STARTING a business, or taking an established business to the next level inevitably involves taking risks, but many of them can be mitigated with the expert input from an experienced financial adviser.
Paul Anstee from Moneytree Financial Services is convinced that the best expert advice invariably highlights opportunities for business owners wishing to grow and expand, AND ensures that everything is in place to safeguard those involved are protected from unexpected pitfalls.
“Most people, particularly in the early days, work incredibly hard in their business and not on their business.
STARTING a business, or taking an established business to the next level inevitably involves taking risks, but many of them can be mitigated with the expert input from an experienced financial adviser.
Paul Anstee from Moneytree Financial Services is convinced that the best expert advice invariably highlights opportunities for business owners wishing to grow and expand, AND ensures that everything is in place to safeguard those involved are protected from unexpected pitfalls.
“Most people, particularly in the early days, work incredibly hard in their business and not on their business. It’s understandable, – there’s enough to do getting their company started or embarking on new developments and it’s easy to overlook things like planning for retirement, or protecting themselves, their business partners, or their families.” said Paul.
“For instance, say two partners enter into a business with equal shares, – they need to think seriously about what might happen should one of them die. Quite simply, the late partner’s widow could find themselves with 50% of a business they know very little about, entitled to half the income but totally incapable of making any meaningful contribution to all the work that’s needed!”
“Alternatively, imagine the late business partner’s widow or widower (who has never worked in the business) arriving one day and saying, “OK, I now own half this business, so there’s going to be some changes!”
With the right business protection policy and Partnership Agreement in place, the surviving business partner would be able to buy the shares of their deceased partner from the widow/er, so that everyone benefits and the business can continue without undue delay or disruption.
Moneytree Financial Services Ltd can also advise on pension plans, (including Auto-Enrolment, which is on the horizon for every UK small business in the next couple of years) and the viability of using existing pension savings to buy business premises.
Paul warns “If you own your company premises in your OWN name and rent back to your business you are liable for income tax on the rent, capital gains tax on any increase in the property value (if/when you sell it) and it adds to your potential inheritance tax problem.
“However, if you use your pension funds to purchase the property (topped up with further borrowing if required) these taxes can be avoided or at least significantly reduced,” said Paul.
“There is so much more to think about, and the penalties for doing nothing or trying to muddle through and getting it wrong could be very costly indeed! So why risk ruining your business? Speak to a professional, qualified fully independent adviser now! It could save your sanity and your business!”
For further details, contact Moneytree Financial Services on 01933 623722, 07899 941144, or email