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

  • 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

  • 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.