How to maximise growth and profitability in your business.
If your business has an annual turnover above £2 million, you’ve likely spent considerable time refining operations and planning for the future.
Whether you’re aiming to attract investment, prepare for sale, or strengthen long-term growth, understanding what drives business value is key. At RPG Crouch Chapman, we look at how strong financial management, efficient operations, and well-structured tax planning can support your business ambitions.
We asked our team to share with us some of their tips to help maximise growth and profitability in a business.
How to maximise growth and profitability – focus on robust financial foundations
An accurate and up-to-date picture of your finances helps you respond swiftly to market shifts and investor questions. Larger SMEs can face greater financial scrutiny from lenders and potential buyers. Detailed revenue projections and reliable management information can ease worries about performance or stability.
- Maintain clear records: Consistent and well-organised bookkeeping reveals where your profit centres are and how cashflow is moving through the business. It also helps prospective investors see your true financial position.
- Prepare for the 25% corporation tax rate: For the 2025/26 tax year, the main corporation tax rate remains 25% on annual profits over £250,000, with a small profits rate of 19% for profits up to £50,000. Businesses with profits between £50,000 and £250,000 may benefit from marginal relief. Staying informed on these thresholds can reduce unexpected liabilities and boost investor confidence.
- Watch your debt-to-equity ratio: A solid balance sheet with reasonable debt levels suggests resilience. If you’re looking to improve your ratio, consider profitable reinvestments or strategic debt restructuring.
If you’d like more details on financial management approaches, visit our website here.
Streamline day-to-day operations
Refining how your business runs can lower costs and raise productivity. Investors and buyers often examine how a company handles stock, staff retention, and client relationships. Clear workflows also reassure potential partners that your business is reliable and efficient.
- Boost process efficiency: Look for areas where tasks overlap or get repeated. This might involve automating routine processes or adopting new software. For instance, if you’re still generating invoices manually, it may be worth exploring integrated invoicing tools that link directly to your accounting system.
- Manage overheads: Track fixed and variable costs. Where possible, renegotiate supplier agreements or review usage levels to avoid overcommitting.
- Invest in staff development: Skilled and motivated teams often deliver more consistent results. Well-defined training programmes show that you invest in expertise, and this approach can appeal to investors keen on business longevity.
According to the Office for National Statistics, businesses that invest in workforce skills often experience improved productivity. You can build a strong platform for growth by streamlining processes and supporting teams.
Effective tax planning for 2025/26
For many growing companies, tax planning is a steady process of keeping up with regulations and spotting opportunities. For the 2025/26 tax year, here are some points to consider:
- Business rates: If you operate from multiple premises, review your valuations to see if you can secure reductions or reliefs. Updated valuations take effect periodically, and overpayments can dent your profitability.
- Capital allowances: The Annual Investment Allowance remains an option to encourage capital expenditure in plant, machinery, and other assets. Rates can change, so check the HMRC guidance or speak with us to confirm the current figures.
- Research and development relief: Innovative projects may still qualify for R&D tax relief, though rates have shifted in recent years. Keep accurate project records to maximise any benefit.
If you want to understand how your specific tax situation could affect your business value, take a look at our tax services or contact us for tailored support.
How to maximise growth and profitability – preparing for investment or sale
A well-run SME needs a compelling narrative to show investors or buyers how it makes money and why it’s a solid bet. They’ll want to see resilience and growth potential. Clear management structures and transparent financial processes can improve your chances of securing a good deal.
- Know your valuation methods: Investors often use earnings multiples or discounted cashflow to gauge value. If your books aren’t properly maintained, there’s a risk of undervaluation.
- Illustrate your growth plan: If you aim to launch a new product line or expand into overseas markets, describe how you’ll do it. Provide realistic financial projections to back up your strategy.
- Clear legal and compliance position: Make sure your filings with Companies House are up to date. Outstanding compliance tasks or litigation can put off interested parties. For further details on filing requirements, see the Companies House official guidance.
Leveraging 2025/26 thresholds and allowances
The personal allowance (frozen at £12,570) and thresholds for higher rate tax (at £50,270) still apply for 2025/26. However, for those drawing dividends or planning bonus structures, it’s important to consider the additional rate threshold of £125,140 (as well as the ‘60%’ tax rate applicable to income between £100,000 and £125,140), which means planning is vital. By structuring remuneration with these thresholds in mind, you may reduce overall tax costs and direct more funds back into your business.
For many business owners, an efficient blend of salary and dividends can improve take-home pay while still leaving resources for expansion. That said, reviewing how these choices align with your growth goals is wise. A larger SME may decide to reinvest more of its profits, especially if you’re on a path to exit or investment. Regular review meetings with your accountant can help you decide how best to use the allowances and reliefs available.
Sustaining growth beyond 2025/26
Pushing beyond the £2 million turnover mark suggests you’ve got the scale to handle bigger opportunities. Yet sustaining progress often depends on strong daily processes and forward-looking strategic planning. For instance, if you intend to branch into a new region or sector, consider how your financial forecasts and tax positions align with that step. Maintaining sound operations, training your staff, and keeping solid financial records will all help you adapt to changing market conditions.
When you’re clear about where the business is going, securing the right funding on favourable terms is easier. Lenders, private equity firms, and other financial partners often prioritise reliable information over guesswork. By providing detailed accounts, well-argued growth projections, and a track record of tax compliance, you can show that your business is a credible choice for further investment.
How to maximise growth and profitability – our closing thoughts
Raising the value of your business is about staying steady on the basics: consistent record-keeping, efficient operations, and a smart tax plan. By focusing on what your financials say and how your operations perform, you’re more likely to attract the right investors, achieve a fair sale price, or simply keep the momentum going for the long term.
If you’d like to discuss how these strategies to maximise growth and profitability could benefit your company, we’re here to help. Get in touch with us to explore the support and advice we can provide.
