There are many stakeholders within a business, including yourself. By identifying who has a vested interest within your business ensures you meet the needs of each of them in order to ensure your business functions properly and prosperously.

There are generally more people with a vested interest in your business than you would initially anticipate. By identifying each of the stakeholders, from the government to the bank, you can then access what level of expertise and advice each can provide you with and where your potential liabilities lie, to ensure your future success.

STAKEHOLDER ANALYSIS

The stakeholders include the following people who will have a vested interest in your company

Shareholders:- In a private limited company, the shareholders are family and friends. They will be interested in the Company to see how well their investments are performing, what the profit is being spent on, the rate of return on their investment and the future direction and status of the market which the company is located within. The family is also employed within the company and so have an added interest.

Financial providers:- Their bank manager will want to see their financial viability in regard to their overdraft and any other loans or mortgages outstanding and to regularly analyse the performance of the business, therefore reassuring himself of the business’s on-going ability to service any loans and its credit worthiness.

Owner/Managers/Directors will use the documents to monitor performance and target areas etc. to improve the performance and sales of the business, to ensure accuracy and performance is to standard otherwise their jobs are in jeopardy.

Tax and VAT:- The Inland Revenue (Corporation Tax) and Customs and Excise will use the documents to calculate any taxes and VAT which are due on the given financial accounts and to decide the financial state of the business. They will want to scrutinise figures to ensure the books balance.

Employees:- In regard to job security and the overall position of the company within market sectors, payment of their salaries, expansion opportunities and potential buyouts etc., which will have direct impact on their future.

Potential investors:- in order to monitor the performance of the business, the likely value of returns on their investment, the financial position and whether the company is a good or bad risk

Customers:- Customers need to know that the company is a secure source of supply for their purchases and there is no danger of it closing down.

Competitors:- In order to compare sales revenue, market share, profit and losses, future direction and the general overall strategy of the business.

Trade Associations:- They will be interested in the market overall and in the company’s within it to measure the market, the future prospects, demands and opportunities.

Suppliers:- (Trade Creditors):- Suppliers will want to ensure payment and so the financial health of the business is crucial.

Trade Unions:- Trade Unions will not only be interested in the company’s terms and conditions and working practices, but also in its financial position and strategy for the benefit of their members to ensure continued work, payment of salaries etc.

Statistics:- Government statistics organisations etc will be interested in the market sector as a whole and the performance of the businesses within this in order to monitor market performance, identify trends and fashions and generally analyse business and consumer behaviour.

Government:- The government will be interested in the financial accounts of a company, in order to monitor market growth and trends, to ensure they are accurate to be truly representative of the sector and not involved in creative accounting, for continued employment in the area, taxes, VAT and to ensure a healthy economy.

Financial Analysts and Advisors:- Will need information for their clients or audience, for example stockbrokers will need information to advise investors in stocks and shares, credit agencies will need information to advise potential financial suppliers and wholesalers of the company and journalists need information for their reading public.