Financial Planning for Business Owners

Extract money tax-efficiently from your business and exit at the right time with enough money to secure your retirement. Financial planning for business owners gets you simpler administration and with smarter investment decisions using a trusted adviser.

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What is financial planning for business owners?

Financial planning for business owners  – you have worked hard to build a business that provides you with significant income. Your business could be a significant asset for your future.
Now is the right time to focus on the next step in your retirement plans with specialised advice for business owners.

Business owners we work with

We work with small business owners of established enterprises. Their businesses are profitable, and could have a sale value. Typically our business owner clients have cash in reserve, and can make decisions over whether to extract more profits, expand the business, or to sell. The business owners may be a couple, a family, or other relationships.

“Whilst working, I was fortunate in being able to stash away my full pension allowance. I ‘retired’ when I was 53 and when I turned 55 I was able to draw down 25% of one of my pension plans and invest the remainder, whilst keeping a lookout on my other pension that’s not due to be paid for another four years. No question of mine has been too daft for them to answer, and their quarterly reports often answer questions before they’re asked. The personal service is terrific.”

Peter Bigg, Retired Business Owner (Director)


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Your business is your life, and it is a big decision if you choose to exit. This applies whether you decide to sell, or to retain an interest. When financial planning for business owners we examine different scenarios for your retirement plans, so you are sure you have enough money to maintain your desired lifestyle, no matter what you decide to do in your future.


We can help you every step of the way


There are always challenges when running your business. This includes managing profits, growing your business, acquiring assets, extracting money, and dealing with staff.


You want your business to work for you. This might mean working on your terms, allowing you to take more personal time. You want to use your wealth to provide for your family (education, property, inheritance).


You probably know how much your business is worth. When financial planning for business owners we calculate how much your business needs to be worth to be sure of securing your future lifestyle (if you decide to retire or sell).


You can use a trusted financial adviser as a sounding board to take considered decisions. Business owners have questions such as “How much does my business need to be worth to be able to sell or retire?” and “When is the right time to exit?”.


You are competent, but you are busy, and have other priorities. You need someone to remove the hassle, make your finances simpler, and focus your attention on important issues so you can make the right decisions.


You want your money to work harder for you, without too much daily involvement. Ideally, you want to extend your asset base away from your business, to provide more security.

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We will manage your investments so that you can sit back and watch your wealth grow, safe in the knowledge that your assets are generating your desired retirement income and your money is being looked after by regulated experts with a proven track record for long-term growth. 


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Company profits employer pension vs ISA 2023 - planning your retirement guide



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Welcome to our Prosper service.

Our goal is to help you achieve your full potential using our award winning financial planning and wealth management services.

We believe that everybody deserves to live a secure and fulfilled life and this belief is what our Prosper service was built around.

The service focuses on three main areas… 

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Our Prosper service is designed to help you gain complete clarity over your present and future financial positions. We use our planning software to show how different scenarios will affect your long-term security.



By developing a comprehensive Financial Plan, we enable you to take control of your finances and focus on getting you to your goals as quickly as possible.



With a Financial Plan in place, you can sit back and relax, safe in the knowledge that your money is being looked after by regulated experts with a track record for growth and a genuine dedication to customer care.


 Click below to learn more about how our Prosper service works 

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See what our Business Owner clients have to say…


“I have received an excellent service. I was kept updated all through the process.The team explained and advised in an easy to understand manner and were very professional.”

Vicki Skeels, Business Owner

"Clear and constructive advice tailored and flexible to our needs and requirements."

"You keep in regular contact, and communicate well."

"You make us feel valued."

"You take the time to understand the client."


of our clients say our advice is easy to understand


of our clients say they get value from our service


of our clients say we care about their needs


of our clients say they are "extremely happy" or "very happy" with our service


of our clients would recommend us to a friend


of our clients say they trust us to look after their best interests

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Designed with you in mind.

Our financial planning process
The Prosper financial planning process

The discovery meeting allows us to find out about you and also helps you to decide if you want to work with us. We ask a series of questions to understand what’s important to you, and what your primary goals are for the future.  We use visualisations to explain the Financial Planning process so you can evaluate how it could benefit you.  We send you a Service Proposal to explore the issues from this meeting and explain how our service will work for you.

In the fact find meeting we gather the data we need to understand your finances. We conduct a comprehensive data analysis of your income, expenses, assets, and liabilities, so we can examine current and future spending patterns. We need comprehensive details to fully evaluate your position so we can plan for your future. We help you to make sense of your money and fill in any gaps in your data. We will follow up with further queries to your product providers.

Your financial plan examines your current finances, based on reasonable assumptions about the future. We assess possible gaps in your planning you might not consider, so you can be in a more secure position. We compare the current position with different scenarios, so you will immediately see the benefits of any improvements we have recommended. This is a highly collaborative and interactive stage and puts you at the centre of your financial decisions.

Your financial plan will give you a series of recommendations to improve your financial security, and also work towards a better lifestyle. With a clear financial plan in place to achieve your goals, we can implement an investment management portfolio or arrange any appropriate financial products to meet any needs we identify. We'll do the administration so you can sit back and relax as we work hard to help you achieve the life of your dreams.

Reviewing your financial plan


You will receive regular contact from us with investment valuations every 3 months (although you also get access to our portal for daily valuations if you prefer). You will be offered at least one annual meeting to review your Financial Plan and investment portfolio, making the necessary adjustments for your current circumstances so that you remain on track to achieve your goals. We'll also update you with tax data, and make sure you use tax allowances as early as possible for maximum benefit.

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Financial Planning for Business Owners

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Financial planning for business owners – your questions answered

What is financial planning for business owners?

A financial plan for a business owner has a particular emphasis on your needs. We help you to gain clarity on your current position, and show you where your finances are going if you continue working in your business, or possibly sell. Financial planning for business owners helps you to focus your attention on the best way forward, and show you how to maximise your resources; this of course includes your business. This might mean profit extraction, building assets outside your business, or planning for retirement. Our ultimate aim is financial freedom for you the business owner. Read about our Prosper service for business owners.

How do I set up a financial plan for a small business?

Financial planning should be for you as the business owner, rather than the small business itself. You might create a business plan for your small business, but ultimately you should focus on financial planning for the business owner. Think why you started your business in the first place – no doubt it was to gain some financial security and freedom for you an your family. We think the business owner should come first and the small business should finance your future.

How do I do my own planning?

Financial planning is about you taking the right strategic steps as a business owner. You can put together your own financial plan as a business owner by reading the resources on these pages. A simple financial plan might start by controlling your budget, putting together enough cash for emergencies, protecting your family with the right insurance, extracting the right profits from your business in a tax-efficient way, preparing for retirement, planning for tax. You can read our financial planning book, The 7 Figures Plan, which is a step-by-step guide to controlling your finances with an easy to follow plan.

Why is financial planning important for business owners?

Why did you start your business? The answer is probably something like you wanted to make more money for yourself and your family to give you security and freedom. Financial planning for business owners starts with this in mind, and builds a plan to help you to understand where your finances truly sit. We understand business owners like you and build financial plans to take into account your situation, which is more flexible than a typical employed person. We can show you the gaps in your thinking. You probably work hard to grow your business, but may have neglected your own future security as a result. A financial plan for a business owner aims to ensure that you miss nothing in your personal finances. You can stress-test the emergencies that might happen in the future, and examine alternative scenarios to show you the best future path. The ultimate aim is financial freedom whether you keep your business or pass it on one day.

Why are pensions important for business owners?

Pensions are particularly important when financial planning for business owners. Most business owners see their business as their pension. This can be true, but is not always so. After all, your business is only worth what someone else is willing to pay for it. You cannot simply walk away from your business – you need to plan your exit. Pensions are a fantastic way to extract money tax-free from your business. You can save corporation tax at up to 26.5% and also save income tax on dividends (up to 39.35%) or earnings (up to 45%). You are in a position to use pensions to extract money from your business and keep 51% tax in your own retirement pot.

Can my business pay for life cover?

As a business owner you are in a special position when it comes to saving huge amounts of tax on life cover and other insurance. Effectively, you can get your business to pay for your life cover or income protection insurance. Depending on the situation and cover, this ca have huge tax savings when compared to extracting profits, paying tax, and then setting up personal cover. The tax savings can be between 55% and 64% based on the cover you use, and the profits of your business.

What are the risks for business owners?

Financial planning for business owners should also examine the risks of you dying early or being too sick to work. If either happens, your business profits may suffer, and your family’s financial security may not be as strong. You can protect your family from these risks by buying specialist business owner insurance to pay out if you die or are too ill to work. Even better, your business can pay for this insurance, and some is tax-free for the business owner. You can protect your family and your business by careful planning. You can also protect against the loss of various key people in your business, providing the business with money to replace that person if the worst happens.

Why should business owners plan their exit?

You probably do not want to work forever, and there may come a day when you want to exit from the business. This might mean selling your business or passing it on to someone within the team or family. Exiting your business may seem very far into the future, but the day will come. Planning your business exit will give you the best chance to get the most out of your asset, and also to preserve the business for the best future after you leave. Financial planning for business owners asks and answers a key question: How much does my business need to be worth to ensure that I never run out of money after I sell? You may get a valuation via an accountant or business sale agent. This may be attractive, but it is hard to justify the sale of your business of you are not sure that you still have the money you need after the asset has been sold. A business owner financial plan helps you to work out that number. If your business sale gives you that price then your decision to sell should be easier. A business sale can also qualify for Business Relief against inheritance tax, which could help you to save tax for future generations.

How should a business owner income be structured?

Financial planning for business owners is easier than for employees when it comes to structuring your income tax-efficiently. This is because you have choices around how you take your income, and when you do this. This depends on the type of business you own, but for a limited company, there is a generally accepted order of profit extraction. Business owners tend to take a small salary to qualify for the state pension. After that dividends can be taken up to the higher rate tax band. From there you have a choice whether to take greater dividends or to use company pension contributions to extract money free of tax. Financial planning for business owners aims to examine how much income you need, and how to extract profits tax-efficiently.

What practical documents does a business owner need?

Business owners are positive people – you have to be an optimist when you start a business. However, bad luck happens and things can go wrong. Compresensive financial planning for business owners examines the right practical documents to set up in your personal and business life. You should have a will and a Lasting Power of Attorney document. These cover your personal circumstances. Your business should also consider setting up similar document to ensure that continuity can happen if a key director is incapacitated. You might also consider setting up special insurance and agreements in place to cover the remaining owners and the family of a key person should they die.

What tax planning should a business owner consider?

Financial planning for business owners examines the tax situation. Business owners have to pay a lot of tax – probably corporation tax, VAT, National Insurance for employees, pension contributions for employees, business rates, income tax on dividends – the list feels endless. Business owners often sit down with their accountant at the end of each financial year to do some tax planning. You should also think of tax planning for yourself as a business owner in this situation. Financial planning aims to legally pay the least tax allowed, and to keep more of your hard-earned profits to provide income and security for you and your family.

What is a good financial plan for a business owner?

Financial planning for business owners assesses your own personal situation, not that of the business itself. As a business owner, your business obviously forms a key part of your income and assets. Your business owner financial plan needs to take account of this. However, what a good financial plan for a business owner tries to achieve is how to ensure that you have enough capital and future income in your own name. This could include your business, but may not, depending on whether you can realistically see a future value for it. Financial planning for business owners tries to ensure that you have enough capital extracted from your business to allow you to stop working one day, should this be your goal. Therefore, financial planning typically des not examine ways for you to grow your business. If you need a plan for your business, then you might seek advice from other advisers such as a business coach or accountant.

Is a financial planner worth it for a business owner?

Financial planning for business owners is usually worth it when your business gets to a certain point. We typically deal with business owners who have grown their business so that they are starting to build up cash reserves, in addition to being able to pay a decent income. When you start to build cash reserves in your business you can use this in a number of ways. This might include investing for future business growth, or extracting the money into the business owner’s own funds. Financial planning for business owners is likely to focus on tax-efficient profit extraction. In many cases, we can save you over 50% in tax by using pensions rather than dividends to take money out of your company. In other cases, we can show a business owner where the gaps are in your financial planning. You may not have enough cover in place to provide for your family should the worst happen – most business owners we see do not. As part of the financial planning process for business owners we often find they they look on the bright side. We help you to make sure that your family is covered. Even better, often your business can pay for this cover.

Is it a good idea to hire a financial planner?

If you are a business owner then financial planning is certainly useful. Financial planning for business owners can show you ways to maximise your opportunities and also to cover any risks. You probably take a similar approach in your business, but we commonly see that business owners neglect their own personal finances. If you put together a financial plan as a business owner, you can see the path you are on, use your business to power your future prosperity, and make sure that you maximise the opportunities in front of you.

Should a business owner put all their money with one financial planner?

We often see business owners, who seek to cover risks by selecting two or more financial advisers. On the face of it this probably feels like a good idea – the theory goes that you get to spread your risks. In practice, this is rarely a good idea for business owner financial planning. This is for 2 reasons. The first is that you are very busy. Do you really want to deal with 2 advisers asking the same questions, with double the meetings and double the financial solutions? You would not have 2 accountants, so why would you have 2 financial advisers?

The second reason is that by having 2 financial planners you are likely to create unintended inefficiencies in your financial planning as a a business owner. The 2 financial planners are likely to follow different strategies, which may overlap or even contradict the planning. You may create unintended consequences such as tax issues because neither financial planner could have full knowledge of your entire position. By having multiple advisers you are likely to create problems for yourself or your business

Should business owners have a budget?

Creating a budget is a key part of good financial planning, even for business owners. Typically, we see business owners who treat their business as an extension of their own personal finances. They use their business cash to take addition income when required, a bit like a cash point. This approach works fine while the business is growing, but what would you do if your business finances suffered a setback? The source of cash might not be as straightforward and your personal finances might suffer. Good financial planning for business owners seeks to control your own spending and income so that you keep aside appropriate resources in your own name. This is not about spending less. In some cases we advise business owners to spend more. Financial planning for business owners seeks to deliver the right lifestyle for you and your family now, while ensuring that you prepare properly for the future.

What is the role of a financial planner in your business?

When undertaking financial planning for business owners we advise the people who own the business, not the business itself. Therefore, financial planning for business owners focusses on your personal situation, but does not necessarily work for your business. The process of financial planning may help you to better understand your business, because we will challenge your plans and attitudes. However, any work on your business growth will need to take place outside of the financial planning process.

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Dan Woodruff. Certified Financial Planner and Chartered Wealth Manager, Colchester, Essex

Unit 5, Park Lane Business Centre, Park Lane, Langham, Colchester, Essex CO4 5WR


We focus on so much more than just your financial planning. We aim to help you reach your full potential, achieve your goals and help you live the life of your dreams.

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