Facebook - Shropshire Business Twitter - Shropshire Business LinkedIn - Shropshire Business

Beware using personal savings to fund venture

Shropshire entrepreneurs should be wary of using their personal savings to fund their business, according to a local accountant.

Sarah Hartshorn from Dyke Yaxley Chartered Accountants, in Shrewsbury, said research had shown that nearly half of all owners of small and medium sized businesses relied on unprotected loans to keep their company running.

“In a poll run by Old Mutual Wealth, 250 SMEs were interviewed, and 48% had unprotected loans and debts, and 60% had used their personal savings to fund their business.

“Obviously this is not best practice for running a business, but sometimes owners have no other option if they want to continue to operate.

“The figures are particularly worrying, as they follow hot on the heels of a quarterly survey by the Federation of Small Businesses which reported low confidence among small businesses at the end of 2017.”

The FSB report showed that 73% of small businesses had seen a rise in costs in the last quarter of 2017, and 41% of the businesses surveyed said their profits had fallen.

“We’ve seen an ever-increasing number of people becoming self-employed and starting new companies across Shropshire, and as a direct consequence of this entrepreneurial spirit, protecting your business has never been so important,” said Miss Hartshorn.

“There are so many small businesses in our local area, and it’s vital that they investigate the full range of protection options available to them.

“Start by speaking to a qualified business adviser and plan your business funding requirements very carefully, to map out how the day-to-day operation will run, and to put steps in place that will keep your business in the best possible health.

“Running your own business brings its own risks, but it can also bring incredible rewards too – and by taking professional financial advice, you can help to build a future for your business that looks brighter and more stable.”

Unexpected Christmas gift

Bonuses may qualify for exemption

14th December 2017

Pensions deadline looming

Employers must auto-enrol staff, advises accountant

2nd June 2017

Elderly workers want to stay on

Benefits for employers of experienced workers, says accountant

6th March 2017

Sweet tooth pays off for charity

Fundraiser leaves sweet taste for accountants

22nd November 2016

Second helpings of club breakfast

Breakfast Club to help solicitors with tax planning

11th November 2016

Laura joins accountants' corporate team

New recruit welcomed at Dyke Yaxley

26th February 2018

County accountancy firm in expansion move

Dyke Yaxley announces acquisition of Gorman Evans

2nd October 2017

Limited window for tax relief claims

Shropshire businesses urged to seize opportunity

19th September 2017

Kick-start for charity appeal

Staff from Dyke Yaxley support cancer charity campaign

8th September 2017

Guests stump up cash for charity

Well known cricketers guests of honour at fundraiser

4th December 2016

Accountants back netball team

Robins sport new kit thanks to Dyke Yaxley sponsorship

17th February 2017

VAT changes could leave businesses worse off

New flat rate scheme to hit smaller firms

4th May 2017

Shropshire businesses missing out

Tax relief available for research and development

20th July 2017

Two new directors join board at Dyke Yaxley

Stacey and Francesca rewarded for service

4th June 2018

Law firm to help schools on GDPR

And accountant issues warning to businesses over the new regulations

23rd April 2018