Independent brand consultancy Mr B & Friends has acquired FutureKings, as it continues to capitalise on the rapidly growing demand seen for brand strategy in the SME segment.
FutureKings, launched in 2016 by Executive Creative Director Steven Anderson and Managing Director Ben Mott, specifically develops brand strategy and identity programmes to support ambitious start-up and scale-up businesses. The consultancy has delivered rapid business growth for scores of early stage and scaling businesses through a range of packaged programmes. Today, FutureKings has 10 full time staff based in Bristol and London.
“There’s something almost romantic about this union” said Mr B & Friends Founder & CEO Simon Barbato. “Steve and I first met and worked together in 1995 at Light & Coley in London, and we had discussed starting an agency together before I launched Mr B & Friends. To now have the chance to rekindle that relationship is just wonderful.”
“But let’s be clear, this is a strategic acquisition. We have long been admirers of the work that FutureKings produces for this segment of the market – it’s truly first class, and it’s a segment we’re also active in, having launched our brand accelerator programme Beta three years ago. Our aim is to leverage the FutureKings brand to accelerate this dynamic part of the market, helping more SMEs and early-stage companies to gain a competitive category advantage through brand development.”
FutureKings will retain its brand, team, clients, processes and systems, and will relocate to the Mr B & Friends Bristol city centre HQ to ensure a smooth cultural integration and better adoption of client opportunities. The FutureKings London team will continue their contribution for a transitionary period before opening the Mr B & Friends London office – a crucial element of the agency’s growth strategy.
Ben Mott, FutureKings Managing Director added: “From the first discussion about this acquisition, the mutual benefits and opportunities for both companies were obvious. Steve and I have been looking for the right way to grow, and this deal gives FutureKings the perfect platform. Our mutual ambitions for the future are clearly aligned; growth in Bristol, London and the US, delivering our proven processes to a wider range of SME and early-stage businesses. We’re thrilled we’ve made this happen and are excited about the next phase of our journey.”
This acquisition takes Mr B & Friends to 45 staff following an impressive trading year that has seen the agency grow revenue 34 per cent, winning new clients such as Lego Group, Persimmon Homes, Haleon Plc, Gresham Plc and British Canoeing. And with London now firmly in their sights and a presence planned for the USA, the company is predicting its best trading year of its 17 year history.
FutureKings ECD, Steven Anderson wraps up: “This move is testament to the hard work of the whole FutureKings team and the results we’ve had for our clients over the last seven years. A great strength of this acquisition is that culturally our ways of working are totally aligned as Simon and I come from the same starting place. I’m personally incredibly excited to be working with Simon again and that the stars have aligned for us professionally and as friends. Ben and I couldn’t be more pleased with the exciting future plans and it is exactly the right time in our growth to really hit fast forward.”
All companies must pay corporation tax on the profits that they make. From April 2023, the corporation tax rate will rise from 19% to 25% (for companies that generate over £250,000). This means that instead of paying 19% of profits to HMRC, you now must pay one-quarter of profits if your profits are over the £250,000 threshold. However, the current rate of 19% will still apply if your company generates £50,000 profit or less.
So, the main rates are rising from 19% to 25%. Pretty straightforward…however, smaller companies will not have to pay the full rate. It will completely depend on your level of profits for the fiscal tax year. If your company profits are £50,000 or under, the old rate of 19% will still apply. Larger companies with profits of £250,000 or over will pay the 25% rate. Between these two rates, a system of marginal relief will apply.
This new system of ‘marginal relief’ is actually not entirely new, as it will work in the same way as the 2014/2015 tax year (the last time marginal relief was applied to corporation tax). With this in mind, you can use the following formula to calculate your corporate tax liability.
Let’s use the example that your annual profit figure is £100,000.
In this example, the corporate tax liability is £22,750. This represents a tax increase of £3750 and means the rate of corporation tax is 22.75%.
The changes implemented from 1st April 2023 impact the amount of relief that can be claimed, the types of activities that will qualify and the way in which businesses can claim relief. These changes have been introduced to ensure “the UK remains a competitive location for cutting edge research”, “the reliefs continue to be fit for purpose” and “taxpayer money is spent as effectively as possible”.
So, what are the numbers?
| Pre-April 2023 | Post-April 2023 | |
|---|---|---|
| Loss-making SME |
Enhanced deduction: 130% R&D credit: 14.5% Benefit: 33.35% |
Enhanced deduction: 86% R&D credit: 10% Benefit: 18.6% |
| Profit-making SME |
Enhanced deduction: 130% Corporation tax rate: 19% Benefit: (up to) 24.7% |
Enhanced deduction: 86% Corporation tax rate: 25% Benefit: (up to) 21.5% |
| RDEC Company | RDEC credit rate: 13%
Corporation tax rate: 19% Benefit (after tax): 10.53% |
RDEC credit rate: 20%
Corporation tax rate: 25% Benefit (after tax): 15% |
It’s important to remember that the rate of Corporation Tax will differ depending on the number of profits your business generates in a fiscal tax year.
Chancellor Jeremy Hunt delivered the government’s 2023 Budget on 15 March. Here’s a round-up of measures relevant to businesses in the creative industries.
If you’re a Bristol Creative Industries member and you’d like to share your view on Budget 2023, email Dan.
Describing his speech as a “Budget for growth,” Jeremy Hunt referenced the creative industries twice:
“Our film and TV industry has become Europe’s largest, with our creative industries growing at twice the rate of the economy.”
“I also want to make our taxes more competitive in our life science and creative industry sectors.”
In the full Budget document released after the speech, the government references the creative industries as being one of the five sectors it is focusing on for growth. The others are green industries, digital technologies, life sciences and advanced manufacturing.
The document says:
“The government will turn its vision for UK enterprise into a reality by supporting growth in the sectors of the future. There are opportunities to accelerate the progress of the technologies that will define this century by encouraging investment and smarter regulation.”
In terms of specific announcements for the creative sector, the Budget includes the following:
The government is reforming audio-visual tax reliefs into expenditure credits with a higher rate of relief than under the current system. This follows the government’s consultation last year.
The changes are as follows:
- 34% credit rate for film and high end TV and 39% for animation and children’s TV via the Audio-visual Expenditure Credit
- 34% credit rate for eligible video games projects via the Video Games Expenditure Credit
For the Audio-visual Expenditure Credit, the minimum slot length for high end TV will be reduced to 20 minutes, and applied on an episode-by-episode basis.
The government will put a definition of ‘documentary’ into legislation based on guidance by the British Film Institute (BFI):
“a factual or realistic programme based on real events, place or circumstances and intended to record or inform.”
The documentary definition will apply to the audio-visual expenditure credit and the current high end TV tax relief.
Final wording and exclusions to the definition will be published as part of draft legislation in Summer 2023 for comment.
The £1m per hour expenditure credit threshold for high end TV will remain unchanged.
Eligibility criteria for the Video Games Expenditure Credit will require a minimum of 10% of expenditure to be on goods or services used or consumed in the UK.
The new expenditure credits can be claimed from 1 January 2024, but there will be a transition period to allow companies to adjust:
- From 1 April 2025, claims for new productions and games must be made under the expenditure credits system.
- Film and TV productions that have begun but not concluded principal photography, and video games that have begun but not concluded development on 1 April 2025 may continue to claim relief under the current system until 31 March 2027.
- Any expenditure incurred from 1 April 2027 must be claimed under the expenditure credit regime.
Commenting on the change, Ben Roberts, CEO of the BFI, said:
“We welcome the chancellor’s news of the reformed expenditure credits across our screen industries, a testament to how crucial they are to the UK’s economy and growth. Combined with our extraordinary talent, infrastructure and technical and creative expertise, the screen sector tax reliefs – now remodelled as expenditure credits – have super charged our industry on an unprecedented scale.
“The news will ensure the UK remains a truly globally competitive production hub, giving us economic recovery and growth, creating thousands of jobs for people up and down the country and enabling creative talent and storytelling to thrive. It’s good news that the high end TV threshold has been preserved.
“I am particularly heartened to see a much needed boost for children’s television and animation as two areas of cultural and societal importance in which the UK excels creatively, but that still have significant growth potential.”
The temporary higher headline rates of relief for Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibitions Tax Relief (MGETR) will be extended for two years from 1 April 2023
The headline rates of relief for the TTR and the MGETR will remain at 45% (for non-touring productions) and 50% (for touring
productions). OTR rates will remain at 50%.
From 1 April 2025, the rates will be 30% and 35%. On 1 April 2026 the rates of relief for TTR and MGETR will return to 20% and 25%. The headline rates of relief for OTR will return to 25%.
The government said its new chief scientific adviser, Professor Dame Angela McLean, will oversee a review into the creative industries.
In the November 2022 Autumn Statement the government said that from 1 April 2023 the SME research and development (R&D) tax relief scheme will decrease from 130% to 86%, while the SME credit rate will decrease from 14.5% to 10%.
This led to criticism from many organisations about the potentially negative impact on UK innovation. In response, the 2023 Budget includes the launch of a new SME R&D scheme from 1 April 2023 although it only benefits around 20,000 businesses. Loss-making companies that spend at least 40% on R&D will be able to claim £27 from HMRC for every £100 of R&D investment.
Among the businesses the government says will benefit are around 4,000 digital SMEs from the computer programming, consultancy, and related activities sector.
Speaking during the Budget, Hunt said:
“To strengthen our position in artificial intelligence (AI), in which the UK hosts one third of European companies, I’m accepting all nine of the digital technology recommendations made by Sir Patrick Vallance in the review I asked him to conduct in the Autumn Statement.
“I can report that we will launch an AI sandbox to help innovators get cutting edge products to market. We’ll work at pace with the Intellectual Property Office to provide clarity on IP rules so generative AI companies can access the material they need. And we’ll ask Sir Patrick’s successor Dame Angela McLean to report before the summer on options on growth duty for regulators.”
The government will also award a £1m prize every year for the next 10 years to researchers that drive progress in critical areas of AI. It will be known as the ‘Manchester Prize’, named after the world’s first stored programme computer which was built at the University of Manchester in 1948.
Creative businesses and individuals from the south west who take part in Edinburgh’s annual festivals may be interested in new government funding of up to £8.6m.
The Budget said the money “could help build a permanent headquarters for the Edinburgh Fringe Festival and create year-round opportunities for local artists and talent across Edinburgh festivals”.
Although none are in Bristol or the south west, there could be some benefits for local businesses with connections or offices in the regions chosen for the government’s new investment zones.
The zone will focus on the government’s “priority sectors”, which includes the creative industries. They will each receive £80m for tax reliefs, improving skills, providing specialist business support, improving the planning system, or boosting local infrastructure.
The English zones will be in:
The following are announcements not specific to the creative industries but are of interest to businesses in the sector.
The previously announced increase in corporation tax from 19% to 25% for businesses with profits over £250,000 will go ahead as planned from 1 April 2023.
Companies with profits of £50,000 or less will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.
There is more advice on what the corporation tax changes mean for businesses in this post.
The £2,500 Energy Price Guarantee (EPG) for households in Great Britain has been increased for another three months from April to June.
No new energy support was announced for businesses. The Budget confirmed that the Energy Bills Discount Scheme will replace the Energy Bill Relief Scheme from 1 April. The new scheme, which runs until 31 March 2024, is significantly less generous.
Jeremy Hunt announced several measures aimed at helping the unemployed, parents and the over 50s to get jobs or increase the hours they work.
This includes extending free childcare to working parents of children from nine months old. The changes will be rolled out in stages:
For the over 50s, new ‘returnerships’ will bring together the government’s existing skills programmes. They will promote accelerated apprenticeships, Sector-Based Work Academy Programme placements and Skills Bootcamps to the over-50s.
All the labour market announcements in Budget 2023 are outlined here.
In a shift to focusing on local authorities having powers to deliver activity such as business support, the government said it intends, subject to consultation, to withdraw all remaining central support for Local Enterprise Partnerships from April 2024.
The Budget said: “The government is committed to empowering democratically elected local leaders at every opportunity.”
The new full expensing 100% first year allowance will be introduced from 1 April 2023 until 31 March 2026. This means that companies across the UK will be able to write off the full cost of qualifying main rate plant and machinery investment in the year of investment.
The annual tax-free allowance for pensions will increase from £40,000 to £60,000.
The £1.07m lifetime allowance will be scrapped completely. This is the maximum amount of tax relievable pension savings an individual can benefit from over the course of their lifetime.
If you’re a Bristol Creative Industries member and you’d like to share your view on Budget 2023, email Dan.
Lodging & hospitality public relations specialist, Abode Worldwide, has appointed experienced agency leader and former Fleet Street journalist Neil Millard as Managing Director.
Millard joins the agency from Rhizome Media, where he spent nearly six years working across industries with a particular focus on property. Before that, he was a news journalist for some of the UK’s biggest titles, from the Evening Standard and MailOnline to the Sunday Mirror and The Sun.
His property experience — covering student accommodation, residential sales & development, offsite construction, fractional ownership, property investment, development finance, and mortgage lending — will dovetail with Abode’s six key lodging, living and hospitality pillars as the agency targets rapid growth over the next three years. Its focus will continue to be on technology solutions and enterprise level operators across short term rental, hotels, multifamily/Build to Rent (BTR), student lodging, coliving, and senior living.
Abode Worldwide was founded in 2017 by Jessica Gillingham and currently works with brands across North America and Europe. The company’s mission is to supercharge the authority and credibility of global tech pioneers and their customers as they transform the way we work, rest, and play. The team – which is hiring for new roles –does this by combining deep industry knowledge and extensive media and influencer relationships with continual fresh insight.
In the last year, for example, Abode Worldwide secured over 100 speaking opportunities for clients across podcasts, webinars, and conferences, in addition to hundreds more pieces of profile-raising proactive media coverage and thought leadership. To date, the agency has partnered with some of the biggest companies in the world of lodging, including ALTIDO, Bidroom, Breezeway, Boostly, Buoy, Guesty, Hostaway, Jetstream Hospitality Solutions, Key Data, Operto, PointCentral, Rentals United, Reside Worldwide, Revyoos, Safely, Uplisting, Xplorie and 3Sixty.
Jessica Gillingham, CEO & Founder of Abode Worldwide, said: “We’ve got big ambitions to be the premier global public relations specialist in the lodging, living and hospitality space, and Neil has been appointed to help us get there. He has a wealth of media know-how, fantastic leadership experience, and is a tremendous asset across the business and for our clients.
“He couldn’t join at a more important time, with the merging of the lodging, hospitality, hotel, short-term rental, and real estate sectors really picking up pace and we are excited to be at the forefront of this transformation for the technology solutions, operators, investors and their customers.”
Neil Millard, Managing Director of Abode Worldwide, commented: “The way we live is going to change dramatically over the next 20 years, and Abode Worldwide sits at an intersection where all these worlds collide. Whether it’s short-term rental technology, student accommodation, multifamily/Built To Rent, co-living or senior living — every one of these areas will see accelerating growth.
“This shift is happening globally, so it’s a magnificent opportunity for me to join an agency that looks beyond the horizon and already has more US than European clients. I’m really excited to join such a talented team. Jessica has massive ambitions for the company, and we’ll be winning business worldwide. A key immediate focus for me will driving our expansion and maintaining a laser focus on delivery for clients.”
For more information on Abode Worldwide, please visit abodeworldwide.com.
Boxworks is a unique workspace in the heart of Bristol’s Temple Quarter. Twenty shipping containers have been re-imagined into stylish, affordable private studios perfect for small teams. The studios, or ‘Boxes’, are super-insulated, come with superfast fibre and 24/7 access. Tenants get access to facilities at Engine Shed too, including lounge access, a communal kitchen, showers and meeting rooms
To celebrate the entrepreneurial spirit of Bristol’s creative community, Forward Space has teamed up with Bristol Creative Industries (BCI) and Circus Journal to launch Startup at Boxworks, a competition to win three months tenancy at Boxworks.
Aimed squarely at new businesses, sole traders and freelancers, the competition will provide much-needed support for the early stages of a business by giving the fledgling enterprise the space to grow and explore ideas, without the pressure of workspace costs.
The competition is open to all businesses with a turnover of £150,000 or less. To apply, entrants simply need to outline why office space would help take their business to the next level by submitting either a written statement, a presentation or a short video.
Full entry criteria is here. Deadline for submissions is midnight on Friday 24th February 2023.
Gavin Eddy, CEO of Forward Space, said
“I’ve loved seeing the countless businesses we’ve worked with over the years grow and find success after using one of our spaces. Helping to nurture the next generation of entrepreneurial talent in the South West is something I’m very passionate about too, so I can’t wait to see what interesting proposals we see over the coming weeks.”
Alli Nicholas, membership manager, Bristol Creative Industries, said:
“Bristol Creative Industries is thrilled to be partnering with Forward Space on this initiative. A three month Boxworks residency is such a brilliant opportunity for one of our members, particularly fledgling startups who may currently be working entirely remotely. Finding the right office space is key to the success of any business. Right next door to Engine Shed, Boxworks is the perfect place to get immersed in Bristol’s thriving ‘createch’ community; making new connections and exploring opportunities for growth.”
Simon Tapscott, co-founder and publisher, Circus Journal said:
“Circus is all about celebrating creativity and community in the south-west, and with a third of our readers running their own businesses discovering workspaces that inspire people to come together and collaborate is an important and recurring theme
“We are delighted to be supporting this fantastic initiative to enable the next generation of creatives in Bristol.”
Enter the competition by 24 February here.
Pre-seed and seed investment are both early stages of venture capital funding for startups. However, there are some key differences between the two that are important for entrepreneurs to understand.
Pre-seed investment
Pre-seed funding is typically the very first round of funding for a startup. It is used to cover the costs of developing a prototype, conducting market research, and building a team. This type of funding is often provided by friends and family, angel investors, or accelerator programmes (such as SETsquared Bristol). The amount of money raised in a pre-seed round can range from a few thousand pounds to a few hundred thousand pounds.
Seed investment
Seed funding, on the other hand, is the next step after pre-seed funding. It is used to further develop the product or service, conduct more extensive market research, and scale the business. Seed funding is often provided by angel investors, seed funds, or venture capital firms. The amount of money raised in a seed round can range from a few hundred thousand pounds to a few million pounds.
So, what’s the difference?
One key difference between pre-seed and seed funding is the level of risk involved. Pre-seed funding is considered to be higher risk because the startup is still in the very early stages of development and may not have a proven track record. Seed funding, on the other hand, is considered to be lower risk because the startup has a working prototype, a team in place, and some traction in the market.
Another difference is the level of control and ownership that the investors have in the company. In pre-seed funding, the investors typically have less control and ownership in the company because the startup is still in the very early stages of development. In seed funding, the investors typically have more control and ownership in the company because the startup has a proven track record and is further along in its development.
In summary
Ultimately, pre-seed and seed funding are both early stages of venture capital funding for startups. It’s crucial that you know what stage you’re at and therefore what to ask for and what the implications are. Even if you get pre-seed investment it’s useful to also consider how seed investment will be different, if and when you go for it.
At Gravitywell, we love working with enthusiastic startups and can help with prototypes, pitch decks, MVPs, conceptual work and investment advice. If you’d like to discuss how we can take your idea to the next level, get in touch.
An outstanding achievement and something we are very proud of.
Back in 2019, ADLIB Recruitment was one of the first recruitment businesses to certify as a B Corp with a score of 82.8. Our belief is that B Corp provides a structure and measurement to improve, certification is the start of the journey. We set out our intentions publicly through annual impact reports and set the bar high. This approach ensured we maintained the focus and accountability needed to make change happen.
Since our initial certification, we’ve held ourselves accountable to improve year on year. We’ve become a 100% employee-owned business, created a Trust Board, Employee Council and gifted each of our existing employees share options with a clear route to realisation.
We’ve donated many thousands of £ to charities and NFPs, including Feeding Bristol, Grassroots Activation Project, St Mungo’s, Julian Trust and Forest of Avon Trust to name a few brilliant organisations.
Internally, we have created MotherBoard, a business charter, community and event series that drives tangible change for mums working in the tech industry. We’ve also vastly improved our maternity leave policy and delivered D,E&I training, lived out through a healthily balanced team. The team have played lead roles in advancing GreenTech South West and Tech Ethics meet up groups. And that’s just for starters.
Today we celebrate the hard work that has gone into achieving our recertification. Focus will soon turn to our next recertification and setting the standards to a whole new level.
Built environment-focussed comms agency MPC has revealed an overhaul of its brand identity, name, website and values, as it launches as Meeting Place.
Established in 2006, the business is one of the sector’s most established agencies, working with clients across the built environment to deliver positive change for new developments through planning comms and public relations.
On the back of several recent client wins, the rebrand coincides with record revenues for Meeting Place across its regional offices, a 28% boost in like-for-like revenues over the last six months, and a headcount growth from 26 to 37 over the last year.
According to Meeting Place’s Managing Director, Nikki Davies, the changes underpin a new direction for the business as it sets its sight on growth across streamlined core services – planning communications and public relatio
Meeting Place’s new website outlines how its planning comms team will utilise public affairs, social value and digital campaign experience in an effort to bring communities together to recognise the potential of the built environment.
And combining its sector knowledge with an integrated approach to PR, its public relations team will shape client campaigns to build awareness and understanding
Nikki said: “We’re thrilled with the outcome of our new rebrand, which coincides nicely with a period of growth across our teams, as we start the year on a strong footing
“Our new values – insight, inclusivity and courage – dovetail with our clearly defined mission to use the built environment as a catalyst for positive change; whether that’s environmental, social or economic benefits.
“We believe our streamlined approach of planning comms and PR will serve as a key differentiator in the industry, and one which champions best-practice and delivers for communities, clients and the media alike
“Whether we’re gaining support for a new hospital in East Anglia, homes for first-time buyers in Devon, establishing a housebuilder’s ESG strategy, or driving awareness through PR – we’re on a mission to use the built environment as a force for good.”
Meeting Place’s client roster, which includes Legal & General and Places for People was recently strengthened following several client wins, including Regal London, Longfellow Real Estate and several solar energy providers. Headquartered in Bristol, Meeting Place has staff working remotely in locations across England and Wales following a move to a flexible working model.
The agency’s Regional Director for Midlands, Western & the North, Helen Goral, said: “Having bolstered our public relations, digital and design offering, our expanded teams will be central to the company’s growth targets this year. Across the region, we have seen a significant increase in demand for planning communications expertise and we are working on numerous high-profile projects which have contributed to a 20% like-for-like revenue increase year on year.
“The range and calibre of our recent wins underpin our ability to deliver return on investment and impactful comms for clients. Despite the recent economic situation, we’re still seeing a lot of confidence across the built environment, with our breadth of services allowing us to take a holistic, integrated view of client needs
“It’s incredibly exciting to be starting the year on a high, with record revenues, project wins and a vibrant new brand. We believe the built environment has so much potential as a force for good and we can’t wait to see what 2023 brings.”
For more information on Meeting Place, please visit: www.meeting-place.uk
Initially trusted by Frog Capital to conduct due diligence, as part of the Series A investment round our role then transferred into that of an interim CMO post-investment. During this time we conducted a thorough repositioning of the brand to support the growth ambitions of the business and new investors, whilst helping to build the team and recruit a permanent CMO.
“We’ve been working with Talisman Sparro for over a year now, and they have become an integral part of the Clue team. Initial engagement was to develop a high level marketing strategy to support us through our investment round and prepare for the scale up journey. The output highlighted the potential for Clue, swiftly progressing into a brand programme and a series of workstreams which included an interim CMO role. I have personally enjoyed building a positive relationship with the team and it’s been a really collaborative and productive process that has bought the whole business together and gives us a fantastic platform for global growth.”
Clare Elford – CEO
Brand Strategy
Stakeholder Engagement
Brand Identity
Brand Guidelines
Collateral Development
Marketing Strategy
There are plenty of exciting elements to running your own business – or any business! Many enjoy the freedom of being their own boss and delegating their own tasks (and where they work from). The thought of being paid to do what you love is an exciting and encouraging commodity.
Knowing what numbers are important when it comes to managing the finances of your business can be daunting, to say the least! We’re here to help with this handy video, to give you a quick rundown of what you should be tracking – dependant on your business goals.
Before we begin, it’s important to understand what your business goals are. The information you will need will change depending on these goals. For example, if you are in a growth stage, you’re going to be tracking different numbers to if you are simply in ‘survival mode’. This video will cover the ‘must have’ numbers to start with.
Arguably this is the number that most businesses will focus on, yet many will only look at how they did the month previously. It’s super important to have an overview of your turnover as a whole. Keeping an eye on the trends can show you quickly whether your numbers are up or down. If you can determine why your sales are fluctuating, you can implement strategies to ensure those numbers stay on an upwards incline. Without this, you may not even realise your revenue travelling on a downward slope.
These are the costs that directly relate to being able to provide your business’s goods and/or services. Having an account of these costs helps you also understand your gross profit. Make sure you routinely assess this number as it is one you have a lot of control over! How can you add value to your business? And how can you ensure that you get the most value out of these costs?
These are the expenses that are for running the business. You need to spend money to earn money, so it makes sense to ensure that you are keeping an accurate record of these expenses. Operating expenses include things such as wages and administration costs. When costs need to be reduced, this is the first place you should look. If you have an accurate record of what you’re spending to operate your business, you can evaluate whether you really need that subscription service anymore, or even if there are licenses you can afford to boot if you no longer need them.
This is a sneaky one! Corporation Tax is the tax you pay on any profits you make from successfully doing business, selling assets or investments. You won’t get a bill for corp tax but you will be expected to pay by your deadline (which is usually 9 months after your year-end/accounting period). There are certain things you must do to work out how much corporation tax you owe and must pay to HMRC. Corp tax is currently 19% of profits within a financial year…however, this goes up on 1st April 2023 to 25% for companies that make over £250,000. Posting a provision based on monthly profit will help take away that end-of-year scare. Top Tip: This is something that we do monthly for our clients here at FD Works, helping to reduce any big shocks at the end of the year!
This is the main figure that it all comes down to…how much money did your business make or lose? Obviously, a big one to keep track of! In other words, operating profit is the total income a company generates after paying off all operating expenses. The operating profit figure excludes gains or losses from interest, taxes and investments. This number is a highly effective way to distinguish the health of your business.
An extra number to keep an eye on is cash flow. Cashflow is the amount of money being transferred in and out of the business. Generally, if your outgoings are consistently greater than your ingoings then your business isn’t sustainable and you need to look at what can be done to solve this. However, it’s not quite that simple! You may spend £10k on sales in order to make £100k. Yet, if that money isn’t paid on time to you, you can’t reinvest another £10k into your next batch of sales. If you’ve been keeping track of the other metrics mentioned previously, you have the tools in place to troubleshoot your issue and react accordingly:
…And there you have it! In this article, we have broken down the metrics that we think are important to keep track of and understand. Now, this isn’t a comprehensive list, so make sure you get in touch with us or check out our website if you are ready to take control of your finances and work with our incredible team. We really believe that numbers reveal the opportunities for shaping any business.