Small business Owners special needs

In recent years there has been a significant increase in entrepreneurial activity and the launching of many new small businesses.  The brave strike out on their own, when they find themselves unemployed or under-employed. Often the shock of a lost job turns a past desire into an opportunity to pursue a new path.

Small business owners are a special group unto themselves with innovative enterprising drive they expose themselves to some sort of financial risk or challenge every day. In many cases risks taken turn into opportunities and successes.

Entrepreneurs work in their business most often – focusing on the ledger, sales, profits and cash flow. Entrepreneurs spend less time working “on” their business and its plan for succession and life’s events.

As a small business owner, your business finances impact your personal finances. In fact, the business and personal needs of small business owners are linked and it becomes equally important to plan for your family’s financial goals, security and safety.

When there is an economic downturn, business owners pay attention to business and personal planning, small business owners want to protect their families in the event of their death, disability or illness. The business goals of growth and keeping good employees are equally important.

A small business owner needs the following:

  1. To manage costs effectively
  2. Attract and keep the best employees
  3. Negotiate good, competitive interest rates on loans and investments
  4. Explore tax effective strategies and tax sheltered savings opportunities
  5. Protect the business – key person insurance is a most valuable tool for this task.
  6. Provide for yourself and family in the event that you die to soon, live too long or become disabled.
  7. Create personal wealth through monthly savings to a registered retirement savings plan and Tax –free Savings Accounts.
  8. Protect personal assets from creditors.
  9. Create a succession plan or exit strategy for the business owner at retirement
  10. Create an estate plan to minimize income taxes paid by the business owner at death

It is never too late to review your situation. It is often said that small business owners don’t plan to fail, they fail to plan!