey, 700 business executives were asked to rate their company’s top leaders in terms of their skill at strategy creation and at execution. Only 8 percent were credited as being very effective at both. Developing the strategy is only the half of it. Execution is crucial to ensuring the plan works. Quality, innovation, profitability and growth, all depend on having strategy and execution fitting together perfectly.
A successful strategy is a proactive one, considering all the departments within the business, making effective decisions on a daily basis and with constant test and measure, to ensure the focus and direction is working and achieving results on every level.
• • • • •
What have we done? What Worked? What didn’t work? What were the results? What could we do differently?
A simple process, that can make a significant difference to what we achieve and how we achieve it. Given the research findings, why aren't more businesses investing in doing it? That’s the big question. But more importantly, If you do already, or are planning to, invest some time into your strategy for the future, you won’t be the one on the back foot in the years to come, or worse, not here! So what’s your strategy going to be? Do you have one? Have you thought about it recently, updated it? Reviewed its results? It’s not rocket science, but it could propel your business to bigger, better, longer term achievements! We at Aspen Waite, are more than happy to help you with developing your strategy if you need any help at all - just shout!
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Aspen Waite Attend the Business Excellence Awards Conference By Johno Harris -Business Development Executive Having adjudicated the nominations for Entrepreneur of the Year with my colleague, Sam Clyde, last month, I knew the profile of Attendees’ at the ActionCOACH Business Excellence Forum and Awards would be that of focussed, ambitious and driven CEOs’ With positive anticipation, I headed North to Harrogate on the Wednesday afternoon arriving, just in time, to head over to the International Conference Centre for the meet and greet event. Free wine, beer and canapés and soon everyone loosened up and some good contacts made. My goal for the event was to meet and introduce Aspen Waite to as many ActionCoaches as I could, (I think my final count by Friday afternoon was 19). Later that evening, dinner with a group of friends including Rob Pickering and Graham Carson of Inca Financial Services - (we are due to do an R&D Claim for Inca). This was a big event with over 1000 attendees. The speakers were International Quality and I was particularly impressed with the speech by Baroness Michelle Mone who spoke of her upbringing in East Glasgow and how she overcame the trials and tribulations of life to become the most influential business-woman in the UK. The challenge was to network effectively during the day as there were only very short comfort breaks between the packed Speaker Agenda and people were focussed primarily on getting a coffee and ensuring they did not have to get up during the next speaking slot. (The author was slightly innovative and placed the chairs meant for the exhibitors in front of the AW stand to encourage attendees to sit down and rest their weary legs... this worked to some degree). Overall impressions/Actions: •
Most ActionCOACHES have heard of R&D and also Aspen Waite through their internal marketing and internal magazine.
•
The vast majority of the coaches I chatted with had no real idea about what R&D is and who can claim or what activities qualify, almost all of them were under the impression their clients did not have any – (powerful motive to arrange an Educational Tour of the country to run R&D Tax Credit seminars for them).
•
Well organised event with excellent catering and event management, challenging to speak with people at the stand, easier to engage with a group of people and join in with their conversation and introduce myself and Aspen Waite.
•
Every award nominee in every category will have an R&D Tax Claim to make.
The Awards Ceremony was outstanding and inspirational - good contacts with other Sponsors were made. Rob Hall from ActionCOACH was an excellent host!
" A good event and Aspen Waite are now more firmly in the consciousness of ActionCOACH" Johno Harris Business Development Executive
Convert your Bright Ideas into Cash R&D Tax Credits
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Iss ue 1
Become the architect of your own business success. Love Entrepreneurs are a community of passionate, committed and wackily different entrepreneurs who love giving back We believe it is Innovation and not Improvement that is the key to growth. It is learning to think through, around or over a problem that will mark the winners out from the losers. If you don't like what your business looks like then change it; become the architect of your own future and craft the business that you want in the way that you want it. 5 quick things you can do to make your business more innovative: Amazon CEO Jeff Bezos says that the main reason for Amazon’s extraordinary success is that they ‘love to innovate’. Most businesses however only think seriously about innovation when customer expectations have changed and their market is already evolving, leaving them behind the curve and scrambling to hold on to existing customers. If you want to avoid this happening to your business here are five simple things you can do to help stay ahead of the competition: 1. Choose to innovate. Instead of just accepting how things are done, ask yourself is there a better way?
2. Make innovation a priority. Communicate to everyone in your business that learning to innovate is your top priority. 3. Invest time and resources. Put your money where your mouth is. As a simple rule of thumb you should be spending as much on innovation as you do on marketing. 4. Experiment with new ways of doing things. Try lots of stuff out, kill the fails and stick with the stuff that works. 5. Learn how to be more innovative. Find and use some simple tools to help you become more creative at solving problems which, at the end of the day, is all that innovation is really about! By joining us at Love Entrepreneurs www.love-entrepreneurs.com. You can find out how to put this thinking into action and become the architect of your own future. For more information on how to join in our revolution email us at: Eleri@love-entrepreneurs.com
Issue 1
Guest Fea ture - CVR Gl obal
New Insolvency Rules April 2017 saw the biggest shake up in insolvency for over 30 years, bringing all processes into the 21st century! Lee De’ath, partner at CVR Global,
The main aim was to reduce administrative costs and improve efficiencies, eradicating outdated processes and introducing new processes utilising technology to facilitate creditor communications, with the ultimate aim of returning more to creditors from insolvency procedures.
Deemed consent One of the fundamental changes is the introduction of new decision making processes. Gone are the days of Directors and Insolvency Practitioner’s automatically convening a ‘physical’ meeting of creditors. Instead we have a variety of processes including the deemed consent procedure, which allows for notice of a decision to be given to creditors and, unless creditors object, the decision is treated as having been approved. Creditors should note that the deemed consent procedure can be used for the appointment of the directors’ chosen liquidators and so if creditors want another liquidator to be appointed, they would need to object to the deemed consent procedure, and request a physical meeting at which an alternative person to act as liquidator can be nominated.
Gues t Feat u re - CVR G l o bal Decision making procedures As the substitute for physical meetings, the new rules provide for insolvency practitioners to conduct the affairs of the insolvent debtor using a variety of “decision making procedures”, where essentially a yes or no decision is required from creditors. These include decisions made by correspondence, electronic voting, virtual meetings and any other procedure which enables all entitled creditors to participate, the last ‘future proofing’ the rules for new technologies to come. Under the new rules, each notice to creditors must contain prescribed information relating to the decision sought with guidance notes instructing what decision making procedure is to be followed. It is likely in first communications therefore that creditors will be sent a relatively long and daunting list of notices, which may include; • • • • • • • •
Creditor rights to opt out of further communication The use of a website form giving creditors further notices and information (reports to creditors will no longer be sent by post!) The decision process Rights to form a creditors’ committee The basis of the Insolvency Practitioner’s remuneration The directors’ statement of affairs and report Voting forms Proof of debt
Iss ue 1 Changes to Creditors Voluntary Liquidations: This is the one process which has seen the most change. The process by which the company enters liquidation i.e. by resolution to wind up remain relatively unchanged as this is passed by resolution at a meeting of members. The directors of the meeting must seek the opinion of the creditors on the appointment of the members’ choice of liquidator i.e. that he remains the same or that he is replaced by a creditor nomination. The directors have two ‘decision’ options in this situation, deemed consent or virtual meeting. If the former route is chosen and creditors are unhappy with the nomination their only option is to object and request a physical meeting. One of the major changes in this process is the fact that the Directors’ Statement of Affairs and Report (detailing the Company/business demise and insolvent position) has to be delivered to creditors by the day before the decision date or meeting, which provides a small window of opportunity for creditors to consider the information that has been provided in context of their own knowledge of the Company, and the decisions being considered at the meeting including the appointment of the director’s choice of liquidator and possibly the basis of the liquidator’s remuneration.
Finally, abolition of final meetings This has for some time been a costly and unnecessary administrative burden for insolvent cases as no one usually attends them or bothers to vote by proxy. Consequently, they have been replaced by final reports or accounts, whereby creditors are advised of the realisations achieved during the process and costs incurred and indeed any returns to creditors. It is even possible under the new legislation that the IP would not need to notify creditors of finalisation if they had previously issued a ‘notice of use of website’.
What creditors should do: Read the communications thoroughly as they may require you to vote on decisions which have a direct bearing on how much creditors can expect to receive. Finally think about the nomination of Insolvency Practitioner, are you happy with the directors/shareholders nomination and their quoted costs. Your options may include nominating and voting for an alternative appointment and/or challenging the basis of the insolvency practitioner’s proposed remuneration. Finally ensure you remain engaged, check the case website regularly and at the progress / annual reporting state, as this will provide you with an update on the case and costs incurred, and more importantly, if and when you might receive a dividend. Will these changes result in increased returns to creditors from insolvency procedures? We will just have to wait and see!
ldeath@cvr.global 01206 217901 www.cvr.global
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Guest Fea ture - Co l l e r IP
Intangible Assets - Strategy and Valuation Roadmap: Understanding the Most Important Assets of Successful Companies and Organisations Fernando Da Cruz Vasconcellos – Head of IP Valuation fernando.vasconcellos@collerip.com The most important assets of successful companies in the present knowledge-based economy are intangible assets (IA), primarily represented by intellectual property (IP). For many companies, intangible assets may account for up to 80% of their average market value. For start-ups and research-intensive companies, this can be even higher. For a business to be sustainable, our experience is that all three elements of intangible assets, as shown in the diagram below, are important.
when the collective knowledge is possessed by all its employees. For this reason, many companies looking to generate, organise, develop, and distribute knowledge throughout the organisation, have spent millions of pounds to develop and/or purchase formal knowledge management systems.2 The roadmap for the identification, capture, valuation, management and monetisation of intangible assets play a prominent role in building successful strategy-focused organisations.2,3 Why is it important to understand intangible assets and their value? While people often have a good idea of how to value their tangible assets in their business, they are often not as clear when they need to assess the value of their intangible assets.3 If entrepreneurs and managers can estimate the value of their intangible assets, they could measure and manage their company’s competitive position and overall IA/IP strategic roadmap much more easily and accurately, facilitating strategic decisions.
So, what are intangible assets and intellectual property? Intangible assets (IA) Are identifiable non-monetary assets that are not physical in nature, such as proprietary processes; know-how; branding; and key skills which are created by businesses to perform daily activities, innovate and create competitive advantage for the firm.1 Intellectual property (IP), the most well-known subset of IA, refers to creations of the mind, such as inventions; trade secrets; patents; trademarks; copyrights; designs; and databases used in commerce, which are protected by law.1 Who should understand the basic concepts of intangible assets? Everyone in an organisation should understand IA, including business owners, innovators, inventors, entrepreneurs, attorneys, advisors, accountants, investors, etc. The asset has its greatest potential for an organisation
For More Information please visit http://www.collerip.com/
What can intangible asset valuations support? IA valuations can support various purposes. One of the most important is to support the access to cash and funding, particularly through R&D Tax Credits4 and more recently through Alternative Business Funding (ABF) schemes5. IA and IP valuations can support, for example6: • • • • • • • • • •
Access to Capital and Cash Raising Funding Company share issue Investments Divestments Licensing Negotiations Asset Financing Tax Planning Mergers & Acquisitions Insolvency
How are intangible assets valued? At Coller IP, our valuations of intangible assets are based on a combination of
well-accepted, tried and tested methods using the following evidence-based approaches6: •
•
•
Cost Approach: based on establishing the cost to replace the functionality of an asset, discounted for obsolescence. Market Approach: seeking to identify market comparators for transactions for a similar nature, where these can be found. Future Income Approach: using a bespoke financial model to calculate the net present value of future cash flows attributed to intangible assets and IP, discounted for risk.
All three approaches, properly applied, are recognised as valid and appropriate with the specialist field of IA valuation for those requiring transparency and robustness, for example, funding bodies, investors, courts, arbitrators, regulators and tax authorities.6 IA valuations are negotiation tools for strategic decisions. So, whether you’re a more established business, or are just getting started, your intangible assets are key for your future success. By recognizing that these intangible assets are part of the bigger picture of the value of your business and organisation, you are sure to help increase the value of your company, obtain more access to funding and cash, driving your business forward.
References 1Nolan, Alastair, ‘New sources of growth: intangible assets’, WIPO, 2011.2Kaplan, Robert S., Norton, David P., ‘Measuring the StrategicReadiness of Intangible Assets’, Harvard Business Review, 2004.3Asher, Jim, ‘Having the Right IP Evaluation Strategy for Acquisitions’, LES News Exchange,2012.4Waite, Paul, ‘R&D Tax Credits “The Danger of Being Average”’, Aspen Waite, 2017.5https://collerip. alternativebusinessfunding.co.uk/ , 2017.6 Coller IP, ‘IP Valuation, Realising Value from Intangible Assets’, 2016.
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Issue 1
In si ght - Un d ersta n d i n g Pa yroll
Payroll: An understated, essential service for any business. Liz Atyeo - Payroll Manager
Payroll is a fundamental part of every business.
The term "payroll" encompasses every employee of a company who receives a regular wage or other compensation. Some employees may be paid a fixed salary while others are paid for hours worked or the number of items produced, usually recorded by signing in books, timesheets or clocking in cards. Payroll is a fundamental part of every business. Employees need to feel assured that they will be paid correctly and on time. It is the legal duty of an employer to ensure that employees are given a payslip each week or month depending on their pay date. The right to a payslip or itemised statement is specified under section 8 of the Employment Rights Act (1996) - each payslip must show: • • • •
Employees earning - before and after any deductions The amount of any deductions e.g. tax and national insurance Total take home pay Pay date
Proper, accurate payroll plays a major role in a company for several reasons: • • •
From an accounting perspective, payroll and payroll taxes considerably affect the net income of most companies which are subject to laws and regulations. Therefore, accurate data is essential to avoid unnecessary administration and expense. Getting pay right is important from an ethical point of view – errors and irregularities can cause employees financial difficulty and stress, which has repercussions Late and inaccurate payrolls can cause rumours and speculation as to how the business is performing and its financial status
Your Legal Obligations
In addition to the financial obligations a company has toward its staff, it also needs to be compliant with tax and employment laws, pensions and processing statutory payments. There is an increasing burden to comply with these issues and non-compliance can lead to substantial penalties. Meeting tax obligations on time - and upholding legislative laws can help establish an organisations reputation as a stable employer, attracting the right talent to the company. It can also help prevent a company being exposed to legal action from employees and other bodies such as the Pensions Regulator.
What does the future hold for Payroll?
With HMRCs approach to “Making Tax Digital” there are many changes that have been put in to place – with many more planned for the future. Companies must already send HMRC Real Time Information (RTI) with every payroll processed, and as of the end of May 2017, HMRC will use the real-time information sent to make automatic adjustments to Pay As You Earn (PAYE) tax codes as they happen - rather than waiting until the end of the tax year.
This will offer far more certainty, reduce unexpected tax bills and ensure more employees end the tax year having paid the right amount of tax – ultimately reducing the cost of payroll administration.
How can Aspen Waite help?
It is becoming increasingly more essential to run an efficient and accurate payroll, and with complex legislation and changes, it is a time-consuming and often problematic area for many business owners. Aspen Waite’s payroll team will help ease the burden with accurate and timely reports, and handle all the legal requirements and submissions including all areas such as pensions, RTI and CIS. Get in touch with Liz today on 01278 445 151 or email liz.atyeo@aspen-waite.co.uk to discuss your company payroll requirements.
Issue 1
In si ght - Busi n ess Devel o p me nt
Essential Networking
Tips
Gill Tiney- Business Development Executive
The great thing about working with a specialist company is that you can’t wait to go and tell people about it, there is no selling involved, merely a sharing of opportunity and a possibility to help. Aspen Waite had a wonderful opportunity this month to attend an Expo at Windsor and we did just that. The top team of Johno, Ross, Sam, Tina and myself were on hand to spread the Aspen Waite R&D message. With many years of networking myself, plus training others how to network I am always fascinated by the behaviour of people in the slightly contrived atmosphere of the networking arena. Some people as you can imagine are better suited to networking than others, do you relish the event or do you see it as a necessary evil for your business? Whatever view you hold I can guarantee there are things you are doing that could be improved and there are some things that you should be doing that you aren’t doing at all. Having trained members, directors and franchisees of many networking organisations I have found the main mistakes happen again and again. Plus some people even forget to complete the magic action that will make all of their time at the event worthwhile. I thought I would share my 7 steps to networking success. Hopefully you are already ahead of the game.
Be Prepared
Dress to Impress
Make sure the event you are going to will be relevant for your business. Absolutely no point going to a small group of ‘ladies who lunch’ and occasionally pass referrals when you are looking for specialist manufacturers to buy your product. They are unlikely to be there. Do your homework and check that you are going to the right event. That means getting a list of those registered and seeing if you share a similar client base. These are the people you search out once you arrive. It would be a shame to talk to 199 people and it was the 200th that really had the golden egg. I was pleased to see my old friend Steve Clark was speaking at the event and utilised that to get introduced to many others.
It’s a simple rule but dress the part for your business. If you have ever met Paul Waite you will know that his dapper style immediately puts you at ease with a gentleman who is confident with his business and life. What image do YOU want to portray? I was very impressed by one young man at the Expo from Ludicrous Balloons who spent the entire day wearing one of his amazing balloon creations. Ben was certainly passionate about his product and was determined no one would forget him, and now you know him too. He was memorable for all the right reasons, make sure what you wear says the right message for you.
Remember you are NOT selling to anyone in the room, you are looking to build relationships so that they can introduce you to your next client, and the next. Networking is NOT about going to market to sell – although some might want to buy and it would be rude to say no….
"Whatever view you hold I can guarantee there are things you are doing that could be improved and there are some things that you should be doing that you aren’t
Trus t ed Ad v i s or s
Listen Have you ever been stuck with someone who just can’t wait to tell you everything about their wonderful business? Bet you stopped listening after the first 3 minutes. Remember to ask questions and listen to what people have to say, that is the easiest way of finding out if you can help them or if they know your type of client. Make sure it is not you who is the network bore.
Build Relationships If you get to know someone a bit, have a laugh, give them some help or advice they will remember you and you can build on that. Paul and I knew each other for over a year before any business was done between us, we kept building the trust and the relationship, helped each other where we could and eventually we found a way to work together. Selling to someone you have just met is 1980’s old style and will damage the relationship before it even gets started, remembering you have just 7 seconds to make a good first impression.
Help Others
Once the conversation gets going see if you can find a way of helping them in some small way. Whether by introducing them to someone at the event you think might be useful to them or even getting them a cup of tea it helps you to build a bond early on.
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Know What You Want What you really. really want! I often ask people who they are looking for and they generalise massively by telling me SME’s or a whole industry sector such as trades. That does not make anyone spring to mind. You need to know who your ideal client is – specifically, someone in the area you would love to work with. That means going back to point 1. And doing some research. For example if you are a web designer and you enjoy working with photographers then look at local photography websites and find one you know you could turn around, then remember the business name and more importantly the owner of the company. If they are local and you say the name often enough there is a high chance someone will know that person. They cannot resist putting you in touch, or at the very least putting you in touch with someone who knows them. Second best is they might not know that photographer buy they probably know a similar one and will happily connect you. Then you have a lovely warm introduction. In the words of Ivan Misner the founder of the world’s largest networking organisation ‘specific is terrific’ – try it out you will be amazed.
Follow Up
Without this step all your other efforts will be in vain, and you MUST follow up within 24 hours. We are all bombarded with information and the minute we leave an Expo or event we are plunged back into the world of the ‘doing’ and all the good intentions you had of contacting someone will be lost. All that potential slowly ebbing away, unless you specifically book in time the following day to send that email or with hot prospects make that phone call. Leave it to chance and 90% of your leads will fade. Do you really want to waste a whole day at an event? Or get up ridiculously early for a breakfast meeting only to get caught up in your business and before you know it a week has gone by and you never made that call. Put the follow up time in your diary as soon as you book the event, and don’t let anything get in the way.
Hopefully that has given you a little taster of what you should be doing for your referral strategy, get your networking right and your other marketing costs can be forgotten. Plus this is only the tip of the iceberg, so if you want any more information please feel free to give me a call.
"HAPPY NETWORKING"
Unleash your creative butterflies. Sales & Marketing
Trus t ed Ad v i s or s
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Failure is Success
Life is not constant, and no matter how well thought out you believe your strategy is. it can fail. At that point, you have to adapt to the change quickly to ensure life carries on, albeit in different circumstances. If it happens, it happens, and the choice can be sink or swim! Our resident Welsh engineer and serial inventor gives his insight on making a success of failure.
David Scheeres - Welsh Executive
you believe your strategy is it can fail and at that point you have to adapt to the change quickly to ensure that life carries on, albeit maybe in different circumstances. In legal terms, the analogy of unforeseen circumstances could be considered Force Majeure. If it happens, it happens and the choice can be sink or swim! It taught me that there were more ethical people than unethical people and if you include them in your support network and are humble enough to ask for help, people will help.
At the grand age of 23 I thought I had everything, a profitable and rapidly expanding successful business and the accolade of being the youngest managing director at that time to lead a company to a prestigious Queen’s Award for Industry as a result of phenomenal exports to the USA, Germany and Japan. The euphoria lasted 12 months and then I faced catastrophe! The dollar/ pound exchange ratio changed dramatically and as my company sold in foreign currencies, highly profitable contracts suddenly became unprofitable overnight and my company was sinking like a lead canoe! Previously, as a result of the Queen’s Award to Industry we had been courted by a small provincial bank who gave us an offer we couldn’t refuse as they were looking to enhance their foreign trade profile. Unfortunately for us, we had property assets that were understated on our balance sheet and the bank had another customer in difficulties that was more important to them than us that needed some imaginative balance sheet adjustments and the bank quickly appointed a Receiver with instructions to affect a trade sale of my company’s assets to
their other customer at below balance sheet value to be revalued after transfer. Unbeknown to the bank I was prescient of this information from an informant who felt this course of action was unethical. This allowed me to veto the sale by intervention litigation under the premise that the Receiver had a duty of care not only to the bank but to other creditors and this allowed the business to be sold to an American competitor at a significantly higher price than had been intended. Of more importance to me, the company was allowed to continue trading under new owners preserving all of the jobs and still trades very successfully more than 30 years later. This was because within 12 months of the sale, the currency trend reversed itself and the unprofitable contracts became profitable again. I left the company with nothing except a legal debt that took me several years to discharge. So how was this failure a success for me? It proved to be successful for many reasons; It taught me that life is not constant and no matter how well thought out
It taught me that threat could equate to opportunity and to dramatize a situation can simply lead to stress and illness. I learnt that making negative observations did not help me as the negativity related primarily to historical events that could not be undone so I extracted the positive from the situation by ensuring that the lessons learned stayed with me. It taught me to choose optimism because new opportunities presented themselves to me and the difficulties I encountered introduced me to an inner strength that otherwise may have remained dormant as I was probably too comfortable in the place I was at. Finally I made a conscious decision not to let failure define me. No one wants or expects a business or relationship to fail but if it does, learn, move forward and change what you can change but do not waste time on what you cannot change. The circumstances of failure I found myself in led me to become a practitioner of positive thinking and this has helped not only my career but also my health over many years. I will focus on positive thinking for my next article which will be an appropriate subject given the fact that I am now led by and surrounded by so many positive thinkers.
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Guest Fea ture - Sa m p so n Hall
Lessons for Business from the NHS Cyber Breach and the British Airways Outage Phil Sampson - Sampson Hall
Cyber security is all about people!
The recent ransomware attack on the NHS and the British Airways computer outage offer real wake up calls to UK Business. Most organisations believe that cyber security is the domain of the IT department and they are right in some way. The technical defence of an organisation should be led by the CIO or IT department but it needs to have the right access to an IS (Information Security) expertise and such expertise is often absent in an IT department. The recent NHS attack shows that technical solutions will not work alone particularly if outdated. The last defender of any IT system is the individual who decides whether to click on a link or open a document or not as the case may be. It is difficult not to open emails from unknown sources in business in the quest for new business. Third generation phishing emails are extremely clever - the sophistication of social engineering, combined with the access to an individual’s personal and social information, mean that it is harder and harder to identify the true origin or source of electronic information. Training and awareness of the threat and regular briefings throughout an organisation on this fast moving threat as it mutates will help.
Immediate action
If your screen were to light up with the sort of ransom demands that we saw from the NHS on the news what would you do? Not many organisations have the correct processes in place and even fewer train their staff in what action to take immediately. With an encryption cyber attack speed is of the essence and the immediate action should be to detach the infected device or devices from the network. Basically, all wires out instantly. This stops the malware from spreading. Once that has been done it is vital to get the correct technical help in order to limit the damage throughout a network.
Contingency planning
Cyber business continuity plans need to be written and practiced and must be kept independent of the network whether that be hardcopy or stored on another secure system. In the case of the BA outage there seemed to be no real back up capability once the system was down. Certainly, not one that worked and had been tested previously. They commented and admitted on their poor levels of communication between their staff and customers in this case.
Back-ups essential
Recovery from such attacks is sometimes extremely difficult. Ransoms should not be paid because often data is not returned and when it is, it may have been
corrupted. Some cyber criminals return nothing and just take the money. The key to successful data recovery is having a secure backup which is not connected to the attacked network. One where clean and checked data can be stored and used to recover the encrypted data after an attack.
Board Level Involvement
Cyber security is not just an IT issue, the UK government reckons 64% of UK business would not survive a sophisticated cyber-attack yet only 29% of organisations have a board member who leads on Cyber Security. Cyber defence and cyber risk needs to be held at board level. The Board need to understand the threat and their vulnerabilities in order that the right planning and resources be devoted to this ever growing threat.
Outsourced IT
Those with outsourced IT should check how their providers protect them and that they understand Information Security, whilst having the appropriate indemnity and access to the right expertise.
Gues t Feat u re - S a m p s on Ha l l
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General Data Protection Regulations
From May 2018 the implications of losing data will become far worse as the Information Commissioner’s Office (ICO) will be able to fine you up to 20 million euros or 4% of your global turnover. The main changes and what you need to adopt are below. So, if you rest on your laurels or sit on your hands for too long you may find that it is not only the cyber criminals who are after your money! •
The definition of personal data is now broader: an individual’s mental, economic, cultural and social identity.
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You must provide clear and affirmative consent to the processing of personal data and children’s data.
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A data protection officer (DPO) mandatory for certain companies.
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You must perform a data protection impact assessment before undertaking higher-risk data processing activities.
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You will have 72 hours to report a data breach.
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Data subjects have the ‘right to be forgotten’.
Every organisation should have a plan in case of fire, people are trained and practised in how to react in case of a fire and yet the damage a fire does to an organisation can be far more survivable than the damage a sophisticated Cyber attack will do. Just think of the cost of the reputational damage suffered by TalkTalk. If you need help and guidance in how best to ensure that you have appropriate training and processes in place please do get in touch. We can help advise you, the Board and train your people to ensure you are better defended against what is a clear and present danger, that, will sadly only get worse. We can also advise organisations on how to get ready for GDPR. We have the ability to audit an organisation’s position and have the capability and template to ensure that organisations understand and comply with the new regulations. www.sampsonhall.co.uk 0844 848 9594
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In si ght - Busi n ess Devel o p me nt
Selling was Never Meant to be a Struggle Do you recognise this pattern as a small to medium sized enterprise? You start a business with a great idea and a lot of passion and excitement. Glen Williamson - Group Sales Director
You package your idea into a product or service, create a proposition and join a networking group like BNI, 4N or a Chamber of Commerce. You get a trickle of leads, and over time, the referrals grow. You have established a business that, whilst not earth shattering, keeps the wolf from the door and has bags of potential. You have many ideas about how to grow it moving forward. As the founder, sales happen largely as a result of your passion, enthusiasm, and developing network. Your business is starting to grow in to something credible and you soon start thinking about scale and who or what you need to add to ensure you work more on the business than in the business. You are still the main sales person, but are starting to realise that at some point you will have to employ a sales person. Before you do that, you find a good accountant/Finance Director who sees more than the numbers and an operator who is strong on efficiency and possibly a marketing person. Eventually you employ a sales person, although there is not a great deal of thought around the functional and behavioural skills required to sell your product or service, other than employing someone with industry experience. Nevertheless you have a sales person, they have a nice personality and they are good with people. You give them a day or two of product training and they are sent off to maintain the momentum that you have created, supported by a nice website and some shiny sales collateral. Typically they are not put through any sales training, but they have read a few books and are a competent emerging resource or problem solver.
At some point in the future, the inevitable crisis hits. Your response to the crisis centres on reducing cost and you reduce the sales team, put marketing on hold and/or add to the responsibilities of the sales team so that they are not specialists, but generalists. You may even get rid of sales team and go back to selling yourself, as the founder, until conditions become more favourable. Just before the crisis, when sales plateau, you may even sack the sales person for their lack of performance. They are not pro-active enough, they don’t knock on enough doors, they aren’t closers, they can’t get into the senior level in your prospects. You have lots of good reasons. That is when I come in; over the last 6 years as a Sales Consultant, I have sat with tens of companies who want to increase sales, develop their sales executives, boost their conversion rates and reduce their sales cycles. They would like to sell more consistently and predictably at a more senior level. I sit at the table with their MD, Head of Operations, Head of Finance, possibly Head of Marketing, and a couple of sales executives and I ask where the Sales Director or Sales Manager is, and they tell me they do not have one. I ask them to share their sales strategy with me. They tell me they do not have one. I ask them to share their value proposition with me. Alas, they do not have one. How about CRM? Generally not. Sales Process? Nope! I see this at least 90% of the time. Do you recognise it?
In my experience, sales is seldom taken seriously enough by SMEs and is terribly misunderstood. Despite this, nothing happens in a business until someone sells something - and when the sales dry up, so does the company. In order to thrive at sales in this modern, more complex business environment, SMEs must change the way they view and execute sales. In order to sell consistently and predictably, there is a lot of heavy lifting to be done. Ignore it at your peril. This environment contains so many things that didn’t’ exist 10 years ago. Smart buyers, a plethora of choice and options, complexity in business fit and much higher risk aversion, to name a few. The modern business cannot depend on sales people with lots of charisma, energy and industry experience. Whilst those attributes obviously help, the challenge is organisational not individual. More and more, selling happens in teams. Deep customer and market understanding is essential. The smart sales organisation is expert at buying facilitation, true consulting and collaboration. The sales person is a navigator and coordinator and brings valuable insights to his customers and prospects that give them competitive edge. Sales people are backed by processes, systems and training that drives performance; it is a focused role that gathers customer and market knowledge that drives product development and revenue generation, and it is not to be underestimated. The culture of the business supports the sales effort and the realisation that your product or service is almost irrelevant is entrenched. The question now is not what you sell, but why they buy. Selling was never meant to be a struggle. Aspen Waite’s Complete Business Growth Service is designed to make sure it is not.
In order to thrive at sales in this modern more complex business environment, SMEs must change the way they view and execute sales
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Insi d e Asp en Waite
Life as a Trainee
The Benefits of Working and Learning
Trainee Accountant Josh shares his experiences to date as he approaches the end of his first year with the company, and how putting in the effort now pays dividends to building the career you want.
Josh Lewis - Trainee Accountant As I left student life behind me and entered the professional workplace, it did seem a bit daunting at the time. During any one month I could be on a year-end audit at our larger clients, preparing annual accounts for client that send in their records, or complete a client’s quarterly VAT return. No two clients are the same – their structures, the products and services they sell, the way they produce their accounts will all be different, not to mention the characters that run them! Accountancy opens your eyes to the business world at large and I think I’m improving my people skills, and developing as a rounded person along the way. I joined Aspen Waite in February 2016. My first interview was a real success and it was nice to find out what Aspen Waite can offer me compared to other firms. What they guaranteed was a diverse range of work which I would not get anywhere else; and they were correct. My development in the accounting industry has grown over the past year and a half. When I’m in the office I’m typically preparing annual accounts or VAT returns for clients. The phone rings regularly with client queries, which could range from asking for help with something that’s come through the post to queries about their accounts and/or VAT returns. It’s very rewarding when you get a nice email
from a client who really appreciates your advice. It is also great to make drinks for the partners as this allows me to find out what they’re doing and offer my assistance if they require it. What is great about ‘earning and learning’ is that Aspen Waite allows me to have afternoons off once a week to study for my AAT qualification. I feel that the AAT goes hand-in-hand with what I do in the office on a daily basis. I am not sure what I want to study after my AAT, whether that be ACA/ACCA/CIMA. I have many options but I have plenty of time to decide, and no doubt, my colleagues will assist me along the way. It is difficult to sit down of an evening after a hard day at work and study for your exams. You need to be self-motivated and have a positive mind-set in order to pass. Rather than just letting your training contract pass you by, take the initiative and network with the people that you work with at all levels and in all departments. You will learn skills that you may not necessarily have been exposed to otherwise. If you are ever in doubt as to what is expected of you, ask your senior to clarify your role.
As pen Wai t e i n t h e Com m uni ty
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Aspen Waite in the Community
Supporting The Somerset Vikings By Paul Waite Lisa and I have started to enjoy the relatively short journey to Weston Hornets’ ground in Weston-Super-Mare. In the summer it is the home of the local rugby league club, the Somerset Vikings. Hornets themselves are a highly progressive Rugby Union club playing in National League Division 3 South. Lovely people - highly welcoming with good food and a well-stocked bar. The ground is an artificial one with a beautiful surface, owned by the RFU and leased to the Hornets. The Vikings have attracted a good squad this year including quite a few Hornets players and the club itself have got behind the team; apart from Saturday, of course, when the Hornets contingent misguidedly watched the British Lions match in New Zealand at 8.30am in the clubhouse. A full bar contingent on tap lead to none of them being fit to attend our match in the afternoon. The Vikings entered the match against Forest Bulldogs second on points difference having beaten Bath away and Swindon at home. Despite scoring 7 times against the Bulldogs they somehow managed to lose, once again blighted by the lack of a good goal kicker, too many unforced errors and a general lack of composure. I wish I was a few years younger as I would be able to address all of these deficiencies but, nevertheless, they are a good bunch of lads and there is a lot of scope for improvement. The fixtures are shown below; try and get out and support our boys. •
Saturday 10th June, 14:30 Away against Cheltenham Phoenix
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Saturday 17th June, 14:30 Away against Gloucester Warriors
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Saturday 24th June, 14:30 Home against TBC (Friendly)
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Saturday 1st July, 14:30 Home against Bath & Wiltshire Romans
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Saturday 8th July, 14:30 Away against Swindon St George A
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Saturday 15th July, 14:30 Away against Forest Bulldogs
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Saturday 22nd July, 14:30 Home against Cheltenham Phoenix
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Saturday 29th July, 14:30 Home against Gloucester Warriors
Social Media for SMEs: A Quick Start Guide By Carley Jones
Social Media has become an integral part of marketing for almost any business. Yet, not every small and medium sized business (SME) has a big marketing budget or a dedicated department. It can be quite overwhelming to take on the role of regular social media updates, required to keep followers up to date with the latest relevant news and updates. A lot goes on into crafting the perfect piece of content for your Social Media campaign, and sometimes, it can fall to the employees to take responsibility of running the day to day social media - who may not have a lot of experience. Social Media is a huge area to cover and each site has its own unique culture. More and more SMEs are starting to use social media either in-house or via an agency. On average, 26% of SMEs spend around an hour a day promoting their business on social media. Social content needs to be helpful, informative and entertaining to engage your audience. If you are new to the Social media scene, here are a few tips to get you started.
Use Images
Using images to go with your posts makes them look more appealing, and has been proven to increase engagement. Experiment with different images and messages to see what works best for your audience.
Try not to be too eager
It is easy to post one thing after another in a short space of time, but remember it should all be about the quality, ensuring that it is relevant to your business. If you are a visual or creative business then Twitter and Instagram are ideal sites for a presence. If your content aims to inform, then Facebook and LinkedIn might be more appropriate.
Consistency is key
Once your brand and Social media presence have developed don’t lose sight of it. The audience trust what and whom they know - and the information you post. If you change things that don’t suit your media presence, it can lead to a loss of engagement. Always be aware of the way the internet can shift - and be ready to join in any conversations that are relevant to your brand and business. Relevant content and hashtags help build your online presence. See what your competitors are doing and use this to your advantage.
Keeping your company flowing smoothly.
Let us look after all your filing requirements. On time, every time. Company Secretarial
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In si d e Asp en Waite
Interesting Somerset Facts
Brought to you by Somerset's own Paul and Carley
Taunton was the first town in the UK to be permanently lit by electrical lighting in 1881
At 4171 sq. kilometres, it is the 7th largest county by area, but with a population just over 0.5m only 22nd by population
Over 400 types of apple are grown in Somerset. Unsurprisingly we have the largest Cider Plant in Europe
Glastonbury is the largest performing arts festival in the world
The game of skittles was invented in Somerset
It is the home of the UK’s oldest civilian prison at Shepton Mallet.
Wells is England’s Smallest City
01278 445 151 info@aspen-waite.co.uk www.aspenwaite.co.uk