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YOU ’ vE FOCUSED ON YOUR BUSINESS , NOW LET YOUR BUSINESS FOCUS ON YOU
It ’ s never too early to start considering your business exit strategy and future wealth plans
As a successful business owner , you have a detailed understanding of what is required to make your business succeed . You , your employees and business advisers are focused on ensuring your business continues to create value for your customers , maintains your competitive advantage and exploits market and competitor opportunities .
However , successful business owners tend to focus their time and energies on their business , sometimes at the expense of their personal needs and requirements . One of the key challenges facing any business owner is how you convert your enterprise into wealth – or , to put it another way , how you can extract the rewards for the many years of hard work and personal sacrifices that have been made in building your business , to create financial independence for yourself and your family .
When considering exiting your business , it is always best to plan as far ahead as possible . Close examination of your business to understand its strengths , as well as the areas where you could improve operations , can considerably increase the value you can achieve . If your business has , or can demonstrate , a track record of strong , growing profits it will be of great value and interest to potential purchasers . Knowing where your expenses are being incurred , where savings can be made and demonstrating a good track record of expense control all help .
To maximise your exit value , the business must be able to stand alone without your involvement . This will mean recruiting a strong management team to whom you can delegate the running of the business .
Your products and services should also be scalable and your business should have unique selling points , whilst you keep an eye on competitors .
A strong client base is needed with measures established to protect it . Set up long-term contracts with key customers but also reduce dependence on key clients . Similarly , you should have appropriate commercial contracts with key suppliers , employees or any individual or entity that could impact your business . Ultimately , you should consider the issues that may arise with any potential purchaser who will conduct his or her own due diligence prior to a sale .
DECISIONS MADE IMMEDIATELY BEFORE , AND AFTER EXIT ARE CRUCIAL TO YOUR POST-EXIT WEALTH PLAN .
When considering your options of what to do with the proceeds of so many years of hard work , you will need to take advice and consider the taxation consequences of the variety of options open to you ; and where to invest your wealth .
While it may be practical to delay any investment decisions until you have become accustomed to the funds you have at your disposal , it will increase the tax-efficiency and flexibility of your options if you decide , before you sell the business , what you are going to do with the profits .
As part of this process we will work closely with your existing professional advisers , helping you make the most of your business assets . At the same time , we will be working with you to do exactly the same for your personal assets . We believe you should plan for your financial security as rigorously as you plan for your business success . To achieve this , you need an adviser who understands you and your business and will work with you to help you obtain the maximum benefit from all your hard work .
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 planning may include referral to a service that is separate and distinct to those offered by St . James ’ s Place .
01225 300 281 | 07811169286 jonathan . knee @ sjpp . co . uk www . mckenzieandco . co . uk
The Partner Practice 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 . The ‘ St . James ’ s Place Partnership ’ and the titles ‘ Partner ’ and ‘ Partner Practice ’ are marketing terms used to describe St . James ’ s Place representatives . McKenzie & Co Financial Consultants is a trading name of McKenzie Wealth Management Ltd .
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