Fi­nan­cial plan­ning for your busi­ness

Hav­ing a strong fi­nan­cial plan for both you and your busi­ness is im­por­tant, says Carl Lamb

EDP Norfolk - - YOUR MONEY -

If you are a busi­ness owner, you will un­der­stand how im­por­tant it is to make good plans to en­sure ef­fi­ciency and sus­tain­abil­ity. Busi­ness fi­nan­cial plan­ning en­sures that you are pre­pared for the chal­lenges that your busi­ness may face and that you are meet­ing your re­spon­si­bil­i­ties as an em­ployer.

The death, injury or se­ri­ous ill­ness of a key mem­ber of the team can have a catas­trophic im­pact on the sus­tain­abil­ity of the busi­ness and I nor­mally rec­om­mend that my busi­ness clients con­sider key per­son pro­tec­tion. This is a fun­da­men­tal in­sur­ance for the busi­ness. You would not hes­i­tate to in­sure your premises, con­tents and ve­hi­cles, but the cost of a busi­ness in­ter­rup­tion that would re­sult from the loss of a key per­son could be even more dam­ag­ing.

Key per­son cover will pro­vide a cash in­jec­tion to give you breath­ing space while you re­solve what is needed to get back on track. Other pro­tec­tion plans can be use­ful for dif­fer­ent busi­ness sce­nar­ios.

Share­holder pro­tec­tion, for ex­am­ple, can be set up in con­junc­tion with a share­holder agree­ment to en­able des­ig­nated in­di­vid­u­als (such as other share­hold­ers) to pur­chase the de­ceased share­holder’s stake in the busi­ness from his or her es­tate, thereby re­tain­ing con­trol within the share­holder group.

Work­place pen­sions are now firmly em­bed­ded in our busi­nesses. Many busi­nesses will reach the third an­niver­sary of set­ting up their schemes this year. If this is the case with your busi­ness, you will need to meet the re­quire­ments laid down in the rules for that mile­stone. You

need to re­view your pension scheme to en­sure it re­mains fit for pur­pose and re-en­rol all those work­ers who opted out when you first set up the scheme.

We have found that some busi­ness own­ers are un­happy with the scheme they orig­i­nally set up to meet the com­pul­sory work­place pension rules. In some cases, it’s the per­for­mance of their em­ploy­ees’ pension in­vest­ments that is caus­ing con­cern. In oth­ers, the on­go­ing ad­min­is­tra­tion and man­age­ment of the scheme is caus­ing is­sues. The third year an­niver­sary is a great time to look at the al­ter­na­tives and to get ad­vice about what is avail­able.

Sta­bil­ity is an im­por­tant fac­tor in the sus­tain­abil­ity of a busi­ness. En­abling the re­cruit­ment and re­ten­tion of the right peo­ple and pro­vid­ing the abil­ity to re­cover from busi­ness in­ter­rup­tion should be es­sen­tial el­e­ments of your busi­ness plan. Any opin­ions ex­pressed in this ar­ti­cle, spon­sored by Al­mary Green and Smith & Pinch­ing, are sub­ject to change and not ad­vice. The value of an in­vest­ment and the in­come from it could go down as well as up. The re­turn at the end of the in­vest­ment pe­riod is not guar­an­teed and you may get back less than you orig­i­nally in­vested. The tax treat­ment of in­vest­ments de­pends on in­di­vid­ual cir­cum­stances and is sub­ject to change. Al­mary Green and Smith & Pinch­ing are Char­tered Fi­nan­cial Plan­ners. If you would like a no-cost ex­ploratory re­view to dis­cuss your plan­ning with an ad­viser from ei­ther Al­mary Green or Smith & Pinch­ing call 01603 789966 or email en­[email protected] smith-pinch­ing.co.uk

ABOVE: Plan­ning pre­vents prob­lems

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