Financial planning for business owners

By Brett Anderson

St. Croix Advisors

We believe that small business owners are the heart and soul of what makes America great. Chances are you started your own business for one or more reasons. Whether you began your business to gain greater control of your financial future or you simply wanted to be your own boss doesn’t matter.

What matters is that you have a business and are now ready to do everything you can to make it a success.

When it comes to making a small business successful, good financial planning is an important factor. Business owners need an advisory team that understands and works with business owners on a regular basis.

Businesses have planning opportunities that the general public does not have. It is important for small business owners to understand and take advantage of every opportunity they can to reach their financial goals.

For example, as a business owner, you have additional retirement planning alternatives and flexibility that you couldn’t take advantage of if you worked for someone else. Depending upon your corporate structure, you may be able to deduct 100 percent of executive and ownership benefits, to give just one example.

However, disadvantages also exist for business owners — for example, being the last to get paid, and assuming the most financial risk of any of the employees, among others.

Financial failure shouldn't be an option. Your team should want to take concrete steps to help ensure financial success. As you build your team of advisors for your business, we recommend working with the following advisors: business attorney, CPA and a financial advisor. These professionals should be willing and ready to talk with you on a regular basis, and business owners are their target market so they should be able to bring you the best resources and most relevant expertise.

At least once a year, your team of advisors should be meeting with you to help ensure that everyone is on the same page — your page, because your success doesn't benefit you alone, but goes toward the collective good of your entire community.

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