Page 3 - SME Toolkit: The Star Covid-19 Edition

Wednesday,May27,2020 www.thestar.co.uk THESTAR 3
FINANCIAL PLANNING
in association with
How to survive this – or the next – financial hurricane
Understand your busi- ness, protect your money, survive the crisis.
That is the advice from fi- nance expert Jill Thomas, who has been concerned at how fast firms have run out of money.
It appears some have prioritised lifestyle over investing in the company or building a war chest and recovery plan.
Others see their business as their pension, to sell at a time and for a price of their choosing.
But legislation could change, the company could fail - or a deadly virus could emerge that shuts down the global economy.
The pandemic has shown all too clearly that many assumptions are fraught with risk.
She said: "l have been con- cerned how fast firms have run out of money, perhaps due to external pressure to enjoy a lifestyle rather than ensuring they can endure a hurricane. Too many compa- nies assumed something like this couldn’t happen.”
Jill is urging bosses to use this time to really understand their business, cashflow, costs and risk. Re-forecast and take expert advice on how to protect your money.
“Get your head out of the sand and if you need to re-assess do that. You don't want to be making decisions atthebottomofaU.”‘U’isthe shape of the expected recov- ery, with a period at rock bottom, before coming back with a vengeance.
Her advice is to "put as many legs on the table of financial security as
you can."
Jill Thomas is founder and managing director of Future Life Wealth Management.
As business owners we need to learn quickly from recent events
property, maybe one that you own now, giving you liquid- ity quickly. And you’re paying yourself rent.
Jill said: “It’s a route not many are
awareof.” Another is
that if bosses a r e s e l f - employed, or in a partner- ship, and make
and the weak pound means exporting is competitive. Coinciding with the need to protect supply chains, it means UK manufacturing and export are ‘fundamental to the recovery.’
And don't forget marketing.
“Ramp it up; the weaker companies may not recover, providing new opportunities.”
CONTACT
Future Life Wealth Management 54 Ravenshorn Way, Renishaw, Sheffield, S21 3WY.
Phone: 01246 435996 Jill@wealthmanagement.uk.com
DISASTER PLANNING IS REPAID A THOUSAND FOLD
That means extractingcash from the busi- ness in a tax efficient way. An employer-
Re-forecastandtakeexpert advice on how to protect your money
When lockdown was announced, Future Life Wealth Management triggered its disaster recov-
ery plan.
The office was evacuated in two- and-a-half hours, with all staff safely working from home.
“Too many companies assumed something like this wouldn't happen. As business owners we need to learn quickly from recent events.
“I believe we are going to need to change focus to support business- es at all levels, owners and staff, as this could make a significant difference to the health and future
profitability of business and the UK economy.
“This will include education
and mentoring, not only for business owners and leaders, but employees too.
“In the short-term I see our role as being the truth and stability against rumour and conjecture.” Future Life Wealth Management has been in the New Model Advi- sor UK Top 100 for seven years running. ItisinthetopfivepercentofallUK independent financial advisers, according to industry bible The Plimsoll Analysis.
s p o n -
sored pen-
sion can be a
good choice.
It can protect from creditors should the busi- ness fail.
It could also be used to buy a commercial
staffredundant they could be personally liable for payments, unlike a limited company. On the plus side, record low interest rates mean borrow- ing is cheap. Fuel is cheap
Jill at her office in Renishaw.
Use this time
Jill Thomas