Do you want to minimise your costs and avoid wasting valuable time and money ‘running’ your business, when instead you could be ‘growing’ your business?  If the answer is YES, then Blue Sky’s Outsourcing Services are the answer.

In the current economic climate, it’s vital that every business keeps overheads to a minimum, that’s why we believe that by using our bookkeeping, payroll and accounting services your business could make significant savings on resources without losing efficiency.

Our Outsourcing Services are available to all types of businesses, whether it be sole traders, partnerships or limited companies, and is individually tailored to meet your specific requirements, therefore enabling businesses to enjoy the benefits of total accounting flexibility.

Why Use Our Bookkeeping, Payroll & Accounting Services?
Blue Sky Corporate Finance provides local companies with cost effective and efficient Outsourced Services for payroll, bookkeeping and other accounting functions, designed to remove your financial administration worries and in turn leave you more time to look after your business.  We ensure you are compliant in your Returns as well as advising on ways to save money through proper tax planning, record keeping and business planning.

Our highly professional and experienced team are members of AAT (Association for Accounting Technicians) and CIMA (Chartered Institute Management Accountants) ensuring they are always up to date on the latest legislation and procedures.

Some of the benefits from using our Outsourcing Services include:

• Availability 52 weeks per year
• Eliminates employee liabilities & responsibilities
• Removes the need for sickness & holiday cover
• Prompt & accurate production of information
• Access and support from a fully qualified advisor

Contact our friendly, professional and experienced advisors for a FREE no obligation review to discuss your requirements in more detail and to find out how we can help you.

As part of the ICAEW’s commitment to the Business Advice Service they are organising a Business Advice Week in June. These FREE events offer help and advice to small businesses including ten ways to raise money; save money and make money. There are two events being held in the West Midlands – the first is at Wolverhampton Molineux on Tuesday 26th June 2012 and the second is at Villa Park on Wednesday 27th June 2012. Both events take place from 16.30hrs – 17.30hrs. To find out more or to register please click on your preferred date.  Tony Seaton from Blue Sky Corporate Finance will be presenting at the Wolverhampton event.

Solihull Council will partner with the City Council’s lending arm Finance Birmingham as part of a £1 million initiative.  For more details click here.

Tony Seaton, Associate Director, Blue Sky Corporate Finance explains why he believes this to be the case and suggests possible solutions that could be adopted to overcome it:

Although there are several areas to which this issue applies, Tony believes the two most affected sectors are the Start Up business and the established manufacturer.

Start Up businesses have historically been a high risk sector and have been supported by a combination of the Business Angel Networks and part public funds, such as the Advantage Early Growth Fund (AEGF).  Whilst the Business Angel Network in the Midlands is active it is still a relatively scarce resource and the returns requested by investors can often be quite daunting.   This is a sector which is of little interest to debt providers, unless there is significant security, which is rare, and it is not anticipated that this position is likely to change in the very near future.   Tony believes a possible solution to this shortfall would be to establish a local fund specifically aimed at investing in Start Up businesses.  The “Fund” could invest up to £250K in the businesses, with some form of matched funding, by the way of the owner/3^rd party investor.  Given the high risk nature of Start Ups it is considered that some element of public/ European finance would be required to establish such a fund and would need to work alongside the Angel networks.

Likewise, established manufacturing businesses are not immune from this lack of available investment.  In the past this sector has been serviced by the banking sector, and expansion opportunities funded by a combination of asset and cash flow lending.  Whilst the asset based lending market has remained fairly consistent during the past few years, the access to cash flow funding for SMEs has become much more difficult.  The Government introduced the Enterprise Finance Guarantee Scheme in an effort to service this gap, but for numerous reasons this has not been the success that was anticipated.  This has lead businesses to seek other forms of finance to assist growth, finance increased working capital requirements, by way of grants or equity finance.

Typically SMEs looking to expand/invest in new facilities need to raise finance of between £50K – £1M, whereas SMEs requiring investment for a possible acquisition of a new plant, new tooling etc are looking for investment in the region of £100k – £1m. At the lower end of the market, Community Development Finance Institutions (CDFIs) have filled this gap but funds are limited and have a  relatively low ceiling of £50K-£100k.

The government have recently announced several new initiatives to help SMEs raise investment finance but they are not without their limitations and a general lack of awareness in the business community.

• NatWest/RBS and HSBC have been allocated £95M nationally to provide grants of up to 20% on investments where the company is unable to fully fund deposits/projects.  This scheme is likely to be exhausted very early and other grants at a significant level are very scarce.
• The Advanced Manufacturing Scheme is a £25M Regional Growth Fund initially established by a combination of LEP’s, including the Black Country, to support the automotive and aerospace supply chains.  This has now been expanded by BIS into a national £125M scheme and it is vital Black Country businesses are fully aware of this scheme and supported in making applications.
• The Steel Enterprise Fund, offers both loan and equity finance from £50K – £750K and has made a number of significant investments into Black Country manufacturing businesses in recent years.  However, there appears to be a lack of knowledge of this fund locally.

Other than those mentioned above there are very few funds which operate in the Black Country at the sub £1M level, highlighting the urgent need in the current difficult economic conditions to find a way to support businesses in the Black Country gain easier access to finance.

So, what could the possible alternatives be?

Tony suggests some form of Black Country/Midlands Manufacturing bank, which understands the dynamics and needs of a typical Black Country SME.  These businesses would need to be both profitable and cash generative, but should not realistically be expected to generate the returns expected by Venture Capitalist.

Black Country manufacturing businesses have traditionally had a reluctance to take third party equity and release some control.  Therefore, the solution needs to be a combination of equity and loan funds and the Fund should be controlled by local people/organisations which have experience in the region at SME level.

It may be necessary to give stakeholders differing rights with regard to repayment, security etc to ensure the particular lenders needs are met.  Ideally, the loan range would be from £100K – c£1M, with the characteristics more of a Mezzanine loan, rather than traditional banking.

The Equity funds should seek to achieve lower returns than traditional VC’s, but should still be able to show double digit returns, possibly by way of dividend policy/redeemable shares to avoid the issues historically seen in the Black Country.

These proposals would also benefit from the provision of knowledge capital in the form of non-executive directors working alongside the businesses where investment is made by the new manufacturing bank/equity fund.

With some thought and ingenuity, it is possible to find creative alternative ways to raise capital and support the regions manufacturing businesses.

More than 500 companies are expected to attend the special briefing event at the ICC in Birmingham (April 27^th), which will detail how firms and related organisations can take advantage of the new £125m fund.

Delegates will hear how the national programme aims to support existing supply chains to grow and become world class, whilst also encouraging new suppliers to establish operations in England.

AMSCI will provide grants and loans to successful projects creating globally competitive supply chains in sectors such as aerospace, automotive, chemicals, low carbon and renewables.

Funding will support a combination of investment in capital equipment, associated R&D activity and training and skills development needed to secure, develop and deliver major opportunities.

Paul Heaven, Board Member at Greater Birmingham and Solihull LEP (GBSLEP), opened the event:

“This briefing will be the first time manufacturers will receive a detailed insight into the Advanced Manufacturing Supply Chain Initiative.”

“They will get to hear about the scope of the competition, the criteria for awarding projects and the levels and type of funding available.”

He continued: “We want to make it as interactive as possible so companies and partners will be encouraged to ask questions and then attend one-to-one meetings with specialists involved in the fund.

The £125m Advanced Manufacturing Supply Chain Initiative is being funded by the Regional Growth Fund (RGF) and the Department for Business Innovation and Skills.

The initiative is based on an existing RGF bid by a group of Local Enterprise Partnerships (featuring Black Country, Coventry and Warwickshire, Greater Birmingham and Solihull and Liverpool City Region), which focused on supporting automotive and aerospace supply chains in those geographic areas.

It has now been expanded to the whole of England and across all advanced manufacturing sectors. Birmingham City Council will administer the fund, with registration and processing of applications undertaken by the Technology Strategy Board.

Mark Barrow, Strategic Director of Development at Birmingham City Council, picked up the story:

“Advanced manufacturing in England is proving one of the key drivers in our economic recovery and we want to give our supply chain the support it needs to become world class and take advantage of domestic and international opportunities.

“The funding will be used to boost projects that create capacity in the supply chain so more components can be sourced in this country. We are also keen to create a climate that will encourage international manufacturers to set up here.”

The Advanced Manufacturing Supply Chain Initiative is now open for applications.

A £2m funding threshold has been announced, with supply chain companies encouraged to form consortiums in order to bid for support.

Single company and applications (starting from £200,000) will be considered in the automotive or aerospace sectors that are located in the Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull and Liverpool City Region LEP areas.

To book your place at the Briefing Event, please visit https://connect.innovateuk.org/web/27th-april-12-advanced-manufacturing-supply-chain-briefing-event

For more information on AMSCI and to apply for funding, please visit http://www.innovateuk.org/content/competition/advanced-manufacturing-supply-chain-initiative.ashx

• The adult rate (for workers aged 21 and over) will increase by 11p from £6.08 to £6.19 per hour
• The rate for workers aged 18-20 will remain £4.98 per hour
• The rate for workers aged 16-17 will remain at £3.68 per hour
• The rate for apprentices will increase by 5p from £2.60 to £2.65

For more information click here.

The Seed Enterprise Investment Scheme (SEIS) offers generous tax relief to investors who subscribe for shares that equate to a stake of less than 30% in the company.

The new scheme is similar to the Enterprise Investment Scheme (EIS) but the SEIS focuses solely on direct investment into start-up companies with the intention of making it easier for these companies to grow and become established. Click here for more details.