“Successful business people don’t have crystal balls, so they have to be calculated risk takers.” So says Deborah Meaden, Dragons Den investor and successful entrepreneur on her website.1
As any entrepreneur knows, starting a business involves risk. You have an idea, raise money and launch your enterprise. Once you’re sure it has scope to grow, you may raise growth capital to build the team, scale up, open new markets and acquire other businesses.
There comes a time, though, when business owners have achieved some success and typically want to de-risk or diversify. Instead of leaving all of your wealth tied up in the business you’ve created, you may ask yourself if it’s time to make your personal wealth more secure. If so, you’ll be asking the same question as many other entrepreneurs.
At Brown Shipley, most of our clients are business owners who have grown successful businesses and built up wealth. We’ve been with them for that journey, bringing in professional skills at the right time, and helping them to plan an end goal that puts the business in the context of their personal goals.
Understanding the business growth lifecycle
Most businesses follow a four-stage lifecycle. Understanding where you are on that lifecycle can help you to anticipate your business needs and what that means for managing your personal wealth. The four phases in the business growth lifecycle are:
- Innovation. You settle on an idea and start the business, probably with funding from family and friends, perhaps with some early-stage, external investment.
- Expansion. You’re sure the business has scope to grow and prosper. As you hire people and develop capacity, you may look for growth capital.
- Profit-taking. In this stage, you may look at de-risking by selling some equity in the business. You’re likely to weigh up options around hiring management, further investment, a management buyout, employee ownership, selling to another business or even listing on the stock market.
- Reinvestment. Lastly comes the reinvestment phase, when you think about what comes next. This might be re-investment in new business ideas of your own, co-investment in other businesses, succession, philanthropy or diversification.
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Conversations that bring clarity
Wherever you are on your business journey, it’s important to think through what’s important for you and your family. And to determine what part your business plays in that and your wider financial situation. From this, you can plan your course of action.
When we talk to business owners, there are some common themes. For example, how to push your business forward but diversify your risk. How to graduate from being a family business. How to extract or invest capital in other ways. How a wealth plan can support your family wealth.
Questions that we normally ask include: do you have the right people and structure in place to help create an efficient, streamlined operation to maximise profit, which will attract investors? What figure would you accept if someone offered to buy your business? How much money do you need for the rest of your life? If you think of this as a family business, do your children feel the same?
Exploring these issues can be especially useful if you’re thinking of selling your business. Clearly, selling is one of the biggest decisions you’ll ever make as a business owner. Selling can be a protracted process, with considerations that go beyond the balance sheet and getting the right price for your family wealth.
Tips when selling your business
If you decide to sell, we can help you to tease out what the future looks like post-sale for you and your family. In this way, you can start your wealth management planning well before any exit.
You need to be sure that selling is the right option. Maintaining a privately-owned business through the generations is often a highly successful way to create an enduring legacy. In this situation you’d need advice about how to structure governance and management for success over the long term.
Another option is to consider de-risking rather than a full sale. For example, you might extract profit via pensions or higher dividends. This approach can offer some protection, as many businesses suffer ups and downs.
If you decide to sell, tax is a big consideration, especially considering the ever-changing tax allowances and rates. The tax environment is in flux, with the levels of capital gains tax, business owners’ relief, business asset disposal relief and investor relief hard to predict. It’s critical that you obtain professional tax advice.
Avoiding unintended risks
What’s clear is that no matter what the stage of your business, it’s never too early to talk. Some entrepreneurs choose to leave all their wealth in their business, but doing so can involve taking unintended risks with your family’s financial wellbeing.
Like the Dragons Den investors, we’re happy to offer you valuable advice. Whatever stage you’re at, we’d welcome a conversation. We’ve seen the difference it can make when business owners engage with us as early as possible.
By leveraging our experience, you can manage your business interests and your wealth holistically, in a way that adds some certainty and takes some risk off the table.
For more information, get in touch with a Brown Shipley Client Advisor or download our ‘Business Owners Guide: Top tips and questions to ask when selling your business’
Start the conversation. We’re here to listen.
Important Information
Information correct as of 28 October 2025.
- Investing involves risks and the value of investments may go up or down.
- Business & Tax planning are not services regulated by the Prudential Regulation Authority or the Financial Conduct Authority.
- This document is for information purposes only, does not constitute individual (investment or tax) advice and investment decisions must not be based merely on this document.
- We recommend that you seek professional tax advice to understand your personal tax liabilities. This will depend on personal circumstances and the prevailing tax rules, which are subject to change.
- Brown Shipley and its employees cannot be held liable for any loss or damage arising out of the use of (any part of) this document.