What to do in a world of uncertainty

2026 has been a very difficult year for a lot of soletraders and small businesses. We work in a world of uncertainty in politics, worldwide issues and finances.

It can sometimes feel difficult to stay motivated and keep pushing through until something more positive comes along.

The recent budget left very little for small businesses in it.

A fuel duty freeze until July 2027 but fuel costs are at an all time high without the taxes.

Minimum wage will be going up to £13.21 from April 2027 for those aged over 21.

No reductions in employers national insurance apart from the original employment allowance.

Landlords seeing an additional 2% charge on income tax rates on profit from rental properties from April 2027, making this income chargeable as 24% as a basic rate tax payer.

Some positives Capital gains tax remained unchanged.

We see a lot of business owners selling property to put money into their companies. We see a lot of first time owners of a business, using their capital to invest in a new business venture.

Business rates for Wales we wait to see if there will be a discount for Retail and Hospitality businesses from April 2027.

A small production relief of £10 million for Small alcohol producers

They did announce a founders relief for high growth businesses, but very few small businesses are likely to be able to apply.

Bank charges and interest rates and access to finance remains with very high interest
charges. The banks have been asked to pay a higher contribution on their taxes. We wait to see if that affects businesses further.

The building of more homes, will hopefully give the construction industry more work in the coming years.

What can you do when the World around you remains uncertain

You need to make a plan, if plan A isn’t working out, start working on plan B. Write it down

Weve had this before in the crash of the 1990’s, the financial crisis in 2008, Covid, weve bounced from hovering recession to recession. And yet were all still here. Definitely a little bruised, but our resilience and ability to adapt like a chameleon has kept us still standing, even in the face of adversity. Your strength and resilience has made you a survivor, where lots of businesses fail in their first two years.

The clients that have planned their way forward, and adapted their behaviour as time changed, have made it through all of these challenges we face.

They don’t overspend, they keep money back for a rainy day. They invest in their own futures by putting money into a pension. If costs have gone up, they have reluctantly addressed those price changes. They also don’t lose sight of the customer needs.

Weve also had a couple come through looking at the next generation of business owners within their own company. Management buyout and staff share schemes, and encourage the next generation to build on their own future with the company. Business Asset Disposal Relief is still there to be taken advantage of. Its at a higher rate now of 18%, if youre not lucky enough to be able to apply for the founders relief fund.

Mitigate the risk

You can only control what is in your immediate power, even if it means you need to adapt.

Review your costs direct and your overheads as a business. You can guarantee any large companies youre dealing with have put up their prices. They don’t always tell you they’ve done so.

If a cost isn’t giving you value, look at something else.

Marketing what are you doing to keep your name on everyones minds. Plays an ever more important part of the business owners day, when competition for the same type of services remains high. Keep reminding everyone about your core values. With the customer attention in mind.

They cant buy from you, if they don’t know you exist.

Try not to over finance. Be sure you’ve worked out the numbers that you can pay any loans back over time.

If you have to put in personal money to feed the company temporarily that something you may need to do. Think of it like a plant, it needs feeding from time to time.

If you do have credit cards or loans in the company. Is another company offering a better interest rate. Move to that company instead and use the savings to pay off the

credit cards. Higher interest rates off first.

Your sales, regularly review your services and products. If its not selling, focus on what does sell. Take the lead from your customers.

If youre in retail, regularly review your shop window, keep things fresh to bring your customers in time and time again. Have a social media presence to bring customers in to travel to you.

Hospitality look at events in the area, could promoting that event bring more spaces filled for you.

Don’t have all your eggs in one basket. Have multiple customers and multiple revenue streams.

Stay motivated

Remind yourself why you set up the business in the first place, keep focused on what that dream was. Was it be your own boss. Was it for the work life balance, was it to build a more secure family future. Keep reminding yourself of why.

Build in rest days. A business owner that has had some rest away from the business, is more refreshed to take on even the most challenging of events.

Take up a hobby, do something with your free time that motivates you, relaxes you. See nature and the countryside, visit the sea. Something that is completely different from your day to day.

Stay healthy

Tips To Cashflow Success

Cashflow funding of a business is key for its survival. A number of businesses fail within their first two years of trading, not because they didn’t have a good product or service, not because they didn’t have a market.  They simply ran out of cash.   

Businesses are struggling more than ever to just stay afloat with increases on supplier costs, energy, bank interest charges and national insurance changes.   None of us know when things will improve, but there are things we can do ourselves to make it a little easier to trade.

Tracking Sales Income

Prepare a detailed cashflow of your normal business trading, information from Sales already in your diary, if you have been trading for a few years.  Use past history to project forward plus inflation to increase sales, or a advertising campaign will potentially could increase your turnover.  For the new business set an achievable goal.  Always look ahead a minimum of a year, three years if possible.

You may have peaks and troughs, downtime or seasonality, build these into your forecast.  Its an estimation at this stage, but the more you do it, the more you can more accurately predict the pattern.

Don’t forget VAT if that applies.  Ideally shown it separately, and offset the VAT on purchases.  Your sudden inflow of cash may belong to HMRC.

Your Costs

Main costs first

• Materials
• Wages
• Rent
• Travel etc.

At the bottom, how much do you have in the bank to start off with.  Show the opening balance of the bank.

We always look at forecast cashflows, ie a budgeted one along with an actual one.  As the months pass by update the cashflow with your actual figures and roll forward.  So that you are always looking at a year to date.   Comparing predicted with actual you can look into the reason why you made target, or why you didn’t.    It makes for better decision making.

By now you will know ahead of time your cashflow issues, peaks and troughs, you can now put a plan of action to make sure that you are covered in the troughs, and are saving in the peaks.

If you need a large amount of cash in six months time.   Don’t leave the sudden influx of cash to the last minute.  Build up over a period of time.  You are more likely to fill the gap with what you need.

You might be wanting to buy capital expenditure, or take on more staff to run a project, it will help you predict when this can take place.

Look at your marketing to increase sales.  Check your margins to make sure your sales cover your costs.  The latest budget changes was an estimated 5% change to everyone costs.  Did you put that into your forecast.  

Keep a close eye on the costs themselves, are you spending money on something you don’t need, or can a piece of equipment help you do it quicker and more efficiently.

Tracking everything,  yes its time you may not even have.  But if you get yourself into a routine,  it just becomes part of your day to day.  

Companies who track and plan ahead tend to more frequently ride these storms more successfully, than companies that don’t.

Don’t let the fact that you may be a small company put you off.  This applies to you just like a large company.

Look at other options for finance other than your cashflows from the business.

Put in family or your own money.   (MLR rules apply)

Gain credit from your suppliers

Finance leases from the banks and other money lenders

A credit card you pay off every month

A mortgage

A business is like a plant.   Its needs feeding from time to time, to see it bear fruit.

Your credit score can even affect you being able to take on a large contract.  You will still need the credit from your supplier to make that important sale.

By gaining credit it will increase your credit score and make you more attractive to lenders.

Gaining credit and paying it off on time increases your credit score and therefore your buying power.    you can easily track your credit score online now so how its looking.   Definitely important if you are applying for a loan or mortgage.

Even if you only use a credit card temporarily it can make all the difference.

We provide a simple template to our clients who ask for one.  Its easy to use and clients have found it so helpful.  Give it a go, you may find you get that goal achieved in a short space of time.

Were certainly working on ours for 2026.

On this day we reflect on what has become and increasing issue in todays society.  Mental Health awareness.

I see from clients that things are being done and grants are available to companies that specialise in tackling the issue, but theres a lot more that can be done by ourselves to help others and ourselves.

As a business owner myself, I have to keep myself healthy and motivated as I have both employees and family as a responsibility to look after. Keeping them in their jobs, secure and safe environment to work and also keeping them motivated. It can be a lonely place being head of the company with all that responsibility.

We work with a few charities in the area that help others in the community to keep everyone healthy. Breathe Creative and Growing Green both serve the community in South Wales. Teaching services users carpentry, growing their own food, sharing recipes with mental health consultation, and art classes. They have done brilliantly over the past couple of years, actively helping their community with their innovative and supportive ideas.

We have signed to the Army Benevelant Fund this year, supporting our veterans who have come out of service and are back in the community, setting up their own businesses. Assisting owners that could have OCD, Neurodiversity issues.

For the Bridgend Area we are also supporting Mental Health Matters charity support for Mental Health, Crisis Management and Depression.

As a business owner myself I would like to share some tips that have helped me for years keeping myself healthy and motivated.

Getting enough sleep is usually my first step in having a very good day ahead. I tend to settle down before 10pm with low lighting and quiet sounds. After doing what is a very busy job, I find that it keeps me in the settling down mood when I am at home.

I might watch a little TV or listen to music. A bath with candles and sounds of the sea on the sound system another great way to relax. I drink a lot of water, keeping my skin clear and my body fully hydrated. I do love a coffee and tea, but try not to drink too much.

Exercise, I’m always a fan of dancing in the kitchen whilst preparing dinner, after a hectic day, it’s a fun way to unwind and load off the stresses of the day. Yes, I still have those 1990’s dance moves.

Gardening I have transformed my garden over the past couple of years, transforming it from an overgrown unloved space. To a full set up for outdoor dining and entertaining friends. To growing my own food, using organic methods. My neighbours still find it entertaining, as I’m out there rain or shine. If there’s a job to do I’m out there whatever the weather.

Food my great passion, I am known in my family for being a feeder, now I’m growing my own food, the family and friends are being put through the experimental stage of my food obsession. Making Jam, Chutney, and dried fruit to use all year round. To strange flavoured ice cream. Always an experiment, not always successful, but everyone tries them and gives their opinion.

Walks in the country and by the beach. Picking up fir cones, and foraging, making my own Christmas Wreath, I have friends who turn mirrors into art work, with foraged shells from the sea, or sea glass.

I keep a very close family and friend network. This great bunch of people have helped me through some very tough times, and keep supporting me in everything I do. Even if some of my ideas might be a little crazy. Having that loving network you can’t put a price on that.    Finding new networks with like minded people, they bring such positive energy.

I keep to my work hours. Whatever your work hours are for you, always build in that rest time. I have two full days off a week, would love to have three days off. The future goal for me.   Having proper rest doing something completely different to your day or night job, keeps you well and keeps  you motivated.

Holidays, even if I’m just having a few days and daytrip from home, I always have holidays, time away from the office. I do it every three months. The ideas and challenges I think of when I come back, having had that rest and destress really does keep us moving forward.

Friends of mine go to the gym, do dance classes, watching football, learning to play a musical instrument, learning to skydive. Whatever hobby and interest you like, it doesn’t matter, but try and build them into your week. You’ll be so surprised how much better you become at running your business, by taking that time out and reenergising.

Don’t just do it for Mental Health Awareness day, do it everyday.

Its your life. Make it count and live well.

Fresh from my time away over the summer holidays this year, with my two sons. I took two weeks off this year. I found that with such a busy job and life, which has so many deadlines and stresses that I needed a bit of r&r.

I found the time off rewarding as it gave me not only special time with my sons, but a way of decompressing from what is a very busy life.

I’ve come back to work full of energy, making a list of both personal and business plans to see us not only to the end of this year, but a wish list for next year too.

My garden on return had greeted me with lovely ripe produce, vegetables and fruit, getting me in the mood for harvesting and extending the life of the goods with preserving.    It reminded me of what I need to do with my business and life too.   

Feed it to preserve it for the future.

We’re currently invested in marketing and have a consultant helping us get those jobs off the desk that we have been putting off. Introducing us to new ideas and revisiting ones we haven’t tried in a while. The market has moved so much with the huge amount of legislation we all have to follow, the banks not being as helpful as they could be, and governments generally coming across as clueless of how to move our country forward.

Basically, it’s all in our own hands, if we are going to make it, it will be down to our working through ideas and plans and making it happen for ourselves.  Nobody is going to hand it to us on a plate.   Although that would be very nice.

I talk to business owners all the time and quite a few as its so up and down with getting work in, that they maybe not be taking the breaks they need, to maintain motivation and energy levels that they might have had when they started.

I find that having that break away, apart from giving me that time away to give me the revitalised energy levels back.   It allows me to focus on what is important and get work done that gives value not just to the clients but to me also.

I always find creating a wish list both personal and business really helps me focus on getting things done that provide me with reward and motivation.  It’s so easy to get lost in the noise of the day-to-day activities, we often forget why we're in business at all.

If you can take anything from this, always take your breaks.    Your sleep patterns should return, you will have more energy and definitely be more focused.    We all need this to keep our health in good order.

Not taking time off is one of the biggest reasons company owners give up self-employment, they suffer burn out.   Don’t let that be you.

I also find that having a hobby for when you’re not in work helps too.  Something to allow you to decompress after a long day.  Whether that be art, gardening, going for a two-mile walk.  Whatever you like, it can be anything.    Enjoy the life you have,  its all in your own hands.

As summer has ended and the colder nights approach, it can be a bit tough to take with the local lockdowns in place. We need to try and stay spirited and make the most of our situation. If you are having to close or reduce hours, make sure to keep promoting your business on social media, so once you are back, you are still in front of people’s mind. There is some support still out there, carry on reading to see what you can apply for before the deadlines approach.

Coronavirus Loans

The Chancellor, Rishi Sunak has announced that businesses that have borrowed money through the government's loan scheme, such as the “bounce back” loan and the “Coronavirus Business Interruption Loan Scheme” would be given more time to repay the money.

A new Pay as You Grow flexible repayment system has been introduced by the chancellor for small businesses who took out the "Bounce Back". It means borrowings can be repaid over ten years instead of the original six-year term.

The longer repayment time also applied to small and medium-sized firms who borrowed under the “Coronavirus Business Interruption Loan Scheme”.

Businesses will also have more time to apply for these loans, application dates for the schemes had been due to end in October.

Job Support Scheme

As furlough comes towards the end, the chancellor announced a new replacement scheme for the Job Retention Scheme (furlough). From 01 November, the new scheme known as Job Support Scheme will see that the government will contribute towards the wages of employees who are working fewer than normal hours.

Any hours worked by the employees the employer will continue to pay their usual wages of the hours worked. For hours not worked, the government and the employer will each pay one third of the equivalent salary. The government’s contribution will be capped at £697.92 a month.

Kickstart Scheme

With Coronavirus effecting everyone, some of the hardest hit were the young people. The Kickstart Scheme provides funding to employers to create new 6-month job placements for young people aged between 16 – 24 who are currently claiming Universal Credit and at risk of long-term unemployment.

This is the government’s plan for jobs and to create hundreds and thousands of new, fully funded jobs across England, Scotland and Wales. More details are yet to come out and the first placements are likely to be available from November.

The Kickstart Scheme will cover 100% of the National Minimum Wage for 25 hours a week as well as the employer National Insurance contributions and employer minimum automatic enrolment contributions.

There will also be extra funding to support young people after the 6-month period to help build their experience and help them move into sustained employment after they have completed their Kickstart Scheme.

Self-Employment Income Support Scheme

The previous support for the self-employed has been decided by the government to be extended. The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a 3-month period.

You must currently be eligible for the original Self-Employed Income Support Scheme, though you do not need to have claimed it. It must be declared that you are actively trading and that you are impacted by the pandemic. HMRC will provide more details about claiming in due course.

VAT Reduced Rate

There was a series of new measures introduced to help hospitality, holiday accommodation and attractions sector. These included VAT being cut to 5%, effective from 15 July 2020. The VAT cut will remain in place and has been extended to run until 31 March 2021.

For restaurants and cafés that provide food services for both take away and dine in, the temporary reduction in the VAT rate only applies to;

·         Food for consumption on the premises on which they are supplied

·         Non-alcoholic beverages for consumption on the premises on which they are supplied

·         Hot takeaway food for consumption off the premises on which they are supplied

·         Hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied

We all need to continue supporting each other, shop local wherever possible, helping the small independent shops. Let’s follow government guidelines and rules, to stop a spike in cases and who knows, our sacrifices may be worth it when we may be able to celebrate come Christmas.

As we try and get back some normality in our lives, and places start to open back up for business. We still need to remember that the fight is not over and need to abide by the rules set in place. Well done to all pushing through and staying motivated. Throughout lockdown we have updated you with what the government have announced and plan to do. There have been a lot of information announced, you can find all the latest below.

How has the Furlough scheme changed?

One of the many questions we get asked is, how has the furlough scheme changed? The Coronavirus Job Retention Scheme, furlough as its more commonly called is designed to help people who could not do their jobs because of the virus and prevent mass redundancies.

The scheme is to close in October and has had some criticism with the decision to close, but it has been backed by the Bank of England boss, which says workers should be helped to ''move forward'' and not kept in unproductive jobs.

From 01 August 2020 the government will pay 80% of wages up to a cap of £2,500. Employers will now have to pay employers National Insurance Contributions (NIC) and pension contributions. You can bring back employees to work shifts and then put back on furlough if needed. Remember any hours worked, the employee is entitled to 100% of their wage and this needs to come directly from the employer.

From 01 September 2020 the government will contribute 70% of wages up to a cap of £2,187.50. Employers will again pay employer National Insurance Contributions (NIC) and pension contributions just like for August. However, now employers will have to pay 10% of wages to make up the 80% total up to a cap of £2,500. Part time furlough is still available, but any hours worked by staff, employers will have to pay 100% of wage.

From 01 October 2020, 60% of wages will be contributed by the government up to a cap of £1,875. Employers will pay employer NICs and pension contributions and top up 20% of wages to make up 80% total up to a cap of £2,500 until when the scheme ends at the end of the month.

The aim of the tapering is to allow employers to ease employees back in to work at the same time as businesses productivity hopefully resumes.

How does the part time furlough work?

The part time furlough is designed to give you the chance to call an employee back in to work if there is a lot of work or put them back on furlough if the workload drops off. So, how does it work?

If you have a member of staff who works 8 hours a day, 5 days a week and your business is closed, you can furlough the member of staff and the government will cover a percentage of the wage, depending on the situation as mentioned above. If you want to trial opening your business for a couple of days a week, and you need the member of staff for 3 days a week, you will be liable to pay 100% of the wage for the 3 days worked, and the government will pay the percentage equivalent for the remaining 2 days not worked and on furlough. The rules mentioned above applies, regarding the percentage amount and NIC’s being paid by yourself.

The government has allowed the part time furlough to relieve some of the financial strain of keeping staff and prevent mass redundancies. For each furloughed member of staff still employed as of 31 January 2021, the government will give the employer a one-off £1,000 bonus

Kickstart Scheme

The chancellor also announced a new Kickstart Scheme worth to be in the region of £2 billion. The plan is to be launched to create hundreds of thousands of new, fully subsidised jobs for young people. If you claim Universal Credit and are aged between 16-24 and at risk of long-term unemployment will be eligible. Funding will be available for each six-month job placement and will cover 100% of the National Minimum Wage for 25 hours a week. Employers will be able to top this wage up if they please.

How to apply for this, still has not been fully revealed by the government. As it gets closer to the scheme being live, more information will be revealed and as always, as soon as we know, we will pass the information to you.

Help Out Eat Out

A little more positive news from the hospitality sector is for the month of August you can get 50% off your bill in participating restaurants with the other half covered by the government. This is capped at £10 per diner and excludes alcohol and is only valid for Monday – Wednesdays in August and can be used as many times as you like. The offer is for dine in only as the government encourages people to go out. To check which restaurants are participating click here and enter your post code to see who around you are participating.

Remember to support your independently owned food venues during these tough times and remember to practice social distancing. Stay motivated and stay safe as together we can end 2020 on a positive bang!

We have all been paying closer attention to the news in recent times. It does look like better days are to come, with restaurants and bars been given the green light to open. While we all are excited and wanting to enjoy ourselves, please remember to social distance as this is still very vital to our fight against this virus.

The Chancellor, Rishi Sunak has pledged great support during these tough times and has again set the foundation for all of us to come out of this. It will be no easy job, but together we can do this. Supporting small businesses is vital.

The Chancellor mentioned a few things in his speech, while some of his policies apply to Wales, others do not as they are the responsibility of the Welsh Government. We digest the main points here.

Job Retention Bonus

The furlough scheme will be ending in Wales at the end of October. We are more reliant on the job retention scheme here in Wales than any other part of the UK. There are about 300,000 people on the furlough scheme. The Welsh Government has said that it does not have the "financial fire power" to be able to continue the scheme itself.

The Chancellor said he would be introducing a new scheme called the Jobs Retention Bonus. Under the new scheme, firms will be paid £1,000 for each employee they bring back from furlough and continuously employ through to January 2021 on an average of at least £520 a month.

            Eating Out Discount

The Chancellor has said there will be a 50% discount on food if people eat out in August on Mondays to Wednesdays. This is to try and get people using restaurants.

This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub, or other eligible food venue. There is not a limit to the amount of times the discount can be used and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for all of August. Participating establishments will be fully reimbursed for the 50% discount.

Temporary VAT Cut

If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when you make these supplies between 15 July 2020 and 12 January 2021 you will only need to charge 5%

It will apply to supplies of accommodation and admission to attractions as well. This will include takeaways, restaurants, cinemas and theme parks.

These are all in the pilot stages, and more information is to be released in the days to come. As soon as we know, we will also share the information with you. If there is something you want to know more about, you can call us on 02920 653995 to discuss. The introduction of these will mean we have a better chance to finish 2020 on a high.