Business owners risking it all for little gain
UK business owners are putting their wealth at risk, paying themselves modest salaries and surrendering lavish lifestyles in favour of investing heavily in their business, according to a study by Haines Watts.
Despite the major business risks that have been heightened by the recent Brexit vote, it says business owners are risking it all by putting huge amounts of money into their business, in the hope that it will deliver the returns needed to support them and their families.
The study reveals that the average company owner earns under £96,000 per annum and devotes up to £120,890 in high-risk financial investments such as stocks and shares.
Managing partner at Haines Watts Peter Bancroft said: “Our study reveals that company owners are gambling their wealth on their business, leaving their financial security hanging in the balance. This is surprising given how hard they work to generate that wealth in the first place and the obvious risks involved.”
Not only are company owners putting all of their eggs into one basket, but they are also leaving their business open to significant risks for very little gain.
54% of company owners feel their business could not survive for longer than a week without them, while a quarter believe it would crash and burn within the first three days of their absence.
But, company owners have more than just their own role to worry about post-Brexit. Over half of UK business owners have a main supplier that they could not survive without, while 43% say they have a major customer that they rely on.
78% would even say their main customer contributes a third or more of their overall revenue and half of those surveyed admit that their business could not survive without a key member of staff.
And UK business owners aren’t even reaping the rewards for their hard work and are in turn denying themselves luxuries in favour of a more conservative lifestyle. Just 16% of UK business owners drive a brand new car, a mere 2% have a nanny and 3% have a home gym.
