Financial Planning for Business Owners

Financial planning for business owners is often two-sided: personal financial planning and planning for the business.

As a business owner, you have access to many financial tools that employees do not, providing a significant advantage but also potentially becoming overwhelming. A financial plan can help alleviate this complexity.

A financial plan assesses your current financial position and outlines your desired future state. It identifies your short, medium, and long-term financial goals and provides a roadmap to achieve them, both personally and for your business.

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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 both sides should be addressed: Personal and Business.

What does a Financial Plan for a Business include?

There are 2 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 2 main sides your financial plan should address: Accumulation and Protection

Accumulation:

Cash Management – Savings and Debt
Tax Planning
Investments

Protection:

Insurance Planning
Health Insurance
Estate Planning

What’s the Financial Planning Process?

Establish and define the financial planner-client relationship.
Gather information about current financial situation and goals including lifestyle goals.
Analyze and evaluate current financial status.
Develop and present strategies and solutions to achieve goals.
Implement recommendations.
Monitor and review recommendations. Adjust if necessary.