Business Owners - Building Your Personal Wealth

Company Directors

A director of a company has a responsibility to its shareholders to maximise the value of the shares.   A business owner also has a responsibility to allow for owner drawings, to allow the business owner and their family to fund their personal lifestyle. The other responsibility for a business owner is to reduce business debt. But what do you do when there are profits left over after these priorities have been met?

A significant number of business owners automatically plough any surplus profits back into their business, but without increasing the company's profitability eg. upgrading sales vehicles, repainting the premises, extra staff, higher inventory levels.

Its important to diversify away from your business risk through investments which provide an independent income stream outside of your business.

If "all your eggs are in one basket" you may not get the selling price you expect which will impact on your retirement goals.  Many business owners have an unrealistic expectation of the market value of their business. The majority of businesses have been developed into a successful operation due to the skills, attributes and personality of the owner. However, purchasers are interested in future profitability, not what has happened in the past. Therefore, a trade sale of the business without the existing owner will normally have a detrimental effect on future profits and this will be factored into any offer price for the business.

Create Your Personal Diversified Wealth Plan

LYFORDS advisers are skilled at working with business owners to develop risk protection plans (business succession planning) and to build their independent wealth portfolio.

What level of Retirement Income do you want?

Extracting money from your business

Preparing your business for sale

Protecting Your Wealth

An accident or illness can set your wealth building plans back very quickly.  Plan for the uncertain, refer to Business Succession Planning

Refer also to Useful Business Resources