BWP Weekly Market Commentary

BWP Weekly Market Commentary

The Top Five Financial Planning Challenges Of Business Owners

Owning your own business can give you great freedom and power in life. But it also comes with great responsibility. One of the responsibilities business owners struggle with is creating a plan to convert their successful business into long-lasting personal wealth. The first step in solving this problem is understanding what is involved in creating a solid plan. Once you know what you’re up against, you can start planning accordingly. Here is a list of the top five financial planning challenges business owners face as well as some tips to overcome them.

Setting Up An Ideal Tax Strategy

Taxes are complicated and time-consuming, especially if you are trying to make sure you aren’t paying more than you should be. When you’ve got a business to run, there’s no time to figure everything out yourself. That’s why it’s essential to get professional help. By letting an expert take care of your tax strategy, you’ll not only free up time to grow your business but also significantly cut down your tax bill. An advisor can help you choose the best business entity for your unique situation and show you strategies to legally minimize what you owe.

Protecting Your Assets

Making a plan to protect both your business and personal assets is a step you absolutely cannot skip. Failing to properly protect yourself can have devastating consequences if a lawsuit were to occur (which, in this day and age, is not unlikely). You’ll want to explore which general and professional liability insurances will serve you best, regularly review and maintain corporate documents, and keep an eye on capitalization levels. (1)

Preparing For Unexpected Circumstances

Most small businesses depend on a few essential employees to function successfully. If something were to happen to you or one of your key employees, you need to have a plan in place to protect both your business and your family. If something happens to you, who will take over? How can you ensure that you and your family will continue receiving an income? There are many factors to consider when creating a contingency plan, and it’s best to consult a professional to cover all your bases.

Choosing The Best Retirement Plan

As a small business owner, you have several options when it comes to setting up a retirement plan (for yourself and for your employees). Which one is best? Well, there is no one right answer. It all depends on your business and unique situation. Many times, the plans with the greatest tax benefits require the highest contribution levels. Because of this, you need to determine what balance is best for your business.

Planning The Transition Out Of Your Business

This is a factor that is often overlooked. You aren’t going to be working in your business forever. At some point, you will either sell or pass ownership on to someone else (family, co-owner, third party, etc.). How can you set up your business to maximize wealth for you and your family when that moment comes? In order to make this a seamless (and lucrative) transition, a plan should be established as soon as possible.

Next Steps

For a busy business owner, overcoming these financial planning challenges can seem overwhelming. Luckily, you don’t have to do it alone. With the help of a personal investment advisor, you can create a clear game plan, laying out where you are now, where you want to be, and the steps required to get you there. With an advisor in your corner, you can protect yourself from the pitfalls into which many business owners fall. If you’re interested in setting up a no-obligation conversation about how I can help you overcome these challenges and put your mind at ease, give me a call at 949-445-1465 or email me at [email protected].

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients with guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high and ultra-high net worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email [email protected].

Advisory services offered through Balboa Wealth Partners, Inc. An SEC-registered Investment Adviser.  Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.



BWP Weekly Market Commentary

BWP Weekly Market Commentary