If you are like most small business owners, your personal life and business life are practically inseparable. That is why it is so important to take a look at your business in the same way that you would look at financial planning for yourself.
Financial Planning – Financial planning for your small business is a process that recognizes the interrelationship of the following six components:
• Cash Management – This is more than just keeping a balanced check book. Cash management includes a business plan that estimates the revenue your business must generate to cover expenses before even a dime of profit is made. You will need to weigh your financing and credit alternatives. Your business should have a cash cushion of three to six months of cash flow.
• Risk Management – Protecting your business against the unexpected is a vital element in financial planning. Every day, businesses are derailed by catastrophes like: fire, flood, earthquake, theft, illness, injury, lawsuit, and even death.
• Investment Planning – Small business owners frequently focus all their investment money on their own business. As a result, this can create a portfolio that is too risky and lacks diversification.
• Tax Planning – Having tax saving strategies can help reduce the tax bite on your small business.
• Retirement Planning – As a business owner, your retirement plan primarily rests in your hands. Therefore, putting money aside for your financial future is critical.
• Estate Planning – More specifically, business succession planning is essential for anyone who owns a small business. Your business may be a large portion of your estate. It is unlikely that a small business will survive to the next generation or sell for its true value.
Getting Started Today – Finding strategies in today’s world is not easy. Most financial issues are interrelated and in fact act like a balancing scale. You may want to seek financial help to develop a personalized comprehensive financial plan designed to pursue your business and personal objectives. Don’t choose to ignore addressing these concerns. Get started today.
For more information contact Rebecca Robins, CPA/PFS, CFP®, at 661-702-9680, located at 25001 The Old Rd, Stevenson Ranch, CA 91381, CA Insurance Lic#0D75745. Securities offered through H.D. Vest Investment ServicesSM, Advisory Services offered through HD Vest Advisory ServicesSM, a non-bank subsidiary of Wells Fargo & Company, Member SIPC, 6333 North State Highway 161, Fourth Floor, Irving, TX 75038, 1-972-870-6000.