Owning a business is hard work and very time consuming. At Four Wealth Management, we can help you to create a financial plan for both your personal and business finances to give you one less thing to worry about and give you more time to focus on your business needs.
Below are some mistakes that business owners often make that a financial adviser at Four Wealth Management can help you to avoid.
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Overpaying your own salary
Many business owners are excited about starting a business and being in control of their own pay. However, some business owners get carried away and overpay themselves when the business is just starting out.
A financial adviser can review your business finances and let you know a realistic salary that you can take. Some directors opt for a low salary and to receive dividends.
Book a no-obligation meeting now
Mixing personal and business expenses
It is important not to make the mistake of mixing personal and business expenses. It is important to have two separate bank accounts so you can easily work out how the business finances are doing without having your personal finances mixed in. This will also make doing your self-assessment tax return much easier.
Not having a retirement plan
Many business owners are relying on the sale of their business to fund their retirement and they do not think it’s necessary to have a back up plan. However, what happens if you do not sell your business for as much as you hoped? Or if your business fails?
It is important for all business owners to set up their own personal pension. Pension tax reliefs from the government also mean that pensions are the most tax-efficient way for you to save for your future.
Not having a business exit strategy
Many business owners do not have a business exit strategy in place simply because they think it is too early to have one. However, creating an exit plan early helps you to prepare for the future and guide your business.
Even if you have no intention of leaving your business in the future, it is important to consider your options early. For example, if you are planning to sell your business and hopefully make a profit then there are steps you should take to increase the value of your business.
Speak to a financial adviser
To help keep your business and personal finances on track, you can book a no-obligation meeting with a financial adviser at Four Wealth Management by calling us on 0117 973 0500 or book online.
Meetings can be at your home address, at one of our offices or on zoom.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Exit Strategies may include the referral to a service that is separate and distinct to those offered by St. James’s Place.
