I would like to wish each and every one of you a fantastic and profitable new year!!

My commitment to you is to try and keep up the flow of articles, videos and reports to help you make 2009 your best year yet!

~Ray

Traditionally, the quiet time between Christmas and the New Year is one of the few opportunities the busy entrepreneur has for reflection on the past year and planning for the new year about to start. I have been doing this myself even whilst out shopping with the family yesterday! I secreted myself away in the cafe at Bhs and drank some yukky lattes whilst putting notes into my notebook (remember that from the Recession Busting Tips Report?) about planning. Last night, whilst the family watched TV I half wrote the report and finished it this morning. My eldest son, Chris, proof read it and so it is available just over 24 hours from first thought to finished product. A new record for me!

Have you been thinking similar thoughts? Or like most, slumped in front of the TV?

Your business will appreciate you spending some quiet time on it and I hope the planning report will help you define your direction for 2009.

Don’t forget to let me know what plans you are making, and then we can look back this time next year and see how you have done. Are you confident enough to commit your goals to a comment right here for eternity? and then strong enough to compare your actual performance over the year back here in a years time?

Lets see…

~Ray

So I had to take it down right away.

I can’t believe it was exactly a month to the day since I finished the report that the 1,000th copy had been downloaded.

Congratulations to those who got their free copy! I sincerely hope it helps you and your business as we go into the new year.

For those who didn’t get a free copy, the report is now only for sale at £15.97+VAT.

I am currently working on a time management report and aim to give this away around 31st December 2008. I do not expect this will have the same appeal but it is a fact that managing the limited amount of time we have is one of the biggest challenges everyone faces today in our busy, busy world.

I hope everyone has had a good rest over the holiday and is raring to get back to work next week.

We will speak again very soon.

~Ray

I have chosen this document so that I haven’t violated any copyrights (I hope) and it serves our purpose really well.

So, go and watch the video with the document at your side and a pencil in your hand!

Headlines

I really hope it helps those of you struggling with headlines.

As ever, I will be pleased to receive all feedback so don’t hold back…

~Ray

Well Marie, you are not alone and so I am putting together a demonstration video this weekend to PROVE how easy it really is to produce at least 100 headlines, probably more. You will see it happen right in front of your eyes. So watch this space…

The reason writing so many headlines is SO important is that only after writing a lot does your brain finally settle down into the “groove” of the idea and starts popping out some really powerful headlines. Unless you can achieve this state, your headlines will never perform as well as they could.

With such a choice of headlines you also get plenty of choices for split testing so you can test your marketplace with different options to see how your customers react. Remember that your customers are human beings too and a headline that you think is fantastic might fall totally flat and produce few responses. Unless you test - you will never know.

Having such a choice of headlines also gives you plenty of strap lines and sub-headlines, all of which help to draw your prospects in to you and gives you plenty of fodder for your marketing media.

So, I will work on this video and hopefully post it here on Monday and dispel the myth that “I can’t write 1 headline - let alone 100!”

~Ray

You will not be one of those who miss the deadline will you?

What are the options for filing between now and the deadline?  There are 3 at the moment:-

1. Using HMRC software on their own website.
2. Using a program you have bought yourself specially to file on-line this year.
3. Using an Accountant.

I am sure you know which one I prefer you use… that’s right, No.3.

Lots of people still insist on going their own way and that’s fine, as long as the implications of going it alone are fully understood.  The main problem is that, astute as most business people are, they don’t really have a clue about what they can properly claim against their income, and whether or not the figures they submit are just walking into a Tax Investigation.

The reason accountants are (mostly) very good at their jobs is because they specialize in certain types of businesses, and therefore build up a vast store of knowledge about their area of expertise; what is acceptable; what they can “get away with”; and what just doesn’t “look” right and needs altering. 

For example, I don’t audit companies.  I specialize in small businesses up to 15 employees.  My interest is in helping those businesses who want to grow, improve their profitability and yes, weirdly, watching them get too big for us to handle and see them go on to success and personal wealth. 

This is why accountants charge for their services. 

It isn’t because they are just out to be a leech on business.  They can actually add substantial value and are worth many times more than the annual fee to business owners who use them fully.

There are good and bad accountants out there - so how do you tell the difference when you are looking through the Yellow Pages - skipping through the search results on Google?

Obviously, other people’s opinions and recommendations count here.  As do whether or not you know the accountant’s name from things they have been doing locally; Round Table; Newspaper editorials; Radio interviews; advertisements; charity events etc.  I always tell new prospective clients that “chemistry” is important in the accountant/client relationship.  Does the chap make your skin crawl when you sit in the office? Is the office an untidy mess all year round?  Can they give you a couple of satisfied clients to talk to?  Can they give you an informative report on the area of business, marketing, cash-flow, employee management, VAT, Income Tax, Capital Gains Tax, selling your business? planning strategies? that you are struggling with, or do they fob you off with an answer you only half understand?

The choice of accountant is really important because, when the chips are down and you are sitting in front of the Tax Inspector, you both need to be sure that you can totally trust each other.  I need to know I can trust my clients not to open their mouths and totally contradict earlier statements (yes it does happen) or start blaming me as a scapegoat - trying to ruin my reputation, and the client needs to know that they have been fully briefed, expertly advised, and confident their accountant is performing at their peak when needed.

If you don’t feel you can be totally honest with your accountant, and also don’t feel they are being completely open and frank with you, then change to one you do feel comfortable with.

An accountant is not for life!  You can change at any time.  The only thing to watch is changing constantly, because that signals to the Tax Office that you are perhaps being less than frank with each new accountant (remember each time you appoint a new accountant, a form goes to HMRC to advise them).

Lastly, if you are very happy with the service, the answers, the extra’s you get from your accountant all year round - do them a big favour and tell your friends.  I always reward existing clients with a cash windfall based on a % of their annual fee each time they recommend someone to me.  Perhaps your own accountant offers something similar - have you asked?

Finally, however you do it, make sure you get your 2008 Self Assessment filed before the 31st January 2009 or penalties and the wroth of the mighty HMRC will come tumbling down on you shortly after - and trust me - you don’t want that - ever.

As always, please feel free to ring me on 0800 047 0731 if you would like to discuss anything before the deadline hits - even if you just have a question - I won’t charge you, it will be my pleasure to help.

~Ray

It made dismal reading though. Not because of the lack of substantial local news - we expect that. It was because of the adverts within it. There must be a couple of hunderd adverts in there and every single one of them was the worst kind of ineffective advert that I keep trying to get people to dump. You know the sort - the painter who is looking for work (but no outsides) - the plumber who can fix your dripping taps - the tyre firm who have tyres and exhausts for sale - and so on.

They all look tired, dull and worst of all - they look the same.

The plumber, the kitchen fitter, the tyre company, the painter, the double glazing firm, the builder, the costume hire shop - unless you read them closely - they all look the same.

OK they are different colours and different sizes, but not a single one of them stands out from the bunch. Not one has a strong call to action. Not one has a Unique headline shouting out why you would be mad not to choose this painter, or that builder. Not one will perform any more than mildly average.

It is such a shame that so many businesses are still throwing money at advertising that will not work anything like as effectively as it could for the same investment.

Are you still doing advertising that way?

If you are, because you are worried about changing it in case the trickle of new customers drys up, at least try just one advert in the way I described in my previous series of posts on writing effective adverts. If you have the nerve to try just one new style ad - watch the difference in response you get. You will see how much better the info-ad works and then you will have the confidence to dump the old ways forever.

The worst offenders at selling the “old style” ads are the telephone directory staff. However, it is proven by every person who has ever had a telephone book ad that these just don’t pull enough response to justify the costs. Have a look through your telephone directory right now - it is packed with similar style ads. The challenge is to find a single info type ad in the whole book.

Go and have a look now - and let us all know how many you find!!

~Ray

Make sure you have changed your website settings, ebay settings, bookkeeping settings, spreadsheet settings - even your calculator settings to reflect the new rate.

The new rate is 15%. When you are calculating the VAT amount in a total, such as a petrol receipt, you now need to use the fraction 3/23, or if you want the VAT exclusive amount the fraction you need is 20/23.

It remains to be seen if such a minute change will have any real effect on spending habits.

Good luck with your christmas campaigns.

Please feel free to email me if you want a little critique or help with your copy in the run up to christmas!

Seasons greetings to you all!

~Ray

VT Transaction + is now complete. I know it sounds unlikely but it was only this morning I was wondering about doing some more video tutorials now my recession report is finished and what happens - I get the upgrade available notice in my VT Transaction+ program and… there is this note saying it’s all finished and there is now a comprehensive user guide. So, no more need for planned tutorials…

Anyway, you can view the help file from within your program, or download it and print it from the VT Software website here.

I have looked through it and all credit to the team - it is clearly written and easily understandable. Well done chaps.

I presume this now signals the beginning of the end for the free web downloads so for all those people “testing” the program out there, it is time to stump up the cash to buy it officially. I think it has been free for download for at least 3 years so VT Software have been more than generous.

You can either buy it from me, or direct from VT Software at £125+VAT first year and then £100+VAT each year thereafter. For additional licences it is £75+VAT initially and each year thereafter per licence needed.

I cannot recommend this software highly enough. It is something we use here for all of our bookkeeping work all day every day. I keep checking other software as it comes out but nothing comes close (yet) for simplicity of use, ease of editing and formating of invoices.

Simply brilliant.

~Ray

I know our beloved chancellor said it will apply from 1st December but…

There is an issue you must consider here when you are invoicing for the supply of goods and services.

If you supplied goods and services before 17th November 2008 but invoice them on or after 1st December 2008, you MUST use the 17.5% rate.

If you normally invoice at, say, the end of the month following the supply of goods and services (yes, some people wait that long to bill), you will still need to charge 17.5% VAT.

The reason for this anomaly is that HMRC treat the Basic Tax Point as being when the goods/services are actually made available to the client/customer and it is the basic tax point that determines the rate of VAT you charge.

There is, as with most things, a work around.

Why did I use the 17th November above and not the 1st December? It is because VAT has a little known 14 day rule that can overide the the basic tax point.

If you raise an invoice within 14 days of the supply, the invoice date will be the actual tax point. There is a possibility to extend this 14 day rule to 30 days, but you have to write to HMRC at your local VAT Business Centre and explain why you need an extension and if they agree, nearly all your invoicing can be done at 15% after 1st December 2008.

As ever, a VAT inspection is usually the only time this sort of anomaly crops up but when it does, guess what happens??? You get 2 choices.

1. you go back to your customer and say sorry, I should have charged you 17.5% not 15% can you stump up the difference please? What if they have gone out of business or just say no….
2. you pay the difference with no ability to reclaim it.

I have said it before but VAT is the most mis-understood of the taxes and when you get it wrong - it makes more than your eyes water!