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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
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