Mr C Client had been a business owner for the past 3 and a half years. Having gone through the initial lean years of building the business, he was now making substantial profits and looking to the future. He was coming to the end of the lease of his current premises and knew that he would have to move imminently as he would outgrow his offices within the next 12 months. All company profits were in the business bank account, but having recently paid a hefty corporation tax bill for the last trading period he was keen to use the profits for his benefit. Mr C had generous pension benefits built up from previous employment.
When Equanimity started working with Mr C, we focused on Mr C’s plan for the business over the next 5 to 10 years as well as his exit strategy. This enabled us to design an investment strategy to meet his needs. As the business had surplus cash savings and had made substantial profits in the current trading period, we maximised the amount that the business could invested into Mr C’s pension scheme. This enabled his pension to purchase a property from which the business could trade from. All rent received by the pension was not subject to tax and therefore this enabled his pension to grow even faster.
We then turned our attention to protecting his business income and turnover. It was identified that the majority of company turnover was down to him and one key member of staff. Therefore we ensured that they were both fully insured by the business so that, in the event that either were ill or died suddenly, there would be enough money to find a suitable replacement and ensure that the business would continue to prosper.