Are you an entrepreneur with a complex problem? Part Two
In part one we outlined problems and how we may help, either directly or indirectly. But as a wise owl once said “there are problems, and then there are problems”. This leads us to the next level – complex problems.
Entrepreneurs are particularly at risk of complex problems. Why? Because of the nature of the very thing that qualifies them to be called an entrepreneur. The main aspect of which is that a typical business owner building or running a venture (or maybe two or three ventures) is liable to be juggling a lot of balls. It’s tough to make businesses work, grow and survive all the risks. It’s tough – and time sapping – to deal with it all. There are copious rules and regulations, statutory obligations, health and safety standards, and a tax regime that is complicated. All of which must be navigated all at the same time as the business needs to be managed creatively to ensure there are customers and money coming in.
So, it requires a minor miracle to do this for years and not trip over something along the way. This means that a typical entrepreneur will fall foul of a dispute, a cash flow problem, a tax mix up, an accounting error, late paying customers, a regulation that bites hard or some other similar issue at some stage. A complex problem is where this cannot be dealt with through some simple correction.
An example would be where a VAT arrangement has been innocently or inadvertently mismanaged.
It’s quite possible to end up in a very difficult position with VAT, as this is one of the more
complicated areas of tax legislation. This can lead to investigations, heavy fines and large payments of outstanding VAT being claimed. Navigating this position and finding a route forward that minimises the damage often requires great skill, with a negotiated settlement being sought. The situation may need more than just reversing out of the immediate problem, new systems might need to be implemented, a review of why the problem arose conducted, and there could be cash flow or funding implications for the business to be considered. If you end up needing to correct a substantial underpayment of VAT and walk down to your local bank for help, you should not expect them to be eager to lend, with this as the basis of why you want the money.
The nature of complex problems is they often have knock on effects or even unintended
They can cause strain on other parts of the business. If you suddenly have legal action to deal with or need to find some funds to pay an unexpected tax bill, this can cause stress, lack of sleep and that knocks onto your creativity, your energy and your time dedicated to productive things.
The more complex the problem, the more value there is in getting help. We are experienced in
supporting entrepreneurs with all kinds of tricky problems and finding solutions to them.