Small business owners are in a unique financial position, especially when they start planning for the future. Many won’t have the same range of financial assets that employees develop over their career, and plenty will be relying on the business to provide for them and their families when they step back from the organisation and retire.
While this position presents a level of freedom and multiple opportunities, it comes with its own challenges and financial risks. The right advice can take away the uncertainty and make this process easier and safer.
At Nobel Thomas, we can help you assess your business and personal goals and draft a financial plan that will ensure success and security in the long-term.
Perhaps the single largest issue for business owners is the nature of the company they are operating. As a sole trader, for example, there is almost no distinction between personal and company finances.
Even more challenging can be situations where businesses are run as a partnership or there are multiple stakeholders who have different interests in the organisation. Formulating a plan where you can leave the company and withdraw your personal share is a delicate process and requires you to have a frank conversation about the future.
This is especially true if you are running a family business. Separating your own financial needs and those of your family from those of the firm isn’t easy and will require plenty of discussion about where the company is heading.
Furthermore, your own plans around areas such as succession will affect your own financial future. If your plan is to hand over the day-to-day management of a company to another person while retaining your share of the business, your personal finances will still be tightly tied to those of the company.
On the other hand, if you are looking to also sell your share of the company and move your wealth into an alternative investment, this will require a very different financial plan.
Either way, you need to have the advice and support of specialists in the field. Our experts can provide specialised support that is tailored to your situation.
For many company owners, separating personal and business finances is one of their biggest challenges. Part of this simply comes down to the question of where your company finances end and personal finances begin, especially if you have grown the enterprise from the very earliest stages to where it is now.
Many owners will also have secured their organisation‘s growth against their personal assets, with real estate often used as collateral for small-business financing. That’s why it is important to have professional advice on your situation and the personal assets you have tied up in your company.