When to seek professional advice

Discussion in 'Growing and Managing a Business' started by Sonofagun, Jun 19, 2018.

  1. Sonofagun

    Sonofagun
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    Hello, I'm new here so forgive me if i jumped in the middle of something. We have been making more profit than in past years. Commercial hospitality renovation company, ran by my husband and course me m, the wife, bookkeeper, etc. I dont know what do with profit. Invest? What to purchase, when, etc? What kind of professional am I to seek out for consulting on how to make our business grow, investing, investing in our own company, such as benefits etc. Any suggestions or guidance would be appreciated
     
  2. fisicx

    fisicx
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    You could donate the profits to charity to help those less well off than you.
     
  3. Joseph.Shivell

    Joseph.Shivell
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    What you're looking for is a business consultant - that's what a "professional (you) seek out for consulting" is called. S/he will probably ask where you want this business to go. Do you want to expand your current location? Do you want to add other locations? What are your goals? S/he will then be able to tell you how best use your profits to achieve those goals.
    This is one possibility, which could help build your reputation in your community.
     
  4. Tuah Bao

    Tuah Bao
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    Assuming your existing company is Co. B Ltd.

    Horizontal Diversification
    Invest into new product/service lines that serve similar customers or opening new companies in other locations. The idea is to achieve economic of scale, so that you have a stronger purchasing power and bring down overall cost.

    Vertical Diversification
    Be your own supplier. Setup a company, Co. A Ltd which will supply raw materials to Co. B Ltd. Co. A Ltd will get stable orders from Co. B Ltd, therefore it is considered secured and safe. Of course, Co. A Ltd will need to look for new customers to expand its business.

    Similarly, you can be your own customer. Setup a company, Co. C Ltd which will handle logistic (which you may be currently outsourcing it). Again, Co C Ltd will receive stable orders from Co. B Ltd and it has to get its customers to expand the business.

    The idea is that your profit/cash will continue to circulate within the group of companies instead of 'flowing out'.

    You may consider hiring CEOs/GMs to run the new businesses with KPIs, of course.
     
  5. Lee Rogers

    Lee Rogers
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    New here too and wanted to share my experience.

    Back in March we faced an extremely scary and uncertain time and honestly didn't know if we would survive COVID with a business. We were losing clients and revenue was falling fast. It was at that point we made a very bold decision - to get some professional help. It was the best decision we made.

    We found a Virtual CFO (Business Advisor) in our network and started a process of working with him to put a 90 day plan in to place with a focus on cashflow. I have never ever been so stressed in my life, to the point it was effecting my health really badly. But I needn't have been, working wth our business advisor has been an incredible experience. They guide my attention to where it needs to be and we meet every week to discuss where everything is up to. I am pleased to say that with the advice and help we are in a much better shape. While uncertainty still remains, we have a confidence in the business that things are moving in the right direction.
     
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    #5 Lee Rogers, Aug 10, 2020
    Last edited by a moderator: Aug 10, 2020
  6. VITS USA

    VITS USA
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    You should consult with your financial advisor or CA. They can guide you properly with government guidelines.
     
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  7. RickHarley

    RickHarley
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    #7 RickHarley, Aug 27, 2020
    Last edited: Aug 31, 2020
  8. PugwashEQ

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    hi Sonofagun

    you have two questions:
    1. What do we do with the profits of this great year
    2. how do we grow the business

    They may be connected, but then they may not.

    As to 1, ask your accountant, they should have a tax planning team. If they don't, find a new accountant! If you already have investments, or are about to make some, get an IFA involved (ideally a whole of market one with serious clout- people like Tilney, Rathbones etc)

    2. This is more complex- you either want a really good accountant, an experienced business coach, a non exec director, or a strategist. For a really good hard hitting coach we've had great results with Peter Boolkah.
     

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