Family businesses seek peace of mind over their financial future

But it can sometimes feel like you haven’t got the time, knowledge or even the inclination to deal with some of the bigger issues which may sit outside your comfort zone.

And issues don’t come much more important than financial planning - especially if you value peace of mind.

How many of us dream of what we will do in our retirement or worry about what financial security our children and other family members will have?

But how many of us actually make sure we find the time to step away from the business, to sit down and plan that financial future

That’s where the financial planning team at Armstrong Watson come in. With independent financial advisers located at offices across the County, there’s an expert near you ready to help.

Derek Baty, Armstrong Watson’s financial planning director, based at the company’s Carlisle office, says a lot of family business owners overlook one key element of their business - themselves.

“People running family businesses are often so focused on their business that they don’t have time to focus on themselves,” says Derek.

“They will insure things like their plant, machinery, and buildings, but they will not insure themselves. Yet the most valuable asset in the business is the people.

“We will advise them on how to protect their financial future and their families’ financial future that they have worked so hard over so many years to secure.

“Many will not have had time to focus on an exit strategy or retirement. Or to plan for the unexpected. We make sure we talk to them and give them the advice which will protect them.”

There are no subjects off limits for the Armstrong Watson’s Financial Planning team and no situations they have not come across before.

Derek is keen to get across how approachable the Armstrong Watson team is and that family business owners need not be worried about not having all the answers themselves.

“Talk to us. We are not scary people. We have all got families ourselves. We know the demands on people’s time.

“We have got the expertise, we’ve got the experience, we’ve got the qualifications, and what sets us apart is we will talk to you as individuals and as people, not with a load of jargon.

“We don’t just look at the business, we look at the people behind the business.

“You are an individual, your business is individual, so your planning needs to be individual, and we sit down and take time to get to know you and your business and to get that plan in place that works for you.”

Derek explains that there can be a whole range of issues and motivations behind why any family business would benefit from contacting the Armstrong Watson Financial Planning team.

“One of the key issues for a lot of businesses is the exit strategy. Time and planning are crucial.

“One of the generations might say enough is enough, now is the time to get out. It might be working on a plan that avoids the need for them to sell the business or to extract capital out of the business.

“Retirement planning is always a key part of financial planning. Pension freedoms that came in 2015 made pension planning a far more effective tool with new freedoms to pass that pension wealth down through generations, but planning is crucial.

“But retirement isn’t just about pensions. It can be about investments, tax efficient planning, reducing inheritance tax where possible.

“It could be looking at protecting ownership of the business, succession planning, getting the second or third generation involved.“

For some of the larger family businesses there’ll be a chance to review how auto enrolment is working for them three years since they introduced it.

And of course there’s the B-word. ‘Brexit’. Derek and the team will help businesses plan for all eventualities. “With good planning there are no nasty surprises,” he says.

Planning is also important when it comes to sensitive issues. “We have talked to a family business about the best ways to protect their future and talked about what if one of the directors died, what would happen to the business?

“It’s obviously a sensitive subject. No one enjoys talking about death. It needs to be handled in the right way. Our team are vastly experienced in handling such topics in the correct manner, but having plans for that eventuality, and a strategy for how we protect the future ownership of the business, is really important.

“A large part of what we do is use our expertise, knowledge and personal approach to take that worry and hassle away for people. It gives them that peace of mind which is so hugely important.”

Sometimes it’s about dealing with family differences, and planning the best financial strategy which will bring the best benefit for all members of the family.

“In agriculture for example we have situations where one of the children wants to continue the farm and one doesn’t.

“But the parents want to make sure they are both treated equally when it comes to the finances. We put strategies in place to make sure there’s a solution which suits everyone.”

The amount of customers who stay with Armstrong Watson for the long term, through the generations, proves their approach is working. “It’s about building long-term relationships”, says Derek.

And when it comes to business relationships, just like any relationship, ‘trust’ is so important.

Toni Carver, Armstrong Watson’s business development and technical manager, based in Leeds, can’t emphasise the ‘trust’ element enough.

It is at the heart of the Armstrong Watson customer relationship.

“Trust is key. If you are going to understand people’s dreams they have got to believe in you and you have got to believe in them.

“Trust has always been at the core of what we do. It’s how we have the longevity we have of the business. We are a trusted brand, trusted by our clients.

“Advice is given around people’s needs, their business, their hopes and dreams and building that lasting relationship.

“Business goals and life goals they could be the same, sometimes they are different. It’s about really understanding that with each client. Every client is different.

“We see those long-term relationships so clearly when it comes to family businesses as we are with people through the generations.”

The structure of Armstrong Watson’s business helps their clients get a one-stop service on a whole range of financial and business advice.

The fact Armstrong Watson’s financial planning team is integrated with the rest of the business means they can call on all that in-house expertise, whether a particular product or sector specialist.

“Most people don’t associate financial planning with being part of an accountancy practice, But our scale and size sets us apart. We have all the expertise under one roof,” says Toni.

That scale - as the largest independent financial and business advice firm in the north of England and Scotland - also allows Toni and her team to be on top of all the latest government legislation and regulation, so both the businesses they work and individuals can be kept up to date and with are forewarned about any forthcoming changes meaning they and are able to adapt accordingly.

“Brexit has been a big concern for a lot of businesses but we are still in unknown territory. We are not through that storm yet. But with the relationships we have, we can make sure businesses are prepared.”

Which takes us back to bringing that “peace of mind” which Toni sees as such a vital role that Armstrong Watson plays for its clients.

If family business owners can put their heads on their pillows at night without worrying about their financial future - knowing that thanks to the Armstrong Watson team they have got every eventuality covered - then Toni, Derek and the financial planning team can themselves sleep well knowing they’ve done the right thing by their customers.

That’s another good day’s work done for everyone.

To contact Armstrong Watson’s financial planning team call 0808-144-5575, visit www.armstrongwatsonfp.co.uk where you will find a range of financial planning advice including blogs, advice, articles, guides, and links to its quarterly financial magazine, or call in at one of their offices across Cumbria, Northumberland, Yorkshire or Scotland.