Managing the financial transition from entertainment to entrepreneurship

Having a career in sports, music, or entertainment can be incredibly exciting and rewarding. However, you may find that your income is unpredictable. 

Indeed, it may arrive in large, irregular amounts. Furthermore, your “peak earning years” might be shorter than in other traditional professions. 

As a result, you might want to launch a new business based in your current industry that could provide an income long after your time in the profession has passed.

However, this is a considerable shift that requires careful thought. 

Continue reading to discover how thoughtful financial planning – with the support of Belvedere Wealth – could help you explore business opportunities while keeping on track towards your long-term goals.

It might be wise to think about launching a business while benefiting from your peak earning years

Your peak earning years in entertainment could be the ideal time to start assessing new opportunities.

You likely already have experience in the profession and might have built up capital and a network that could support a new venture. Launching a business now could give you the chance to make use of these advantages to create something that will support you beyond your career.

For instance, you might decide to start a:

• Production or media company

• Fashion or fitness brand

• Coaching or mentoring business

• Creative agency or consultancy.

You could apply many of the skills that helped you succeed in entertainment to running a business. Focusing on the right opportunity could even help you create a company that offers real long-term potential. 

Without careful planning, you might inadvertently affect your personal financial situation

While it’s often tempting to act on a whim when you identify a new opportunity, especially if you already have funds accumulated, you may be waylaid by bumps in the road if you don’t stop and plan first. 

For instance, if you use personal savings to fund your business without clearly separating your wealth, you may inadvertently affect your personal financial security and put your business at risk. 

Moreover, you may find yourself overly reliant on this single business idea. 

It’s essential to have confidence in your new idea, but if too much of your financial future depends on just one project, even a seemingly insignificant setback could create unnecessary stress.

And just as your earnings in entertainment might have been irregular, new businesses often require time to generate steady profits.

If you take steps to understand this before launching a new venture, you could plan your outgoings around this expectation, ensuring you don’t affect your own standard of living. 

We could help you explore potential venture ideas while safeguarding your personal finances

Thankfully, thoughtful planning and expert guidance can make a significant difference when you launch a new business. 

At Belvedere Wealth, we provide a 360-degree approach to help you understand your current financial position, your ambitions, and the level of risk you’re comfortable taking. 

Read more: The 4 pillars of Belvedere Wealth’s approach: Why it’s beneficial to build strong foundations

From there, we could help you identify potential business opportunities and support you in launching them in a structured, tax-efficient way.

We do so by helping you separate your personal wealth from business risk. For instance, we could encourage you to allocate part of your income to investments and pensions during your peak earning years, helping protect your personal financial security. 

What’s more, we can use sophisticated cashflow modelling software to assess your long-term financial situation by inputting your:

• Earnings

• Assets

• Liabilities

• Ongoing financial commitments.

With this information, we can map out how certain decisions you make today could influence your future. 

This could allow us to model a range of scenarios. For example, we could explore what might happen if you invest a certain amount of your wealth into a business or how long your current resources might need to support you while the venture grows. 

It could also help you understand how to balance business investments with your long-term goals, such as retirement planning. 

These clear projections could mean you’re better equipped to make more informed decisions about how much risk suits you and how you should start your transition into business ownership. 

Perhaps more importantly, this clarity could help you make the transition from entertainment to entrepreneurship with greater confidence.

Rather than relying on short-term opportunities or even instinct, your decisions will be supported by a well-thought-out plan that accounts for your long-term goals. This means you can focus on achieving this next chapter of your life without worrying about your personal finances.

Get in touch

We could support your finances as you transition from entertainment to entrepreneurship and help you secure some much-needed peace of mind about your future.

To find out how we can support you, please fill in our online contact form, email us at enquiries@belvederewm.com, or give us a call at +44 (0)203 633 6603.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028).

The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate cashflow planning.