Yellow pages have released a report that six out of every ten new businesses are set up by people aged over 50, they have been labeled Silver Startups.
This is something that many of us in the business support industry have also seen over recent years, an increase in the number of ‘older’ people starting up in business, and this is a good thing, with their experience of life these ’silver startups’ will stand a better chance of success.
Figures released indicate that the average ’silver startup’ will work alone and from home with an average annual turnover of £67,500, and with one in ten turning over more than £100,000. Not bad for a home based business, but imagine what you could do with business support?
Main reasons for going it alone for the ’silver startup’ is freedom and happiness, a chance to do something they enjoy, and lets face it, it’s better than working for someone else.
Maybe we will see a reduction in business mortality?
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Stuart Jones (Who am I?)
2 years ago
I understand that averages mean nothing but picking up on your point of what could be done with business support I must mention the VAT registration limit of £64,000.
Big savings can be made by keeping your turnover below the registration limit, delaying registration, picking the best time to register, choosing the appropriate method of calculating VAT but you won’t receive this advice from H.M. Revenue & Customs and you won’t receive it from the majority of accountants.
Choose an accountant who is also a business advisor.
Jason Holden (Who am I?)
2 years ago
I couldn’t agree more Stuart. For those businesses that are close to the threshold it is worth taking stock.
Ask yourself, do you really want to be VAT registered, it can be a headache, and that’s only the registration process these days.
For businesses that can’t add the VAT onto their sales figures then going over the limit just a bit will have a serious impact on their business.
As Stuart rightly says find an accountant who can also act as a business advisor to you and your business, someone who will and can add value.
Emily Coltman (Who am I?)
2 years ago
I’ve been involved in a debate on Accounting Web about whether a small business owner who doesn’t want to grow their business is actually running a business or doing a job.
I come down very firmly on the side of them “running a business” – been there done that (only for 6 months I admit!).
Re the VAT registration – I knew one couple who were adamant they didn’t want to grow their landscape gardening business above the VAT threshold. They were selling to the public and so would have had to put their prices up – or else make a lower profit – if they registered for VAT.
There are people who might say that means they’re not really in business.
I say it means they need a sympathetic accountant who listens to them, understands what they really want and doesn’t try and push them to grow if all they want to do is tick along and pay the bills – and not have to charge VAT.
M
Jason Holden (Who am I?)
2 years ago
Whether it is a business or a job often comes up, and I can really see both sides of the argument Emily.
But yes of course they actually run a business, however, their role has much more in common with a job than it does with a ‘traditional’ business.
And this is where I think ‘professional’ adviser have to reassess what they consider to be a ‘proper’ business. I agree that in the modern day what you describe is definitely a business, a micro-business, but none the less very much a business, and this is something I feel a lot of advisers don’t understand.
They seem to feel that unless you grow or build something big you are not in business, well that’s just not true, and for many and varied reasons.
And the VAT threshold as you describe is actually very harmful to many small business that can’t pass on their costs.