• Gwilym Davies

What is your real-life number?

Updated: Apr 12


Every business owner has a real-life number. It is everything behind the scenes, that you are working towards in your real life, things like your next house, next big investment, or your pension pot. This real-life number can and should be linked with everything that the business is working towards. It is the key to helping your clients achieve the life they really want, both now and in the future.

But many business owners find themselves controlled by their business. They are so wrapped up in running their business that they’re unable to focus on improving their lifestyle. They need you to step in and help them to identify their real-life number.


You see, most business owners don’t have a clue how the work being done by their business will impact their real life – they fail to make a connection between the two. If they want to achieve their real life number, they need to take a look inside their business and get serious. One of the ways they can do this by understanding how tax advice and consultancy can help them achieve their real-life number tax efficiency. That’s where you come in.

To help your clients reap the rewards of their real-life number, you need to:

Identify their real-life number

To begin, work with your clients them to establish their current position. Find out what their business can pay them right now. Next, discuss what they need to do, to get them to the real life number that they want.

Explain impact of business performance

Explain how your client’s business performance will impact their ability to achieve their real-life number.

Identify ways to make tax-efficiency savings

Open your client’s eyes to tax efficient ways to take money out of their business.

Using your expertise and knowledge, you can help your clients to enjoy tax efficient savings.


This means they will be able to take extra money out of the business for them and their family right now - and they can also make plans to take an extra sum out of the business during the next five to 10 years.

What information will I need to help my client achieve their real life number?

It’s important to REALLY get to know your clients, if you want to help achieve their real-life number. This means getting know things like…..


Family

Are they married? Do they have children; if so, how old are they? Are their parents still around; if so, how old are they? Who is bringing in income; what is their job and how much do they earn?


Big life investments

What big life investments do they have planned? For example, do they intend to buy a bigger house, new cars, holiday home etc. How much money will their planned investments cost?


Family investments

What do they want for their kids? Nothing? School funded? University funded? First home? What amounts do these come to?


Protection Investments

How are they protecting themselves now and into the future? Consider insurance policies such as Medical, Life, Critical Illness, Income Protection, Key Person Insurance, Death in Service Insurance and so on.


Pension Investments

What are their plans pension wise? Are they planning to use a company pension, standard pensions, SIPP or SSAS? Do they want to generate more in order to take out more and fund a pension? How much would they like to fund each year?


Lifetime Investments

Outside of pension investments do they have a set amount they want to create – a disposable income wise to invest each year? What is that amount?


Lifestyle expenditure

What is their lifestyle generally like? Are they spending all the money they extract via salaries and dividends from the company on life expenses?

How can Diagnostax help?


With a Diagnostax subscription, you’ll have everything you need to set up, communicate, deliver and sustain a tax advice and consultancy service to your clients.


To learn more, take a look at Diagnostax Co-Founder Gwilym Davies’ blog post on his own Level 2 tax diagnostic review.

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