Brian Chernett
22nd June saw the Chancellor George Osborne present the Emergency Budget to a packed House. There were some encouraging words for business within the necessary measures to regain fiscal control over the economy.
The Chancellor stated “I have always believed that growth must come from the private sector”. As I have been saying here for a number of weeks, that growth will come so long as he provides the stability and certainty that we need to go for growth. With the commitment to eliminating the structural deficit over the life of this parliament and the measures for encouraging business growth, it would seem that he is providing just that.
Corporation Tax is set to reduce by 1% each year for four years from 28% now to 24% and for smaller companies it will drop from 21% to 20%. The chancellor also announced that the capital gains tax “entrepreneurs’ relief” rate of 10% on the first £2m of gains will be extended to the first £5m.
He continued, “I want a sign to go up over the British economy that says ‘open for business'”. There is also to be relief for new businesses in targeted regions. For new businesses setting up outside London, the south-east and the east of England over the next three years, employers will be exempt from up to £5,000 in National Insurance payments for each of the first 10 employees hired and the threshold for Employers NI rises by £21 a week above indexation from April.
I’ve read that economists are expecting interest rates to remain low for the foreseeable future and the Government will be encouraging banks to lend to business to provide the necessary capital to fuel growth.
So now we have the platform for growth it’s up to us as business leaders to find innovative ways to do that. Osborne would like to see the UK transition from a net importer into an export led economy.
How do we do that? This is a time when entrepreneurs can thrive. Our quick thinking will generate ideas and our ability to convert those ideas to action will produce revenue and profit. Are you ready for the challenge?
As I said last week (and make no apology for repeating), now is the time to entertain only positive thoughts, to see the possible and to go for it. By our enthusiasm and actions, we can inspire our teams to do the same. If we set up opportunities for our team members to generate ideas for making the business more profitable by saving cost and increasing our market reach and thus revenue, we can take advantage of a much wider set of skills and experience. This cycle is not just about entrepreneurs at the top of organisations but of a groundswell of entrepreneurship within teams. If everyone is on the lookout for improvement and given the authority to make simple improvements and the avenue to raise more extensive ones, everyone benefits.
Finally, we come to exporting. If you already export your products or services, how can you do more? If you don’t, start getting advice on how you might be able to do that. Exchange rates with some currencies are favourable, consider how you might be able to take full advantage of that.
Later, in this blog, I’m planning on including an article on ‘the 7 deadly sins of leadership’. The bonus ‘sin’ is perhaps the most important and although only in draft at the moment, I’ve included it here –
Bonus ‘sin’ – Not seeking help when it is available
No leader knows it all and there are times when there is no-one inside the business in whom to confide or from whom to seek advice. That doesn’t mean that you can’t get advice and support. In fact, soldiering on without the support of others who have been there before you and can help you to avoid the hard lessons may be the biggest sin of all. Organisations such as The Academy for Chief Executives can help here, providing peer based Experiential Business Learning.
Make the most of the resources that surround you – your team with their experiences and skills, your board and other businesses who might be able to share experiences. As the saying goes – “all of us are better than any one of us.” How much of that £5 million lifetime allowance against CGT will you be able to exploit?
Brian Chernett is founder of The Academy for Chief Executives (ACE) – He has 43 years’ experience as managing director of private and public companies, including subsidiaries of Booker Bros McConnell, the Landmark Group, and several other major companies. Find out more at www.chiefexecutive.com.
The Academy community provides a great place to build your leadership skills and learn more about motivating and developing your people, and how to focus the top team for the good of your company. As the leading providers of experiential learning, the purpose of the Academy is to inspire leaders to achieve their dreams by sharing and learning from real life experiences.