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New Year business resolutions

Many of us start the new year full of good intentions and make resolutions for the coming twelve months. If you are self-employed or an entrepreneur, there is no reason why you shouldn't do the same for your business.

Business people are usually busy and often fail to make time to stand back and gain perspective on their operations. But it is time well spent. The decisions and resolutions that you make could lead to a more profitable business. Read our top New Year's resolutions to give your venture a push in the coming year.

1. Become a Limited Company
If you're a sole trader or partnership, there's no better time to convert your business to a limited company. Here are six reasons why:

(a) Protect your assets The principal benefit of trading as a limited company has always been the limited liability bestowed upon the company's officers and shareholders. As a sole trader or other non-limited business, personal assets are at risk in the event of failure of the business, but this is not the case for a limited company. As long as the business is operated legally and within the terms of the Companies Act, directors' or shareholders' personal assets are not at risk in the event of a winding up or receivership. And as often happens on occasion, such events are not always under our own control.

(b) Pay less tax The first �10,000 of a limited company's profits are tax-free. This is not the case for sole traders and partnerships.

Company profits may be distributed as dividends to shareholders. Presently, National Insurance is not applicable to dividend payments, effectively reducing your tax liability still further.

(c) Be professional Operating as a limited company often gives suppliers and customers a sense of confidence in a business. Quite often, larger organisations in particular will prefer not to deal with non-limited businesses.

(d) It is not as expensive as you think The costs associated with managing and operating a limited company are not significantly greater than with non-limited businesses. Accountants and other professional advisers may have conflicting views on when they consider the benefits of being limited to outweigh the advantages of being self-employed. In general terms - at least from the perspective of taxation and accountancy - changes to legislation over the last few years have meant much lower costs associated with limited companies.

(e) Protect your name There is no obligation for a limited company to commence trading within any set time period after its incorporation. This means that the formation of a limited company is one simple and low cost method to protect a business name. Whilst this does not in itself give any rights to use of the business name, many clients form companies in anticipation of future development of new businesses or in order to protect the limited company name of an existing non-limited business for the future. No two limited companies can exist with exactly the same name.

(f) It's easy Click here for Tiscali's easy-to-use online company formation service.

2 Review your banking arrangements
Since the 2000 Cruickshank Report into small business banking, the sector has become more competitive and it has become easier to switch accounts.

The majority of small businesses opt to stick with the bank they use for their personal finances. With so many deals available, this can be a costly mistake. If you are thinking of opening or moving your account, there are a number of factors to consider.

First look at an account that fits well with the kind of transactions you make. For example, if you deposit a lot of cheques and cash rather than operate using Direct Debit and Standing Orders, you should go for an account that has low rates for such transactions.

Do you need an overdraft or loan facility? If so, choose an account offering a low rate of interest on debt. What kind of business support are you looking for %u2013 a telephone helpline or a named business manager who is easily contactable?

Use Tiscali's business bank account finder to search for a better deal.

Once you have moved your account you should review your banking arrangements each year and move if necessary.

3. Review your mortgage
If you own your business property or you are a landlord then you should review your mortgage portfolio. If you haven't remortgaged in the last couple of years you might be missing out on a better deal - and now might be the time before the base interest rate rises.

If you are renting premises take time to work out whether it would be better for the long-term growth and security of the business to own the building. It might work out cheaper in the long term.

If you are a buy-to-let landlord, remortgaging free up cash for you to expand your business by buying more properties. Find out more about commercial mortgages. Get a free, no obligation quote.

4. Find cheaper insurance
The first day of the year is a popular insurance renewal date. Premiums have risen steeply over the last couple of years for some kinds of business insurance, so getting the best deal is more important than ever, whether you take out cover on a van or landlord's insurance. It is also sensible to assess whether you have the right amount of coverage, particularly if your business is expanding.

Find a competitive quote from Tiscali's business finance partner Xbridge. Decision Finance within 30 days of your renewal date.

5 Plan the year's expenditure
You should map out your acquisition of fixed assets and capital expenditure for the coming year. Think about what you need to spend in terms of new equipment needed to expand and replacing out of date or worn out equipment by using asset finance/leasing to source the requisite items such as:

Asset Finance for computer/technology equipment
Asset finance for industrial/construction/agricultural equipment
Finance for large commercial vehicles
Leasing for cars and vans

The advantage of asset finance is that it means you don't have to make huge capital investments that can be a significant drain on your working capital. Also, you have the use of the asset or equipment without having to pay for it all at once. You can lease almost anything, from equipment valued at a few thousand pounds to assets worth millions. Learn more about asset finance and get a quote

6. Review cashflow arrangements
All businesses have moments of cashflow crisis, often thanks to late payment or even non-payment from customers. If you have problems with this, factoring can be the solution. Put simply, a factor pays you around 80% of an outstanding balance of a debt.

It then collects the debt from the original debtor and pays you the balance, minus its fee (usually around 2% of the balance). By transfering the debt collection and ledger management to a factor you free up your own time to do what you do best - and you have to spend no time on chasing up invoices. The cash can be used to reduce your own debt or for investments to grow your business. Find out more about factoring or get a quote.

7. Learn something new
You can teach an old dog new tricks, so do something to improve your business skills. Send yourself on a course, go to a conference or just read a book. Of all the possible options this is probably the easiest so check here for our top recommendations.

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