strategies will leave them fulfille or high and dry. every da

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2 ownr ar W know what buinth nt tm v in ir r th h w d n a, h wort d... tratgi will lav thm fulfill or high and dry. n i u b What motiovkatp going own r ty? vry da Do thy do it or th mon y for th l ov,? ir h t g n i t v Ar thy iinly, or gambling walth wway? it all a For Lov Or Mony? i a thr-par t ri bad on comprhniv rarch amongt UK buin ownr about thir walth, invtmnt, pnding habit, futur plan and financial curity. Th tudy xplor th dangr involvd in rlying olly on your company to provid for your futur finan cial curity and rval om alarming tatitic on th rik that buin ownr ar taking by putting thir finan c at th mrcy of thir buin. W intrviwd 500 UK buin ownr in compani with btwn 1 million and 50 million turnovr, btwn 10 and 249 mploy and that ar at lat two yar old, acro all UK rgion and major indutri. Ar you taking mor rik than you hould? I your financial curity in jopardy? Viit www. hwca.com/for-lov-or-mony/bnchmark-tool/ to bnchmark yourlf againt your pr and find out how you can rdr th imbalanc btwn rik and financial curity.

3 I it all about th mony? A ur a night follow day, mony and walth accumulation will fatur omwhr in your lit of purpo and motivation for running a company. provid a rliabl and ubtantial ourc of futur walth for thm and thir family, and to rward thir ffort with a dcnt quality of lif. But a our tudy rval, mony and immdiat financial rward i not th only thing that kp buin ownr going, day in and day out. At th am tim, buin ownr ar laving thir company and thrfor thir walth opn to ignificant rik, many of which could b avoidd. For xampl, our tudy rval alarming dgr of rlianc on ky upplir, cutomr and individual. UK buin ownr ar in fact living for tomorrow not for today. Thy ar chwing high arning and intant gratification in favour of invting back into thir company, and many alo hav thir ight t on arly rtirmnt. I thi a nibl approach? Not unl you r an arly-tag tart-up aiming for thr-figur prcntag growth. I it ralitic? Thi rarch uggt it i xtrmly hort ightd. UK buin ownr ar putting all of thir gg in on bakt, placing ridiculou amount of prur on thir buin to Scuring your futur and protcting your walth can, and ha, all too aily falln off th radar, but no buin ownr can afford to tak thi much rik whn th tak ar o high. W hop thi rport hlp buin ownr to tak tock of thir own walth and rik portfolio, and to rgain control ovr thir financial futur. Darrn Holdway, Hain Watt

4 So, what ar you rally worth? UK buin ownr thir company a thir main ourc of futur walth and financial curity, drawing rlativly low arning and admitting that thy ar rinvting thir walth back into thir company in th hop that thi will pay off. Th avrag total timatd arning of a UK buin ownr thi yar (including alary and dividnd) i 95,006 l than half th avrag alary of th CEO of an AIM-litd company*. 95,006 Avrag total arning thi yar Th rvic ctor, which grw at it lowt pac for thr yar in April 2016, i on of th lowt arning indutri ( 89,164) alongid hopitality and liur ( 86,739) and ral tat ( 86,060). Eat of England buin ownr plan to tak hom th hight arning thi yar ( 102,952), whil Wt Midland buin ownr prdict thy will arn 14% l ( 88,653). contributd to thi unblinkrd focu on thir company, rulting in ignificant invtmnt in upporting th buin and ncouraging growth. Whn looking at walth a a whol, proprty dbt i alo conidrably high. Th avrag UK buin ownr ha 222,811 combind ridntial and commrcial proprty dbt, which incra with ag. UK buin ownr ar alo opting for high-rik invtmnt uch a tock and har, with th avrag buin ownr rcording 120,890 in financial invtmnt. 120,890 Avrag total invtmnt Etimatd total arning thi yar. Rgion Eat of England 102,952 Eat Midland 100,538 North Eat 98,324 Yorkhir & Humbr 97,663 Wal 95,511 London & South Eat 93,960 South Wt 93,779 North Wt 93,645 Scotland 91,051 Wt Midland 88,653 Etimatd total arning thi yar. Sctor Contruction Tchnology Manufacturing Profional, Scintific & Tchnical Tranport & Storag 95,136 Wholal & Rtail 92,473 Crativ Indutri 88,221 Srvic Indutri 89,164 Hopitality & Liur 86,739 Ral Etat 86, , ,637 98,448 UK buin ownr ay a wak conomic nvironmnt and low lvl of confidnc hav * 202,000, Fat Growth Company, 2014

5 Can you afford to gambl on your company futur? Many buin ownr hav thir ight t on arly rtirmnt, raiing vn mor qution about whthr thy ar doing nough to provid for thir futur. Ar You Joking? With thi lvl of dpndncy on th company to prform, whn buin i good, th futur will look good, but whn trading i tough, or if omthing happn to dirupt or vn thratn th buin, your walth could hrink in th blink of an y. In th currnt conomic climat, I would ay that vry fw buin ownr ar in a poition to gambl thir walth on thir company in thi way. Darrn Holdway, Hain Watt Alarming, buin ownr ar laving thir quity opn to ignificant rik. Th rarch rval a hug dgr of rlianc on a ingl cutomr or upplir or a ky individual to kp th buin running and maintain optimum rvic lvl. A many a half (50%) of buin ownr hav a main upplir that thy could not urviv without. Half (50%) alo rly on a ky mmbr of taff, whil two fifth (43%) hav a major cutomr that thy rly on. In fact, an alarming 78% ay thir main cutomr contribut a third (30%) or mor of thir monthly rvnu. A quartr (23%) of buin ownr fl thir 78% of buin ownr ay thir main cutomr contribut 30%+ of total rvnu 54% of buin ownr fl thir company could only urviv for a wk or l without thm company could not urviv for mor than thr day without thm, whil mor than half (54%) ay it could only manag for up to a wk. Family mrgnci, halth iu and othr raon for uddn abnc prnt a ral and worrying thrat to buin ownr walth and financial curity. My buin ha a main upplir that it could not urviv without Contruction 68% Manufacturing 60% Tchnology 56% Crativ Indutri 49% Hopitality & Liur 46% Tranport & Storag 46% Wholal & Rtail 44% Profional, Scintific & Tchnical 43% Ral Etat 40% Srvic Indutri 39% My buin ha a major cutomr that it could not urviv without Contruction 52% Hopitality & Liur 52% Tranport & Storag 51% Srvic Indutri 47% Ral Etat 44% Tchnology 41% Manufacturing 41% Crativ Indutri 40% Wholal & Rtail 39% Profional, Scintific & Tchnical 33%

6 Th grat rtirmnt windl. Dpit all th rik ownr ar taking in thir buin, many ownr plan to rtir arly. Why Rik It? Thr ar alrady o many xtrnal rik that buin ownr nd to b prpard for, to plac yt mor rik on th buin i ludicrou. It concrning to pronal walth bing xpod in thi way. Why rik it? My advic would b to top right now and conidr th what if cnario: what if omthing happn to a upplir or you lo your biggt cutomr? Could you maintain normal lvl of rvic? Ar you prpard for th cnario? Two fifth (40%) of UK buin ownr plan to rtir bfor th ag of 65, and 97% plan to rtir bfor th latt Govrnmnt rcommndation of 75 yar old, with 14% planning to rtir bfor th ag of 60. Dpit th long-trm plan, buin ownr ar dirgarding low rik invtmnt option a a way to afguard thir walth. A third (32%) admit thy do not hav a pnion fund, whil th avrag total pnion fund for a UK buin ownr i jut 109,594. Buin ownr who plan to rtir bfor th ag of 65. Sctor Crativ Indutri Hopitality & Liur Srvic Indutri 47% Wholal & Rtail 43% Ral Etat 40% Tranport & Storag 39% Tchnology 37% Manufacturing 33% Profional, Scintific & Tchnical 26% Contruction 20% 54% 66% Michal Davidon, Hain Watt Buin ownr who plan to rtir bfor th ag of 65. Rgion Yorkhir & Humbr Wt Midland North Wt Eat of England Wal Eat Midland South Wt London & South Eat North Eat Scotland 50% 49% 45% 43% 43% 43% 37% 34% 32% 29%

7 How do you pnd your? Dpit working o hard to gnrat thir walth, and contrary to popular blif, UK buin ownr do not pnd thir mony in xtravagant way. Intad, thy ar invting thir mony for th futur. Jut 16% of UK buin ownr driv a brand nw car dpit th many financing option availabl whil a mr 2% hav a nanny and 3% hav a hom gym. Fiat i by far th mot popular car brand ownd by buin ownr (24%), followd by Honda (14%), Ford (8%), BMW (8%), Hyundai (7%) and Audi (7%). % Buin ownr who nd thir childrn to a f paying chool Scotland Yorkhir & Humbr South Wt Eat of England North Wt Wt Midland London & South Eat Wal North Eat Eat Midland 0% 15% 15% 14% 12% 10% 6% 4% 24% 21% Howvr, th majority (76%) of UK buin ownr do own dignr good, and 13% hav or will nd thir childrn to a f-paying chool. Thi figur ri to 24% in Scotland and 21% in Yorkhir & Humbr

8 Concluion Rik-taking i ynonymou with running a buin, but thi houldn't com at th xpn of protcting and njoying your hard arnd walth. Th xtnt to which buin ownr ar rlying on thir company for futur walth gnration and putting thir quity at rik uggt that thy ar not awar of th xtnt to which thir financial curity could b in jopardy. An uncrtain conomic nvironmnt ha n buin ownr put thir no to th grindton; now, it tim for th UK buin army to r-focu and hold th mirror up. Ar you happy with your currnt walth ditribution and rik profil? Buin ownr ow it to thmlv to njoy thir walth and mak ur thir hard work pay off. Thy hould think about how thir currnt and futur plan contribut to thir financial curity and conidr if thy ar doing nough. Start by mapping out your total walth and conidring th rik, in conultation with a pcialit advir who can tr tt your portfolio. Whr th rik i high, conidr how you can mitigat th thrat to bttr protct your financial futur.

9 Commrcial W bliv in tranlating our tchnical knowldg into ound commrcial advic, o you undrtand th information and th impact it will hav on you and your buin. About Hain Watt Hain Watt i a Top 15 firm of chartrd accountant with ovr 80 yar of xprinc in adviing buin ownr. It offr a broad rang of accountancy and buin adviory rvic with mor than 60 offic acro th UK and mor than 35,000 buin ownr clint. Supportiv Bcau w upport ovr 35,000 buin ownr around th UK, a a buin ownr you can rly on our xprinc to upport your ida and hlp you achiv your goal. Challnging W act a a ounding board and challng your plan. It our way of nuring that you conidr all th option and mak th bt dciion. Practical Our partnr run thir own buin a wll, maning w liv in th ral world w ll giv you nibl, profional and practical advic. Approachabl You ll hav acc to your Hain Watt partnr whatvr your iu, big or mall, aving you tim and nuring top quality advic.

10 Publication Dat: Sptmbr Hain Watt Limitd. All right rrvd. All publihd matrial rmain th proprty of Hain Watt Limitd and i rplicatd with th prmiion of Hain Watt Limitd. All contnt of th publication ar corrct a of publication dat. Hain Watt and Th Hain Watt Group gnrally rfr to th ntwork of mmbr organiation, ach of which i a parat and indpndnt lgal ntity. Each ntity ha ignd a participation agrmnt with Hain Watt Limitd, or i controlld by uch a firm. Mmbr organiation ar not mmbr of on lgal partnrhip and ar only liabl for thir own act and omiion, and not tho of ach othr. Th majority of th firm ar not authorid undr th Financial Srvic and Markt Act 2000, but bcau thy ar licnd by th Intitut of Chartrd Accountant in England and Wal, ar abl to offr a limitd rang of invtmnt rvic to clint if thy ar incidntal and / or complmntary to, or ari out of, th othr profional rvic thy hav bn ngagd to provid. It i Hain Watt Group policy to rfr mot invtmnt buin, xcluding corporat financ work, to Financial Advir, authorid and rgulatd by th Financial Conduct Authority. Th Financial Advir will tak full rponibility for complianc with th rquirmnt of th Financial Srvic and Markt Act Thi rport i bad on a urvy of 500 UK buin ownr undrtakn in 2016 and i dignd for th gnral information of radr. Th information rprnt Hain Watt Group prnt undrtanding of currnt and propod lgilation and HM Rvnu and Cutom practic. Whilt vry ffort ha bn mad to nur accuracy, information containd in thi brifing may not b comprhniv and rcipint hould not act upon it without king profional advic from thir uual advir. Th valu of invtmnt may go down a wll a up and ar not guarantd. bnchmark-tool/