You didn’t start your business to chain yourself to a desk or to swap one boss for a hundred clients. You started it for freedom, time, money, autonomy…and to ultimately live the life you want. So, if you currently find yourself knee-deep in VAT returns, juggling rising costs, and wondering where the profit went (instead of on a beach somewhere sunning yourself), don’t despair. It is still possible to build a lifestyle business, meaning a business that supports and funds the life you want.
In 2025, UK business owners are facing a mixed bag: optimism about growth, but also real pressure from higher wages, energy bills, and taxes. According to the British Chambers of Commerce, business investment is expected to grow by only 0.9% this year, down from an earlier forecast of 1.4%.
So, how do you make sure your business supports your lifestyle instead of draining it? And in this economy? Here’s how to put profit back in the driving seat.
1. Know your numbers (and stop winging it)
Profit doesn’t happen by accident. It starts with clarity. If you don’t know your margins, fixed costs, or cash flow position, you’re flying blind.
Use tools like Xero to track real-time data and set aside time every month to review your financials. Don’t just look at revenue, either; look at what’s left after expenses. That’s the number that funds your holidays, your mortgage, and your sanity.
| Want to know your real-time numbers AND what to do with them? Get in touch with us [email protected] and we’ll help you actively drive your business forward. |
2. Price for profit, not panic
If you’re pricing based on what competitors charge or what you think clients will pay, you’re probably undercharging.
In 2025, with the National Living Wage up 6.7% to £12.21 per hour and reduced business rates relief, your costs are rising, and your prices should reflect that. So, review your pricing model. Factor in all costs, especially including your time, and then add a profit margin that supports your lifestyle goals.
Remember, if clients push back, they’re not your ideal clients.
3. Cut the fat, not the muscle
Reducing costs doesn’t mean slashing everything; it’s about becoming leaner.
As accountants, we always recommend focusing on eliminating expenses that don’t add value first. For example, review your subscriptions, software, and services. Are they essential or just nice to have? Once you’ve done this, you can then negotiate better rates with suppliers and automate repetitive tasks to save time and money.
Remember, every pound saved is a pound added to your profit!
4. Build a lean, effective team
Hiring in 2025 comes with higher costs, including increased National Insurance contributions, but that doesn’t mean you should do everything yourself. Consider outsourcing tasks that aren’t your strengths:
- Use freelancers or part-time staff to manage workload without the commitment of full-time hires.
- Invest in training to improve efficiency, but also to make sure your team deliver in just the way you want them to.
A small, skilled team can be more profitable than a large, inefficient one.
5. Set clear, achievable goals
Without goals, you’re just reacting to whatever comes your way, so set aside some serious planning time. There are three steps to successful goal setting:
- Set specific, measurable targets for revenue, profit, and personal time off.
- Break these down into quarterly and monthly objectives.
- Regularly review progress and adjust as needed.
Goals give you direction and help you make decisions that align with your desired lifestyle.
Build a lifestyle business
If you want to work to live rather than live to work, your business should be a vehicle that takes you where you want to go, not a burden that holds you back. The good news? There’s no reason why you can’t build a lifestyle business that funds the life you want right now. You just need to be focusing on the right things.
By focusing on profit, managing costs, and setting clear goals, you can start living the way you want sooner rather than later.
| Ready to take control of your business finances and create a plan that supports your lifestyle?Get in touch with us today. We’re experts in helping you build a business that works for you. |
