Running a business is demanding; there’s always something to do – a target to hit, a fire to put out. But let’s pause for a moment and ask a bigger question:
What is your business actually for?
For most small business owners, the answer isn’t just “profit” or “growth” – it’s something deeper. Your business should be a vehicle to finance the life you want, not a treadmill you’re stuck running on.
At EBA, we believe that your business goals must be driven by your personal goals — not the other way around.
Enough is…. enough!
In his brilliant book ‘Enough’, Paul Armson challenges the conventional idea of wealth. He asks: how much is enough? Enough to live the life you want. Enough to feel secure. Enough to stop worrying.
That’s where the idea of lifestyle financial planning comes in.
When you know what kind of lifestyle you want — the house, the holidays, the education for your kids, the early retirement — you can work backwards to understand what your business needs to provide in order to fund that life. That clarity is the missing piece for so many business owners.
And you don’t need to sell your business to retire!
A common belief among business owners is that the only way to achieve financial freedom or retire comfortably is to sell the business one day for a big lump sum. That might happen — but it doesn’t need to be your only plan. In fact, four out of five private companies in the UK fail to sell.
Rather than relying on a windfall exit, your business should be viewed as a funding mechanism, throughout its life and yours. While you’re running it, you can use its profits to:
- Build up personal pensions
- Invest in property
- Create other income-generating assets
By building wealth outside of your business, you’re reducing your dependency on a sale – and giving yourself more options. And, if your business is profitable and process-driven, there’s no reason it can’t continue to generate income passively, long after you’ve stepped back.
With the right systems, structures, and people in place, your business can continue to thrive – even without you in the day-to-day. You could still receive income as a shareholder, while spending your time on what matters most.
What does your future look like, and how will your business get you there?
To help you answer that, we’ve developed a powerful financial planning model. It allows you to project your future personal finances, year by year, based on:
- Your annual personal spending goals
- Your business profits and drawings
- Your pension contributions and balances
- Expected investment returns and inflation
This is your personal roadmap – one that helps you to see if you’re on track, ahead, or falling behind. Most importantly, it helps you make decisions today that shape your future. You’ll see, in real terms, what happens if your business revenue grows (or stalls), if you increase your pension contributions, or if you aim to reduce working hours in a few years’ time.It’s not about growing for growth’s sake. It’s about growing your business with purpose – to fund your required lifestyle now and into the future.
And that starts with aligning your business plan with your life plan!I’ve demonstrated how this financial model works in a short video that accompanies this blog post. You’ll see exactly how the numbers come together – and how small changes in your numbers can have a big impact on your long-term financial position.
If you’d like to see what the model looks like for your own life, your business, and your future, I’d like to invite you to book a private session with me. Just get in touch to arrange a time. We’ll go through your numbers together, and you’ll walk away with powerful insight and clarity.
So, don’t just plan for your business, plan for your life! And let’s make sure your business vision gets you where you really want to go!
