Financial Planning for Business Owners

Financial planning for business owners is often two-sided: personal financial planning and planning for the business. Business owners have access to many financial tools that employees do not. Having access to these tools is a great advantage; however, learning about and understanding these tools can be overwhelming. A financial plan can relieve this. A financial plan looks at where you are today and where you want to go. It determines your short, medium and long-term financial goals and how you can reach them. For you, personally and for your business.

Why do you need a Financial Plan?

• Worry less about money and gain control.

• Organize your finances.

• Prioritize your goals.

• Focus on the big picture.

• Save money to reach your goals.

For a business owner, personal and business finances are connected. Therefore, your financial plan should address both.

What does a Financial Plan for a Business include?

There are two main sides your business financial plan should address: Growth and Preservation Growth:

• Cash Management – Managing Cash & Debt

• Tax Planning – Finding tax efficiencies

• Retaining & Attracting Key Talent

Preservation:

• Investment – either back into the business or outside of the business

• Insurance Planning/Risk Management

• Succession/Exit Planning

What does a Personal Financial Plan include?

There are two main sides your personal financial plan should address: Accumulation and Protection Accumulation:

• Cash Management – Savings and Debt

• Tax Planning

• Investments

Protection:

• Insurance Planning

• Health Insurance

• Estate Planning

What is the Financial Planning Process?

• Establish and define the financial planner-client relationship

• Gather information about the current financial situation and goals, including lifestyle goals

• Analyze and evaluate the current financial status

• Develop and present strategies and solutions to achieve goals

• Implement recommendations

• Monitor and review recommendations – Adjust if necessary

Next steps

Talk to us about developing your financial plan for you and your business so that you can achieve your financial goals.