No vision, so how can you lead?

It is a myth that a good manager can do his job with no vision.  I have recently seen two examples of under performing businesses where there is no vision for the senior managers to work towards and as a result the businesses are in danger of descending into chaos.

In the first which is owner managed the Managing Director cannot see further than the next year.  There are no plans in place for succession nor for the challenges that face their industry in the coming years.  Funding is taken out for the short term needs without considering what their longer term requirements are.

The second business is run by two executive directors who are both looking to retire within the next 4 years, the MD within 2! The shareholders (who are represented on the Board by 4 non-executive directors) have differing views on where the business should go and therefore have still to prepare their succession plan.

In the first business the MD doesn't acknowledge that there is a problem. He has an out dated approach to management and although he is fast approaching retirement age he doesn't see the need to plan to retire!  When he does realise that, it may be too late and the value of his business will have plummeted. 

In the second business both the executive directors and the non-executive directors see the potential problem and although it may be late they are doing something about it.  A visioning workshop is the start point. This will hopefully result in goal congruence and what was once a highly profitable business returning to that position.

In both cases though currently there is chaos within the business and it is causing uncertainty and under performance within their people.  By having clarity of vision and communicating it with their teams businesses begin to perform and to grow.  Indeed the succession that you have been looking for may be within those teams.

Do you Lead or Does no one Follow?

What are the attributes that make a leader stand out from the crowd of managers?  Many  managers think that they are leaders but in reality they aren't. 

John Kotter described a leader as being "associated with taking an organisation into the future".  This has nothing to do with management.  Another definition of Leadership is "Taking people to places that they haven't been before, for the right reasons".

However it is not about attributes.  You will find similar attributes from strong managers as you will find in great leaders.  It is about behaviour, about vision and about passion.  Great leaders have a vision and demonstrate a strong passion about the organisation.  You don't always find that with managers.   Even though they are passionate about their work managers will often fall in line with the vision rather than developing their own.

Leaders also understand the 5 forces that affect business as set out by Michael Porter:

• The Threat of New Entrants
• The Extent of the Bargaining Power of Suppliers
• The Extent of the Bargaining Power of Buyers
• The Threat of Substitutes
• The Rivalry with Competitors

and use this understanding to create an uncontested market space where the whole system of activities can be alligned in pursuit of differentiation and low cost.

Finally leaders leave you feeling energised, in awe of their passion and approach to their work.  Its uplifting to be in their company and they are the people that you look forward to spending time with.

So if you are a good manager do you have what it takes to become a leader?  Or will you be content to work for that positively infectious individual.

The Customer is no longer Right!

Is it just about getting the sale now?  Are we forgetting the customer and their experience? On Friday I had 2 bad experiences which suggest that businesses large and small may just be doing that.

During the early part of the morning I received a call from my firm's mobile phone supplier. It was in response to a reminder I had sent to them on Wednesday on the fact that since I hadn't heard from them since I had received an email a month ago to say that they couldn't fix the problem with emails not being redirected to my BlackBerry.

During the phone call the Director of the Company that had phoned was consistently denying that it was their responsibility, blaming other people for giving him incorrect information and consistently trying to wriggle out of trying to sort the problem out.

Later in the day I was on the 16:49 train from Birmingham New Street to Hereford.  I tweeted that people were standing (in some cases all of the way to Worcester Shrub Hill) and that the operator, London Midland should add more coaches as it was in my opinion unacceptable.  London Midland responded by saying that they had increased that particular service to 4 coaches and sorry if I found that uncomfortable.   No response to a suggestion that they should increase to 5 coaches.

As the customer I find both the attitude of the mobile phone salesman and the train operator poor and wrong. In the case of the former I will be looking for a new supplier and will contact the service provider to complain.  

For the train operators the position is that although I find the train a useful method of transport into major cities the reputation of this particular operator is already very low following a string of cancellations a few months ago. Attitude like theirs will not recover this but do they care.  They have the licence to operate the trains for a number of years and are more interested in profit than giving a good customer experience.

For me?  I will ensure that I am never on the 16:49 train in the future!

Taking the Plunge

To be successful you sometimes need to make some outrageous and brave decisions and I was reminded of one such decision recently.

On Friday evening two friends of mine, Steve and Andrea Borwell-Fox hosted a dinner a party to celebrate the 10th anniversary of them launching their business Borwell, a software engineering business. At the party were around 150 of the people that had helped them through the first 10 years of business, including their first customers, representatives from the Local Enterprise Partnership and the Chamber of Commerce, as well as their 12 employees and their partners.

The party also celebrated an award that they had recently received from the Ministry of Defence for a successful software project.  But the main purpose of the party was to say thank you to those who had helped them along the way.

I have known Steve and Andrea for about 5 years yet the invitation made me feel a little humble because Andrea had been a guest at a Leaders Group meeting I had hosted last November. The subject was Going for Growth in 2013 and in that meeting she had told me something that I hadn't been aware of previously.

We were discussing the key lessons for leadership for growth and had identified that they were:

1.Constant Innovation

2.Great customer relationships

3.Great culture and core values

4.Tenacity was critical

5.Data and Instinct equally valued

6.Growth enabled them to deliver a better product / service not just be bigger

Each of these points are applicable to both the Company and to Steve and Andrea personally; but when we came to tenacity, culture and values Andrea bought into the discussion the need to make those brave decisions.

Steve had been talking about forming his own business to develop software for the Defence Industry and for businesses generally and was ready to set up his own business. Nothing unusual there I hear you say.

No there isn't but it was what Andrea told me then that has cemented them into my mind as exceptional leaders capable of making those brave and difficult decisions.

They both wrote their resignation letters on the same day. Andrea resigning her post as a music teacher at a local secondary school having just completed her maternity leave following the birth of their first child to help support her husband and his dream. How difficult a decision was that? Leaving a career with the security associated with the teaching profession to support your husband as he is starting his first business.

Their values have allowed it to work but they have needed to be tenacious along the route as there are always some bumpy patches as you go and you must not allow those difficulties defer you from the path that you think is right.

I am honoured to count Steve and Andrea amongst my friends as not only do they show great work-life balance and the highest technical skill in their work, they truly are exceptional people.

 

Well, the draft clauses for the 2013 Finance Bill were published on Tuesday and they included the provisions on the General Anti Abuse (no longer called Avoidance) Rule.

The provisions are like the proverbial curate’s egg – good in parts. The confirmation that the rule is only there to counter abuse is, to a certain extent, reassuring and the fact that the rule will only apply from the date of the Royal Assent of the 2013 Finance Act (probably July) and not 1 April 2013, as originally proposed puts off the ‘evil day’. I use the word evil, not because I think it is wrong to counter abuse of the tax system but because I still see a lot of problems.

HM Revenue & Customs are doing all they can to convince people that they are going to be reasonable. I do not mean to be cynical – OK I do – but everyone on ‘the ground’ knows that HMRC cannot be accused of being reasonable, so why should this be any different. In order to attempt to allay fears, that they will act heavy handed, they have introduced the concept of an advisory panel that will comment on the HMRC stance. However, the panel is just that, advisory and it remains to be seen what notice is taken of the panel’s views.

The idea of the panel and the general tenure of the legislation provides greater clarity on how things should work and certainly sets out a system of working that is closer to the original report by Graham Aaronson QC than the HMRC interpretation in June. Now all we need is for HMRC to fall into line. To get technical for a minute it requires them to accept that something is established practice and to apply, what has become known, as the double reasonableness test, as its intended to be.

I wait with bated breath (yes I am sick) as to what will happen. I am not confident when the use of trading losses of an earlier year, to reduce a current year’s profit is reported in the press (presumably with HMRC encouragement) as tax avoidance.

Would you employ a grumpy cobbler?

I found this phrase on a post it note with the words "2 Rules - Look the part and put the money in the till" written on it.

It was from a presentation that I had heard earlier this year when I had only got some post it notes to write on and this one was loose in my bag.  But how right these rules are when you consider customer service and customer care.

The speaker was John Timpson, Chariman of Timpsons the shoe repair people, and these were the 2 key rules that he had for his workforce.  He went on to say that he employed people with personality and wouldn't employ a grumpy cobbler.  "Customers return to the cobblers with personality" he said.

In recent months I have had some interesting experiences from both ends of the spectrum but how do we do at Crowther Beard? Customer care has been high on my agenda for over 15 years now and one of the criteria I judge team performance on is how we look after our clients and care for our colleagues.   Let us look at the 2 rules and the statement at the top.

Look the part.  What do people expect from accountants?  The current trend of professionals towards open necked shirts does not mean that people don't look the part but I had to draw the line a couple of years ago when a newly appointed manager said that he couldn't afford a suit and didn't possess a jacket.  I still think that most clients expect their solicitor and accountant to wear a suit, collar and tie. 

Put the money in the till.  Too many accountants and lawyers are hopeless at telling clients in advance what their bill will be and getting agreement to it.  The pressure on them is to bill their time and not worry about the consequences.  The problem with this approach is that collecting a fee that is contested costs in administration time and in terms of goodwill.  Wouldn't it be much better to be up front about the cost of your service and agree a fee in advance?

Employ people with personality. There are two parts to this.  A grumpy team member will bring his or her colleagues down with them, you will never manage to lift them out of being grumpy.  However the effect on the client or customer is more telling.  There is "no can do" with these people, I always liked the TV commercial which went "the answer is Yes, now what is the question".  If I don't know, or the matter is beyond my experience, then in most situations I will know someone who does know, so all of my clients can get what they want indirectly from me if not directly. 

Any customer facing industry or profession needs the can do approach and the more personality you have in your team the better it is for the interaction with your clients and customers.  At Crowther Beard we set out to look the part, agree fees in advance and enjoy working with our clients and colleagues.  After all this will make us all very happy.

Oh, and the manager who couldn't do?  He is no longer is a member of our team.

Yes even more on tax planning

Those of you that know me, realise that I'm sad enough to think that tax planning is very important. I have blogged on this subject before but, at the risk of boring people, the recent media coverage of the use of tax schemes by 'selebs' to avoid tax has prompted me to spout forth again.

The first point I want to make is that all the schemes, such as those supposed to have been used by Jimmy Carr and Gary Barlow, are extremely complicated. The only people that suggest that they are straight forward are either journalists, looking for a headline, or people promoting the scheme. If they were as easy, as is suggested, they would be more wide spread. In the main, they rely on an interpretation of the tax legislation and a 'paper trail' that needs to be followed religiously, if they are to work.

The second point is the idea put forward, mainly by the media that they are only for the fabulously wealthy. This is probably closer to the truth, as many of the schemes have an up-front fee, for implementing the planning involved. However, there are equally many schemes where any fee cannot be described as only for the rich and are open to anybody, who has a need.

The third point is the suggestion that HM Revenue Customs are doing nothing about combating schemes that the Government have branded as ‘morally repugnant’. Just because there is not a swathe of new legislation aimed at the schemes does not mean that they are not doing anything. As stated above, schemes rely on interpretation of the tax legislation and HMRC may well consider that existing legislation is sufficient, given their interpretation of it. Take as an example a tax scheme that was implemented in the 2010/11 tax year. HMRC would not necessarily know of it until as late as 31 January 2012 and then might simply raise an enquiry to keep the matter open until the Courts decide, which interpretation is correct – probably many years later.

When you sit down with a client, to explain that they are not simple or necessarily cheap and they will not know whether they have been successful for a number of years, many loose interest. Add to this the possibility of bad publicity and there will be less interest but some will want to proceed. I do not see it as a moral problem for me to make clients aware of these schemes as long as this stops short of promoting the scheme involved. Surely it is only best practice to make clients aware of what is possible and to explain the pros and cons of each option. The client is then able to make an informed decision.

Can a business make a difference to it's community?

Twice in the last 2 weeks I have been privilidged to see and hear what a professional football club is doing not only for their local community but for a much wider geographical area.

It is normal for me to be seen at a home game for West Bromwich Albion, after all I have supported them since (well probably since) I was conceived.  My Dad was a fan and became Chief Steward and Mum was the Granddaughter of Joe Reader who played in goal from 1890 until 1901.   But a couple of weeks ago I was not to take my usual seat in the West Stand.

On 14 April 2012 I was invited to attend the game against Queens Park Rangers as a guest of the West Bromwich Albion Foundation in my role of Chairman of the Herefordshire and Worcetershire Chamber of Commerce. 

On arrival Community Director Rob Lake and his colleague Jon Ross and they showed us the work going on in the Dome and the Sports Hall.  The Dome (a covered full size football pitch with artificial turf) was home for the morning to some 40 youngsters who had travelled up with parents, in coaches supplied by the Club, for a couple of hours coaching.  They were then going to get to watch the match from the stands.

Rob and Jon told us that this was done most weeks with children from different areas.  In the sports hall we were told about the basketball and dance teams as well as the different sports for the disabled that were hosted there.   Funding comes from a number of sources including the FA, West Bromwich Albion Football Club and Local Authorities as well as the Private Sector.

Over lunch though Rob explained how the philosophy of the Club and the Foundation was linked and how they were also working with youngsters who were not in school, and those who were slightly older who were classed as not in education, employment or training (NEETS).  In his explanation he said that in these education programmes in particular they had managed to engage teenagers who had an attendance problem at school and had achieved a 93% attendance rate with their courses.   These are teenagers who will do anything to avoid school suddenly going to school and as it is a widespread problem in Sandwell the local authority are sitting up and taking notice.

The Foundation are looking to spread their wings and are coming to Worcestershire, working with the University of Worcester and the Herefordshire and Worcestershire Chamber of Commerce.  The project entitled "We are Albion in Worcestershire" is about giving opportunities to areas of the community that are sometimes overlooked whilst the payback to the Football Club is that they will generate a larger fan base.  That is bound to be possible with a schools tournament today at Worcester University featuring 16 schools with prizes presented by West Bromwich Albion and Republic of Ireland full back Steven Reid.  How many youngsters get to meet a Premier League star?

Back in March I was at the annual conference of the British Chambers of Commerce.  One speaker was the Chairman of Timpsons, the shoe repairers, John Timpson.  He was saying that they worked with some local open prisons and as a policy were happy to employ ex-offenders in their business.   He also told us that 98% of them didn't re-offend.  In addition he said that the cobblers in the shops often were characters that customers were more than happy to engage with.  The benefit to the business was increased customer retention.

So separate businesses and different industries, but similar strategies and similar ways of making a positive difference to communities and groups of people that Society often reject.   

Where do you draw the line?

Back in November Graham Aaronson QC published his report on whether the UK needed a General Anti-Avoidance Rule (GAAR). His conclusion was that a “broad spectrum anti-avoidance rule” would not be right as it might prevent “responsible” tax planning and he proposed the introduction of a “moderate” rule that would not stop this responsible tax planning but would tackle “abusive” arrangements. So far so good, especially for me, who over the past 30 plus years have, I hope, always gone in for responsible tax planning.

However, this starts alarm bells ringing with me. The whole issue of a GAAR is to be consulted on over the summer, with a view to legislation being introduced next April. My first concern is whether the views expressed in the report or the views of HMRC, who are thought to favour a more far reaching rule, will prevail and be legislated. My second and larger concern is, if we do end up with a rule similar to the one proposed in the report, who will decide what is responsible tax planning and what is abuse?

The biggest problem with our tax system is uncertainty and it can only add to the uncertainty, if you are unsure whether any advice given will be attacked as going too far and being considered irresponsible. OK very simple solutions are likely to be unaffected but much is done that, although fairly basic tax planning, HMRC do not like. Will we be faced with a situation that anything disliked by HMRC becomes irresponsible? The government have already done a very good job of blurring the distinction between tax avoidance and tax evasion and this might be a chance to bring tax planning in, to further “muddy the waters”.

In all my years, I have come across very few clients who do not want to pay any tax, most just want to pay a fair amount, and it is only when the tax bill is considered unfair that they consider tax avoidance solutions or even some of the schemes that are extremely artificial and must therefore come under the heading of abuse. If we face being attacked over tax planning, as well as solutions, it will be somewhat challenging.

Where does that leave us now? I do not want this to be an advert but the only certainty, that tax planning will not be attacked, under a GAAR, is to do it now. Tax solutions have their place, as do some of the more artificial schemes, as long as the pros and cons are fully discussed. The latter will certainly be ruled against and some of the former may also fall foul of the new legislation, so it may well be a case of buy now or miss the chance.

My best guess is that anything done before the pre- budget statement, later this year, will not be affected by any changes made. However, this guess does not extend to anything to do with Stamp Duty Land Tax because the Chancellor in his budget signposted the fact that he would retrospectively act against this avoidance.

Charity - Close to my heart

Each year we choose a charity to support and this year the charity is Ataxia UK.

This may be a little known charity but is an organisation I am very pleased to support. I am especially pleased with this year's charity because I suffer from Cerebellar Ataxia, one of the many forms of Ataxia. Thankfully my symptoms are mild and amount to no more than a problem speaking, a problem writing, difficuties with co-ordination and, at times, feeling generally "washed out". If anything, it could be described as frustrating because, often, I can't do what I wish or what I used to do. Equally, this might just be down to getting old.

Ataxia is a degenerative brain condition and is progressive - meaning that it does get worse. It gradually robs sufferers of mobilty, co-ordination and speech. The speed at which the condition progresses varies greatly from person to person. In the word of one doctor "It might be many years before there is any deterioration but I wouldn't advise taking up rock climbing".

Rather than spend a lot of time describing the difficulties that sufferers can go through I will post some links to short You Tube videos that can describe things better than I ever could. http://www.youtube.com/watch?v=gxv_5nyO1QE
http://www.youtube.com/watch?v=3wnugGhdr4o
http://www.youtube.com/watch?v=nj2WQfu4MhU
http://www.youtube.com/watch?v=bVJcAVaW87g

The first is rather hard hitting but the others are more "optimistic".

Our aim is to raise awareness of Ataxia and to raise as much as possible over the next 12 months. This will be formally launched at our Budget Breakfast Briefing on Thursday morning but we have prepared a charity page at http://www.justgiving.com/Crowther-Beard-llp for donations. Your support would be vey gratefully received.

We don't think its enough to just ask others to give and apart from our fund raising activities (including a Cream Tea in June and a Golf Day in October) and asking for donations we are going to pledge that some of the money we receive for the services we provide are paid to Ataxia.

For each new client - we will pay for Ataxia UK to send DVDs to 5 young people learning to cope with Ataxia.
For each piece of tax planning – we will pay to print 100 info leaflets to raise awareness.
For each piece of business planning - we will pay to run the helpline for a day.

Please help.

Pensions – The Annual allowance
I have just penned an article to be published in the UK200 Technical Advisor In Focus magazine and wanted to share it with you.

HM Revenue & Customs realise that, following reductions of the annual allowance (AA) for pensions, more people should be declaring on their tax returns an annual allowance charge. It is important that a return of any charge is made to avoid the possibility of interest and penalties. A potential liability is not well known but HMRC do not accept ignorance as an excuse.

The AA, i.e. the maximum pension savings that qualify for tax relief, reduced to £50,000 from 6 April 2011. The use of the term savings is done purposely because, importantly, the provisions apply not only to defined contributions schemes but also to defined benefit schemes (final salary schemes). Just as importantly, it applies to all contributions made to a pension scheme and, therefore, includes employer contributions.

If contributions exceed the AA the excess is liable to a charge at marginal tax rates. For most people caught by this provision, that will be 40% or, perhaps, even 50%.

The AA can be more than £50,000 because it increases by allowances unused in the previous 3 tax years. For these purposes, the allowance for 2008/09 through to 2010/11 are taken to have been £50,000 (although, they were higher). A simple example is that, if pension savings were £30,000 for each of the years 2008/09 to 2010/11, the allowance for 2011/12 is £110,000 (£50,000 plus £60,000 brought forward).

To further complicate the position, the concept of a PIP (pension input period) and how pension savings are calculated for defined benefits scheme, come into it.

PIPs do not have to follow the tax year but have to be allocated to tax years, as the pension savings of a PIP have to be compared to the AA for tax years, to calculate if there is a charge. This is achieved, normally, by allocating the PIP ending in a tax year to that tax year, i.e., PIP to 31 December 2011 ends in and is the PIP for the tax year 2011/12.

If the scheme is a defined benefits scheme the measure of pension savings is the increase in projected pension benefits in the PIP, which could bear no relationship to contributions made.

No more busy fool

The months of November, December and January are extremely busy for all accountants paticularly those heavily involved in tax. The deadline of 31 January for submission of personal tax returns tends to take over and the other urgent things, that need to be done in these months, leaves very little time for doing the other important things.

It is hard at times to realise that not putting time aside to spend on the less time critical, but no less essential, matters such as strategy and planning means that you are no more than a busy fool.

Please do not think that I do not recognise that phones need to be answered, e-mails need to be responded to, questions dealt with and scheduled work completed. It makes the business go around and is very rewarding but if you spend all your time working "in" the business you are just dealing with the present and neglecting to think about what you need to do so the business has a future.

Unfortunately having ideas and developing a plan is only part of it. Until there is action things do not happen. So you do not only have to do the "normal" work - you also need to have plans and carry them out. It sounds daunting but can be best achieved by setting aside specific time to work "in" the business and other time to work "on" the business, i.e. working on your plan.

It can help to "keep you honest" if you have someone to help you work on your plan and this is, of course, something we can do.

What do you look for in chosing an accountant?

Back in September I was privileged to hear Hamish Taylor speak at the Annual UK MindShop conference which this year was held in London.  But this blog is to ask you something about a comment that was made at the end of his presentation.

Hamish has a CV that the Times said "takes some beating". He has been Head of Brand Management at British Airways, CEO of Eurostar and of Sainsbury's Bank and told an interesting story of how when working for Proctor and Gamble he went to peoples homes to see how they used their products.  Clearly as an Accountant we cannot go to see how people use their accounts but we can ask them what are they looking for from an Accountant. 

And it was this question, the final question of an excellent presentation that was asked of Hamish.  What do you look for from your accountant?

His answer was firm and unequivocal.  

1. He expects that all of the worries about filing deadlines and compliance with tax and accounting laws are taken away and dealt with. 
2. He expects to pay the minimum amount of tax legally and simply, no fancy schemes but make sure he has claimed all that he should.  
3. He expects the accountant should help him grow the business.

There was then a supplementary final question.  Does your accountant do all that.  The answer was that they were very good at items 1 and 2 but not at item 3.

I think that will not be an uncommon answer from people but at Crowther Beard along with other MindShop trained firms we assist our clients with all three. 

Do you agree with Hamish's view of what you should expect from an accountant and if so do you get it from your accountant?

Getting that Marketing Strategy Right

I had a very unusual experience on Thursday.  I had agreed to a meeting with a contact a  couple of weeks ago and they arrived at my office for coffee at 11 am.  What I hadn't realised was what they wanted to speak about.

When she sat down and we had got the usual pleasantries out of the way I was asked what their business could do to  break into the local market place as they didn't have any clients locally.

I asked whether they had defined their ideal client and their target market, and spoke about how Crowther Beard identified the property and construction, agricultural, transport and engineering industries, and the medical profession as target markets and had a definition of an ideal client too.

I then moved forward to discuss where we find those clients, joining clubs where they go and how we are setting about creating a following through the Crowther Beard Community on LinkedIn amongst other areas.  But the main things that I said that were needed was a plan, commitment and hard work.

We spoke for over an hour about how our marketing was beginning to reap its rewards as I have always believed in the Accounting Profession that it takes at least 12 months for marketing to be effective.  I spoke about attending only the networking events that we thought would be beneficial to us because our targets would be there and how we planned each year setting some big targets and then reviewed the plan on a regular basis to ensure that we kept on track towards our goals.

At the end of the meeting my contact was generous enough to thank me for my time and for the advice that I had given.

However I later thought that what I had done was also very important in a marketing plan.  Most of the greatest leaders in the business world will give things, their time to worthy causes or just to explain what they have done and how they achieved their goals. That is what I had just done.   It is the giving that is important, something of value to others.

That will raise your profile.

Some People Just Have Got It Right!

Being content with your life is not too difficult but some people manage to do it with ease and at a much slower pace than others accepting the cards that they have been dealt and making the most of their lives.

Over the last 2 or 3 weeks I have been running around like...I don't know what.  Meetings here, networking there, golf, rugby, football etc and visits to the Cheltenham Literary Festival and on Sunday last to Swindon for dinner with my elder daughter whose birthday it was on Tuesday.  I think that the expression is "burning the candle at both ends".   To crown it all I had designated Monday to take a 500 mile plus trip to Cornwall to see a client that I hadn't visited for a little over 4 years. 

I have acted for the client, a holiday park owned and run by a husband and wife team, since they bought the park around 16 years ago and until recently had visited them every year, and sometimes twice a year.  Over that time we have become good friends.   Rather than bring their children up in South London they chose to give up the day job and move to the quieter, prettier countryside of Cornwall and the business is very much a lifestyle business.  The husband is now 58 years old and his knees are the worst for sporting injuries in his younger days, his wife a little younger but now they are looking to sell the park together with their home. 

Once I had reached their part of Cornwall and driven the half mile or so down an unmade road to their home I was greeted as an old friend and as we chatted over a coffee they were eager to know news of my family (my elder daughter once called to deliver some records back to them when she was camping in Newquay) and of my own health.  They remembered about the back operation that I had had some 4 years ago a short while after they had last seen me and how it had left me.

So what is unusual about that I hear you ask?  Well when they bought the Holiday Park they had 2 sons, aged 4 and 1, and within a year of moving the younger son was diagnosed as autistic.  The lifestyle business was not necessarily always good for him as he needed more care, more supervision and more time devoted to him than sometimes the business would allow.  However the solitude of the location meant that there was plenty of space for him to run around in and let off steam and my clients have managed it magnificently.

Their elder son is now at University almost 200 miles away from home and has always had his parents time when needed or wanted.   He also has helped with his brother, who now clearly misses him.   I recall being there on one occasion a few years ago and he was off to football practice.  Someone was picking him up to drive to the practice from the top of the lane but he didn't ask his parents for a lift the half mile or so.  As I was just leaving I offered him a lift and for a teenager he was a very well balanced and articulate young man.

Given the circumstances you can imagine my surprise around 8 years ago when they told me they were going to adopt a young girl of 7 years of age.  She had a number of behavioural issues at the time and because of the family unit that has been created not only has she learnt to deal with these, she also has helped with the care of her adoptive brother.  Their daughter is looking to train as a teacher for children with special needs.

One reason that they are looking to sell their business is that it will allow them to spend more time with their younger son once he leaves school as he will most probably need to have permanent care. 

A friend of mine once told me that he would only work with people that he would invite into his home and these people are just those kind of people.    There is no resentment in the family simply love and love for their friends and extended family. 

I think that they deserve to have a happy retirement, don't you?

The Computer Says No

The idea behind this blog is to provide information that helps strategy - it is not a forum to have a general moan but I thought that I should highlight 2 things I came across today that enables me to get matters off my chest but at the same time teaches us lessons, even if they are only that these are things we shouldn't do.

The first involves my old friends (?), HM Revenue & Customs. For some months, I have been attempting to get a tax underpayment collected monthly, through a PAYE code, rather than being paid in one lump sum. I won't bore you with the technical details of why HMRC objected to this but today they have finally admitted that the procedures, that prevent coding, could be overwritten (and regularly were) until July 2009, when they had a new computer system. Since then they have to do what the computer says.

The moral of the story is to never design anything that removes the possibility of personal intervention and the insertion of good old common sense.

The second thing is that we were exhibiting at the Worcester Expo at WRFC today. As it was busy, I was directed to the normal car park rather than the "Event" parking spaces. There was a barrier at the entrance that was raised by an attendent, without asking the nature of my business. There was a second attendant who raised another barrier for those leaving.

The point here is why have the barriers down at all, for all the good they were? They weren't preventing anyone coming or going. Why weren't they left up just as they were when the Expo finished. It is amazing what can be achieved, particularly financially, by cutting out this kind of waste and "waste audits" are extremely valuable. Needless to say this is something Crowther Beard could help with.

More Saving

More tax saving tips.

1. Consider whether you are paying National Insurance Contributions needlessly. If you are a trader making low profits (below £5,315 currently) or even losses you can claim exemption from paying the weekly self employed contribution of £2.50.


2. Consider the tax benefits of converting business loans into personal loans or vice versa. As long as the circumstances are correct, many personal loans used for business purposes qualify for tax relief.


3. If you are a sole trader or partnership, consider making key employees partners to save National Insurance and tie them to the business.


4. Make sure you claim tax relief for losses on shares. In many cases, it is possible to clain income tax relief, not just capital gains tax relief.


5. Consider the timing of capital purchases to ensure that capital allowance claims are maximised.

Tax planning

In my day to day work I come across tax planning in all its forms. This ranges from, advising people on how to arrange their affairs to take advantage of the more familiar (well to me anyway) tax breaks open to them, right up to discussing the more complicated options that are open to them. The more complex options usually have a price tag on them but, as the tax saved under these is normally substantial, the price may well be considered well worthwhile.

A recent survey showed that one of the aspects most valued by clients is simple tax planning advice and this is very rewarding for me, as I earn my crust by giving such advice. I would however like to know how people view the more complicated solutions. I am sure it is my duty to inform people of what is available but I would be interested to know whether you feel that this is all that should be done or whether such solutions should take a more prominent position in the advice given.

It has been long held by the Law Courts that anyone is able to order their affairs in such a way as to minimise taxation and my question is how far you feel that we should go in this respect. Just keep to taking advantage of the tax breaks open or invest in something that was designed just for the tax benefits.

This week

For me there have been 2 major news stories this week. In fact listening to the radio, on my drive into work, at times, you would have thought that they were the only stories. The second is very obviously business related but the first is perhaps not so obvious.

Let me start by stating that I follow Manchester City Football Club and I was obviously very disappointed with Tuesday night’s performance and result against Bayern Munich (shouldn’t it be Bavarian Munich or Bayern Munchen?) but the story as everybody, who hasn’t been on the moon, knows is that Carlos Tevez refused to play.

Within minutes, people were “tweeting” about this and one of the best I came across asked what the difference was between Tevez and a tramp. The answer was £150K per week because they both won’t get off the bench. Very good but it got me thinking.

It illustrates the importance of getting all your team on board and everyone having a shared goal. It only takes one “bad apple” to disrupt any targets you have. Perhaps the target of winning the Champions League was a bit farfetched any way but in the words of Wayne Gretsky (the ice hockey player) “I have missed every penalty that I didn’t take “.

It also shows that people problems can overshadow the important matters very easily.

The second item was Ed Milliband’s speech at the Labour Conference. Putting aside the issue of rewarding good businesses, which sounds intriguing but fanciful? I was taken aback by the attitude that seemed to be saying that it was impossible to make money and be good.

Yes, the primary purpose of being in business is to make a profit but there is so much more to it. I can’t believe that most businessmen put this so much to the fore that they would be willing to sacrifice everything else. Business is not just about making money. There is so much more to it like developing good relations with customers and colleagues, always striving to do your best and building something that will stand the test of time. It is also about ensuring that the balance between home and work is right and having fun.

If you ever find me giving these up in the pursuit of just money you have my permission to shoot me.

Leaders need love and connection too.

A week after I have returned from a wonderful conference in London organised by MindShop I thought I would share what was not only the most revealing moment of the Conference for me, but a deeply personal experience.

One of the speakers was Dr Darryl Cross, a psychologist from Australia and like me an accredited MindShop Facilitator.  In his excellent presentation Darryl spoke about the 6 basic needs of Leaders: control and security; variety and difference; significance and importance; love and connection; growth and learning; and, legacy and contribution.

It was the fourth of these needs, love and connection, that enlightened me so much.

Three years ago on 19 September 2008 my sister, Ann, left us.  Ravaged by cancer she died with dignity and surrounded by her close friends, my daughters, Jessica and Jade, and me.   She was 58 years old, drank responsibly and never smoked.  Although she had been diagnosed with cancer just over a year earlier the deterioration in her health over the final six month period was rapid.  At that time and since my wife was unable to offer me comfort and support due to her own illness.  I was left with a gaping hole in my life and I thought no one to turn to.

I was lucky that I had my girls.  Jessica and Jade were both immense for their tender years and both had their own problems coming to terms with the loss of their devoted Aunt over the next few months.  I am immensly proud of Jessica and Jade who never let me know if they were struggling to cope but not only continued with their own lives they also enriched the lives of others. 

At the time I didn't want to think much about my businessess, it seemed unimportant and it was here that I benefited from the support of Sarah, my business partner and Wendy my Personal Assistant.   They both knew what the right words to say were and when to say them.  They worked hard to ensure that the business didn't suffer.  

Once I could see it there appeared to be connections and love everywhere, and my life came back together but without me understanding why.      Almost 3 years to the day Darryl gave me an explanation that I had been looking for.  Thank you Darryl.

You can find out more about the 6 basic needs of leaders at http://www.drdarryl.com/AnnouncementRetrieve.aspx?ID=24256