Business Babies: How to prepare your business for when your child becomes an adult
Setting up a family business can present unique challenges and requires a considered business approach. Many family businesses do not survive the transition to later generations, which is why we’ve put this article together to offer you specialist advice. After all, we are a family business ourselves and we understand the challenges. We’d like to share our knowledge to help your business grow and help your family overcome any problems you might face.
Are you going to stay involved in the day-to-day running of the business? Or are you planning to eventually hand over complete control to your business babies? Either way, it’s best to start the planning stage as soon as possible – even if you’re not planning to handover for another 18 years. Planning ahead will allow for a smoother transition for you and your family.
Expanding your existing business
There are many benefits to expanding your established business and exploring new avenues within your industry can be a great challenge. If you’re looking to expand your established business, take a look at our business expansion guide to help you get your expansion off the ground. Expanding your existing business can feel like starting all over again, but you’ll soon find that it is a lot simpler when you take things back to basics.
Preparing for the future with a new family business
If you’ve just had a baby and are planning on starting a business to pass on to them, you’re in the right place. Starting a business after having a baby is not easy, but it’s a great way to support your little one in the future. Here are a couple of things you’ll need to consider:
- Consider your vision and ambition. What is your reason for starting a family business in the first place?
- Who will be involved in the business? Is it simply for the business babies of the future, or are you planning on keeping a stake in the business yourself?
If you have a great business idea but have no idea where to start, why not get in touch with our family business accountants? They’ll discuss your plans with you and talk through your options. Our family business accountants have a wealth of experience and knowledge in this area. They’ll help you to understand any opportunities or challenges you might be facing – and they’ll help you tackle them along the way.
The disposal of assets can result in high tax charges, meaning passing your business on to your children might make you liable to pay Capital Gains Tax. This is simply a tax on the profit you could make from selling, exchanging or giving away your business.
If you’re an established business looking to expand, or you’ve got a great business idea but aren’t sure where to start, our tax advisers can help you get going. They’ve helped small, family startups become fully-fledged businesses in no time – and they’ll help you tackle any potential hurdles such as Capital Gains Tax.