June 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
Spike in Inflation Will be Temporary
According to the Office for National Statistics (ONS), inflation rose sharply last month, driven in part by price rises in products like cars, chips and furniture and disruption to the supply chain. The rate of inflation increased from 1.5% to 2.1% in May, which is the highest it has been for nearly two years. Consumers are currently paying higher prices for new and used cars, consumer electronics, computer chips, furniture, appliances and sports equipment. This year the ONS added hand sanitiser, smart watches and exercise equipment, to their ‘basket of goods’ by which they measure prices and spending. Lockdown dramatically changed many people’s spending habits. It’s not yet clear whether this rise is part of a permanent, new trend, because typical spending has been disrupted so much in response to lockdown conditions. Over the past year no one had much chance to buy concert tickets, go on holiday, or even pay for as many train tickets travelling to work. Instead the nation has spent a lot more on groceries and streaming subscriptions. But the ONS’s basket of goods didn’t reflect these changes until more recently. Last year’s low inflation may have been a false indication, and this year’s much higher inflation could just be a correction. It will be several more months until we know for sure. Analysts are predicting optimistically that this rise in inflation is temporary and will reverse itself over time.
Private Talks Held to Discuss the Long Term Asset Fund
The government eager to boost economic bounceback has held private talks concerning plans to channel billions of pounds of pension money into infrastructure and start-up companies. The Long Term Asset Fund scheme announced by Chancellor Rishi Sunak in November 2020, would see a significant portion of workplace pension schemes, which staff are compelled to join, used to supply the fund, planned to launch later this year. The controversial scheme would unlock some of the UK’s £2.2trillion retirement savings and lend it to fast-growing businesses, transport projects, real estate and carbon-friendly investments. The plan emerges as the Government searches for alternative sources of cash to help the economy rebound following the global pandemic. The government believes this will provide vital backing for British start-ups to avoid seeking the capital they need from abroad. Pension fund managers have begun to signal their support for the scheme, which they hope will give savers an alternative source of income to traditional stocks and bonds.
An Audience With BACA
On Saturday 26th June, Sam was invited to the first BACA Central Chapter social event to take place since 2019. Where Dozer (Vice President of the UK and President of Central Chapter) awarded Sam & Prestige Business Management a certificate and special badge for all the work he has done in promoting the charity. So far Prestige has donated £6,154 added to that are other donations that Sam has managed to secure for BACA, totaling over £10,000 altogether. This has gone straight to the children to pay for their Biker Jackets and more importantly therapy to help them recover from their trauma.
Recently one child did not respond to normal therapy and could not manage to communicate with the therapist at all. Unperturbed, BACA turned to animal therapy, whereby the child spends some quality time in the company of horses, while the therapist is with them. This form of therapy has helped the child to open up and we are pleased to hear that they are now slowly recovering. Animal therapy isn’t cheap and your donations have helped to pay for this vital and life changing work.
As some of you are aware, rather than charge clients for processing furlough applications to HMRC, Prestige Business Management donated this time instead, and each month these clients paid £25, which was donated to BACA. With furlough support now finishing in September 2921, this scheme will be coming to a close. Yet we are hoping some of our clients will continue to donate in support of BACA’s work helping children to recover and thrive.
Dozer has kindly agreed to come along to a Zoom, to thank you personally and explain what the charity does and how it works. Dozer will talk for around 20 minutes and then you will have the opportunity to ask any questions. We have two dates and times available, simply select the one you would like to attend and register.
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How to Take Your Dog to Work – 21st June 2021
Pet ownership has risen by 3.2 million households since the beginning of COVID-19 according to The Pet Food Manufacturers Association (PFMA). Roughly 3.2 million households acquired a pet since the start of the COVID-19 pandemic. As a result of some businesses not being ready to accept new fluffy employees, almost half (45%) of Brits will be changing their working hours to spend more time with their dogs. ‘Take your dog to work day’ on 25th June 2021 raises awareness around how to blend pet ownership with your career path. Many workers will be gradually returning to office based working this summer with the lifting of lockdown measures. A return to office working 5 days a week is predicted to become the standard model within two years, but new working trends may also feature more prominently than we were used to pre-2020. Read our top tips for taking your dog to work with you, or learning how to leave them at home.
G7 Multinational Tax Reform – 14th June 2021
On 6th June finance ministers agreed the tax reform deal as part of talks held in London, the chancellor, Rishi Sunak, said. The principle of the agreement is that multinationals would have to pay a minimum tax rate of at least 15% in each country they operate. US president Joe Biden initially proposed the scheme, suggesting minimum rate of 21%, but was persuaded to reduce this to 15% to make it acceptable to a wider group of countries. Critics warn that G7 has in fact let multinationals “off the hook” because a rate of 15% fails to prevent tax havens undermining countries with a higher rate of tax needed to pay for costs incurred during the pandemic. Mr Sunak said: “These seismic tax reforms are something the UK has been pushing for and a huge prize for the British taxpayer – creating a fairer tax system fit for the 21st century. – This is a truly historic agreement and I’m proud the G7 has shown collective leadership at this crucial time in our global economic recovery.” Read the article in full here.
Digital Challenger Bank Revolution – 7th June 2021
The look of banking has changed considerably in the UK over the last few years, undergoing a digital revolution. Businesses largely moving online accompanied by developing technology and higher speed broadband services has driven an tech evolution across many industries, not least the banking and financial sectors. Known as challenger banks, these start-ups are not content with disrupting the marketplace for simplified personal bank account services, they have firmly set their sights on business banking too, and it’s causing quite the shake up. Responding to the growing shift of people using their phones to do their banking, these branchless, mobile-only banks are winning customers from their more established rivals with simple and responsive app based banking services. Find out everything you need to know.
Top Ten Best Fintech Start Ups – 1st June 2021
Prestige Business Management banking partner Revolut, is on track to rank among the most valuable technology companies ever created in Britain by Autumn 2021, following their planned financial activity. Fintech, an abbreviation of financial technology, is currently the UK’s strongest startup sector. Ambitious, innovative start ups are driving real change for consumers and business. Fintech start ups provide streamlined banking services, unpacking financial services, challenging traditional banks and payment and lending services. Read our round up of the top ten best Fintech start ups.
Client Referral Programme
We pride ourselves in treating our loyal clients with top notch perks and services. Our client referral programme is one way that we like to give back and reward you for doing business with us. You can recommend a friend to receive, up to £100 cash reward, per referral! All you have to do is recommend us – and make sure they tell us you sent them. We’ll do the rest
June Top Tips
As we head towards the final lifting of lockdown measures, again, on 19th June, success stories are emerging of furloughed and redundant workers who have reversed their fortunes with new entrepreneurial business ventures. Here are our top 6 successful habits for entrepreneurs.
1. Hire people that are different to you
Sometimes the most talented candidate may not be the right fit for a job. In order to forge success, you need to prioritise hiring people that are smarter, better and different than you. If you’re sitting in a meeting and everyone thinks, acts and behaves the same way, the business will likely suffer. Diversity of thought, experience and background is what sets top-performing teams apart from the pack. Investing in diverse people and talent should be at the top of your priority list as a young entrepreneur. The teams you build will ultimately determine the trajectory of your company.
2. Embrace change
Change can feel intimidating, especially if you feel like the business is steady as it is. Yet to take your business to the next level and experience real long-term growth, you not only have to accept change, but you also need to embrace it. How can you use new technologies to expand into new markets? Are there any roles or positions at your company that are no longer needed? How much are you investing in research and development versus existing lines of business? As an entrepreneur, these are the questions you need to be asking yourself.
3. Take calculated risks
As entrepreneurs, it’s our responsibility to assure investors, clients and staff that there’s little risk involved should they choose to partner with us. While it’s important to mitigate risk in most scenarios, it shouldn’t necessarily be avoided at all costs. Take calculated risk. Nothing great ever occurred without sizable, associated risk. Put simply, entrepreneurs take risks; it’s in your nature. Be honest with yourself about the worst thing that can happen, accept it, then jump.
4. Invest in yourself
Owners and CEOs are known to inadvertently neglect themselves while attempting to pave success for their company. It’s easy to stop focusing on how your own skills are developing as a young entrepreneur, or even a seasoned leader. Block off time each month to reflect on your own professional development. Undertake a regular executive review to ensure you are maintaining awareness of both your strengths and potential areas of growth. Self-improvement doesn’t simply stop because you’re a CEO or founder.
5. Ambitious goal-setting
Set yourself ambitious targets. Conventional wisdom tells us to set “reasonable” goals. However if you set goals high enough, even “failures” can be considered business wins. For instance, if you set a goal of growing your business by 200% in a given year, essentially tripling in size. However, at the end of that year, you ultimately fall short of this goal, and instead grow by 100% (doubling in size). Technically, you failed. But broadly speaking, growing twofold is a remarkable feat, and one that will be celebrated by employees, clients and investors. Don’t fear failure; it can actually help your business. Remain realistic, but set your goals high and consistently push the boundaries. Underselling yourself will only leave your teams unmotivated and harm your company’s productivity levels.
6. You do not have to know it all
As a young entrepreneur, it’s easy to feel like you always need to have an answer. The reality is you simply won’t sometimes. Great leaders surround themselves with diverse talent to help problem solve and tackle unique business needs as they arise. You can’t be the expert in all things, at all times. As an entrepreneur, the most important question you can ask your team is, “What’s your recommendation?” And then follow up with, “How can I help?” Ask your team members for their thoughts on what the best solution is instead of rigidly delegating. This leadership technique not only enables you to come up with creative problem-solving ideas, but also helps establish a strong sense of collaboration within your organisation.
Prestige Business Management Works for You
At Prestige Business Management we can help your business understand the best solutions for the success of your business. Find out what we can do for you. Call us today on 0203 773 2927.