hands

Issue 47 | www.hwca.com
Backing Your Business
World
in your
hands
Market insights have been
the secret to unlocking
international growth, says
Knowledge Academy’s
Barinder Hothi.

opinion
strategy
source
magazine
A fresh-thinking approach
to your business
2 magazine | Issue 47 | hwca.com

T
he media is full of stories
about familiar corporate
brands, particularly those
listed in the FTSE 100 or 250.
Yet the media often forgets to report
on the other 5.4 million companies
– the ones that provide over 90%
of Britain’s commercial output and
account for over 60% of employment.
The volume of these businesses
has increased by 55% since 2000 and
continues to increase year on year.
At Haines Watts, we work
predominantly with these ownermanaged
businesses as they
represent the most diverse and
entrepreneurial component of our
the bottom line
Small, but perfectly formed…
business community. They are led
by people with an independent
nature and a desire to succeed;
as a result, they’re able to make
quick decisions and change the
way they do business rapidly to
reflect economic conditions.
Yes, they often find it harder to
invest or plan for the future, but
they’re better at reacting to economic
stresses than larger companies.
We should all be proud of being
part of this sector and do what
we can to support each other.
We’ve seen ‘Buy British’ and ‘Shop
Local’ campaigns in the past but,
in reality, we shouldn’t need to be
persuaded. We should support them
because they are the best – they
are more flexible and can harness
their workforce to respond to our
requirements quicker – and are often
more fun to work with.
There is the old adage which says
“You’ll never get sacked for buying
IBM”, but here at Haines Watts,
we disagree. Which is why we will
continue to focus on this sector in 2017,
and we invite you to do the same.
Andrew Minifie, Group Managing Partner
source
4 Friendly
finance
Is peer-to-peer
the egalitarian option?
contents
picture
10 A burden
heavy
The truth
behind business ownership
opinion
13 Uncertainty
reigns
A view of the
post-Brexit tax landscape
success
14
Aim high
Businesswomen
are
raising the stakes
6
“As we’ve grown into
overseas markets,
Haines Watts has
been there to make
sure we remain
compliant.”
Barinder Hothi,
Knowledge Academy
Founder
Cover: Alun Callender
strategy
12
Up the
scale
How do you
know it’s time to grow?
self
Ready to
16
retire
Make the
most of your advice
9
magazine is published by Haines Watts and produced by
Backing your business 3

source
Let’s get
connected
Peer-to-peer lending means
SMEs no longer have to rely
on friends and family for
funding, says Haines Watts’
Neil Stammers.
There was a time when accessing
finance was more about who
you knew than how exciting
your business prospects were,
according to Neil Stammers.
SMEs looking for funding often
stumbled into the gap left between the
mainstream banks, which favour a highvolume,
low-margin business strategy,
and other sources of capital such as
venture capitalists, who prefer to engage
with larger-scale projects.
“Today, SME finance is like the dating
market,” Neil explains. “If you only look at
traditional banking sources for finance, it’s
“Banks are facing
increasing complexity
thanks to a raft of
new regulations,
such as Basel III, but
businesses now have
a viable and convenient
alternative.”
Bruce Davis, Director of the UK
Crowdfunding Association
akin to still expecting to meet
your partner at a dinner party.
Today you search online using
one of many platforms. Sourcing
funding is the same.”
This technology-driven
revolution means that more people
are investing smaller amounts
across multiple projects. “The
risk profile has been transformed
for investors and it has opened up
opportunities for small companies looking
to manage cashflow, take on new people
or purchase premises,” Neil adds.
A sector with support at the top
The government has so far backed this
area of alternative finance by developing
a range of tax incentives. The Innovative
Finance ISA tax-free wrapper, for instance,
came online in April 2016.
“I now give my clients a range of
finance options, including these platforms.
And the process small businesses go
through to access funding in this way is
hugely beneficial. Instead of preparing
a hefty information memorandum, they
are instead asked to prepare a document
which spells out the dream they are
selling – from what their business is
currently doing to future opportunities
A snapshot
In 2015, UK peer-to-peer lenders:
• Supplied almost 14% of new loans
to SMEs (excluding real estate)
• Raised funds for 20,000 SMEs
• More than doubled their lending
compared to the same period in
2014 (from £1bn to £2.2bn).
Source: www.nesta.org.uk
4 magazine | Issue 47 | hwca.com

and whether they have an
exit strategy. It fits comfortably
into our business planning process.
“The fact they can expect a
decision in a matter of days, unlike at the
bank where their bank manager may take
weeks to make a decision, allows them
to be flexible and be responsive to the
economic environment.”
A model yet to meet maturity
Of course, investors want their nest
eggs to grow. And while the sector is
expanding exponentially, the end game
is less clear because the market is yet
to mature.
“But small investors are more active,
and more concerned about control or
influence over how their money is used.
For businesses trying to raise funds,
this is perfect,” explains alternative
finance pioneer and Director of the UK
Crowdfunding Association, Bruce Davis.
He believes SMEs are already being
better served by a more competitive
lending market.
“Banks are facing increasing
complexity thanks to a raft of new
regulations, such as Basel III, but
businesses now have a viable and
convenient alternative. On the high street,
“SME finance is like the dating
market. If you only look at
traditional banking sources for
finance, it’s akin to still expecting
to meet your partner at a dinner
party. Today you search online
using one of many platforms.”
Neil Stammers, Haines Watts
banking is about doing a lot of efficient
lending to core customers,” he explains.
“They have responded to factoring
and invoice finance areas of the market,
but many businesses are going direct
to a platform because it is a transparent
process. They can also shop around
without their credit rating being affected.”
Sector with an independent streak
The implementation of a requirement for
banks to refer any customer they turn
down on to a peer-to-peer (P2P) platform
is not a game-changer as it is already first
choice for many, according to Bruce.
“Consumers now have more
negotiating power,” he says. “In this post-
Brexit and Basel III economy, we will see
the P2P sector and challenger banks such
as Atom and Metro, which don’t have the
volume of customers to stick to traditional
lending strategies, offering genuine
alternatives.”
FinTech will also continue to filter
through to the SME market, Bruce adds.
“Apps being tested in the retail space at
the moment will inevitably move into P2P
lending. We are a service economy, and
the transparency offered by alternative
finance platforms means SME owners
could have sight of their finances, and
the ability to take a loan to cover any
eventualities, 24/7.
“They can get an instant decision
on a loan to cover a short-term gap in
cashflow or respond to quickly changing
market forces by hiring a new person, for
instance. This can only be a good thing,”
Bruce concludes.
study
Worth Capital
As with most start-ups, it all
starts with an idea.
Marketers and Haines Watts clients,
Paul Soanes and Paul Ephremsen,
know that entrepreneurial teams
sometimes need a little help, be it
funding or advice, to transform their
idea into a living, breathing entity.
In 2014, they worked with Seedrs
to raise equity funding to allow them
to support Worth Capital, a peer-topeer
platform which runs funding
competitions.
Early in 2014, it launched the
Worth Foundation Fund, aimed at
retailers and in conjunction with the
Metro newspaper. Later in the year
it then worked with Facebook to set
up the Big App Fund in 27 countries
across Europe.
Worth Capital also launched its
Start-Up Series in October 2016,
a monthly competition offering
prizes of up to £150,000 to the best
and brightest new entrepreneurial
ventures.
And Haines Watts has been able
to support Worth Capital in its own
development from start-up to mature
funding platform.
“We provide general business
guidance, but we also act as a
sounding board, particularly at the
monthly board meetings”, says
Haines Watts’ Neil Stammers.
Paul Soanes
Paul Ephremsen
Backing your business 5

story
A
world
of learning
Establishing a professional
training business at the dawn
of a global economic crisis
may have seemed risky but,
says Knowledge Academy
Founder Barinder Hothi,
understanding international
markets continues to be the
secret to its success.
Photographs: Alun Callender
factfile
Sector: professional training
Turnover: £24.2m
Location: HQ – Bracknell,
Berkshire
Employees: 250 FT, 700
contractors
Challenges: building credibility
for a young brand
Opportunities: an offering
suited to global expansion
Knowledge is power, so the
saying goes, especially
when you’re setting up
a new business venture.
And in 2009, just as
a worldwide recession was rearing its
head, Barinder Hothi and her husband
Dilshad announced to astonished
friends and family that they were
leaving well-paid jobs to do just that.
But they had a clear vision, had
spotted a vacuum in the marketplace
and, adds Barinder, were armed with
an intimate knowledge of the industry.
“We had expertise in both marketing
and training requirements in both the
corporate and public sector,”
she explains.
The timing proved to be perfect.
The recession greatly increased
the need for back-to-employment
training, including government
initiatives, and fuelled the
business’s early success.
“It has never been
a static market, but we had
an advantage. Our offering
placed us in a perfect position
to expand overseas – it meant we
had immediate international reach,”
Barinder continues.
Live and breathe knowledge
As the business has matured,
understanding the marketplace
6 magazine | Issue 47 | hwca.com

continues to be paramount in
staying one step ahead in a hugely
competitive sector.
Intrinsic to this was a decision
two years ago to form the dedicated
Knowledge Academy research team
and send them into key international
markets to study demographics,
education trends, logistics and
infrastructure, not only in training
but in the overall business scene.
“The business started out with hubs
in the UK, but we have since moved
into other English-speaking countries.
They represent markets which are
considerably larger than the UK,”
Barinder says.
Knowledge Academy’s remarkable
growth has been driven by its focus
on qualifications which have been
developed for the government and
government sectors, making them
recognisable globally.
“This means they have international
credibility and translate well into other
markets,” Barinder explains. “Knowledge
Academy now has 200 centres around
the world, but that is just the tip of the
iceberg. The next step is to move into
providing training in local languages.”
A network of local expertise
Doing business across borders brings
its own unique challenges, from distinct
training needs to diverse cultures,
regulations and tax regimes.
“Since we began working with the
company in 2010, our relationship with
Haines Watts has blossomed because
it has been able to support us both in
the UK and in finding suitable partners
overseas,” she continues.
“As we have grown from a small
organisation and moved into overseas
markets, Haines Watts has been there
to make sure we remain compliant.”
In a country like the US, where there
is a vast number of competitors in the
training arena, opening for business
can be a daunting process. “There
are so many questions. What kind of
entity do you establish, how do you >
Backing your business 7

story
>
register in each
state and what’s the
Federal perspective?”
Barinder points out.
Foundation for
global expansion
An introduction to
local accountancy
firms with real ‘on
the ground’ expertise
was invaluable, she
says. “And being able
to source partners who have already
been vetted through the GGI Network, of
which Haines Watts is a member, meant
we didn’t feel as blind, whether we were
trying to answer customer or supplier
questions or prove our certification.”
Reporting requirements for financial
results vary greatly from country to
country – even where there may seem
to be similar cultures, such as Australia
and the US. “Establishing a business in
India is very different to what you’d do
in the UAE. It is not just about creating
a legal entity, but making sure all the
components you need are in place before
you start to trade, from the mechanics
of currency – where we were referred
to currency experts at HiFX – to a bank
account, and tax. Haines Watts has
supported us in all these areas.
“This has been important because if
you get it wrong the repercussions are
immense for a private business owner;
it could potentially lead to a custodial
sentence,” Barinder warns.
Technology-led future
Knowledge Academy continues to invest
in the future, which includes spending
more than £2 million in developing
technology that will allow it to work with
large corporations to collect data, identify
training requirements and create bespoke
programmes to meet their needs.
“This ‘training needs analysis’ looks at
the skills present in an organisation today
and what is needed tomorrow to best
serve that business in the future,”
says Barinder. “This technology will
also allow them to benchmark spend
compared to the competition.”
And, she adds, with a lack of workers in
the UK with skills in software development,
building capability in this area offers
exciting potential for further growth.
Award-winning business strategies
Dilshad and Barinder Hothi have been
recognised for their entrepreneurial
successes with a raft of awards, from
RBS Management Team of the Year
2014 and ‘One to watch’ in the Sunday
Times Fast Track 100 2015 to entering
the 2016 Sunday Times Fast Track – SME
Export Track 100 at number 29 and,
finally, Barinder winning Woman Business
Owner of the Year 2016.
“I believe we have stood out
because we have founded a business
in a challenging environment which has
since seen exponential growth – and
we are completely self-funded. We’ve
always had a ‘if you can’t afford it, don’t
buy it’ philosophy.”
“As we have grown
and moved into
overseas markets,
Haines Watts has been
there to make sure we
remain compliant.”
Barinder Hothi,
Knowledge Academy
expert
MICHAEL DAVIDSON,
Haines Watts
“Barinder and Dilshad are great
to work with. Barinder’s business
savvy is balanced by her husband’s
entrepreneurial streak – it’s the
perfect mix that has led to their
business expanding rapidly.
But they are very focused on
growth, and where Haines Watts has
been able to offer value is in making
sure the accounting systems and
processes are in place and that the
company has the right people with
the skills and experience to take it to
the next phase.
We highlighted that their financial
team was under-resourced, for
instance, and within two years they
had expanded this from two to over
ten people, including a Head of Group
Services and financial controller.
It means they now have access
to timely management information
which allows them to make
responsive, well-informed decisions
about any business challenges.
As they have expanded rapidly to
other markets, the GGI Network has
also been of particular importance.
Thanks to clients like the Knowledge
Academy, Haines Watts is now one
of the global professional alliance’s
top firms for referring work to other
partners around the world.”
8 magazine | Issue 47 | hwca.com

self
The
power of
emotions
When it comes to your
finances, it’s important to
understand how emotions
can sway your decisionmaking,
says Tilney’s
Richard Dawes.
Even for seasoned investors,
emotions can be a subversive
influence on the way they view
and manage their finances.
But, says Richard Dawes, there are
two emotional influences to beware
– loss aversion and overconfidence.
“The emotional impact of a loss
is about twice that of a comparable
gain, so wanting to avoid losses is
understandable. But it can stop us from
taking risks that we could benefit from,”
he explains.
The equity market, for example, has
historically delivered greater returns than
investing in bonds or savings accounts,
but it comes with higher risks. “This can
put people off and stop them taking
advantage of the long-term opportunities
that equities offer,” Richard continues.
“At the other end of the spectrum
is overconfidence. Rather than giving
us the courage to be brave with our
investments, an overconfident attitude
often makes us complacent and
encourages bad behaviour.”
He adds that overconfident investors
tend to trade too often and diversify
too little. “Yet research shows that
diversification can lead to greater longterm
gains,” he says. “And short-term
trading frequently lowers returns.”
Together, these emotional influences
can be disastrous for investments.
“Buying after a sector or stock has
already risen can mean losing out on
growth, while selling after a fall can lock
in losses, and ignoring diversification
can lead to missed opportunities,”
Richard concludes.
Important information
The value of investments can go down
as well as up and you can get back less
than you originally invested. This article
does not constitute personal advice.
If you are in doubt as to the suitability
of an investment please contact one
of our advisers.
So, how can we
combat emotional
investing?
Risk is part of any investment, but
it’s crucial to be comfortable with
how much risk you’re willing to take,
so you don’t let your emotions get
the better of you.
At Tilney, our financial planners
and investment managers can create
a financial plan and investment
portfolio that takes your lifestyle
goals into account – and how much
risk you’re prepared to take to
achieve them. Call us today on
020 7189 2400 to find out more.
Backing your business 9

picture
A heavy
burden
Running a company can
be a lonely and stressful
experience. The secret to
finding balance is to build
a bespoke support network,
says Haines Watts’
Ben Young.
No matter what size your
business, there are
some issues which are
experienced by almost all
owners, according to Ben Young.
Since the recession, companies
have benefited from becoming leaner
and meaner and have embraced new
ways of working. But, says Ben, it
means figureheads can have fewer
people to turn to when they find
themselves out of their depth.
“People who run larger companies
tend to have more developed support
networks, such as a management
team or specialist advisers. But many
SME owners don’t have such clearly
defined networks. This has increased
the psychological pressure on the very
people who we rely on to keep the UK
economy afloat,” he comments.
A recent study by Haines Watts, titled
For Love or Money, has revealed that
running a business often becomes a
lifestyle. Two in three business owners
surveyed described their lifestyle as
being tipped towards work. One in 10
owners asked don’t take holidays and
more than two fifths take less than 10
days holiday annually.
“Business owners already have
a blurred line between work and home
life,” Ben says. “They struggle to switch
off and focus on other important things,
like spending time with their children
or keeping fit.” The study revealed that
38% said their relationship with their
partner has suffered as a result of owning
and running their business – a third (30%)
also admit that relationships with their
children have suffered.
The end result, says Ben, is that an
owner can feel that, no matter what they
do, they’ll be letting someone down. “If
they work longer hours, they’re missing
valuable family time. If they go home
on time, they might feel like they look
less committed to staff in the business,
or that they missed the opportunity to
make a greater contribution that day.
Feeling like they can’t win can be
a major source of stress. A fear of being
10 magazine | Issue 47 | hwca.com

seen as weak or indecisive can also
mean they don’t reach out for help.”
Sources of stress
More than half of business owners
(53%) identified financial worries as
a source of stress, followed by peaks
and troughs in the volume of work (43%)
and responsibility to staff (42%). “But
there comes a tipping point, when stress
can completely take over and begin
to affect not only relationships but
a business owner’s health,” Ben says.
“The answer is to surround yourself
with the right people, who will give you
assurance, guidance, tips and contacts
– who have the ability to be honest and
provide informed answers when you
need them most.”
While family is often cited as the
reason for working so hard (52%
of business owners say their family
re-motivates them), it’s also often what
makes running a business worthwhile.
“Many owners don’t like to take their
work troubles home with them, but
finding that balance – talking to people
who can offer you the support you need,
in whatever format that comes in – is
the answer to achieving an equilibrium,”
Ben concludes.
Five stress-busters:
1. Write it down: putting your worries on paper will help
you to identify issues, develop self-awareness of your
weaknesses and find solutions.
2. Prepare a plan: form a clear, strategic view of your
vision and objectives and the actions required to
achieve them, such as how you’re going to attract and
retain good people.
3. Build a network: every owner has different
experiences and skill sets, so reach out to people
who can offer you additional support.
4. Spread the load: it’s never a good idea for any one
person in a business to be too important. Develop
a decision-making framework where everyone has
clear objectives and knows their responsibilities.
5. Get a life: don’t make work your whole life unless
you are the kind of person who genuinely thrives
on thinking about it 24/7.
“Surround yourself with the
right people, who have the
ability to be honest and
provide informed answers
when you need them most.”
Ben Young, Haines Watts
Psychological
perspective
Stress is commonplace among business owners but
it’s not caused by simply being busy, says Professor
Stephen Palmer, Director of the Coaching Psychology
Unit at City, University of London.
“I regularly meet people who say they are hugely busy,
but when we dig deeper into what they do in a day,
it turns out their extra work is not bringing more money
into the business,” he explains. “Owners may be, at best,
engaging in the wrong kind of work, focusing on their
core skill rather than activities which will actually make
them money, such as developing their business. Owners
of small businesses often have to be a Jack or Jill of all
trades, but most risk mastering none.”
Cary Cooper, Professor of Organizational Psychology
& Health, Manchester Business School, takes care to
highlight that while money is a focus for business owners,
it’s not because they are greedy. “As entrepreneurial
people, they crave the security it brings,” he continues.
“Money is recognition of the sacrifices that they, and
their families, have made.”
A need to control is a typical owner trait, Cary says.
“But it’s a double-edged sword. They enjoy autonomy,
but they tend to take any work offered to them, when
they should be selecting jobs that they want to do, which
will meet their core objectives and will take the business
forward. Too many SMEs take on work that distracts
them from finding better opportunities and which are
suited to their core proposition,” he says.
Family is another key element which emerges from the
research. “It’s important that entrepreneurs get the buyin
of their family when they set up the venture, so they
know the payoffs and also the sacrifices they are going
to have to make,” he concludes.
Backing your business 11

strategy
Scale
up
or
sell
out?
As a business matures, an important decision arises: is it time
to keep the status quo or invest time and energy in taking
it to the next level? Charles Whelan, HW Corporate Finance
explores how owners can identify when it’s time to bow out.
Should you show your hand or
ask the dealer for another card?
At times, big decisions in business
can feel like gambling. But, in
reality, an owner should know exactly
where their organisation is heading over
the next five years.
Will they retain a lifestyle venture,
grow the business or facilitate a payout
though a trade sale or an MBO or simply
pass it on to the next generation?
Whatever the plan, there should also
be a focus on how an owner, whether
fully engaged or viewing from the
side lines, will be adding value to the
business – or whether they are just
getting in the way.
Bringing in new blood
As an owner’s relationship with their
business matures, they may find
themselves at a life stage where their
children have left home, they are
financially comfortable and their attention
has strayed to other life passions.
This, says Charles, is a potentially
dangerous scenario, because there’s
a risk that this decline in interest can
be sensed throughout the company.
Productivity dips can often follow.
“Sometimes the owner may choose to
replace themselves with an MD or CEO,
but this also has its risks, as I often hear
how a new MD is left feeling that they
are hindered by a lack of autonomy or
the owner is frustrated by not getting
the hoped-for outcome,” he explains.
“There should also be a focus on how an owner,
whether fully engaged or viewing from the side
lines, will be adding value to the business.”
Charles Whelan, HW Corporate Finance
But a new leader and full sale is
often not what is needed or desired
and an owner may instead develop
a strong team to take the business
forward.
A partial MBO can work well for an
owner looking to extract the value of
the business while also leaving a good
incentive for the management team
to scale the business to the next level.
Still in the game
If an owner still has a passion for
business, they may look to push the
business forward – whether this is
into new markets or by developing
new products and services.
“In my experience, the decision to
scale up or sell up should be based on
the owner’s energy, enthusiasm and
commitment,”Charles concludes.
12 magazine | Issue 47 | hwca.com

opinion
VAT: a more
flexible future?
A Europe-wide VAT regime
should have meant a
harmonised, integrated VAT
system. But this didn’t prove
to be the case, says Haines
Watts’ Steve McCrindle.
So what next for an
independent UK?
The single market failed to bring
the promised consistent VAT
regime across all 28 member
states of the European Union,
with significant differences to be found,
for example, in VAT rates across the EU.
Malta has a standard rate of just
18%, for instance, while Hungary’s is
significantly more at 27%. But, says
Steve McCrindle, a post-Brexit economy
may actually bring a tax landscape
based on simpler policies driven by
a domestic agenda.
“Of course, Article 50 hasn’t been
activated yet, so our departure from the
EU is not yet a reality,” he says. “But I have
noted a sense of shock over the Channel,
so once the UK begins to negotiate
its Brexit, we may find we don’t get
everything we ask for, including on tax.”
Easing the burden
If the UK becomes completely
independent of the EU, it will have more
control over tax matters. “The government
would want to create a fiscal platform to
enable businesses to trade, at least on
a level playing field, but perhaps at an
advantage to get the economy running
again,” notes Steve.
So, what measures could be put in
place to help SMEs stay competitive
post-Brexit? According to Steve, one area
could be raising the VAT threshold from
£83,000 up to £250,000 to help ease
the tax burden on small businesses.
We could also see an easing of
importing and exporting red tape,
such as the removal of EC Sales Lists
and Intrastat regulations. “We could
also see the scrapping of EU invoicing
requirements and extension of the VAT
cash accounting scheme to help make
doing business that little bit easier for
SMEs in the UK,” states Steve.
Taking care of taxes
Certain indirect taxes, says Steve,
such as air passenger duty, landfill
tax, climate change levy and insurance
premium tax, are domestic taxes, so
should not be unduly affected by Brexit.
Customs duty, on the other hand, is
almost entirely governed by EU legislation
and so will likely be the biggest area to be
affected by Brexit.
“The political arena will dictate to
a great extent what happens, and most
of my clients are carrying on with business
as usual as there is currently no way to
know how the VAT landscape will shift in
a post-Brexit world,” he concludes.
“I have noted a sense of
shock over the Channel,
so once the UK begins
to negotiate its Brexit,
we may find we don’t
get everything we ask
for, including on tax.”
Backing your business 13

success
Lonely
at the top
UK businesswomen are becoming
increasingly ambitious, recent
research shows, but reaching
the top comes with a particular
problem – isolation. Help is available
if you know where to look, says
Haines Watts’ Vikki Wynne.
“42% of female
business owners
are aiming for
20% plus growth
next year”
A
new wave of female leaders,
both in political and private
spheres, in recent years has
helped to raise the profile
of women in business. And they are
continuing to set their sights high,
a recent study has shown.
Of the 500 UK business owners 1
surveyed for the Haines Watts study,
For Love or Money? The Secret Life of
the Business Owner, women were shown
to be striving harder. It showed that 31%
aimed for growth of more than 20% in
2016, compared to just 22% of men. And
in 2017, 42% of women say they will aim
for 20%+, compared to a quarter (25%)
of men.
Family comes first
Deciding your own hours may be a big
attraction to women in running their own
company. But psychological testing of
business owners conducted by Haines
Watts recently 2 seemed to show that
running a small business actually means
spending less time with your family. This is
most apparent when you compare gender
scores, as females scored 93 compared
to 75 for male business owners. Female
business owners seem to suffer a far
greater negative effect on their mental
health than their male counterparts,
scoring 90 compared to 61.
Motivations in the balance
Like male business owners, women
strongly agree that their long hours are
“all about the money” and that it “keeps
them going”, the survey showed. “Rather
than being about wealth, money is a way
of demonstrating success and providing
financial security for their families,”
says Vikki.
But there is loneliness at the top. For
Love or Money revealed a high number
of female business leaders are unsure of
who to turn to for advice and support.
“Psychological testing also revealed that
women (scoring 85 out of a 100) strongly
agreed that it can be ‘very lonely’ and
they ‘don’t know where to turn for help’,”
she says.
“Thankfully there is a diverse range
of groups and networks to help women
in business get the support they need.
Having supportive advisers working with
your business is also key,” says Vikki.
1 Haines Watts’ For Love or Money? The Secret Life of the
Business Owner 2016 study – based on interviews with
owners of companies with a turnover of £1 million-£50
million, 10-249 employees, and at least two years old,
across all UK regions and major industries.
2 Haines Watts used psychological testing to assess 100
business owners who met certain criteria (turnover,
staff number and age) for non-conscious reactions
and instinctive feelings. People were given scores of
between 1 and 100, with 1-44 denoting disagreement,
and 56-100 denoting agreement.
14 magazine | Issue 47 | hwca.com

panel
The
personal
cost
What sacrifices are business owners making for their business?
STEVE McCRINDLE,
Haines Watts Group
VAT Partner
“Negotiating and complying with the
various business tax laws and regulations
means many owners are sacrificing time
they could be spending on their business
or with their families and friends.”
VIKKI WYNNE,
Haines Watts Associate
Director, Liverpool
“The life of a business owner doesn’t fit
into the neat ‘9 to 5’ working day. My
husband has an equally demanding job,
so we make sure we only work one or
two nights a week so our jobs don’t have
a negative impact on our family life.”
“When we do
attend social
occasions, it’s to
meet business
acquaintances,
not old friends”
Michael Davidson, Haines Watts
Regional Managing Partner
MICHAEL DAVIDSON,
Haines Watts Regional
Managing Partner
“Time is the main sacrifice. We spend
less time with family; when we do attend
social occasions, it’s to meet business
acquaintances, not old friends. And
finding the large blocks of time needed
for ongoing personal development is
a real challenge.”
CHARLES WHELAN,
HW Corporate Finance
When the chips are down, owners often
prioritise the needs of the business,
putting themselves, their employees and,
sometimes even their family, second.
BEN YOUNG,
Haines Watts Partner,
Northampton
“I see many clients who have sacrificed
the stability and certainty in their lives,
both financially and emotionally. Often it
is the quality time with friends and family
– which is so important for achieving a
work/life balance – which suffers.”
NEIL STAMMERS,
Haines Watts Partner, London
“Owners often find they have to make
financial compromises at some point
during the development of their business,
which can involve taking an income that
is significantly below market rates. They
also know that their financial position
can change quickly, and radically.”
Backing your business 15

self
Countdown
to
retirement
As people near retirement,
they often seek reassurance
that their finances are going
to provide the lifestyle they
want. How can they prepare
their finances?
Phil: a case study
Meet our customer Phil.
He is a 62-year-old
accountant who now runs
his own business. He lives
with his wife Angela in Hertfordshire.
Phil hopes to stop working in the next
few years, so he decided to meet with
a Tilney financial planner to review his
finances and check that he will have
enough money for retirement.
Before the meeting
Preparation is important. So before going along to the meeting,
Phil filled out two spreadsheets.
1. The first included all of the couple’s
assets, savings and liabilities:
• Pensions and investments
• ISAs and other savings accounts
• Mortgages
• Phil’s business account.
The financial planner also contacted
Phil’s other investment providers for
up-to-date account valuations.
2. The second spreadsheet
included all the couple’s current
and future outgoings:
• Current pension contributions
• Outstanding mortgage
• Regular expenses they expected
for retirement
• All other planned expenses such
as a new car and yearly holiday.
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During the meeting
Phil arrived at the office to find his
financial planner had already entered
this information into Tilney’s cashflow
modelling software, which uses the
above details (and Phil and Angela’s
plans for later life) to forecast how
much money they could have in future.
The first calculation showed that
they had saved more than enough
money to fund the retirement that
they wanted – with his current
plans, Phil could live to 100
and still leave an inheritance
to his children.
Exploring options
When he heard this, Phil
was keen to run through
several different scenarios
to see if he and his wife could
potentially change their plans and
what would happen if they:
• Stopped working completely the
next year
• Took semi-retirement, winding down
to two to three days’ work per week
• Went on more holidays during retirement
• Increased their annual spending
by £10,000.
He also wanted to know if they could
afford care home fees in future, and
whether Angela would be financially
comfortable if he died unexpectedly.
Phil’s financial planner ran through
each of these scenarios, looking at the
effect a lower investment return or
a fall in the market might have on Phil’s
finances, for instance.
The recommendations
After spending some time running
through different scenarios, the financial
planner reassured Phil that he was in
a good financial position and could
afford to spend more during retirement
if he wanted to.
He also said that Angela wouldn’t
struggle financially if he went into
a care home or died suddenly.
As Phil was forecasted to leave
behind an Inheritance Tax bill when he
died, the pair decided to meet again in
a month’s time to discuss if Phil should
give each of his two children a cash gift
to help them buy their first houses.
Will you be comfortable
in retirement?
If you’re in a similar position to Phil
or would like to speak to a financial
planner about your wider finances,
you can book a no-obligation
telephone consultation. Call Tilney
on 020 7189 2400 or book a
consultation online at tilney.co.uk/
free-consultation
Important information
The value of investments can go down as well as up and you can get back less
than you originally invested. This article does not constitute personal advice.
If you are in doubt as to the suitability of an investment please contact one of
our advisers. Prevailing tax rates and reliefs are dependent on your individual
circumstances and are subject to change. This is a real Tilney client case study.
Names have been changed for anonymity and the client has given consent for the
case study to be used.
Backing your business 17

update
Royal
approval
Haines Watts client Priyesh
Patel, Managing Director
of Cofresh Snack Foods,
was made an MBE in
the Queen’s New Year
2017 Honours List for his
contribution to exports
and services to the economy
in Leicestershire.
Charity
starts
at home
Haines Watts’ Herefordshire office decided to help
children this Christmas by donating toys to Home-Start.
Practice administrator Kim Hutton chose Home-Start
Herefordshire because of the work they do with families
in need of help and support. The team decided to forego
the usual office Secret Santa and donate the toys instead.
Every little helps
A survey by American Express Small Business Services
discovered that employees place more emphasis on praise
from their boss (35%) over a bonus (20%). Those working
for small businesses also appreciate recognition in the
form of rewards, with vouchers, a free meal and a bottle of
wine listed as the things they would most like to receive.
Millennial
matters
Bring in billions
Research has shown that SMEs in the UK’s
top 10 cities are likely to contribute
almost £217 billion per year to the
country’s economy by 2020.
Manchester and Leeds are
predicted to see the largest
rises in revenue in the five
years from 2015 (15%),
with Sheffield seeing the
smallest revenue rise in
the top 10 at 8%.
Almost two fifths (39%) of Millennials would like to own
their own business in the future, according to a recent
survey. More than half of those polled (54%) cited flexible
working hours as being the main driver behind their
business-owning ambitions. There are marked differences
between sectors, with 20% of young men looking to
start their own technology firms, compared to just 2%
of young women.
18 magazine | Issue 47 | hwca.com

Greenall Young
Entrepreneur of the Year
Haines Watts revealed that the 2016 overall winner of
its Young Entrepreneur of the Year competition was Dan
Greenall, of Oxford Vapours, at its recent final.
Other finalists included: Ahmed Yar Khan and Allahyar
Khan, of AKD Facilities Management; Darren Chadwick,
of Brite Green; Reni Reis, of Electric Mania; and Richard
and Tim Woods, of Yomp Marketing.
There was a wide range of industry sectors represented
at the awards: from sustainability strategy consulting and
digital marketing to online electronics retailing.
All finalists received a year of free mentoring with
a Haines Watts Partner and a ‘Marketing Mastermind Day’
as part of their prize, along with cheques for £250 and
free publicity. Winner Dan Greenall won a total cash
prize of £1,000.
The 2017 competition kicks off on 1 March 2017. If you
think you’ve got what it takes we’d love to hear from you
– www.hwye.co.uk.
Digital alarm
A report by Microsoft has found that
50% of all UK business leaders fear
the effects that digital disruption will
have on their organisations. And 44%
believe that their current business
models won’t exist at all in the next
five years. Despite these statistics, the
study showed that nearly half (46%)
of business decision-makers found
their senior leaders unwilling to put
disruption planning into place.
On the
right track
SME business train travel is on
the rise in the UK between cities
outside of London. Emerging
business hubs in Brighton,
Swindon, Peterborough and
Northampton have all seen rail
travel levels more than double
since 2012.
Jump starting
Christmas
On December 16 in Haines
Watts offices all over the UK,
there were some fantastic
festive jumpers on
show to help raise
money for Save
the Children. Mark
Seymour from our
Skegness office was
declared the winner
with this marvellous
effort. Thanks to all who
took part and contributed
to our total of over £1,000.
Publication Date: January 2017
© 2017 Haines Watts Limited. All rights reserved. All published material remains the
property of Haines Watts Limited and is replicated with the permission of Haines
Watts Limited. All contents of the publication are correct as of publication date.
Haines Watts and The Haines Watts Group generally refer to the network of
member organisations, each of which is a separate and independent legal entity.
Each entity has signed a participation agreement with Haines Watts Limited, or
is controlled by such a firm. Member organisations are not members of one legal
partnership and are only liable for their own acts and omissions, and not those of
each other.
The majority of these firms are not authorised under the Financial Services and
Markets Act 2000, but because they are licensed by the Institute of Chartered
Accountants in England and Wales, are able to offer a limited range of investment
services to clients if they are incidental and / or complementary to, or arise out of,
the other professional services they have been engaged to provide.
It is Haines Watts Group policy to refer most investment business, excluding
corporate finance work, to Financial Advisers, authorised and regulated by the
Financial Conduct Authority. The Financial Adviser will take full responsibility for
compliance with the requirements of the Financial Services and Markets Act 2000.
This magazine is designed for the general information of readers. The information
represents Haines Watts Group’s present understanding of current and proposed
legislation and HM Revenue and Customs practice. Whilst every effort has been made to
ensure accuracy, information contained in this briefing may not be comprehensive and
recipients should not act upon it without seeking professional advice from their usual
adviser. The values of investments may go down as well as up and are not guaranteed.
Backing your business 19

PRESENCE IN OVER 100 COUNTRIES AROUND THE WORLD
EXPERTS IN OWNER-MANAGED BUSINESSES
SMES AT FD EXCELLENCE AWARDS
WINNER
ACCOUNTANCY FIRM
OF THE YEAR
WINNER
ACCOUNTANCY FIRM
- LARGER CLIENTS
OVER
60
WINNER
AUDITOR OF THE
YEAR FOR SMES
2012 & 2013
ACCESS TO
OVER 100
SPECIALIST SERVICES
VIA OUR INTERNATIONAL ALLIANCE
LOCATIONS
TO HELP WITH EVERY ASPECT OF
AROUND THE UK YOUR BUSINESS & PERSONAL NEEDS
FUNDRAISING
FOR OVER 100 LOCAL CHARITIES
HELPING OVER
35,000
BUSINESS OWNERS
REACH THEIR GOALS
OVER 1,000 PEOPLE
AROUND THE UK WORKING TO SUPPORT CLIENTS
Having advisers that can add expert advice and value to both your business and personal wealth aspirations
is important for most business owners. By understanding what you want to achieve, Haines Watts is able
to work with you to identify opportunities for growth, saving money and managing risk to help you reach
your goals. If you have an hour to spare, why don’t you arrange a meeting with Haines Watts to find out
how we can help you with your business needs? Contact your local office: www.hwca.com/offices
20 magazine | Issue 47 | hwca.com