Align your personal financial goals with your business plan

Many of our clients own and manage their own businesses, operating in a wide variety of sectors. Because we’ve worked with these clients for years, and run our own business, we understand the energy required and the problems encountered when you create, run and potentially sell your own business.

So, if you’ve made your business successful, why should you take financial advice?

Our response to this is that you should take steps to align your personal and business financial plan.

Perhaps this sounds a bit fluffy, so what could it mean in practice?

  • Your personal timeline and that of the company shouldn’t be considered in isolation. When are you planning to retire? Does this timescale match any plans you have to either sell, wind-up, or pass on the business?
  • How do you extract profits tax efficiently from the business over time? Are you just using the withdrawals to meet expenditure or should you withdraw more and invest personally?
  • Are there ways in which your business and personal plans can support one another directly? For example perhaps buying a commercial property buying a commercial property for the business using your pension or making a loan from your pension to your company.
  • If you are thinking about a potential sale in the future, we can help you think about when this is likely to be and how much you would require as a lump sum to cover your ongoing spending. Obviously you will need to think about how to best achieve a successful sale, and the structure this takes, but doing some planning to make the business attractive to buyers ahead of sale helps.
  • How protected are you if your business fails? How are assets split between you personally and the business, and should you be doing more to build financial independence from the business?
  • If you have business partners, it’s important to discuss what their objectives are for the business and crucially what do they want out of it and when?
  • Do you have protection in place if you, or a key employee, died or suffered a critical illness? An insurance policy could give you or the business a lump sum or income in these circumstances to lessen the impact which, whilst rare, can have huge financial implications.

Getting to know you and your business, and what might benefit both, is best done initially by having a face to face meeting at our expense. We’ll take the time to find out about your business and personal objectives and circumstances, and if we think we can add value, we’ll provide a Scope of Work. This outlines the service we can provide and the fees payable if you want to work with us.

If you are business owner and would like to know more, get in touch and we can take it from there.

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