We work with family businesses to help them to achieve financial independence.
We define this as the point at which you are no longer reliant on earned income from the business to fund your desired future lifestyle.
This involves creating three things:
- A vision for your future lifestyle (and the cost of that lifestyle)
- The circumstances required inside the business for it to be independent of you, i.e. management and ownership structure
- Accumulating sufficient wealth outside of the business to support your desired lifestyle.
This provides you with clarity and direction and can greatly assist with future succession planning.
If the retiring generation rely entirely on the firm to provide a retirement income that can put a disproportionate strain on the business. It can also make it harder for the older generation to ‘let go’, because their lifestyle is at stake. So build assets outside the family firm from an early stage.