We run into this objection from time to time: “I’m not one of the big guys—I don’t need financial planning.”
This couldn’t be more wrong. It is quite literally the case that everyone needs a financial planner!
Entrepreneurs obviously fall into that category, but there’s another reason business owners need a financial planner: They have a major asset that needs to be considered quite differently compared to other assets.
Why Financial Planning Is so Crucial for Entrepreneurs
So many entrepreneurs are stuck in this cycle: head down, working hard, and hoping the business will sell one day for a huge profit.
On average, 75% of your wealth as an entrepreneur is tied up in your business.
But 98% of business owners do not know what their business is worth.
In our experience, that number is sometimes much lower than they expect, and many business owners do not even bother to find out how much it is worth until they are about to exit.
A financial planner is crucial for business owners because it helps you understand where you truly stand financially (and how your business fits into that picture).
They put together a timeline to meet the number you need for your new beginning of growth, purpose and fulfillment.
But that’s just the beginning. Businesses are complex, and a good financial planner is going to look at every aspect of your business and life to create a plan that’s as comprehensive as possible.
Centering Your Business in Your Financial Plan
Your business shouldn’t be a line item on your financial plan—it should be a centerpiece, and it should be surrounded by a bespoke strategy customized for your business and your needs.
Most planners only look at a sliver of your life. Few understand the unique financial challenges and opportunities that business owners have to deal with.
One of the biggest challenges is what comes next! It is not always the case that business owners want to exit and retire. Many love the joy that comes from building something amazing and want to do it again.
Others do not want to fully retire: They just want to work less.
Over 75% of business owners regret selling, and there’s a simple reason for this: They failed to plan for life after they sell.
You Have More Options Than You Think
There are so many options for what comes next! It’s not just lying on a beach and drinking margaritas (which is fine for some).
Maybe you want to volunteer while maintaining the lifestyle you have. Maybe you want to travel the world. Maybe you only want to take a year off and then get back to work. It is different for every owner, but if you do not plan it out, it becomes far less likely to happen.
This is why we believe so many business owners regret their sale—a simple failure to plan.
As entrepreneurs ourselves, we get it! We’ve been in your shoes, which is why we love helping business owners to center their business in their plans for what comes next.
Your Business Needs a Financial Plan Too
Many of our clients end up working with other professionals to grow their business, remove themselves from day-to-day operations, and maximize their business’s value.
When it is time to sell, you do not want to be shocked by a low number: You want a big smile on your face because that number is what you need to take the next step in your life.
It is next to impossible to sell a business that depends heavily on you, and that is just one of the many reasons you might struggle to sell.
A business that depends on key employees will also be hard to sell if there is not something keeping them there in the future.
You might have other problems—growth is not stable or sustainable, recurring revenue is low or nonexistent, or the culture is toxic.
Only 17% of businesses make it to market and sell. Sometimes that is simply because of a lack of preparation.
With all these factors in play, it is critical that you have a financial plan in place years before selling.
You’re Not Too Small For Us
Recently, the owner of a $10M business who just bought out his partner went to a large “Wall Street” wirehouse to open a brokerage account to begin investing in financial assets: publicly-traded stocks, bonds, and mutual funds.
The wirehouse wasn’t interested in opening an account for him because he didn’t meet their minimum investable asset requirement. He just wanted to start investing.
We gladly opened a brokerage account for this business owner. His initial deposit was small, $10,000. However, his cash flow is strong, and he’s making substantial automatic deposits every month. It won’t be long before his portfolio has a meaningful balance.
We’ll accept clients like this business owner all day, every day!
That’s what we mean by no pressure, no judgment, no minimums.
Your Future Is Now. Let’s Get Started!
A personal financial plan for a business owner looks much different than the average plan—as entrepreneurs ourselves, we get it!
Your finances and future are centered around your biggest asset—your business—which comes with unique financial challenges. Our experts have decades of experience working with business owners just like you—we understand that your business is more than just a line item.
We also understand the unique emotional challenges that business owners face. It’s not all about the money. Get help planning a future you feel confident and excited about, one that’s unique to you.
Your Future Is Now. Let’s Get To Work!
Schedule an Introductory Call