Taking time to plan
If you know me personally, you’ll probably be aware that I’m not usually one to plan too far ahead when it comes to things at home. I prefer to go with the flow and adapt as things come my way. However, when it comes to work, things are a bit different.
Over the years (let’s not get into how many—it makes me feel a bit old!), I’ve come to appreciate the importance of planning and thinking ahead. It’s clear to me that it’s never too early to start discussions about the future. In fact, the sooner you begin, the more focused and prepared you can be to achieve your goals. It’s easy to get caught up in day-to-day tasks and lose sight of the bigger picture. As I often remind my son, focusing on the small, consistent efforts now can prevent bigger challenges later on.
So, what are we aiming for? Is it financial security, the thrill of running a successful business, improving skills, giving back to the community, or something else entirely? Whatever your goals may be, planning ahead can help you reach them more effectively, ensuring that your efforts are focused and not spread too thin.
You might think you don’t have time to plan or look ahead. It’s a common belief, but in reality, taking time to think can actually give you more time in the long run. What if someone told you that dedicating just a little time to planning could lead to a better work-life balance, help preserve your family’s wealth, grow your business’s value, and even motivate your staff? Time is one of our most valuable resources, and using it wisely is crucial.
Taking an hour or two away from the daily grind to look at the bigger picture and talk with someone could give you a fresh perspective or confirm that you’re on the right track. It can help you identify what truly matters and distinguish the forest from the trees.
A good adviser won’t just focus on your tax return or company accounts—they’ll want to understand your broader goals and help you plan for them. Knowledge is power, as they say, and these discussions can provide valuable insights, whether for now or in the future. After all, you don’t know what you don’t know.
Here are a few examples to consider:
- We may not like to think about it, but death is inevitable and often hits the people around us very hard. With recent speculation about potential inheritance tax increases, do you know your current exposure? Understanding this can help you consider steps to mitigate your position, whether it’s updating your will, taking out insurance, or other planning measures. However, it’s important that any planning meets your goals, whether they involve wealth protection, asset distribution, or something else entirely.
- Are your staff truly motivated to help the business achieve its goals? It’s easy to take staff for granted until they leave, and then we realise how crucial they were. Replacing staff can be costly, so taking time to assess staff engagement can pay off. Sometimes, small changes like giving them more autonomy, refreshing amenities, or reevaluating remuneration packages can make a significant difference in morale.
- Are you planning to exit your business within the next 10 years? If so, do you know your succession options and the value you’re aiming for? Understanding these factors can help you take steps toward realising your goals.
- Do you have key employees who could help grow the business and maximise its value? You might consider implementing an Enterprise Management Incentive (EMI) share option plan for them. This approved scheme allows selected employees to acquire shares in the business when certain criteria are met, often aligning their incentives with the success of the company.
Ultimately, the benefits of taking time out of your business for these broader discussions will depend on your specific circumstances and objectives. However, in all my years of experience (and there have been many), I’ve never heard anyone regret dedicating time to this kind of planning. In fact, most people wish they’d done it sooner.
And remember, once you have a plan, that’s not the end of the process. Regular reviews and adjustments are essential as circumstances, the economy, objectives, and legislation can all change over time. The key is to first take a step back and reflect on what truly matters to you and your business.
If you’d like to have a chat about your individual or business circumstances, please don’t hesitate to get in touch.
