The Dark Side - Nov 2012


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The Dark Side - Nov 2012

  1. 1. EDITOR’S NOTE PAGE 10It’s funny isn’t it? Time to stopSSG flies around trying to come up with great newideas to help making running your own business that bit your money fromeasier.Our Recruiter partners all work hard, worry endlesslyand sometimes get good luck and sometimes bad. slipping AWAY!That’s what it is all about – right?Well, a funny thing happened to me this month..... NUMBERS YOU NEED TO KNOW!Three Client meetings with three different businessesall working in different sectors.We ran through the Monthly Management Accountsand we chatted about all the normal clever stuff & theeconomy & interest rates & LinkedIn and all the normalclever stuff like that. Fluffy BitsBut the bit that was really interesting was when it camedown to understanding some basic terminology which Regular Stuff 17we were all using during our conversation – but Business Launchesapplying different meanings to the same ‘recruitment 17 Some Jokes!words’. 7 Chris goes DIY - SlowIn other words, we seemed to all be applying a different PC? 18 Thought for the Daymeaning to some other words! 19 A Word from Lloyds 8OK – so for example, what do you think I mean when Isay: 15 Pop’s Pantry Generated Placements Money & Things Invoiced Placements 16 What’s New? Paid PlacementsYep, I am sure that you all have your own clear 6 National Insuranceunderstanding of what these obvious terms mean (toyou). 10 Numbers you simply So Serious!I guess the important bit is that we all start to say the HAVE to knowsame things and recognise the importance of these 12 Madness of Smalldefinitions when we think about how these definitions 4 Employment Myths -affect the ‘business side’ of our work. Business FundingIt made me think – truth is, we all need to keep it Part Deux!simple, not to worry about being too clever and 13 Part Time Employees?remember that making a placement is the only bit thatreally matters. 19 Terminology!For a closer look at these definitions, please take apeek at Page 19 (Terminology).You might be surprised!! info@ The Power of Three! 1. All the contents of The Dark Side are only for general information and/or use. Such contents do not constitute advice and should not be relied upon in making (or refraining from making) any decision. Any specific advice or replies to queries in any part of the publication is/are the personal opinion of such experts/consultants/persons. 2. The information in The Dark Side is provided on an "AS IS" basis, and all warranties, expressed or implied of any kind, regarding any matter pertaining to any information, advice or replies are disclaimed and excluded. 3. The Dark Side and its associates shall not be liable, at any time for damages including, without limitation, damages for loss of any kind(but excluding personal injury or death caused by negligence) arising in contract, tort or otherwise from the use of or inability to use the publication, or any of its contents, or from any action taken (or refrained from being taken) as a result of using the publication or any such contents or use of information contained in the publication. 4. No representations, warranties, or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability, or applicability of the information to a particular situation. 5. Certain references in the publication refer to third parties over whom The Dark Side has no control or connection, business or otherwise. Material Submitted by Others Some sections in The Dark Side contain materials submitted by users. The Dark Side accepts no responsibility for the content, accuracy, and conformity to applicable laws of such material, and any views or opinions expressed by such third parties are those of the author alone, and do not necessarily reflect the views or opinions of the owners or publishers of the Dark Side. Effect of these Terms These terms constitute the sole basis on which the Dark Side is published and made available and supersede and replace all prior or contemporaneous understandings or agreements, written or oral, or any implied terms which might otherwise apply. 3
  2. 2. Clare’s Employment Law Myth Stuff More ym en t plo Employment Law g Em stice tin Inju Myths Figh Law es! id You might remember from last time Yes, it is all extremely shocking I it h ver ere (September’s Dark Side) that we were all will admit, but like any good Harry engrossed by the discovery of a few myths Potter script there is even more w h that surround good old employment law! to come.... If you have been forced to hire cover at a higher pay rate or pay an That’s right, the excitement finally grew to AND THE NEW STUFF? overtime rate to other employees I am a the point that it was hard to continue our ‘MYTH to cover the shortfall in work BUSTER’ exploration of the whole subject without caused by an employees the risk of boiling over at the sense of MYTH NO. 4 failure to give notice then injustice that accompanied our it may be worth suing as “You don’t have to pay an revelations – well, to be more accurate my Employee who resigns but you can show financial loss. I am a colleagues at SSG begged me to stop and doesn’t work their notice ‘MYTH BUSTER’ suggested that should any reader still be period” awake after a couple of pages that we VERDICT: COBBLERS MYTH NO. 5 ought to let them now rest in peace. “You have to offer a new So, heeding their advice (as I often do), I You know the score, a Recruiter (or any vacancy to anyone who was made redundant” put a hold on the excitement. other employee) walks out without giving VERDICT: MORE COBBLERS notice. But, that was then & this is now! The logic suggests that the employee has QUICK RECAP: forfeited the right to receive further It is a popular view that employers that payments from their employer. have made an employee redundant must There is a lot of nonsense touted around offer him or her any future vacancies that as fact when it comes to what is legal, However, as employers, you are not arise. what is illegal & what is just plain crazy entitled to withhold pay owed to when it comes to Employment Law, employees who have left without giving Employment Contracts, Employment notice, for work that they have already In recruitment, it is often the case that you Breaches and the like. carried out, although you can withhold may have made an employee redundant the pay that the employee would have due to you no longer needing someone to As a business owner, you need to know received had he or she worked the notice perform in a particular role, only to find what is real and what is hearsay. period. that, shortly after, due to an upturn in business or the resignation of another It might not seem important, but once If you have been "left in the lurch" by an employee, you need additional you start to think about employing a employee you do have some legal redress. headcount. Recruiter of your own or get chased by In this situation, do you have to offer your your own ex-employer, you might wish The employees failure to give notice is a former employee the available position? that you taken a little more time to find breach of contract and you can (if you can out where you stand. be bothered) bring a claim in the civil courts for the financial loss that you have If you don’t, will this render the previous Thus far, we exploded three myths: suffered. redundancy unfair? Myth 1: However, it is often difficult for employers The answer is no – you are under no legal Just because there is nothing in writing, it to establish loss or damage to the obligation to offer previously redundant does not mean that there is not a contract. business and, as a result, very few claims employees future vacancies, and the are brought by employers in these fairness of the previous redundancy is Myth 2: circumstances. only decided by an assessment of the Just because an actual contract wasn’t situation at the point at which you made physically signed, does not mean that it is the employee redundant. not valid. A friend got sacked from his fairground job recently - he worked on The redundancy will be fair if there were Myth 3: the dodgems and loved it. Hes suing genuine reasons for it at the time and you An employer can indeed withdraw a job his boss for for Funfair dismissal!!" followed a fair procedure and selection offer once it has been made. process.4
  3. 3. Notwithstanding this, it is worth being result in discrimination against their male AND JUST ONE MORE THINGcareful about recruiting very soon after colleagues. (said in a Columbo Style voice over)making redundancies as people mayquestion whether or not the In other words – don’t overcompensate! Here is a little story about a woman whoredundancies were genuine. stole an Apple Pie: The mighty law firm Eversheds came aYou should keep thorough cropper with just this scenario where the Should she be sacked?records of your reasons for Court of Appeal Tribunal foundmaking redundancies that they had discriminated A Little Chef employee lost aand the selection process against a male lawyer by inflating compensation claim for unfair dismissal –you followed. I am a the score of the other after she took an apple pie home without ‘MYTH BUSTER’ lawyer in the selection permission and lost her job as a result. pool because she was I am a MYTH NO. 6 on maternity leave. ‘MYTH Lynn Smith had been employed as a BUSTER’ supervisor at the for 12 years with a good “You can’t sack a pregnant woman” record. VERDICT: ACTUALLY.... MYTH NO. 7 “If you make redundancies, you Mrs Smith believed she had been harshly can’t immediately start hiring” treated and made a compensation claim VERDICT: YOU CAN against her employer.A number of employers areunderstandably cautious about making Little Chef did not attend the hearing andemployees who are pregnant or on was not represented, but had apparentlymaternity leave redundant. There is no specific period of time that you written to the Tribunal stating that the must wait before you can recruit new staff Little Chef rules were that food could beIf an employee is dismissed or selected for without rendering the previous eaten on the premises but that there wereredundancy for a reason that is related to redundancy dismissals unfair. strict rules about staff taking it home.pregnancy, birth or maternity leave, the Although there is no specific time frame The tribunal said: "Mrs Smith knew it wasdismissal will be automatically unfair and during which you cannot recruit new against the rules to misappropriate foodwill amount to pregnancy and maternity employees, if you recruit soon after and Mrs Smith admitted taking the applediscrimination. making redundancies when there has pie. been no change in circumstances, this isThe compensation payments are likely to cast doubt on whether or not theuncapped and the whole process can be redundancies were genuine. She should not have taken the apple pievery expensive. away." Where you can point to a change Little Chef currently charges £3.99 for aHowever, employees who are pregnant or in commercial circumstances serving of its delicious Kentish Bramleyon maternity leave can be made then you are more likely to apple pie which is dished up with custardredundant provided that the redundancy be able to justify the need or vanilla ice genuine and the employees maternity to recruit only a short I am asituation does not disadvantage her in period after. ‘MYTH BUSTER’ Regrettably said the tribunal , they hadany way. decided Mrs Smith had lost her compensation claim for unfair dismissal asFor example, you should ignore MYTH NO. 8 Little Chef had acted within the bounds ofpregnancy-related absence when “Fixed Term Contractors have reasonableness when deciding to dismissassessing attendance records for the no redundancy rights” Mrs Smith.purposes of selection. VERDICT: THEY DOYou may also need to make adjustmentsto the consultation process in relation to Employees who are employed on aan employee who is unable to attend fixed-term contract are entitled tomeetings at the workplace due to her redundancy pay if their contract comes topregnancy or maternity leave, by carrying an end.out consultation meetings closer to herhome. In the past (before 2002) someone on a fixed term contract could waive their right but not anymore!While it is important that employerscreate a level playing field when applyingredundancy selection criteria, you must Every myth is individual, so if yoube careful that attempts to neutralise OUR VIEW: require further advice please contactselection criteria that are potentially clare@supportservicesgroup.tvdiscriminatory against employees who Always go for the Chocolate Fudgeare pregnant or on maternity leave do not Sundae – what a silly lady Mrs Smith is. 5
  4. 4. National Insurance what’s it for and do i pay it?! As shown in our May issue the most tax contributing for National Insurance and In the vast majority of cases the savings efficient way to draw income from your get the relevant benefits. you have made over the years will be far Limited Company is to take a minimal higher than what you could lose in salary and take the rest as dividends. How much do I pay? benefits. This in effect means that you are not At the current rates of NI for the tax year So put some of that saving to good use paying national insurance on your 2012 to 2013 and with the salary we and look at a Company Pensions (there’s a dividend income which is where the mentioned above the amount of National future article for you) savings for tax come in. Insurance you will pay each month is £11.96. What does the tax man do about this? But what is this National Insurance we speak about. This is as a deduction from the monthly salary that we run for you each month. There’s not a lot the tax man can do. National Insurance (NI) is an amount that individuals (and employers) pay to the However, you don’t have to make this If you have a low salary your contributions government calculated on wages and payment personally. are low, just like anyone else on a low salary to contribute to social benefits salary. including state pension, statutory The company makes it on your behalf. So maternity pay and sick pay and also to each month SSG will supply you the However, he may notice you are paying far fund the National Health Service. information and the company has to less than you historically did when make a payment to HMRC from the employed so will try and get you to Obviously the National Health Service is “voluntarily” contribute. business bank account. free to all and does not require NI contributions. And that’s it. No forms, no online returns... So do expect a letter in the post explaining what National Insurance gains However, other benefits are dependent and how he has noticed that yours has on having paid NI historically. That’s all completed by SSG. gone down. You probably now feel that you would So what’s the catch then? quite like the benefits. His suggestion is to “voluntarily” The catch is that some of these benefits contribute yourself the National Insurance But surely the way you process my are means tested so the more you savings you have made on your income to income affects my benefits! contribute the more you get if you ever him (he obviously doesn’t word it like need them. that). The answer is yes, but you don’t lose them! As we only run a minimal salary you willI can’t see many of you deciding to do this though. We run a payroll each month for you only be paying the bare minimum and which is the minimal salary element of would only get the bare minimum back if Do I HAVE to pay National Insurance? your income from the company. you ever claimed these benefits. This will be based on your personal So that saving on tax does come at a In a word – No. We could reduce the allowances and be in the region of £675 potential cost (but one we think is worth minimal salary element of your income so per month. paying) that you pay absolutely no National Insurance. National insurance is paid as a percentage For example of your earnings, so the more you earn the The amount of state pension will be set However, you will also lose the right to any more you pay. based upon how much you contributed benefits that require contributions to be paid. However, there is an element of salary that over a 10 year period. you can earn before National Insurance contributions start. Statutory Maternity Pay amount will be That may conjure up thoughts of “hey ho, initially based on the National Insurance I want to pay as little as possible!” But the The monthly Salary we set is just enough contributions on a set period before the decision is entirely yours!! to give you an income that starts to pay expected birth of your Baby National Insurance (i.e. you don’t pay any If you would like to get any further info NI on the vast majority of it) The result is that if you claimed these please feel free to contact me on 01442 benefits you would only get the minimum 200961 or you can email me at Therefore you will still be shown as amount. However, don’t be alarmed. darren@supportservicesgroup.tv6
  5. 5. Chris Goes all ‘DIY’...... Throw it out of the window.... NOOOOO! Before doing the following, PLEASE ENSURE Finally her PC was back YOU HAVE A BACKUP of all your critical data to normal. Just lookBefore you resort to physical machine - just in case! at that expression of joy!violence, stop and try some of these oldchecks and tricks - you never know, it may Windows Temporary Filessimply be a case of deleting loads of rubbish Other Stuffthat Windows puts on there for you. Now, back to these pesky Temporary files - Other things include Disk Defragmenting, thankfully this is one area that hasntOr a simple (and relatively cheap) hardware Scandisk, Temporary Internet Files and changed with each version of Windows (theupgrade. Read on ...... other built-in Windows tools (Windows is location part anyway!) - go to "My built to fail eventually - a bit like a car needingWindows has a reputation of adding loads of Computer" (or "Computer") or, if youre regular servicing!)rubbish to your machine the more you use it - really impatient, click on the "Windows" Key,building up temporary files, sticking them in hold it and press "E" - this will open upthe memory and stopping the things you Windows Explorer. Navigate to your local There are tools out there to do all these thingwant to work from working as it has to "read" Hard Disk (usually "Localdisk C:") click on automatically for you (System Mechanic etc.)the rubbish as well as the good stuff! "Windows" and then "Temp" (some versions / but BEWARE - anything that gets onto your setups of Windows will ask you for permission PC that you didn’t put there for doing this isIt also has a reputation of needing more probably Malware. - just click yes!). Hopefully (or not whichevermemory (RAM) with each release (version) of way you look at it) you will see hundreds ofWindows to allow it just to run - think of it as files in there. Now, be brave - select them all More on these other elements in a laterwhen you get up in the morning, do you have (Ctrl + A) and delete them. It may say "cant article.2 or 3 Weetabix for breakfast? 2 will get you delete XXXX as it is in use” - thats fine, deletegoing, 3 will help you to really motor! See the as much as you can. CAVEAT HERE - some The best solution is to completely reinstallcut out box for minimum / recommended working program data may be contained in Windows and all other software from scratchRAM amounts for different versions of these files (although unlikely) so you may (System Recovery) but of course this is aWindows. need to re-enter some program data as major job. Need More “RAM”? necessary (although Ive never had a problem!).It may be that if your PC is getting on a bit, As ever, if you are unsure and need a bit ofsimply upgrading the RAM will help - if that help, please get in touch .....option is available on your PC. To check what These are 2 simple things you can do to help -you have installed, click on the Start a separate article on more “tricks” will follow - Logo) Key - hover over My the "cutout" also gives some other things to 01442 200941Computer (or Computer - Windows Vista, 7 try.......and 8) and right-click it. Select Propertiesfrom the menu and look for "InstalledMemory (RAM)". You can now check themaximum allowable for your PC - drop us anemail if you want us to try and check this foryou or for us to recommend where to look. If Slow PC?your PC has the capacity you may be able toupgrade - relatively cheaply. DO - A backup of main data DO - Check Your RAM - how much have you got? / can you have? DO - A Virus and Malware Check DO Delete Windows Temporary Files DO Delete Temporary Internet Files DO Run Scandisk / Disk DefragmenterThat’s one “trick”. There are also tools outthere to detect and recommend upgrades 7
  6. 6. Key This month, Joe Zerafa of Arco Recruitment Facts • Office Based “dishes the dirt” on what it’s really like to • 4.5 Man Team start your own business. Arco provides • 2009 Launch recruitment solutions to the Building • 100% Perm Services sector & is based in Surrey. MOTIVATIONS So, what made you decide to SYOB? Why did you NIGGLING ANXIETIES make the transition from Employee to Business Expectation Reality Owner? For all of the rhetoric & seemingly Expectation Reality endless discussions, was it money, freedom or Freedom & Autonomy 7 9 perhaps the children which finally made you ‘get Legal Formations 7 2 out of recruitment & into business’? What did you expect and what has been the reality? 8 3 Financial / Earnings 7 9 Accounting Issues The Tax Man 8 4 6 9 ? Long Term Ambition The VAT Man 7 3 Increased Family Time 8 7 Sourcing Vacancies 6 5 Reduction in Commute 7 6 Personal Cash Flow 9 5 Escape Office Politics 7 6 Personal Isolation 6 4 A Difficult Employer 3 6 Restrictive Covenants 0 0 Technical Issues 7 4 The ‘Right Time’ 5 8 And before you made the big decision to SYOB, what kept you awake at night? What were the Staying Organised 5 6 Prove Doubters Wrong 3 7 awful worries, the ‘niggles’ you couldn’t escape? Has the Tax man been friend or foe? Did your Impact on your Family 8 5 Work / Life Balance 8 7 Restrictive Covenant hold you back? What about Making Placements 6 5 cash flow? Technology? Do you have more time Shorter Working Day 7 6 for your family? Has it been tougher than you Room in the Market 5 5 anticipated? 50 WORDS ON WHY! 50 WORDS ON WHY NOT! How I arrived at setting up on my own was not through a long term In the back of my mind was a slight anxiety around what if it burning desire to do so but more to do with the company I was didn’t work but I kept positive and stuck to the path that I working for going in to liquidation and a fortuitous meeting with had decided on. I also had 2 job offers on the table and it was Mike Walmsley. He suggested that I go it alone rather than work for very tempting just to take one of them and be secure with a someone else and he put me in touch with SSG. At the time, my good basic and good commission but something was telling second child was very small, we were in the middle of a worldwide me that it was not the right thing to do and that in a strange recession and yet somehow it seemed the most logical next step was way the liquidation had provided me with a great to set up on my own. I thought that if we made it through the tough opportunity. times then when the good times arrived, the company would be in a good position to take advantage of it. 8 A: Our biggest challenge has 8 8 been expansion – A: Being in control andbusiness having Biggest challenge? A: Yes! I have exceeded 10 10 10 Major upsides? So far, so good? sometimes I feel that we the time to work on my own expectations – haven’t grown quickly that I feel is important is a at the beginning I just enough and other times I feel major upside. I know what I am that we should get more wanted to work for myself employees on board and trying to achieve and the culture of and now we have offices, capitalise on the good fortune work hard when we need to and that we have had. At the same breathe a little when we don’t is a employees, on a number of time, we must be careful not to really important aspect of how Arco PSLs and a tier 1 agency in a lose sight of the fact that it is our operates – when we hit target half personal delivery of the multi tier arrangement with recruitment service that has made way through a month it is cause for a very large company. us successful and that if we celebration – not a signal to increase expand too much we may lose the pressure! that.8
  7. 7. 9.5 RUNNING YOUR BUSINESS I had an opportunity to set 10Why choose SSG? How hard was it up a desk for another company – And Now? in the beginning? the difference with SSG was that I “Our business is based can have 100% say in the on honesty and not management of my company – no one would be questioning what I being greedy ” Making Placements 6 4 was doing and nobody would be setting unrealistic KPIs. Getting into a Work Routine 5 5 10 10 Clients Paying Up 7 5How was the launch? Very pleasant, well structured and Having Distractions 8 3 the process was very smooth. Feeling Isolated 8 3 Having Family Support 0 0 The support Arco needs 8 now is very different fromMost important support the beginning – then we 10 Getting Good were reliant on all the “We have a strong Candidates 8 6 operational support in the set up of the business and getting us over the culture of working Getting Clients on teething problems. Now, we are reliant on the back office support we hard...but only when Board 8 4 get and also we have Clare as almost we need to! ” a ‘silent’ partner who we can bounce ideas off and who provides extra advice whenever we need it. Stress Levels 8 8 ADVICE FOR OTHERS? BIGGEST MISTAKE? LONG-TERM GOALS? Just do it – believe in yourself and your My biggest mistake was probably not expanding I want to continue doing what we are doing capabilities and don’t look back. Know your the business and getting an office sooner – I was – continue to expand and one day be strengths and keep positive. used to a routine at home and was working in a recognised as market leaders in our sector. reactive manner and I think I stayed too long Of course I would like the mansion and the working just by myself when I could easily have Ferrari but I really believe that creating a taken someone on. credible business in this market, being true to my values and building a good team will get me to my goals. We have What to do Next? r e a l l y Take the Challenge? enjoyed working Why not Volunteer to be Clare’s next with Last with Joe Clare? Words and his Surely, it is much better to growing step forward and take a hitFootball Rugby NeitherEastenders Corrie Neither team. The for the team than to be relentlessly tracked downRock Opera Neither stand out feature of this business by a seemingly pleasant &Jogging Crisps Neither is the market knowledge and fair minded pseudoWine Beer Neither commitment to the client that Psychiatrist?Literature DVD’s Neither Joe and his team consistently To take part, please contactCasual Suited Neither display. An ever calm presenceUK Hol’s Overseas Neither CLARE ARMSTRONG and a focus on numbers means 01442 200 957Glasses Contacts NeitherHistory Sci-Fi Neither that this company is likely to go from strength to strength. 9
  8. 8. Learn them, or leak cash! Numbers% + you simply = - have to ? £ know Imagine you are dropped by parachute The numbers that only get bigger if you FOR NOW, ALMOST FORGET THIS LOT into the middle of a jungle. are actually doing very well. TOO You are surrounded by millions of obvious Let’s also put onto a back burner the need dangers – killer snakes, deadly spiders and FOR NOW, FORGET THIS LOT to remember some other types of a total absence of fresh pants, to name but Ok, for now we can forget the ‘numbers’ numbers – like your average invoice value a few. which we Recruiters always talk about: or your drawings for the month or the cost You might meet your painful demise as a of your advertising. result of that horrible snake bite or Placements; poisonous spider for sure but apparently All of that type of stuff ought to be Interviews; the most likely thing to finish you off is obvious to you all by now of course. I Candidates Processed; IGNORANCE. mean, let’s face it, you are working for Ratios (of this to that). yourself now. In other words, it is probably not going to be the most obvious dangers that mean All of that type of stuff ought to be No one needs to be told to record those you don’t return to good old Blighty with obvious to you all by now of course. types of numbers do they? heroic tales of your bravery, but much more likely something daft like eating the I mean, let’s face it, you are working for wrong kind of red berry or drinking water yourself now. from a contaminated stream or believing that abandoning your filthy pants & going No one needs to be told to record those ‘commando’ is a good idea. types of numbers, do they? And, guess what? Running a business is a little like that too! Forecasting the Future! KILLING YOUR BUSINESS Opening Waffle! Not everyone’s favourite subject I know! over 140 existing Recruitment Ventures start-up experience which I keep and produce Monthly Management mentioning! Accounts for each venture. The avoidance of KPI’s and all of that type If we then sprinkle a dusting of magical In addition, we are very lucky to SSG intuition (don’t laugh) then we can of ‘stuff’ probably constitute part of the reason that you decided to ‘paddle your communicate with the majority of the reasonably explain the businesses which own canoe’ in the first place & opt for Recruiters who own those recruitment skew the performance curve – the odd businesses. We are aware of how most of venture that seems to under or over We all know that business ownership I suspect (I know that it was for me). those Recruiters operate and how they perform. approach the sticky business of making But, looking very closely at all of the placements. empirical data that we have collected your business will since we starting launching businesses We know for a fact ‘who makes what’. No back in 2003, a few things are true: 1. Ventures that set and record one can argue with our data – it is there. It exists and it is now based on over 9 years of results. targets generate more placement die if you don’t 2. revenue than those that do not. Ventures that operate to a formal Cash Flow are more likely to grow and expand than those that do Some other more observational criteria also seem to be valid: 1. Great Recruiters do not necessarily develop great make placements or 3. not. Ventures which do neither are (empirically) more likely to peak in terms of revenues after businesses. 2. Great Businesses almost always are owned by great recruiters. We are ‘serious’ ... ARE YOU?! approximately 18 months – after 3. Great businesses are almost if you don’t get up in which, revenues tend to decline. These observations are not based on our intuition (such as it is!) or ‘thumb in the air’ always owned by frustrated Recruiters. 4. Great Recruiters become frustrated by lack of information. In many ways, we seem to spend more time with the budding entrepreneurs who own the businesses which seem to skew that curve than we do with those that the morning and work really very hard. estimates or even the occasional analysis of the numbers. 5. Great information is the basis for great decisions. Are You Serious? conform to the accepted notion of how businesses behave. I guess that makes sense – the majority of our clients work fairly consistently & work against what Naturally, you all use the CASH FLOW Empirical Workbook which SSG created to help you they want to achieve. That also means Facts! As part of our role, we are lucky enough to that SSG is able to project what revenues develop a real understanding of many are likely to filter into our coffers of course! We all also know that you are probably Budding Entrepreneurs. We talk, we meet, we engage. But, those businesses that do not seem to track your performance as a business ‘conform’ to the norm are just as Over the years, we have been able to fairly important – not just in terms of potential accurately estimate how our Recruiter revenues to SSG but in terms of what not going to succeed if you are not Clients will perform against their own lessons we can learn from their objectives. We have reached the point experiences. Based on 9 years where it is reasonable for us to take a pretty good stab at predicting what a So, what are the prime conclusions which (please refer to Page 17 of the February extremely careful with candidates or if typical start-up recruitment business will we can draw from this analysis? of data! generate in Year 1, Year 2 and so on. All of this ‘expertise’ is actually based on fact – Perhaps the most blatant is that Recruiters we know which business made what SSG is in a strangely privileged position – money and for how long. We have the who start their own businesses really do seem to fall neatly into a number of 2012 Dark Side). you constantly irritate your 28 we legitimately need to collect data from data based on that priceless 9 years of categories: ever-dwindling client base! BUT, WHATEVER YOU DO, NEVER FORGET THIS LOT But, what is just as likely to kill your Naturally, you all use the KPI Workbook VAT, business is being ignorant of the other which SSG created to help you track your numbers that really count - the numbers performance as a Recruiter (please refer to CORPORATION TAX & that you can control. Page 28 of the April 2012 Dark Side). INCOME TAX.10
  9. 9. VAT Make no mistake guys; ignorance of this Profits of 50k mean that you will need to holy trinity of numbers will kill more pay the tax man 20% of that (i.e. 10k) DIRECTOR DESIGNATE (x2) recruitment businesses this year than any within 9 months of your year end. SEPTEMBER 2011 45k + Bonus + 10% Equity Nr. Heathrow The Opportunity of 2011 Page 18 for Details number of drop outs, rubbish interviews or grumpy clients. INCOME TAX: (see Page 16 of Jan 2012 Dark Side) Let’s have a few words about each of these first then: You know the score. Sometimes it’s hard to keep up with VAT: (see Page 12 of Sept 2011 Dark Side) You have a Limited Company which helps everything ........ Every quarter, all VAT registered SSG to help you pay as little Income Tax as businesses (yours included) will need to is possible. You take your money from Inside this issue: Be a VIDEO Star! complete a VAT Return, which will your Limited Company either as PAYE or as Is AWR Evil? calculate how much money you need to dividends. Start Your Own Business Time to Sell Up? physically send to the VAT. At the end of your personal tax year It’s an easy calculation: (which is March 31st every year for all of us), you need to generate a Self Page 12 How much VAT money have I Assessment tax return which tells the tax collected from Clients when I man how much income you have made send them a Recruitment and how much tax you owe. CT Invoice? Any tax that is due must be paid by How much VAT money have I January 31st of the following year. Dark 30k Basic 50% Equity! NOVEMBER 2011 ww Herts base for paid out to other w. the a GREAT Recruiter See Page 2 for Details Companies? Bottom line, because most of your money will technically be taken out of your What is the difference? business (& spent by you) as dividends, unless you take out more than £40k+ in Fancy a PhD in Entrepreneurship? If you collect more than you spend, then the year up to March 31st, you will not See Page 12 you have to physically send cash to the need to pay any income tax. VAT office each quarter. If you spend more than you collect, then you have to claim But, on any money that you take out of Inside this issue: Banks take a bashing the VAT back from the VAT man every the business above and beyond the £40k Selling Up! Part 1 Corporation Tax Basics quarter. (ish) level, you will have a tax liability. Google+ Exposed! The Death of Cold Calling? Who Owns YOUR Contacts? BLAST OFF! August 2011 BLAST OFF! October 2011 CORPORATION TAX: (see Page 21 of Nov R N ENGINEERING AND RTR COMMERCIAL AND FS 2011 Dark Side). ? Great New Partnership formed by Unusual combination of Experienced Recruiters looking to exploit their combined 10 years E Engineering recruitment with a side dish of RTR work! This is a business led by a Recruiter with of Perm’ based Commercial and X lots of experience and lots of U Financial services experience. Clients are UK based with a focus frustration about having worked on salaries up to £50k For more info, contact: T for someone else for too long! For more info, contact: 9 Months after every Company Year End, Page 21 you need to pay any Corporation Tax A FEW MUST KNOW NUMBERS which is due on any profits that you made in that year. My VAT Liability - every quarter Income Tax It’s another easy bit of Maths: My Company Tax (CT) - every year What profits do my accounts My Personal Tax (Income) Dark P in PhD JANUARY 2012ww Entrepreneurship E show? w. the - every year Happy What is the Corporation Tax Darren - New rate on that level of profits? 01442 200961 Year?.... SO, WHAT DO I NEED TO KNOW? Pay up 9 months after the Company Year End. How to escape the 2012 doom & gloom (page 13) For what the tax man classifies as a small At the end of every month, make sure that Company (i.e. one which makes less than you absolutely know, 100% factually, Inside this issue: 300k profit each year), you need to pay a exactly what you owe (to date) for: Selling Up! Part Deux : 3 Ways to SYOB Develop a Press Release Meet SSG’s New Girl : Clare is serious (again) Making the most of SKYPE CT rate of 20% of those profits to the tax : BLAST OFF! Very Soon BLAST OFF! Feb 2012 man. 1. VAT R N ? Your Best FriendYou from Home! Bob made the break and he Happy, content & safe in the knowledge that whatever you E is doing well. You try to be pleased for him of course, but as Morrisey acheive will be for you and your family. Never did the phrase ‘work for X might sing ‘we hate it when our U friends are successful’.Tough to someone else’ sound so silly, you’re T watch. It should have been you. In other words, if you have sales of 100k, motivated & progressing your life Why not call David on 01442 200944 to chat through how to break free Why not call ‘The Samaritans’ or Bob (ask him for a job?) 2. Corporation Tax & costs of 50k, then the tax man says that Page 16 you have profits of 50k too. 3. Income Tax. 11