Paul Shanahan, founder of Futura, outlines a targeted framework to help business owners, CEOs and directors map out the financial future of their business.
If there’s one thing I’ve learnt over my career, it’s that corporate financial planning doesn’t have to be complicated.
By spending a little time planning and preparing, you can protect your business as much as possible against the fluctuations of wider economic cycles as well as the ups and downs of your specific market. Development of an effective ‘road map’ will also enable you to derive maximum benefit from your business, whether you decide to pursue a new opportunity elsewhere or take retirement. Sensible financial planning can also pay dividends during unexpected crises or economic uncertainties in light of political changes.
So, how best can you plan for your corporate future and encourage financial good health?
Investing for future business growth
It’s good business sense to retain a cash reserve for savings purposes or otherwise. Whether it’s for future reinvestment back into the business, to provide liquidity in case of an unforeseen event or for tax efficiency purposes, cash reserves can provide a much-needed stimulus at short notice.
However, retaining significant sums of ‘long-term’ cash on deposit is not without its risks, as inflation can reduce the buying power of cash within a business over several years. The cost of wages and suppliers typically rises faster than the general cost of living, meaning that this cash is typically better invested rather than left locked away.
We support clients with cash management schemes, long-term investment of business capital, commercial property purchases, pension contributions for tax relief and offshore investments – allowing their money to work for them when it’s not actively being used.
Many businesses choose to invest some of their cash on deposit which is surplus to the business’ day to day liquidity requirements in the ways mentioned above. This approach is best suited to cash deposits which may not be required for five years or more.
Protecting the business in the event of an accident
How would your business respond if key personnel suddenly became ill or passed away? Futura offers a range of insurance-based solutions which can be set up for or by a business, giving both staff and the business itself protection from serious financial loss as a result of ill health, disability or death.
These include shareholder, key person, business loan, executive income or travel protection schemes, tailored to the exact requirements of each client. Most businesses require a combination of these policies, with the level of benefit derived from these varying in line with the financial health of the business as well as its objectives.
Rewarding and attracting the right people
In order to lead in today’s hectic business world, many businesses find themselves offering generous renumeration packages to attract the necessary calibre of talent to an organisation and reward employees for their efforts.
However, paying high salaries is not as tax-efficient for the employer or employee in many cases, which makes a combined salary and benefits package an extremely effective and useful way in which to reward employees instead.
Our financial planning solutions in this area extend to a wide range of life assurance plans, income protection schemes, critical illness cover, private medical insurance and total permanent disability payments. We also offer expert guidance and practical experience of qualifying workplace pension schemes, company share schemes and offshore savings programmes, enabling a greater degree of flexibility for your business.
How do I find out more?
It’s Futura’s aim to not only meet the immediate requirements of our clients on a daily basis, but also to help them shape their own future by taking control of what is controllable and planning ahead for anything which isn’t.
We pride ourselves on keeping things clear and easy to follow. Peace of mind can only be achieved if you have a good understanding of your organisation’s unique situation and have an effective plan in place to ensure things are maintained in good order.
For more information on corporate financial planning and how we can help, please contact us on 01224 582185 or submit an enquiry by clicking here.
This article is for information only and does not include or constitute any advice or recommendations.