SMALL BUSINESS FINANCIAL PLANNING

Keeping your business financially secure

We understand that running a successful business takes a considerable amount of time, commitment and dedication

Business owners often have little time to think about business protection and organising business finances. Together we can plan ahead to help you to achieve your financial objectives and help provide financial security for your small business over the long term. 

As part of our business financial planning service, we will undertake an in-depth review of your business and work with you to implement a tailored insurance programme to protect your business from a wide range of risks. We will regularly review your policies and advise if they need to be updated as your business grows and evolves.

How to protect your business

When a business partner dies, the value of their share in the business is included in their estate and distributed according to their will. This could be a difficult time for the remaining partners and business.  The beneficiaries might not be interested in running the business and likewise, the business might not have liquid funds to buy out the deceased partner’s share from his or her family. Business protection is an effective way to help keep continuity in the business. It is a life insurance policy that provides funds to the business which can be used to purchase the remaining shares from the estate.  The cover is combined with an agreement between the partners on how the remaining shares should be bought and distributed amongst the remaining partners.

As a business owner, you may also want to consider an income protection policy. Income protection is designed to replace a portion of your salary should you be unable to work due to illness or injury.  This payment can continue until retirement. The premiums are often affordable, yet very few individuals considered taking out an income protection policy.

What is a business financial plan?

Business financial planning is not the same as compiling accounting statements. Financial planning is looking ahead to make projections on the company’s financial performance in the future.

Financial planning is vital to your overall business plan and will help you to secure additional business funding if you need to. The best time to create a financial plan is when you start your business, however this is not essential and at Four Wealth Management we can help you to create a plan at any stage of your business.

Having a financial plan to help your business grow

A financial plan will help your business to grow while navigating potential cash-flow issues that many start-up companies face. Effective financial planning will allow you to analyse the amount you can spend each month. Having a plan will also help you to allocate resources appropriately and determine how much you should spend in areas such as product development and marketing to accelerate your business growth.

The financial plan should be reviewed regularly against the business performance to check the business is on track. Reviewing current performance will allow you to identify strategies for growth.

Benefits of taking financial advice for your business

Financial planning is the key to business success. At Four Wealth Management, our business financial planning service will give you more time to focus on running your business and give you peace of mind knowing that your business finances are in order.

Preparing to sell your small business

If you are preparing to sell your business, you should give yourself a year or two to prepare allowing you time to improve your financial records, business structure and operations while aiming to increase your customer base to make the business more profitable and attractive to buyers.

After selling your business, there are likely to be tax implications especially if you make a large profit. At Four Wealth Management, we can work with you to determine the most tax-efficient way to invest the profits to help you achieve your personal financial goals quicker.

Auto-enrolment

In 2012, the Government introduced workplace pension reforms known as auto enrolment. Business owners are obliged to provide a workplace pension scheme and to understand what a qualifying scheme is and how it will work. We can help you to understand the requirements of workplace pensions to ensure your business complies with these rules.

Workplace pensions

We have a range of potential solutions that will provide both you, and your employees, with tax efficient retirement benefits.

Some of the areas we can discuss with you are:

• Group pension plans for your colleagues and employees

• Salary sacrifice arrangements

• Trustee based arrangements

Employee benefits

Part of our financial planning service includes reviewing your current employee benefit scheme. We can help your employees to take advantage of their benefits and improve or adjust what you offer where necessary.

 

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 invested.

What our clients say

We will provide tailored suggestions from a range of product providers carefully selected by St. James’s Place.

Frequently asked questions when planning your business' finances

Financial planning is important for determining how a business aims to achieve the overall functioning of its business. Factors such as a marketing strategy, liabilities and assets, the measure of profit and loss and goals and objectives can be outlined to help the business succeed.

As a business owner you need to complete a Declaration of Compliance to confirm that you have met the necessary legal requirements for auto-enrolment. Auto-enrolment means that you need to provide your employees with a qualifying pension scheme to meet the requirements of auto-enrolment.

When writing a plan for your small business you should include the sales forecast, cash flow statement, expenses and income projections.

Careful research and planning can determine the success of your small business. You need to establish a monthly and annual budget for your business and stick to it. This is particularly important when starting your business.