The lines between what is your business and what is your personal life quickly blur when you are a business owner. While you may be quite clear on how to grow or sustain your business, you may not feel the same confidence in your personal wealth strategies. At The Advisory Group, we often write about topics that help business owners make decisions to protect your financial future, create opportunities for your and your family, and help you life your most fulfilled life. In this post, we’ve pulled together 8 lessons that we’ve shared over the past two years that can help you improve your Wealth & Life.
1. Protect your personal finances
When you own a business, you appreciate just how much your personal financial life is tied to your business. What you may not realize is how much your personal financial wellbeing is intertwined with your partners or other owners in your business. Learn the three most critical agreements you should spell out that will help you protect your personal financial life.
2. Invest outside your business
How do many business owners continue to grow and manage their businesses? They reinvest company profits back into the business. As financial advisors to many business owners, we have learned from experience how important it is to strike the right balance between your company assets and some diversified personal investments. Learn the three reasons why you should invest outside your business.
3. Consider hiring your kids
There are some good reasons to give hiring your child a try. If the business is solely owned by you (or both parents), most of the child labor laws do not apply so even younger children can be legally employed. Employing your kids to do legitimate (i.e. skill and wage appropriate) work in your business for a few hours a week may make some financial sense for both of you. Learn a few of the benefits when you hire your kids part-time.
4. Plan for college savings and financial aid
If you have children approaching their college years and you own a business, you have more opportunities than others to manage your assets and income to save and pay for college. One of the most favorable treatments for business owners is your ability to increase the amount of financial aid for which your child may qualify by lowering your expected family contribution (the basis for financial aid). With tuition costs continuing to rise, the possibility to qualify for any aid is now entering the equation, especially for family-owned businesses. Learn the four ways business owners can plan for college savings and financial aid.
5. Read to learn different perspectives and approaches
What are you going to read (or listen to) next? Whether you want to form new habits, create systems in your business, or preserve what’s meaningful to you, you can find answers in three books we like for business owners.
6. Prepare for the next disaster
Preparing your business for a natural disaster is as critical as preparing your home, yet many business owners do not have an emergency plan in place. In the Bay Area, earthquakes are a constant threat with no advanced warning, and the “new normal” of California fire season reminds us how devastating nature can be. The difference between continuing your business after a devastating event and being forced to close often depends on your level of preparedness. Learn the four steps you can take to get your business ready.
7. Enjoy your vacation
When you own a business, taking a “real” vacation may seem impossible. While you appreciate the notion that time away keeps your mind fresh, helps your creativity, and prevents burnout, you may not always embrace it. Even when you do take time off, the temptation to check your phone or review your email magnifies as soon as you step away from your work. Learn how you can position yourself for a stress-free escape.
8. Get ready to exit
Selling a business is a major life decision that usually requires deep consideration. Pandemic living gave many business owners time to contemplate the future of their business and to reflect on what they want in the next phase of their life. You may be among the owners who are considering whether selling may be the best alternative for you and your family. Learn the four steps to take to get ready to sell.
We trust that these 8 lessons can help give you clarity on wealth & life strategies you can employ to feel secure and confident in your financial future. If you still feel uncertain or want to ask questions about your personal situation, we’re here to help. We’ll provide a new perspective and objective advice to help you evaluate options and make decisions with your full financial picture and life goals in mind. Simply reach out or schedule time here to take the first step to turn your success into freedom.