The Dark Side - Feb 2012

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The Dark Side - Feb 2012

  1. 1. Dark side.tv FEBRUARY 2012ww w. the The Power of Th Three! At Last! Some Bright ideas! Inside this issue: Selling up! Part 3 (of 5) Worthwhile PR Strategy Cash Flow Tool Kit Hello from Lloyds BRANDING FOR YOU MORE, MORE, MORE! • Professional Presenter • New Client Launches • Online Video • Free Training Resources • Professional Director • Serious Stuff (Clare!) • SSG Client Discount • Silly stuff from SSG
  2. 2. EDITOR’S NOTE 25A trickle of positive news is beginning to filter Ever So Seriousthrough to increased placement values.A little more money is being made by most. CLAREMore of our Client Ventures are interested in buildinga team over the next year or so & quite a few are advises you toactively seeking Employees right now.More applicants to SSG are citing money as the Roll The Dicereason that they want to work for themselves, ratherthan being fed up working for someone else (a suresign that Recruiters are billing more than they were). -see page 25-Inflation is coming down, whilst interest rates areset to remain very, very low well into 2013.The rise in Unemployment has slowed down. Time to Gamble!Fair enough – all of that good news is true but do anyof you feel like taking it easy?Are any of you so confident that you are planning a Regular Stuffbig summer holiday?Anyone bought a new car recently? 5 Hello from LloydsIt seems to us that although things are easier, things 8 Today’s Frustration!ain’t easy. SpecialsThis is not yet the time to start cracking open bottles 9 Something Newof Bubbly or booking a round of golf every Friday 16 Gill & Year Endsafternoon.But it does seem the time to start to think about the 18 Vikki explains P&L 4 A VAT Inspector Callsfuture though. 25 Clare & Headcounts 6 Challenge the Tax ManOne day, another Lehman Brother’s style recessionwill come along and we all need to prepare a little 17 Cash Flow Tool Kitbetter this time I guess.There are only a few things that you can do toinsulate yourself against a volatile economy – you can Odds & Endsbuild your Company and sell your business. FeaturesYou can diversify your placement fees into 14 Economy Updateopportunities outside of your core business or youcan start saving as if you know that a recession is 15 10 Finding a Buyercoming around again! Ye Olde Catalogue 24 13 Never Ending LaunchWhatever is best for you, let’s all be real to the fact Pops Pantrythat apathy is not an option. 26 20 Training Resources Need Help?None of us can afford to sit around hoping that the 21 Worthwhile PR Strategyworst is behind us.The recent recession may be almost over but just likeLondon Buses, there is always a another recessionon its way! info@ the-darkside.tv 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
  3. 3. An Inspector Calls! KNOCK KNOCK.... It doesn’t matter what you do, at some Therefore, periodically HM Customs and point we all have to face the “dreaded VAT Excise would like to visit to check how you Man” knocking on our door. keep those records and that you calculate your VAT correctly. Funnily enough, those few words seem to scare people into hiding under a large box They are not there to find “extra” money and desperately hoping that he stops that the tax man can grab from you - if knocking on the door & leaves you in they do find any errors they will request peace! payment for any under paid tax. In reality, a VAT inspection is far less However, with the backing of the SSG He’s not this cool when the VAT man comes daunting than it seems. They don’t just Services you know that the VAT collected knocking on SSG’s door turn up at your door unannounced from your clients is correctly accounted WHAT’S A VISIT ‘LIKE’? together with a scary clipboard. for and included in the VAT figures that we provide. The visit would generally last between a In fact (& don’t laugh!) some of the few hours to a day depending on your size inspectors are even nice! - offering them You also know that we keep your books and any findings they make. unlimited tea and biscuits seems to and records here in a professional manner lighten the mood too. so any paper work provided to us is easily The day would start with a brief found to back up any reclaims for VAT background chat. Expect to be asked WHAT DO THEY WANT TO SEE? questions like : But they are not only there to check up on As you know, you keep VAT records you. yourself and complete your own VAT What market are you in? return (all within the services provided by They will also offer advice, answer any What is your annual turnover? SSG). queries you have and generally try and assist you in calculating your VAT Who are your regular clients? The vast majority of businesses will correctly. complete correct VAT returns, pay the What goods/services do you correct amount and generally be “above PREPARING FOR A VISIT provide? board”. As previously mentioned the inspector How do you account for VAT? will want to check your books and records. However, not all businesses are this How are your Sales invoices honest. In effect they want to look at the raised? information that we produce and keep here at SSG. What accounts procedures do you have in place? If you have a visit, SSG will provide the information ready for the inspection in an What are your regular purchases? organised format so you do not have to worry about where information is. HMRC will request amongst other things the following which SSG currently hold for you: Bank statements VAT workings Sales invoices listing Sales Invoices Purchase Invoices We will also be available on the day to provide any further information that is Some Inspectors are quite nice really requested. Be careful when filing any returns4
  4. 4. The aim of this is to enable the inspector TIME TO PANIC?to get a feeling of what your businessdoes, how you do it and whether you have Not at all!relevant experience or have systems inplace (like SSG) to ensure that you All these things may sound daunting.calculate VAT returns correctly. There may even be questions that youOnce this is completed they will then cannot answer on the day.move on to checking a sample oftransactions (both sales and purchases) to But don’t panic.ensure that the correct VAT is being paidto HMRC. Once complete, the inspector will leave and put in writing any findings they madeThis will consist of checking randomly and any outstanding queries for you toselected entries in the VAT workings to the answer.relevant paper work. And as always, do not forget SSG are withSo, for example - they may see a sales you all the way to make the inspection asinvoice in a particular quarter’s VAT hassle-free as it possibly can be.workings and ask to see the sales Invoice. If you want to chat, just give me a call –They may follow this through to see the Darren Hulbert 01442 200 961 – we arepayment of this invoice (either bank here to help!statement or factoring account). Feb 2012 BLAST OFF! Never an easy market of course, but this Super Hospitality & Catering Star Recruiter has almost 10yrs of serious experience in the market.Traditionally Temp-based, the occasional Perm fee ought to make the daily grind seem worth it! Market is Eastern Home Counties For more info, contact: clare@supportservicesgroup.tv Would you crack under the interrogation? Feb 2012 BLAST OFF!Finally they will look at the returns Anyone familiar with thesubmitted and look at what they would Construction CIS Work Construction Sectorexpect to see filed and look for differences will know that all CIS related work createsto what you have submitted. particular cash flow problems for any newThey would then seek explanations as to business, but withwhy there are differences. the help of SSG our talented recruiter has a greatSo, say you submitted a return that had chance to compete.£1,000 in the VAT reclaimed on purchases East Midlands and(box 4) but in the box where you declare all Temp!cost of purchases (box 7) there was only For more info, contact:£500 they would ask why your VAT was clare@supportservicesgroup.tvhigher than the net purchase costs. 5
  5. 5. ‘Duff Up The Tax Man’ Taxpayers Urged to Challenge the Tax Man! As an individual faced with a WHEN TO CHALLENGE? Self-assessment Late Payment fine from the Tax Man, the tendency is to cough up The latest cases resulting in defeat for the & shut up, but the latest advice is to Speak HMRC have revolved around Up and Man Up! circumstances where the Revenue have been found to have acted as In recent weeks, HM Revenue & Customs ‘unreasonable’ or ‘misleading’ or to put (HMRC) has LOST a series of court cases it another way, where the HMRC have not involving late filing of individual’s Tax acted ‘fairly’ or ‘in good conscience’. Returns. For example, if you post your return on As SSG keep banging on, as individuals we time but it actually gets delivered after all need to file our tax returns each year & the filing date, it has been ruled that it is Time to you have two key dates to meet to avoid wrong for HMRC to impose a late filing ‘Man Up’ any issues – depending on whether you penalty. want to physically send a paper version of There is no question that the general your tax return or just do it via the Another example involves individuals economic climate has precipitated an internet: overzealous attitude amongst some tax who freely admit that they failed to send offices and common sense has gone out their tax returns to HMRC on time but did October 31st – this is the deadline to file not receive a reminder to do so for of the window in an effort to bump up the a PAPER return & revenues coffers through the imposition months after the deadline had passed & of fines. therefore they incurred additional fines January 31st – this is the deadline to file (interest etc)! on-line. WHAT ARE THE PENALTIES? Other examples cite the cases of honest However, new tax rules brought in this tax payers simply making a mistake on So, if you are just lazy & therefore late in year allows our mates down at HMRC to their returns (which were then filed ON filing your tax return, you will automatically issue a £100 to anyone who TIME) but were penalised anyway because automatically be fined the standard £100. fails to meet the January 31st deadline - & of ‘inaccuracies’. apparently, there are millions of us out Fact. there who fall under this catch-all system. If you haven’t filed a proper return within Even if you actually owe NO TAX, you will 3 months of the due date, then additional now still get this £100 fine if you file a late DAILY penalties of an extra £10 will be tax return. added to your fine. The experts estimate that this new system This daily £10 will top-out at a maximum will earn the tax man an extra £90,000,000 of £900. this year. Money that will no doubt be spent Late filing your subsidising the bonus payment at failing Tax Return banks owned by the tax payer.... Anyway, the point is that these very same + experts are now advising self-assessment taxpayers (like you and me) to challenge Daily penalties HMRC if we are not 100% certain that we have failed to do what we needed to do. = “Not another date to remember You do the maths! - I can just about recall the Mrs’ No need to dance to their tune! (or do your Tax Return!) Birthday!”6
  6. 6. After 6 months of failing to file, you will £25-30,000 £30,000 Basicthen incur a penalty of 5% of any tax due(or £300 – whichever is the greater Linked In Guru! 50% Equityamount).After another 6 months (taking you to 12months late) you will face another 5% (or£300) plus interest of 3% on the total! Fit to fill these Spec’s? Recruitment Consultant Super Geek Required! Time to get started? Herts Based We are looking for a couple of very special individuals. Recruiters who want to own If you are reading this advert, you surely their own business. Fee Earners who want must know what we do here at Support to do something more than make money Services Group? So, let me save some ink for someone else. Motivated Recruitment and assume that you know what a bunch The Easy Solution! Consultants with the very special talent of of great guys we are & how friendly, being able to motivate others. This is both determined and entrepreneurial everyone a job (with a good salary) & a business at SSG is – blah, blah, blah!WHAT TO DO? opportunity (you will own 50% of the You will certainly know that we are based business). Tremendous. in great offices in beautiful Berkhamsted (near Hemel Hempstead) and that we are • £30,000 basic + Commission. File on time is the glib answer of • 50% Ownership in the Company. course. very lucky to be successful, innovative and without internal hierarchy. Well, our next • Any Recruitment Sector. great move is to employ a Linked In • Unique backing & Support. If you don’t file on time & you do superstar to help us develop and deliver a Based out of a wonderful office in Herts receive a fine, be honest and consider if comprehensive Linked In strategy. (Berkhamsted) you will work alongside a you feel that you have been treated in driven group of people with extraordinary Every single Client that we have and every an ‘unreasonable’ way or ‘unfairly’, then talents and enjoy access to all of the tools additional Budding Entrepreneur that we get in contact with us and we will let that anyone needs to be successful. Truly. help to launch a new business is going to you know if we think you have a case. have to face the reality of Linked In and The goal is to generate sufficient Social Media. With the amount of money, placement income to build a team ofWhatever you do, the advice is to no effort and hard work applied every recruiters around you and to create working day to the issue of candidate something special. Tricky.longer just do as you are told when the tax procurement, it is obvious that we need toman issues his fines, but to look at what be 100% on-top of the latest cyber moves. You can work in whatever market you havethey are demanding & ask yourself ‘is this But we want more... experience within – temp’, perm’ interim,fair’? contract across any sector. Access to job • Candidate Procurement Strategy. boards, recruitment software, vacancies, • Database Development. credit checking facilities, recruitment Feb • Client Relationship Management. training, on-line testing facilities and so on • Embedded Video & Broadcast. is guaranteed. Is there anything else that 2012 BLAST OFF! In developing for both SSG and for all of our Client’s a detailed, pragmatic and cost you think that you need? Tasty! Your business partner has ‘been there, Let’s Play Doctors & Nurses The Healthcare effective solution to making the most of done it & got the T Shirt’ but is also the first Locum market may Linked In, you will then need to have the to recognise that this is your time – your appear scary these days flair, interest and charisma to deliver this opportunity. You do your job and our job is (with all the Public Sector great work – in a useful and friendly way to to ensure that you have every possible uncertainty & legislation) a diverse range of recruiters working in advantage to help you to grow your but it is a market well many different sectors. business. known to SSG & also to our duo of Recruiters! This is an opportunity to be the SSG This ought to be very exciting. You ought SSG need to Expert! A Super-Geek with Flair! It will be to enjoy the challenge and be desperate to provide special help with fun, hard work and very rewarding. The get started. You need to be ‘ready’. You Candidate Attraction via the Trade Press position is open to anyone who can do the must be determined, full of self (Staff Nurse) but job – from recent Graduate to deprecating humour and currently living in this Candidate led Returning-Mum to disaffected Recruiter. If within commutable distance of the industry, there isn’t you think you can do the job and want it – Berkhamsted office. much point in trading then apply! without the raw product! Jump on the ‘phone and start talking about Come on guys – take the challenge! what you want to with your career. For more info, contact: clare@supportservicesgroup.tv David Jones David Jones 07967 562 847 (8am – 9pm) 07967 562 847 (8am – 9pm) X 7
  7. 7. Accountants charge to do stuff for you in the what you expect Accounts to say, tell same way that any one charges for what you or ‘mean’. they do. How the hell would I know? How can they claim that they are special because their service will save you money? Aren’t you supposed to tell us that Mr. Accountant? Any ‘professional’ can claim that can’t they? So as I see it, the first thing an A plumber saved you cash because he fixed Accountant does is charge too much a leak before the pipe burst and a and the second thing an Accountant ACCOUNTS AND ACCOUNTANTS! hairdresser saves you money by cutting your does is to ask you what they need to hair before it grows so long that you start do. buying jumpers with ‘funny’ pictures cleverly knitted into the design. This whole scam makes me think a little more kindly of ‘Fat Dave’ (you remember Fat Dave? He accidentally plasters Cats behind joists when working for pensioners). Just for a change, two things are really Although Fat Dave charges way too hacking me off at the moment now: much, he doesn’t ask you what he needs to do or how to do it (although Accounts & perhaps he should). Accountants Of course, my gripes about I am reliably informed that an Accountant Accountants go way beyond this little exists to not only ‘do’ your accounts but also snapshot or irritation! to save you money by ‘doing’ your accounts. Don’t get me started on how long they The theory goes (I am told) that whatever an keep you waiting! Accountant charges, you ought to be able to see how they have saved you more money There ought to be a special than they cost you. dispensation from the tax man for late submission known as the ‘My Apparently, if they charge you £500 for Accountant never gets back to me’ something or other, then you should be able clause... to forensically trace where that £500 was recouped through their brilliance. We haven’t so much as lost a Son, more So, how do you nail an Accountant? In other words, an Accountant should be gained an ‘Accountant’ Rule 1: able to ‘add’ something to your wealth! Any twit can claim to save their clients Always pay a fixed price for anything money! that he does for you. That just misses the whole point of Never pay ‘by the hour’ because the anything. most simple task will subsequently A service is something that you need, not take him hours! something that you buy because the Rule 2: provider claims it will save you money (or not). Visit one Accountant to help you to define what you need before you So, that’s the first thing about instruct another Accountant with Accountants which just doesn’t add-up what you actually want them to do! (done it again – did you see what I did that time?!). Rule 3: “Almost finished with your Accounts now Mr Jones” The second stupid thing about Never let a Family member marry an Accountants is what they always ask you Accountant. (Did you see what I did there with the word about your ‘accounts’: ‘add’? – I used the word ‘add’ when talking All simple stuff really, but I guess that about an Accountant, because Accountants ‘What would you like your accounts to what you need me for – to point out ‘add’ things up. show you?’ OR the bleeding obvious. ‘What would you like to see in your Of course, that mob at SSG will So, by using the word ‘add’ when talking Accounts’ OR probably just suggest that if you have about an Accountant I made it seem like the ‘any issues’ with your Accounts or what word ‘add’ was something to do with them, ‘What will you use your Accounts for?’ you might need an Accountant to do as Accountants). for you, just get in touch with that First things first then – that all seems You know what I mean – an Accountant Darren Hulbert geezer (01442 200 rubbish to me. who produces accounts wants to know 961).8
  8. 8. Something New Professional on-line branding! professionally presented video! THE latest tool in business brandingIn conjunction with a small team of SSG will draft a ‘template’ Company SHOW ME AN EXAMPLE?Professional Television Presenters & presentation for you which you can editExperienced On-Line Producers, SSG has however you want (a simple Word Why not take a look at two recentcreated the opportunity for you to enjoy document). examples of the work produced:the marketing & branding advantages ofNew Media. We will generate a branded landing page www.hostmyvideo.co.uk/bigsky for you & record your video using topIt is now widely accepted that professional Presenters and experienced www.SSG-PhD.tvprofessionally produced video content is Producers (with significant TV andthe next key stage in the development of On-Line experience). Which Presenter do you prefer?a branded on-line strategy for any seriousRecruitment Business.Until now, the production of innovative,high quality video content has beenexpensive, complex and rare, but with thehelp of SSG you can transform yourexisting web presence & brandingstrategy. Up to 3 Minutes of crafted Video Presented by a Professional Presenter Branded in your Company Colours Branded with your Company Logo Fresh, Relevant & Targeted HOW LONG DOES IT TAKE? WHAT’S THE COST? Content Once you approve your script, we will Either a one off payment of £799 or 3 Monthly Payments of £299.Never mind that current research assign studio time and return the carefullysuggests that Video content is 50 times as crafted on-line video within days of I WANT A DISCOUNT!effective as text SEO, why not simply production.differentiate your business to potential Existing SSG Clients can generate thisClients & Candidates and gain a serious HOW DOES IT GET ONTO MY WEB SITE? outstanding Branding Opportunity forcompetitive edge over your competitors just £499.whilst generating a real buzz across all SSG will create either a text link (e.g.social media? <Click Here to find out more>) or upload WHO TO CALL? an Image or Icon anywhere you decide onWHAT DO YOU NEED TO DO? your web site (just as SSG has on our To book your Recording Date, please www.SSG-PhD.tv home page – see our contact either Clare Armstrong on 01442It’s easy & quick! mini Clapper Board). 200 957 or David Jones on 01442 200 944. 9
  9. 9. Selling a Business - Part 3   Regular readers of The Dark Side will This really means that Chubby must find know that we are trying to provide an the wit & wisdom to produce an Quite often, the production of an IM overview of the basics involved in Information Memorandum – which is would be the responsibility of the Sales understanding how to sell a really the ‘CV’ of the Company and then Broker (your ‘intermediary’), but of recruitment business. approach sales brokers who specialise in course the production of any IM comes the recruitment sector. at a price. Part 1 (November 2011) examined ‘the basics’ whilst January 2012 (Part 2) An Information Memorandum: Obviously, the price of an IM can vary looked a little more closely at how to but it is likely to be thousands and ‘groom’ a business for a sale. An Information Memorandum (‘IM’) is the require a lot of intellectual effort from Company CV – it is a really significant Chubby and his colleagues – records, Well, let the excitement continue as we document detailing the history of the analysis, conjecture & objectivity. now look at how one might actually find Company, the biographies of the people a buyer for the business. employed by the Company, the It might be tempting to try and skimp processes relied upon by the Company, on the cost of your IM but maybe a Please try to contain your enthusiasm the detailed financials and other longer term view would be more helpful until the end of the article – I wouldn’t information that might be useful to a – pay a couple of thousand pounds want you to get too worked up. potential buyer. extra now which might generate a sale worth hundreds of thousands of Oh, and before I forget – please don’t Of course, a good IM ought to present the pounds extra in a few months! forget that you can access any of the positives of the business but in an Sometime, the old sales adage of ‘you articles generated through TDS so far via objective and reliable format. get what you pay for’ is true! the web site (www.the- There is no point in ‘exaggerating’ any darkside.tv/recenteditions.htm) - but you successes as any subsequent due probably already knew that. diligence process would immediately Sales Brokers: highlight any such ‘exaggerations’. Let’s be clear, there are a number of Anyway, to recap: different ways to sell your business. It is serious document which would Our hero (‘Chubby’) has built his typically NOT be something that Chubby These different routes can range from recruitment business into a healthy & would put together himself. simply listing your business with a Sales profitable (£300,000 p.a.) venture Organisation (e.g. a firm like Avondale - employing 12 Recruiters from a single www.avondale-group.co.uk ) or using a office location. highly respected Recruitment Specialist (e.g. like John Bissell at LBA Chubby worked hard getting the right www.lba-info.co.uk) or by approaching advice and spent some considerable time a well-to-do mainstream Accounting ‘grooming’ his business (i.e. looking Firm (such as Smith & Williamson - carefully at all aspects of Commercial, http://www.smith.williamson.co.uk/). Legal and Financial Due Diligence) and now hopes to secure a sale based on a All have differing methods for multiple of the profits (i.e. a sale price generating interest in potential buyers generated as a Price Earning (PE) and charge accordingly. multiplier, reflecting the Future Most intermediaries will want to charge Maintainable Profits of the business – the both a fixed fee (‘up front’ payment) but ‘FMP’). also a percentage of the proceeds of any successful introduction – much like a The next thing that he needs to do (apart Recruiter placing a Software Engineer or from ‘do a few pounds’ as Mrs Chubby Sales Person. often ponders to herself as Chubby snores his way through MOTD) is to The percentage charged for this generate a ‘sales brochure’ and then introduction can range from 1% to approach a few intermediaries who (typically) 4-5% of the total sales value might like to help him find a buyer. I wish my IM had been honest.... of the ‘deal’.10
  10. 10. It is the role of all such intermediaries to It is a good idea to think of any would-be purchaser feels justified inwork with the Vendor (i.e. Chubby) to intermediary as just like any good buying that business of course) but alsoensure that the IM is appropriate and Recruiter you have worked with in the in an effort to push down the price that athen shortlist a number of suitable past – there are good guys and there are purchaser might need to pay!potential purchasers. bad guys.This target list of potential purchasers It is the job of the DD team to not onlywould then be approached with an Intermediaries make their money identify weaknesses (e.g. poor‘Executive Summary’ of the Company and mostly through the successful accounting policies or a lack offollowed up with a copy of the IM, if completion of a deal – so, we know that management structure or whatever else)appropriate. they want you to sell your business! but also to negotiate in advance on that all important Indicative Offer price!Like any other ‘sales’ process, a goodintermediary will usually know of Think carefully about what you think The issue that all Vendors face is thatpotentially active purchasers of your business is worth before agreeing once at the stage where an IndicativeRecruitment Businesses but also know of to any formal meetings! Offer has been made, the Vendor is sopotential buyers who may be interested if enthused & committed to the process (&the ‘right’ opportunity arose (which is Indicative Offers: idea) of selling-up, that the Vendorreally like having your live vacancies and becomes very malleable and significantlyyour speculative mailing list for a good If your intermediary does a good job, more likely to accept a PE not of 8 timescandidate). they may well generate ‘interest’. the PBIT, but perhaps 7 or even 6? By that, we mean that they have approached a potential purchaser and that potential purchaser has requested Words To Learn Today: more information and formulated an indicative offer. Information Memorandum An indicative offer is presented to the Indicative Offer intermediary who then contacts Chubby – who gets way too excited at Intermediary this! Completion This is an offer in name only really – it is subject to due diligence (remember that phrase?) and is often a device for Potential purchasers recognise that sounding out a Vendor. vulnerability and the DD team will be itching to exploit it! Almost always, whatever the Indicative Offer is (e.g. a PE based multiple of 8 But, an indicative offer is a formal times the PBIT of the business) it is likely approach by a would-be purchaser & is that if a sale eventually took place, the great news! At last, something which actual sum paid to the Vendor will be even Chubby can appreciate!There are ‘good’ Brokers and ‘smarmy’ less! Brokers!So, what would you expect your A purchaser may well be happy tointermediary advisor to do? potentially pay the full price of an indicative offer but the business thatWell, at a minimum, they must; they have expressed an interest in would have to be perfect! Demonstrate a significant knowledge of the Recruitment industry. The purchaser would need to complete their entire due diligence process and Never circulate or advertise a object to nothing that they uncover! business without Chubby’s consent. This is highly unlikely and Vendors Seek a signed confidentiality should be aware that an indicative offer agreement from Chubby. is no where the same thing as hard cash! Qualify all potential purchasers. Any Due Diligence (DD) team sent into the business of a Vendor will be sent to Subsequently supply information that business not only to verify the Due Dilligence is all about squeezing (IM) to appropriate target buyers. quality of the business (so that the the price! 11
  11. 11. Costs?: You are likely to get your money OK but at what price? OK, so here we are at the stage where an indicative offer has been made for your What will you need to promise (& business as a result of the IM generated deliver) to earn that pay day? and distributed by your intermediary. Next time we shall find out! You have already spent considerable time & money getting to this stage but now you need to spend more!   It is time to make sure that you have proper legal representation as well as the services of an Accountant (to cover There is always a catch somewhere! your tax issues). What Next?: Spring 2012 Like anything else, this expert OK, so now you need to complete – get BLAST OFF! entourage can be as cheap or as the deal done and the money in the Just confirmed! SSG is expensive as you feel is appropriate – bank! very excited to confirm Mobile Technology the launch of a high end but again, this is really not the time to (100k+) Contingency worry about trying to save a few The key word is now ‘Completion’ and Recruitment business specialising in Mobile pounds. as you would have expected, Technology. From Programme Managers completion is not easy. to Technical Guru’s, our 40+ Recruiter You are already committed and need to certainly has earned the right to launch push through that commitment to a It is fraught with danger – not just in her own business conclusion. finishing off the ‘deal’ but in making sure after ‘all these years’ (as she puts it!) that you are careful in what you wish for For more info, contact: – what happens once you have sold clare@supportservicesgroup.tv Get the experts in! your prize asset? QUALITY, CARE, INTEGRITY RECRUITMENT OPPORTUNITIES Recruitment Consultant- Recruitment Consultant - On-site Recruitment Cardiff Trades & Labour Consultant - Shotton Technical & Engineering Trades & Labour On-Site Basic salary to £30K Basic to £28k Basic salary to £22k + Bonus OTE £30k Generous bonus scheme Uncapped commission structure 25 days holiday Warm desk Warm desk Excellent training and on-going support provided Supportive environment with mature approach Exciting growth stage The Role & Requirements Autonomy to run your own desk - contract, Active database of clients and candidates Build relationships with clients and staff interim, perm or dual Productive and team focused environment Recruitment and Registration of candidates Large database of experienced candidates - Genuine opportunities for career progression Training and Induction of agency workers professional, technical and managerial excellent support and every opportunity to excel Daily register checks National and local clients, including blue chip Competitive salary, superb commission Attending client meetings to ensure client businesses structure satisfaction First class training and on-going support 0845 269 6195 0845 269 6195 0845 269 6195 info@freshappointments.co.uk info@freshappointments.co.uk info@freshappointments.co.uk Snr Recruitment Consultant - Recruitment Consultant - Snr Recruitment Consultant - £35k + Uncapped £25k + Commission £26-32k Commission + benefits CENTRAL LONDON SLOUGH SUFFOLK IT into Engineering Healthcare, Industrial and Catering Professional Staffing Sectors Full 360 Role, Initially supervising Team of 3 Established agency - 20+yrs Professional Team working from quality offices Providing Perm & Contract staffing to the Taking responsibility for a Perms desk Boutique agency offering a generous bonus Engineering markets Supplying Admin, HR, Call Centre Staff scheme & profit share Reporting to Regional Sales Director - lots of 360 Recruitment Consultant role securing new Run a successful desk in professional staffing autonomy/responsibility business wins sectors - Finance, HR, Engineering It is planned that the division will grow to 8 - 10 Full Training Excellent career development potential heads Lots of autonomy to grow business and Benefits include free parking and Health Fast-track career progession to Division maximise your earning potential Insurance Manager/Sales Manager (full P&L responsibil- Opportunity to take full control of your desk in a ity) non micro-managed culture 0845 474 1624 0845 474 1624 0845 474 1624 kcardosi@ccgassociates.co.uk kcardosi@ccgassociates.co.uk kcardosi@ccgassociates.co.uk12
  12. 12. The SSG Launch Process Why a Good Business Launch never really ends!....Think about the well known proverb – Apparently these are two distinct phaseslook after the pennies and the pounds will and apparently we see the end of Stage 1look after themselves. as the start of Stage 2.Well, the start of a new business is a little The reality is something very different oflike this. course and that reality recognises very Without spending significant time clearly that without a formal and (throughout the Launch process)If a company is launched well with great comprehensive business launch, it can be understanding the personal situation ofattention to the small details, then it has a very tricky providing an equally formal our Recruiter Clients it is unlikely that webetter chance of being a successful and comprehensive support facility. will be able to broker the best on-goingbusiness – able to weather the inevitable support in terms of payroll, factoring,storms. For example, much of the Legal & banking and tax. Compliance work traditionally associatedCommon sense stuff. with the launch of a new business is in fact Creative Work: probably more concerned with ensuringFrom time to time, potential Clients will that the required building blocks are in Come on SSG, why not just jolly-togetherwonder why SSG feels the need to cover place to not only run the ‘back office‘of the a basic web site and run off a fewso many seemingly trivial & diverse launch recruitment business but also in place to Vista-Print Business cards?!elements – does it really matter if the VAT support the personal tax situation of anumber is applied for on ‘Day 1’? Recruiter who just so happens to own a What more does any start up business Recruitment Business! need?Why do we need to ramble on aboutRestrictive Covenants or compliant Terms Again, traditionally SSG likes to Of course, we fully appreciate the urgencyof Business or the detail of Corporation compartmentalise the launch process of a with which many of our start-up venturesTax – why can’t we just build the web site new Recruitment business into neat, little need to begin to trade and generateand provide access to the job boards?! ‘bite sized chunks’ which we conveniently placements – we are just as anxious that label as: placements are made too!As you probably already know, internallySSG will apparently divide our work with But the branding of a business is a journeyany Recruiter into two stages – Stage 1 is Legal & Compliance Creative Work & which needs to start at the right point,of course ‘The Launch’ and Stage 2 which is always a considered and carefulrepresents the period of ‘On-Going Accounting Structures development of logo, business cards,Support’. email header and Company Web Site. (By the way, should you ever want to tease any of the Launch Team, ask them to This is just the start of the journey of explain why we talk of about the ‘Power of course & as we progress to on-line Video, Three’ – which is nothing to do with a new PDF Brochures and Presentations & so on, American Motivational Movement but the development of your business can be more to do with the incessant list making traced back to the fundamental roots of & internal compliance designed to ensure that first meeting with SSG. that nothing is missed!). Legal & Compliance: Accounting Structures: You will recognise most of the processes Ok – we agree that it takes a strange sort involved in the Legal & Compliance side of of Recruiter to demonstrate genuine the launch of a business (e.g. Name interest in many of the accounting checks, trademark checks, Company processes undertaken throughout the registration, Bank accounts, VAT, Inland launch process! Revenue & so on) but might overlook the importance of Data Protection, Money Even we find it difficult to share Darren’s Laundering or challenging the Credit team’s enthusiasm for VAT, Corporation “We all love a good launch!” Rating of our Recruiter Partners. Tax, P&L’s and Debtors Days! 13
  13. 13. However, to be fair to our Number we just go on and on and on. Crunching friends, the time spent with each new business in understanding the But I am guessing that you are beginning Accounting process is very likely to not to know that already! only help the new business to save money Why not give me a call to chat through (through proper expense claim how we can continue to re-launch your procedures for example) but also to business with you? ensure a good cash flow of the new business – or a tax saving process at the There are probably many fresh ideas, new end of the Company financial year. processes and innovative services which may not be working to the advantage of It all counts and the detailed launch your business. process will ensure that the on-going support is maximized. My number is 01442 200 956. We have plenty of experience of doing WHY TELL YOU THIS NOW? just this and have dealt with many queries Careful planning avoids costly errors later on over the years. Throughout the launch process, SSG will encourage you to concentrate on all of If we don’t know the answer to the finer details of running your own individual elements of the launch process something, we have, at our fingertips, business. – however small – that your company has experts in legal, financial and training the best chance of success. who will be able to help. We ask that you pay particular attention So, throughout the launch process, you Don’t be afraid to ask for help or to flag to all the tasks involved in the launch can help in many obvious ways - any problems to us. Make sure that you process, to help us all to ensure that your including: get your company off to a flying start! business is set up with solid foundations. 1) Taking care to complete forms and We know that you will make sure that all return them to SSG in good time so that UK ECONOMY UPDATE of your new end-Clients will be given we can organise bank accounts, data 2012 is starting pretty well it would properly branded & up-to-date T&C’s for protection etc. seem with Inflation Down to 3.6% example. (from over 5% in the last quarter of 2) Keep a good track of expenses, logging 2011) & Interest Rates set to remain at All of this ATD (Attention To Detail) will information and keeping receipts so that historically low levels (0.5 of 1%) give your applicants complete confidence expenses against the business can be throughout the year. in you throughout the recruitment easily claimed. This solid data coupled with a process. slow-down in the growth of 3) Don’t over-complicate the logo design unemployment and an easing of the and the website – remember these are Eurozone crisis is generating a Candidates will happily register with you, selling tools – they won’t make you positively balmy business atmosphere! reassured by the fact that you are a money! Against this raft of good news is the legitimate company with a carefully constructed & well branded website. general uncertainty that we have all 4) Pay careful attention to your terms of laboured under since the Lehman business and prepare these as soon as But, what happens if together with SSG collapse back in 2008 & a suspicion that possible during the launch process it isn’t all over yet. you fail to progress the launch of your business through the on-going support 5) Invoice regularly and keep in touch But with the UK set to avoid a process? with the Accounts department of SSG. double-dip recession and UK growth Remember we are happy to act as credit projected at 3% in 2013 things are on What happens if you fail to recognise the control for you and chase for the up. need to update this or modify that? non-payment of invoices. Specific data of over 100 Recruitment Companies confirms a very positive What happens if you fail to progress the 6) Ask for help on the legal or financial level of optimism without that launch of your business with a new side if you are running into difficulties. optimism translating into significantly on-line video presentation? higher placement numbers than in But – more than this (much more in fact) 2011- yet! What happens if you fail to investigate you can help your business to be ‘Even for the most cautious amongst fully the fresh offerings of SSG? constantly launched (throughout the us, the Recruitment Industry on-going support stage) by responding to continues to recover with many of us Yep, you guessed it – even with the most seemingly daft requests (usually from the now familiar with the changed basic understanding of business algebra - Accounts team!), by looking closely at landscape’ (David Jones Owner of SSG) a fail + a fail + a fail + another fail tends to what new services are available from SSG, ‘Our advice is to focus on the basics lead to a failure! by communicating your anxieties to SSG, and remember that placements are through sharing your War Stories, your made by putting candidates in front HOW YOU CAN HELP? successes and so on. of clients & not by worrying about Greek Bailout Conditions’ It is really by paying attention to all the The launch process never really ends –14X
  14. 14. A HANDY INDEX OF CATALOGUE ARTICLES SUBJECT WHERE WHEN CATEGORY SUBJECT WHERE WHEN CATEGORY Backing Up Data Page 5 September 2011 BOOK REVIEWS Making A Fortune Page 18 September 2011 IT Matters Google+ Page 5 November 2011 Starting Up Tough Times Page 26 November 2011 Skype Page 5 January 2012 The story of Innocent Page 24 January 2012 Credit Control Page 9 September 2011 IDIOTS GUIDES Eurozone Jargon Page 10 November 2011 ACCOUNTING Monthly Accounts Page 19 November 2011 Claiming Expenses Page 15 January 2012 FRUSTRATIONS Social Media Page 14 September 2011 Year End Stuff Page 16 February 2012 Double Dipping etc Page 24 November 2011 What is your P&L about? Page 18 February 2012 Banks Who Won’t Lend £ Page 8 January 2012 Accounts & Accountants Page 8 February 2012 VAT Page 12 September 2011 TAX VAT Inspection Page 4 February 2012 TRAINING Mike Walmsley Page 8 September 2011 Corporation Tax Page 21 November 2011 Free Training Resources Page 20 February 2012 Entrepreneurial Relief Page 25 January 2012 PAYE & NI Page 16 January 2012 NEW FACES Catherine White Page 15 September 2011 Challenge the Tax Man Page 6 February 2012 Jane Fisher Page 12 January 2012 Recruiters & the Economy Page 6 September 2011 NEW SSG OFFERING Video Production Page 4 September 2011 SURVEY RESULTS Banks are all the Same Page 7 November 2011 Vacancy Spider Page 4 September 2011 Credit Card Payments Page 4 January 2012 Recruiter Isolation Page 10 September 2011 Cash Flow Tool Kit Offer Page 17 February 2012 SPECIALIST ARTICLES 3 Ways to Start-Up Page 6 November 2011 Why Doom & Gloom? Page 13 January 2012 VACANCIES Refer a Recruiter Page 18 September 2011 A Good Business Launch Page 13 February 2012 LinkedIn Guru (SSG) Page 2 November 2011 Increasing Headcount Page 25 February 2012 Relationship Manager (SSG) Page 18 November 2011 /recenteditions.htm Equity + Salary Recruiter (SSG) Page 2 November 2011 Huge Demand Page 15 September 2011 Recruitment to Recruitment Page 2 January 2012 SELLING UP Part 1 – Some Basics Page 14 November 2011 Part 2 – Grooming Page 9 January 2012 COMFORT FOOD Mega Cookies Page 9 September 2011 Part 3 - Finding a Buyer Page 10 February 2012 Crunchy Nachos Page 22 November 2011 Lemon Pasta Page 17 January 2012 AWR Page 16 September 2011 Cheese Grill Page 24 February 2012 LEGAL & COMPLIANCE LinkedIn Page 23 November 2011 Reasons to Trademark Page 18 January 2012 Introduction Page 12 September 2011 SSG PhD Why not keep your eyes open Develop a Press Release Page 20 January 2012 BRANDING for future updates? Professional Videos Page 9 February 2012 A Worthwhile PR Strategy Page 21 February 201215

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