10 Ways Business Owners can benefit from Wealth Management

As a business owner you have dedicated a significant amount of time, money, and energy into building your business up to where it is today. That is why it is important for both your business and you personally to take steps into protecting what you have created, and to plan for the future through wealth management. 

Here are 10 ways we believe wealth management can help you as a business owner:

Separating your Personal and Business Finances – It is common for the line between your personal and business finances to become blurred as time goes on. However, as your business naturally has its ups and downs, your personal finances can be greatly impacted. A wealth manager can help separate your personal finances from your business finances to give you greater security in your future and access to more investment options; so you can achieve financial independence and reach your lifestyle goals.

Creating an Exit Strategy – there will come a day when every business owner will conclude their time with the business. To make the most of all of your hard work over the years, a prudent exit strategy will help maximise the value of the business before the sale.  Capable wealth managers; with a thorough understanding of your business both inside and out, will be able to examine important characteristics that the buyers will look for, such as the balance sheet, key contracts, expenses and profits, and formulate the most efficient exit strategy accordingly. Without this service, you are risking selling your business for less than what it is truly worth.

Planning for your Retirement – every business owner wants their retirement to be as successful as their business. Wealth Managers can provide planning solutions both pre and post-exit to help you live comfortably once you retire. With a bespoke wealth management service, you can feel confident that the assets you dedicate to retirement now, and those that come from your exit of the business, will help achieve your post-retirement life goals and you can sit back knowing all of your hard work has paid off.

Protecting your Business through Diversification and Risk Management – it’s very common for business owners to invest all of their capital into the business itself, or into similar industries to their own. While it feels safer to invest your excess capital into industries you are much more familiar with, you are actually exposing yourself to unnecessary risk. A capable wealth manager can help you protect your capital with risk management by creating a well-diversified portfolio which can reduce your risk and take advantage of tax reliefs, meaning you are making the most from the profits you extract from your business.

Doing the most for your employees – having a strong and loyal team of employees is central to every business’ success. With effective wealth management services, your employees can feel confident you are doing all you can to protect and grow their pensions and provide them with important employee benefits such as Health Insurance. This support for employees will help develop a culture of loyalty, which will in turn help produce the success you and your business deserve.

Attracting top talent – similar to the point above, the services that Wealth Managers can provide to your business can help attract top talent to your business. Highly capable prospective employees will be more interested in being a part of your team knowing that you are taking a more active effort to smartly protect and invest in their pensions.

Keyperson Assurance – naturally your business depends on one or more key people, including yourself. The sudden loss of an important individual, through serious illness or death, can have big repercussions on the business. Ask yourself, if you or another key person for your business suddenly disappeared, would the business be able to carry on? If the answer is no, then you can benefit from a Wealth Manager providing Key Person assurance and protection. With this, the financial impact of the loss of a key person can be softened, allowing your business to continue going forward through this period of turmoil.

Ensuring your Family Legacy – In the case of you passing, you want to ensure that your family can continue to benefit from the hard work you put into building your business. A wealth manager can help protect your legacy with Directors Share Protection, ensuring that your stake in the company is passed onto your family in a safe and tax-efficient way, and they can continue to benefit from the business.

Becoming more Tax-Efficient – As a business owner, it is only normal that you want to be able to retain as much of what you earn as possible. By using wealth management services you will be able to take money out of your business tax-efficiently, which will help you reach your financial goals more quickly.

Developing an expert advisory team – A well connected Wealth Manager will have access to a variety of capable and trustworthy business professionals, ranging from accountants to solicitors. By utilising a Wealth Manager, you will be able to benefit from a team of professionals with strong working relationships, resulting in a more co-ordinated and effective advisory team available to you in times of crucial decisions and planning.

To summarise, utilising a wealth manager can help you protect and develop your business in many ways. It is important to plan for both your and your businesses future, and to plan for unforeseen events that could damage your business.

Here at Sovereign Wealth in Market Harborough, we specialise in helping business owners achieve financial success by developing a wealth plan bespoke to you and your businesses needs. We will ensure that we understand both you and your business in tremendous detail, allowing us to help you achieve the greatest success from your hard work. 

We would encourage you to get started!

If you want to talk this over, simply call us on 01858 791182 or get in touch here.

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.

Get in touch.

We work with many local business owners and directors across the Midlands, helping them and their families to become financially independent.

Whether you are a startup looking to scale or a seasoned business owner planning your next journey, we will take the time to understand your objectives and plan a course of action.

You can call us on 01858 791 182  or email us at the link below.

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Sovereign Wealth Limited is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website www.sjp.co.uk/products. Sovereign Wealth Limited is a Limited company registered in England and Wales, Number 07115386. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.