SME Growth Potential with Pension Plans
Recent results from a survey of SME strategists has revealed the unrealistic expectations that Bristol business owners have for their pension plans. Almost half of the 1,200 surveyed plan to work past the age of 70 and will rely heavily on their property pensions to carry the weight of their expenses.
For some business owners in the South West, slow business growth and extremely low pension rates are consequences of lacking relevant knowledge and having an inaccurate perception in regards to the investment of existing pensions into SMEs and start-up businesses.
Taking a short-term risk with SME investments can offer a plethora of financial benefits. In contrast to a bank loan, you won’t be bombarded by punitive monthly charges or interest rates. And you won’t be declared bankrupt or potentially homeless should you be unsuccessful.
What’s more, any potential earnings will be placed back into your pension pot once you experience business growth.
Of course, like any business decision, using your pension to fund a start-up does involve risk. There’s always a slight possibility that you could lose savings, but when fully equipped - with expert guidance, information and risk assessment - entrepreneurs can feel safe making the decision to dip into their pension pot.
One of our support providers, British Business Bank, offers a service to help you identify any viable options for investing in your business, making the journey to wider horizons far less daunting.
Still not convinced that pension funds are the right route for your business? The West of England Growth Hub is well connected, offering a wealth of support providers keen to offer financial assistance for companies just starting out. Explore more now: