AJ Somal, chartered financial planner at Aurora Financial Planning, says: “Many business owners have an ill-fated idea that they will be able to sell their business at an over-inflated price at some point in the future, whereby there would be enough funds to plan for retirement.
"Education is key here, and planning for retirement at an early stage will be able to help address retirement needs. Planning and regular review meetings are key to maintaining this retirement planning.”
Financial resilience is an important skill that advisers can give business owners.
Ridout adds: “Through years of working with business owners and entrepreneurs, we fully understand the challenges that small businesses face, enabling us to advise clients around how to deal with each challenge and create financial resilience.
"In addition to financial resilience, financial planners also strike the balance between the client, their family, their business, their goals, dreams and aspirations and having a deep understanding around the actions that owners need to take to ensure they’ve accumulated enough wealth both within their business and personally to ensure financial success."
Unfortunately, there are still many barriers for business owners accessing financial advice.
Corcoran says: “The main one would be cost concerns as small business owners might perceive financial advisory services as expensive or unaffordable, especially in the early stages when cash flow is tight, however this can prove a false economy.
"There are many times I have started working with a business owner and spotted things that they could have been doing years ago that could have saved them money, made them money, or made things more efficient."
He adds that a lack of awareness means many business owners simply may not be aware of the full range of services financial advisers provide or how these services can benefit their business.
He says: “I would suggest they sit down with a couple to understand the benefits. Many advisers will offer a fee-free consultation, so I would say that is a must.”
Aamina Zafar is a freelance journalist
