The journey from launching a start-up to scaling a successful business is exciting - but it also brings new financial challenges.
As your business grows, the lines between business and personal wealth can become increasingly blurred.
Managing how and when to extract cash and what to do with it once it leaves the business, can make a meaningful difference to your long-term financial wellbeing.
At Two10 Investment Services, we work with entrepreneurs and business owners who are navigating exactly this stage of growth. While every situation is unique, there are common themes when it comes to maximising tax efficiency, protecting personal assets and aligning growing business success with your individual goals.
Making the Most of What You Take Home
As profitability increases, one of the key questions business owners face is how best to take money from the business. Whether through salary, dividends or pension contributions, the structure you use can influence your tax efficiency and long-term outcomes.
Each method has advantages and implications, and often a blend of approaches work best. For example, contributing to a pension not only supports your personal retirement planning but can also be a tax-efficient way to extract value from the company. Meanwhile, dividends and director’s loans can provide short-term flexibility.
Working with a financial planner alongside your accountant can aim to help you balance these options effectively - helping to ensure that your remuneration strategy supports both the sustainability of your business and your personal financial goals.
Protecting Your Personal Finances While Your Business Grows
It’s easy for business owners to focus all their attention on reinvesting profits - but protecting your personal wealth outside of the company is equally important. Building up assets in your own name, or within suitable wrappers such as pensions and ISAs, can provide an essential safety net if business conditions change.
Personal and business protection planning also plays a role here. Life cover, income protection or shareholder protection can offer reassurance that your family and dependants are safeguarded, and that your personal finances remain secure even if unforeseen circumstances affect your business.
Putting Extracted Value to Work
Taking money out of the business is only part of the equation - what you do with it next matters just as much. Investing surplus income, making additional pension contributions, or exploring diversified investment opportunities can help you grow personal wealth alongside your business.
Structured financial advice can aim to help you create a long-term plan for this capital: balancing growth with risk, liquidity and future needs such as retirement, property or supporting family. This approach allows your business to translate into lasting personal value.
Linking Business Success to Life Goals
Your business is more than a financial asset - it’s often the foundation of your future plans. By aligning your personal ambitions, such as early retirement, family support or lifestyle choices, with your business and investment strategy, you can start to build a clearer picture of what success looks like beyond the company itself.
A joined-up financial plan aims to make sure your growing business continues to support your wider life goals - not just in the short term, but well into the future.
Closing Thoughts
Scaling a business brings new opportunities, but also new decisions about how to use and protect the wealth it creates. By taking a strategic, personal approach to financial planning, you can help ensure your hard work delivers value not only within your business, but across every area of your financial life.
We aim to support business owners and entrepreneurs in structuring their finances to reflect both professional ambition and personal security - from the early stages of growth through to long-term success.
*Investments can go down as well as up and you might not get back the capital invested.
*Understanding your risk tolerance, assessing your capacity for loss and completing a suitability assessment are essential before proceeding with any investment or financial plan.
*Two10 Investment Services, does not give tax or legal advice but works with clients and their specialist tax and legal advisers. We recommend that clients should always take independent tax and/or legal advice on important matters and keep us informed of any considerations they would like us to take into account.
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