Succession Planning

Succession Planning

Succession Planning
Succession Planning 1

Written by Sebastian Elwell

December 28, 2020

Succession Planning 2

Should you be succession planning?

Your business might be relatively new, but you should still be thinking about succession planning. It’s something that often gets left until the last minute – or isn’t done at all – and that can have a significant impact not just on the ongoing success of your business, but also on your family’s personal financial situation.

What is succession planning?

It’s basically a safety net for you, your business and the people who rely on it. Succession planning is often just thought of as ‘who takes over when I retire’ but there are other reasons why your role might need filling. The two most obvious are ill health or death. Neither are tempting subjects, but both could happen at any time – and everyone needs to be prepared for the possibility.

Why is it important?

Your business almost certainly ticks along nicely from day to day. Everyone has their position and role, and they rely on you for leadership, strategy, planning and consistency. It’s amazing how quickly this seemingly ordered existence can fall apart if you are no longer there to steer things. Other relationships in the business may be strained; people who think they should take over the business might be thwarted; and if you’re running a family business, personal relationships can easily get in the way.

That’s why it’s important to take the time to think seriously about what plans and processes would kick in with your business if you were to be incapacitated, take early retirement or need to leave the business for any other reason.

Taking the time to get it right

Your succession plan will depend on whether you are running a family business or a stand-alone business. You might also have to make different plans if you are in a partnership rather than a Limited business. That’s why it’s a good idea to get some independent advice. There are some key things to think about, whatever type of business you run:

  • Get started as soon as possible – the longer you leave it, the more tricky a succession plan may become. Even if you have only recently started your business, it’s worth thinking about your succession plan. It will help to keep your business running.
  • Include key people in the business – there should be no such thing as a secret succession plan. For a family business, talk to the relevant people to be clear about what you want to achieve and sort out who is able or willing to work with you to achieve those goals. And even if it’s not a family business – you will need to bring the right people along with you as you plan.
  • Think about what you want – if you are planning for early retirement, for example, do you still want to be able to take an income out of the business?
  • Have a robust business plan in place – apart from planning early retirement, you’re unlikely to know exactly when your succession plan will be needed. So you need to have a strong and practical business plan in place so that your business is in the best possible position at all times.

It can take a while to sort out a good succession plan. There are many variables to take into account, many people to involve and a potential range of business processes to put into place. At Switchfoot Wealth, we’ll work with your accountant and other advisers to make sure that your personal financial needs and wants are reflected in your succession planning, giving you peace of mind for yourself and your family.

 

 

 

Switchfoot Wealth Limited Independent Financial Adviser

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

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SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Your Financial Freedom Plan

Your Financial Freedom Plan

Your Financial Freedom Plan
Your Financial Freedom Plan 3

Written by Sebastian Elwell

December 13, 2020

Your Financial Freedom Plan 4

Have you got a Financial Freedom plan?

When we speak to business owners about their long-term goals, we often hear the words ‘financial freedom’. Whether that’s paying off the mortgage, having enough pension and investments for early retirement, or being able to fulfil travel and leisure plans, these business owners all have one thing in common: they need the business to provide the funds.

It’s never too early to start planning

We’re firm believers in starting early. That’s because the sooner you start to make a financial plan that includes your business, the more likely you are to realise it. Many people spend their mid-working life devoting hours and hours to their businesses. What you really need is for your business to be devoting pounds and pounds to your bank account.

What is it that you want to achieve?

  • Buy your family’s forever home
  • Be mortgage free by a certain point
  • Take a sabbatical to travel, study or work on another business
  • Undertake a new build or significant renovation project while your business works for you
  • Make more tax-efficient savings and investment plans

How a financial plan can help

For business owners, a personal financial plan should also underpin any business decisions you make. After all, it’s your business that’s going to provide the financial freedom you need. So the two things will always work hand-in-hand, and that means you can take big strides in the growth and management of your business.

A plan will help you see how you can build your business to increase your income, build value for your exit strategy and use the proceeds to give yourself the lifestyle you really want. You can continue to work, of course, but you don’t have to – it’s a choice rather than a necessity.

Protecting yourself and your family

Owning a business is risky – as we’ve seen recently, it doesn’t matter how huge your business is, it can still go to the wall if it meets the wrong set of circumstances. So it makes sense to protect you, your shareholders and your family. Can your business run without you? Who would take over if you had to step aside? How would you meet your financial commitments or your lifestyle goals?

All these things are genuinely important, and too many business owners keep putting discussions to the bottom of the pile. But working on a wider financial plan means you will have the confidence to make key decisions about your business and your personal life. It means you’ll have a clear idea of what comes next and what you need to do. And it means you will be in control, with the backing of independent financial expertise behind you.

So, is this valuable to you?

If you think it would be valuable to create a road-map so that your business is working hard to support your personal financial goals, why not talk to us today? We can start to build your own personal financial plan and we’ll be with you every step of the way.

Switchfoot Wealth Limited Independent Financial Adviser

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

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Why did Switchfoot Wealth choose to work with Sense Network?

"I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial...

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​The Personal Finance Society Awards The PFS asked me to create a short blog and video about the PFS awards.  Here are my top tips for awards entries.  Original blog can be found on the PFS site here.   If you are interested in joining us on our mission please...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.