NEW AGE PENSION SCHEMES – A SMALL BUSINESS LIFELINE SMALL BUSINESSES DON’T KNOW ABOUT

HW FINANCIAL SERVICES

MANCHESTER AND PRESTON

PRESS RELEASE

January 5, 2011.

NEW AGE PENSION SCHEMES – A SMALL BUSINESS LIFELINE SMALL BUSINESSES DON’T KNOW ABOUT.

Video.

Struggling North West small company owners may be sitting on a cash lifeline for their business – and not even realise it.

Ann-Marie Banks, a senior financial planner with HW Financial Services, part of UK top 20 chartered accountants Haines Watts, says business owners who have stayed abreast of pension developments are well aware that SSAS pensions - Small Self Administered Schemes, or company pensions – are designed to allow up to 50% of the pension value to be loaned back to the business.

“The pensions industry changed a great deal from April 2006, with lots of businesses taking out SIPPS – Self Invested Personal Pensions - which are still great vehicles to use, but for smaller owner-managed businesses there are other pensions vehicles such as SSAS – Small Self Administered Schemes, company pensions - schemes which are invested in same way as a SIPS is, but can still facilitate flexibility back to a biz when times might be difficult with regard to borrowing.

“Alternatively, these schemes can actually just provide a business with a lifeline for a short period while they get themselves back on track. SSAS schemes can generally lend up to 50% of the pension assets back to the company, so they’re not just about self-investment in, say, property, they can help the business to progress,” said Ann-Marie Banks, who is based in Manchester and Preston, and has responsibility for Merseyside and Cumbria clients. Video.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

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Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

Photos:

http://www.flickr.com/photos/pressrelations/5265365689/in/set-72157624275784545/

80% OF NORTH WEST BUSINESS OWNER MANAGERS HAVE HAD NO FINANCIAL HEALTH CHECK IN THE PAST 12 MONTHS.

HAINES WATTS

FINANCIAL SERVICES

MANCHESTER AND PRESTON

PRESS RELEASE

December 20, 2010.

80% OF NORTH WEST BUSINESS OWNER MANAGERS HAVE HAD NO FINANCIAL HEALTH CHECK IN THE PAST 12 MONTHS.

Video.

More than 80% of North West-based business owner-managers have had no sort of financial health check during the past year according to a financial planner based in the region.

Ann-Marie Banks, a senior financial planner with Haines Watts Financial Services, part of  UK top 20 chartered accountants Haines Watts, says that despite the past 18 months being amongst the volatile in economic history, only around a fifth of owner-managers in the North West have kept on top of personal finance issues.

“The markets dived, and then have recovered by around 20% in the past year, which means that owner-managers who have had advice, acted upon it and stayed alert to the economic situation have quite possibly seen as much as a 20% increase in their holdings – and that could make a huge difference when they come to cash in their pensions,” said Ann-Marie Banks, who is based in Manchester and Preston, with responsibility for clients of HW’s Liverpool, Ulverston and Hale offices. Video.

“The very sharpest business minds work with their financial planners, keep looking at their assets, assessing the risks and potential rewards, and take on board the changes in the market – and those people have come through the past 12 months or so with a stronger financial holdings base as a consequence.

“But it’s not too late: there’s still great volatility ahead, and advice and agility could see recovery for those who have not yet gone through a financial health check – and potentially greater gains for those who continue to do so.

“We obviously press our clients to take advice, and, while there’s a cost, it is outweighed in the long term by the benefits of applying that advice. But as we meet with more and more owner-managers outside of the Haines Watts client bank, we’re coming to the conclusion that around 80% of them have simply not had any sort of financial health check.

“For instance, it has been widely reported that simply putting money in a savings account at the moment is yielding a loss – but there are many more options available to help money grow.”

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

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Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

Photos:

http://www.flickr.com/photos/pressrelations/5265365689/in/set-72157624275784545/

NORTH WEST SMALL BUSINESS FIVE TIMES MORE LIKELY TO CONSULT PEERS THAN BANK

HAINES WATTS

CHARTERED ACCOUNTANTS

PRESS RELEASE

September 16, 2010.

NORTH WEST SMALL BUSINESS FIVE TIMES MORE LIKELY TO CONSULT PEERS THAN BANK.

Video here.

Photos here.

Only around a tenth of North West small business owners would consult their banks when making an investment or “sense checking” business decisions, with more than half saying they’d speak with their peers instead.

That’s one of several surprising findings from a survey by UK top-20 accountants Haines Watts that indicates there’s a new financial world order when it comes to who owner-managers rely upon for business advice.

Peers are most likely to be consulted (53%), followed by accountants (49%), friends and family (22%), banks, (10%) management consultants (4.5%) and lawyers (4%).

“The banks used to have a vast range of experience with some of their managers, and businesses obviously relied upon that. But some of those experienced people have been lost from the system, and they seem to be heading for a more risk-averse approach, and the link between bank and customers seems to have gone,” said David Fort, partner at UK top 20 chartered accountancy firm Haines Watts in Manchester and Preston. (Watch video interview)

“There are now two key groups that business owners consult: one is their peers – they look for advice and ideas from other business men – and the other is accountants, like us, who understand their business and can be relied upon to give an external view.

“Historically, small business relied upon bank managers, but in recent times there’s been a growing concern that banks have become more systemised and are losing that contact with their clients.”

The survey indicates that lawyers have lost their one-time role as trusted business advisers, with just 3.97% of business owners saying they would go to them to benchmark or “sense check” business decisions.

Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees.

Of the 8,700 owner-managed businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

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Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

http://www.hwca.com/offices/accountants-north-west.php

SURVEY: BATTLING NORTH WEST OWNER-MANAGERS DEFY “DESTRUCTIVE COST-CUTTING” TO STAY ON THEIR FEET

HAINES WATTS

PRESS RELEASE

September 8, 2010.

SURVEY: BATTLING NORTH WEST OWNER-MANAGERS DEFY “DESTRUCTIVE COST-CUTTING” TO STAY ON THEIR FEET.

Photos here.

A perfect financial storm of destructive cost-cutting, reduction of credit facilities, bank demands for personal guarantees and slow payment by public bodies is putting the engine room of the North West’s economy under enormous hidden pressure.

“99% of businesses in the North West of England employ fewer than 50 people and, boy, are they gathering scar tissue at the moment – but they’re battling through, staying on their feet, and should be proud of themselves,” said David Fort, partner at UK top 20 chartered accountancy firm Haines Watts in Manchester and Preston.

“Government stats may be saying the UK is out of recession, but small businesses are often at the end of a chain that means an invoice generated to a client or customer on day one may go through several other businesses, and several more 30-day payment cycles, before the often-delayed cash reaches that small business. In many cases, some small businesses are actually living other businesses’ or bodies’ bad fortunes of six months ago.”

Haines Watts has conducted an in-depth survey of how the current economic and business environments are impacting upon owner-managed businesses, and the statistics are stacking up strongly against them as, in parallel, frustration mounts.

“Many small businesses are still undoubtedly living the recession. 45% have had to make a claim through the courts for unpaid bills, nearly a third of North West business owners are currently being asked to provide personal guarantees for their business, 20% have seen their banks reduce or restrict credit facilities, and 17% have had to bring in additional bank finance.

“But new phrases are creeping in to describe the challenges: half of all businesses surveyed in the North West say they have experienced ‘destructive cost-cutting’ from competitors – basically those competitors who can afford to are ‘buying turnover’ by pitching for business at whatever level it takes to win it - and 22% say they have had to pitch for work on a zero profit basis.

“That such a high level of debt recovery goes as far as court action shows that small businesses’ lack of economic muscle is being exploited. In our experience, public bodies are amongst the worst when it comes to paying promptly. The threat of court action can be effective, but by the time the court has moved – it can be too late: the small business making the claim has gone to the wall,” said David Fort.

Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees.

Of the 8,700 owner-managed businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

http://www.hwca.com/offices/accountants-north-west.php

WE NEED MORE NORTH WEST STREET-SAVVY RISK TAKERS, NOT OVER-FORMULATED BUSINESS EDUCATION, SAYS ACCOUNTANT.

HAINES WATTS

PRESS RELEASE

July 26, 2010.

WE NEED MORE NORTH WEST STREET-SAVVY RISK TAKERS, NOT OVER-FORMULATED BUSINESS EDUCATION, SAYS ACCOUNTANT.

Video here.

Photos here.

Business needs more “street-savvy” risk-taking entrepreneurs to counter the massive rise in the number of graduates who have a formulated view of how to run a business.

David Fort, partner at UK top 20 chartered accountancy firm Haines Watts in Manchester and Preston, says business education training and funding should be switched from the public sector and into the hands of the employers (Watch video).

“In a Haines Watts survey of business owners, a common comment was ‘a degree does not a businessman make’. Businesses and the private sector need to develop education and training programmes which are not just specific to the skills they require, but also reflect the culture of that business,” he said.

“Accountants may have a reputation as being amongst the most risk-averse of professionals, but our view is that the North West needs more risk-takers – but harnessed and guided by private sector-run training to channel that raw commercial talent.

“More people than ever are going on to higher education, but people coming out of university are arriving in the jobs market with a much more formulated and samey structure in terms of their attitude to business,” he said.

“The rapid expansion in the numbers going through higher education may be good for the UK’s professions, but the owner-managed business sector is not seeing the benefits of the investment. Frankly, not many graduates are emerging as potential business leaders and owners. I question whether higher education is actually preparing graduates for the world of work.

“Our survey showed that a third of current North West business owners left school at 16, a further 22% with qualifications no higher than A-level; those who left school at 16 got out into the real world, taking risks, employing people – this is how we ended up in the UK with the likes of Richard Branson, Alan Sugar, John Caudwell and so on.

“Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees, yet most business training seems to be more about how to play a management role in steadying or maintaining the course of business monoliths rather than creating business and jobs through raw ambition and risk-taking,” said David Fort.

Of the 8,700 businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

http://www.hwca.com/offices/accountants-north-west.php