There are various ways of achieving business growth.
Growth is the ultimate aim of any business. From home businesses to global companies, we all wish for the next year to have better results than the last; but how can we achieve this?
The gradual development and increase of the business (organic business growth), by providing better services than your competitors, increasing your customer base through referral and advertising, is the most straightforward method.
New revenue streams and markets may arise, which require extra funding through external investment in order to capitalise on these opportunities. Tax reliefs are available to make investment in your business more attractive to potential investors.
You may find that your business growth means that it is no longer suited to the business vehicle that was originally put in place. For example, a sole trade business that you started at home now rents property and has employees, as well as a large customer base. In this situation, you may not want the risk of liabilities from such a business putting your home in danger should something go wrong, in which case you may wish to consider incorporation of your business into a limited company.
The other method of growth is through mergers and acquisitions. You may find that you and a competitor in the same area are incurring similar costs, which could be reduced if you merged, or worked in partnership together. Or you could increase your customer base by purchasing a competitor business and taking on the key staff as your additional employees.
Tax Innovations has extensive experience of assisting businesses through the process of incorporations, mergers and acquisitions, and helping to create a tax efficient business structure.
If you would like more information regarding business growth and planning, please contact Tax Innovations on 01962 856 990 or email@example.com.