How to Structure 6-Figure Business with WERA Capital

Many solo entrepreneurs, business owners and digital service providers are experts in what they sell. But once revenue reaches the early six figures, says Stefan Neuss, founder of WERA Capital Partners, a new mindset is needed. To build something solid for the long term and for their family, owners must structure their business properly. He names three pillars.

"Without cash flow you have no business. You have a hobby," Neuss says. Just as important: money earned by a limited company is the company's money, not the owner's. Private and business finances must be kept separate.

According to Neuss, most owners with revenue of up to around 250,000 make the mistake of running their finances without structure, without a plan and without reserves. Only with clear separation can a business grow, pay its taxes, hire staff, invest and build savings.

For most owners, taxes are the biggest expense. The goal is a business and ownership structure that allows the lowest tax payment the law permits. Neuss gives an example: the main UK corporation tax rate is currently 25 per cent. If a legal structure lowered the effective rate by ten percentage points on taxable profit of 100,000 pounds, the business would keep an extra 10,000 pounds.

He stresses that taxes must be paid. "Pay your taxes once, act within the law and set up a structure that optimises your taxes and your cash flow."

The third pillar is a clear plan for the profits. After taxes, profits can be paid as dividends into the owner's structure and invested in hard assets such as property. This, Neuss says, is what wealthy entrepreneurs do. The key question is: what is the purpose of the money the business makes?

WERA Capital Partners helps owners with six-figure and early seven-figure businesses put these three pillars in place. A 15-minute private consultation is the first step.