🟣🟢 Secrets to unstoppable progress

🌅 Hello there…

In this week’s Financial Stuff:

• 🏡 Why hybrid is best (1 min read)

• 🎯 Why you should start your Exit Strategy now (<3 mins read)

• 🤔 Inflation is the enemy (🖼️)

So let’s get started…👉

This week I’ve been mainly working from home (🐶).

It’s reminded me of lockdown and why I got back into the office as quickly as I could!

It’s not the same for everyone I know, but for me, there’s nothing that compares to in person, whether its co-workers or clients or customers. It’s just better!

All businesses rely on building trust with their customers, but no more so that in financial services.

That’s because clients need to feel confident that their money is being handled wisely and securely.

So it made me wonder what the statistics say about this. Is face to face better?

Post Covid there are quite a lot of studies including from firms such as Deloittes, EY and PWC. And also as you might expect it does depend on the demographics:

Face-to-Face: 71% of clients express a preference for in-person meetings to build trust in financial matters.

Online: 42% of clients feel online services lack personal touch, but 55% of those under 40 are more comfortable with digital solutions.

Telephone: 35% of clients prefer face-to-face over phone communication, but phone conversations remain more trusted than online-only interactions for some demographics.

Hybrid: A hybrid approach combining face-to-face, online, and telephone interactions is gaining traction. According to Deloitte’s 2022 report 60% of clients feel a mix of communication channels helps build stronger trust and long-term relationships.

So it seems that while face-to-face meetings still build the most trust in financial services, younger clients are more comfortable with online interactions, and many appreciate a hybrid approach.

I’m interested to know - how do you build and maintain trust in your business?

🎯BUSINESS OWNERS STRATEGIES
Start Planning your Exit Strategy Early

Did you know that some business owners have a very clear plan for exiting their business right from the get go?

Not a vague ‘I’m going to grow it and sell it for millions in 10 years’ type of plan. An actual year by year roadmap towards selling or bringing in a management team or whatever.

But let’s be honest, I haven’t come across too many of those over the years of dealing with small businesses. Or at least not when we begin working together.

And actually that’s fine because we’re all different and we all have different ways of working and planning and thinking.

BUT. The one thing I would encourage you to do, starting this weekend…

…is to at least think about what needs to happen for you to be able to step back from your business in whatever way feels right for you, when the time comes.

Business owners who start planning at least five years in advance often end up 30% wealthier comes down to the power of time and preparation.

Here’s how starting early can make such a big difference:

🟩 Tax Planning Opportunities:

When you have time on your side, you can take full advantage of tax-efficient strategies.

For instance, by gradually withdrawing profits through dividends, pension contributions, or other tax-efficient vehicles, you spread out your tax liabilities over several years rather than taking a huge tax hit when you sell.

This way, you avoid high one-off taxes like capital gains tax or income tax, which could significantly reduce your net wealth.

🟩 Pension Contributions and Growth:

Over five years, you can maximise pension contributions from your business, which not only lowers your business’s taxable profits but also allows your pension investments to grow.

Pensions are a highly tax-efficient way to build wealth because contributions are often tax-deductible, and growth within a pension pot is tax-free.

Compound growth over five years can add significant value to your retirement fund.

🟩 Investment Growth and Diversification:

If you diversify your personal investments early on, such as using ISAs, property, or other investment vehicles, those investments have more time to grow.

The longer you’re invested, the more you can benefit from compound returns, which is the growth on your growth.

This means that even small, regular investments made over five years can add up to a considerable amount.

In contrast, waiting until the last minute reduces your chance to build and grow these alternative income streams.

🟩 Market Timing Flexibility:

When you start planning early, you give yourself the flexibility to exit when the market is favourable for selling your business.

You won’t be forced to sell during a downturn or under less-than-ideal conditions. This can have a significant impact on the sale price of your business, and ultimately, your personal wealth.

🟩 Mitigating Risks:

Starting early allows you to identify and mitigate risks - both personal and business.

Whether it's making sure your personal finances are in order, or optimising your business to be more attractive to buyers, this preparation ensures that you’re not scrambling at the last minute.

This means a smoother, more profitable sale, and better financial security post-sale.

And even if you don’t intend to sell, by starting your financial planning early, you allow for better tax efficiency, more investment growth, and increased flexibility, all of which combine to significantly increase your net wealth post-sale.

That’s why starting at least five years ahead can make such a huge difference -sometimes to the tune of 30% more wealth than if you wait until the last minute!

🤔 MARKET INSIGHTS
Inflation - The Real Enemy

😎AND FINALLY
This week on Youtube…

I’m talking about how it’s not too late to start making pension contributions: Boost your Pension Contributions: Smart Strategies for Business Owners

Check it out here 👇👇👇

As always, I hope you found this helpful.

If you have any questions at all, drop me a note.

Hilary 😎

P.S Whenever you’re ready maybe I can help: Book a Discovery call and find out if we can help you

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