Financial Planning for Individuals Who are Starting or Exiting a Business\

 We help business owners integrate their business planning with their personal financial planning.

If you are starting a business, you have dual financial planning needs. And, because they are so intertwined, they should be done simultaneously.  

First you need to do some business financial planning and consider the following:

  • What will be the source of your business capital? Your savings, credit cards, loan against a 401(k), investors, bank loan?
  • What do you project your business income to be for the first few years?
  • What will your ongoing business expenses be? Will the business be able to cover those or will you need to use personal funds?
  • What type of entity is your business and how does that effect your personal tax and liability situations?

Once you have the basics mapped out for the business, it's time to integrate it with your personal financial planning. We work with you to determine:

  • Where you are today – Age, projected income from all sources, expenses, assets and debts
  • Where you want to go – A specific financial goal such as buying a house, or a more general one such as retirement
  • When you want to get there – How far in the future you want this to happen
  • Potential risks – Accident, illness, loss of property, loss of income
  • How you will get there – Business income, investments, winning the lottery, inheritance
  • A roadmap – Creating specific strategies to move you forward
  • Necessary actions – Increase your business income, start an investment program, purchase insurance, contribute to a retirement plan
  • How you are progressing - Monitoring results and suggesting adjustments as necessary

We help you identify what income your business must produce in order for you to achieve your personal goals. We then work with your business advisors to set your business on a path to make that happen.

If you are planning to exit your business, we work with you to determine your personal post-business financial goals in much the same way that we work with non-business owner pre-retirees. However, there are a few unique differences:

  • Businesses typically pay for a portion of personal expenses for their owners. Those expenses need to be added to the current personal expenses in order to create a realistic post-business spending plan.
  • Businesses typically provide medical and other benefits for their owners. How those benefits will be obtained once the business is sold must be considered.
  • Most businesses have value and can be sold. Helping business owners determine what that value needs to be for them to reach their personal financial goals is critical.
  • The proper structuring of the sale of a business is of major importance. We work with your CPA and business attorney to ensure that the structure of the sale of your business meets your personal financial and estate planning needs and values.