Do we have tools available business owners can use?
We have tools that business owners can use to help them including: a business peer benchmarking tool, business protection appraisal, cash management, and Financial Services Compensation Scheme protection.
How can I protect my business against the unexpected?
If the primary person who delivers the value and the income into the business is no longer able to do so, will the business be able to survive? You can plan to protect against the eventuality that money will dry up.
How can I retain control of my business if something happens to a business partner?
With the shareholders of the business, we help identify strategies, so if one shareholder were to die, their family get out their share and the surviving shareholders retain 100% control of the organisation.
My business is my pension, why should I save elsewhere?
Simply, you are relying on a single event at one point in time to deliver all the money you need for the rest of your life. Compare that to extracting profits incrementally from the business, coupled with what you need to raise from the sale of your business. That is a more managed and controlled way to achieving the same financial goal.
What are some of the key things I need to think about as a business owner in terms of financial planning?
A strong financial plan for a business owner needs enough cash ‘headroom’ to make sure money is not being taken out unnecessarily. Then we can start to think about saving money, business valuation and the exit strategy.
What are the benefits of having a financial adviser for my business?
The benefit is that while you’re working to make the business flourish, an adviser is mitigating against unexpected events, helping to extract profit efficiently, and keeping an eye on longer-term goals like what the business needs to be sold for to provide the desired lifestyle in your well-earned retirement.
What is important to consider if I have loans in my business?
Often business loans have personal guarantees as part of the loan conditions. So, if the worse was to happen and the business owner died, not only could the business be at risk but also the family home. It is possible to protect against this eventuality.
Why is it important for employers to offer financial education?
People come to work to earn money, but very few have received any financial education by the time they enter the workplace. Financial education is a key element of any employee wellbeing strategy which has proven benefits for employers in terms of reduced numbers of sick days, higher staff motivation and retention.
Why should business owners consider a pension?
If a business owner says their business is their pension, then they are relying on a single event at one point in time for all the money they need for the rest of their life. Regular pension saving via the business is tax efficient and provides a secondary investment stream alongside the value of your business.
