It’s no secret that business owners wear many hats - and often they’re so focused on the present that financial planning for the future gets left to the wayside.
While the present is important, the future is as well. Wealth management and financial planning for business owners is absolutely critical. It ensures that your business is healthy, even after you’ve stepped away.
Follow these tips to make sure you’re ready for the future.
1. Pay Yourself First
When profits are good and business is up, it’s tempting to want to re-invest all your money back into the business. Many business owners also fall into the trap of thinking that using their money to invest now in the stock market will yield greater returns. However, it’s important to plan for the long-term. Make sure you’re paying yourself first and make a plan to invest any extra money later, for better long-term stability.
⇾ Read Now: How Business Owners Should Pay Themselves
2. Implement a Succession Plan
For so many business owners, focusing on the now is how they stay fluid and roll with the punches that come with business ownership. However, it’s also important to have a clear plan of succession – even if you don’t anticipate leaving the helm for quite some time. This gives you a clear roadmap for the future, so you can better plan and make the right financial choices.
3. Create a Retirement Plan
Planning for the future means planning for your future as well, not just the future of your business. It’s important to start planning for retirement early, so you know exactly how much money to contribute each month. Working with a financial planner will help you pinpoint the right retirement plan for you.
⇾ Read Now: How to Save for Retirement - At Any Age
4. Keep Personal and Business Finances Separate
This is a pitfall that many business owners find themselves in – taking money from their personal accounts to aid the business. While it might sound like a good idea in the short term as opposed to taking out loans or other options, this can be catastrophic in the long run. Personal savings are for your family and should be earmarked for them exclusively.
5. Choose a Financial Planner
Successful business owners know they can’t be an expert at all trades – which is why they surround themselves with talented, capable people. Choosing a good financial planner will empower you to make educated decisions on your finances.
At Greater Midwest Financial Group, we understand small businesses. We know your time is valuable; that’s why we work to simplify your finances and help you prepare for the future. Whether you own a family business, a dentistry or another small business, our personal financial advisors are dedicated to deeply knowing your business and helping you take on every challenge.
Your small business is safe with us.
Receive small business guidance from a trusted financial advisor who realizes your dreams. With years of experience backed by industry-specific knowledge, we’ll do what’s suitable for your business. Rely on us to keep a steady watch over your finances and provide you with smart, timely solutions for success.
Greater Midwest Financial Group is a financial advisor firm serving St. Paul, Minneapolis and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management and other personal finance needs.
