4 tips for anyone starting a new property development business

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The British have an ongoing love of property with the phrase ‘an Englishman’s home is his castle’ still resonating.

There is a continuous flow of TV shows too that feed our knowledge and inspiration with ‘Grand Designs’, ‘Selling Houses’, ‘Old House, New Home’, ‘Location, location, location’, and so on.

As well as inspiring the next generation of homeowners to make the most out of their investment, there is also a growing breed of entrepreneurs with a desire to make it their day job.

But is being a property developer that easy?  Like most things in life, if it were easy then everyone would be doing it, and so our top 4 tops for anyone starting a new property development business may help.

Have a Plan

All businesses need a clear strategy that will help focus on the key income generating issues as well as the things that might go wrong.  There are plenty of online resources that will help in creating a business plan, but the key elements will include:

  • Business objectives – where you are going to invest, types of property, size of project, etc
  • Your mission statement and ethos – what is going to make your business stand

New to trading? How to avoid rookie errors

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Financial markets trading is growing in popularity in all corners of the globe in recent years and it is likely you will know someone who has embarked upon their journey.

For those who “get it right” there are many advantages including an additional income stream, flexibility and, in some cases, tax-free winnings from the market.

When you begin your trading journey, you will make mistakes. As harsh and hard as this may sound, it is the truth, and it is important to be aware that you aren’t going to be an exception, but instead you’ll be the rule. In fact, it happens so often right at the start that over 90 percent of first-time traders choose to give it all up and never trade again.

But there is something you can do to prevent this from happening if it hasn’t already, and stop it from happening again if it already has. It’s quite simple: you need to know what the differences are between those who are successful in their trading endeavours and those who aren’t. Knowing this small but vital piece of information will lead you down the right path, and help you to make more of your trading portfolio.

Buying shares vs. Trading CFDs: what is the difference?

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When it comes to buying shares, you are either an investor or a speculator. An investor holds a piece of stock for the long term while a speculator capitalises on short term volatility.

Both the investors and the speculators aim to make money depending on the accuracy of their predictions.

As Warren Buffet, the world-renowned value investor puts it, investing is a long term game. When you invest in a piece of common stock, you are investing in the issuing company. Consequently, your eyes should be on the fundamentals of the company, including its long term growth plan.

However, in speculation, your focus is the short-term price movements resulting from the forces of demand and supply. Speculators can try to make money in both the rising and falling markets depending on their strategy.

How to speculate on shares

You can speculate on shares by buying low and selling high or through what is known as short-selling. In short selling, the speculator borrows the stock they believe will decline in price from the broker and sells it at the current rate. They then have to wait for the prices to go down after which they repurchase the stock and return it

Debunking the biggest myths about the silent killer

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It’s dubbed the silent killer – and this is enough for some businesses to really start to worry. In short, cashflow problems are a serious issue and are one of the main reasons why so many companies struggle.

According to accountants in London, one of the big reasons behind these issues is that cashflow is just misunderstood. It’s something that’s not the simplest topic in the first place, but there is a lot of misinformation doing the rounds which just keeps on clouding things. As a result, today’s post will analyse some of these myths to hopefully protect your business.

Myth #1 – You can never have too much cash in the bank

This is an interesting one, as in some respects having plenty of cash in the bank is an easy way to alleviate your cashflow concerns. After all, if you do have cash readily available, you can ultimately pay for your suppliers.

However, treat this issue with caution. While it will allow you to avoid a cash flow crisis, it does mean that your business isn’t being as effective as it should be. After all, money in the bank earns less than the rate of inflation and

Over 80% of self-employed are not claiming a simple tax allowance

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With less than 60 days to go for submitting a self assessment tax return, many self-employed people in the UK are not taking advantage of an allowance that could help them pay less tax.

According to data received through a Freedom of Information request from HMRC obtained by TaxScouts, at least 86 per cent of sole traders who are claiming expenses and capital allowances of less than £1,000 are not claiming the entire Trading Income Allowance.

The Trading Allowance lets sole traders claim the first £1,000 of income from self-employment as a flat tax-free allowance.

If they earn less than £1,000 from self-employment, they don’t need to pay anything: it’s completely tax-free. They just need to file a self assessment.

If they earned more and their expenses are less than £1,000, self-employed individuals can just claim this full allowance instead – it’s bigger and they don’t need to worry about providing receipts (though, everyone should save their receipts if needed in the future).

The data obtained from the HMRC show that 471,000 sole traders who could be claiming this allowance are not doing it. Out of this number, only 67,000 (roughly 14 per cent) filed a claim for the

1.6 million UK businesses ‘virtually invisible to the financial system’

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More than 1.6 million UK businesses can struggle to access growth funding or trade credit because there is insufficient information available about their financial track record, according to analysis from Experian. 

This lack of credit information means these SMEs can be considered higher risk when it comes to lending.

These ‘SME Invisibles’ are either too new to file their first set of accounts, or only submit a balance sheet which doesn’t include profit and loss. As a result, they may struggle to access the growth funding needed to take their business to the next level, or even trade credit to buy products and materials.

Lisa Fretwell, Managing Director of Data Services at Experian, said: “More than 600,000 start-ups are created in the UK every year. The early years of trading are the most precarious, when directors are finding their feet, searching for new clients and often funding to keep their business moving forward.

“Accessing business loans and trade credit requires a strong credit history, but so many SMEs have not been trading long enough to create a footprint or be required to file full accounts. Experian has worked hard to almost halve the SME Invisible population through adding new data

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