Advice please re strategy

[RoyalArran]

I run a small part time business under the Permitted Work scheme as I am in receipt of long term incapacity benefit due to a chronic illness. I am due to get my state pension in 2014 so not long to go now on IB; please could someone advise me on what strategy they would recommend in these circumstances. Details below.

The business is starting to take off and I want to build it up so that when I come off the benefit (either kicked off, at assessment next year or it ceases anyway when I get my pension paid in early 2014) it will have been developed enough to provide a small income.

However, the limit I can earn (on average, as it is self employment and not a steady income each week) is £20 per week. It is averaged out over 6 months and if it should exceed £20 per week average, just once, then I will be taken off the IB and won't be able to claim it.

SO.... in the course of building up the business, profits are increasing. Which is what we want, right? BUT.... if they increase too quickly, I will forfeit the IB and I need that until I get my state pension really in 2014. So I keep having to REDUCE the profit each month by increasing my expenditure. Just to keep the figures down. This obviously has an adverse effect on the funds the business needs to grow.

It is a catch 22 situation... my question is.... what would you advise me to do? Carry on building the business up and risk coming off the benefit (it only needs to exceed £20 pw income ONCE for that to happen)... or should I throw caution to the winds if I am building the business and 'go for it'?

It seems ridiculous to keep holding it back just because of the benefits payments, when what I want to do is grow it so that it will be on a good footing to take over from the benefits income when the time comes. As it is not regular income each week though, I don't want that to happen too early!

The business is an online business and one that I find I can do from home even though I cannot go out to work because of my chronic illness.

Any advice on what kind of approach/strategy I should be taking with this problem would be most welcome.

PS I have also declared it to the taxman, it is all legal and above board.

 

[leelondon]

Seems to me that you want to increase the income from the business so I'd say go for that! To me it's counter productive that you're benefits should prevent you from earning more.

 

[webgeek]

Invest the 'extra' profit in medium term marketing activities such as website, SEO, email list acquisition + email service provider + newsletter template creation.

By building marketing assets you will be paving the path for a much more profitable 2014 than you would have had otherwise!

 

[RoyalArran]

Seems to me that you want to increase the income from the business so I'd say go for that! To me it's counter productive that you're benefits should prevent you from earning more.

Many thanks, it is counter productive, you're right.. but a catch 22 situation.

 

[RoyalArran]

Invest the 'extra' profit in medium term marketing activities such as website, SEO, email list acquisition + email service provider + newsletter template creation.

By building marketing assets you will be paving the path for a much more profitable 2014 than you would have had otherwise!

Thanks, I have a website already, it is high in google rankings, I have email ... but what do you mean by email list acquisition? Newsletter is a good idea...

 

[webgeek]

Regarding SEO, there are always tons of other keywords which could be ranked #1, thus driving masses of additional traffic.

For email lists, you could use a service like ZoomInfo which can sell you lists of contacts that you can then market to, sending newsletters every week, or two, or four.

 

[RoyalArran]

Thanks for that info.. much appreciated.

So you're saying spend the profits for now to pave the way for success in a couple of years time? Is that right? Maybe I should just carry on reinvesting it by buying more stock?

 

[webgeek]

Investing in marketing will give you demand and future top line sales, which will make profitability much easier, ability to buy in larger bulk, etc.

Stock is a requirement of demand. You don't need stock if you don't have demand for your products. So, create more demand via marketing.

 

[RoyalArran]

Thanks - I do need stock because I am selling more all the time, hence the need to cut back the profits in case it impinges on the weekly allowance imposed by the benefits system.

I wondered at first you see, whether I should just go for it and build the business up right now and risk losing the benefits, or spend more so I didn't... your suggestion to spend it on marketing for the future success of the business seems a good one! Thank you.

If anyone else has any comments as well I would be pleased to hear them too... especially more ideas on methods to achieve this marketing.