Backing your business: evidence annex (web version)

As a business owner, you may be aware of the various forms of support and guidance available to help you navigate the challenges of entrepreneurship. However, having access to reliable and relevant data can be crucial in making informed decisions about your business. Accessing evidence-based information is essential for businesses seeking to improve their performance and make data-driven decisions. The Government's backing schemes provide valuable insights into successful business models and strategies. Research has shown that businesses that receive support are more likely to experience growth and increased productivity. Additionally, the data highlights the positive impact of funding on business outcomes, with many recipients achieving significant improvements in revenue and employment levels. By examining this evidence, businesses can gain a better understanding of what works and make informed decisions about their own operations.

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The majority of businesses are already paying to access this data, and it's worth noting that some of these sources may be more relevant to certain types of businesses than others. For example, HMRC can provide information on tax returns and payments, while the Bank of England offers data on monetary policy decisions. The UK's Office for National Statistics (ONS) provides a wealth of economic data, including GDP growth rates and trade balances. Furthermore, many universities and research institutions offer free or low-cost access to business databases and statistics.

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The key to securing funding is often building a strong track record of financial performance and demonstrating your ability to repay any loans or investments made. A robust cash flow statement, supported by detailed accounts and financial reports, will help lenders assess your business's creditworthiness. Providing evidence of a stable income stream, such as contract renewals or sales orders, can also reassure investors that their investment is secure. Furthermore, having a clear and compelling business plan in place will enable you to articulate your strategy and vision to potential funders, increasing the likelihood of securing the support you need.

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1. Check if you're eligible to receive financial support from HMRC by using the HMRC online tool or contacting them directly.
2. Gather all relevant documents, including your business accounts, invoices and receipts, as well as any supporting evidence for your business expenses.
3. Complete and submit a Self Assessment tax return to report your business income and claim any eligible expenses.
4. Use the HMRC online service to pay any outstanding taxes or make payments on account towards next year's tax bill.
5. Keep accurate records of all financial transactions, including receipts and bank statements, in case you need to provide evidence for future tax returns.

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Emily is a freelance writer who offers her services to local businesses and individuals on a project-by-project basis. She has been trading for two years, and last year she earned £30,000. This year, Emily wants to increase her earnings by taking on more clients and projects. To do this, she will need to set aside some of her profits to pay for marketing expenses, including website design and advertising. By setting aside 10% of her expected earnings (£3,000), Emily can ensure that she has enough money available to invest in growing her business.