Business owners spend much of their life trying to achieve the individual successes of owning their own business, but all the success in the world means nothing if you lock up your wealth and fail to properly plan for the future. Business owners often overlook effective succession planning and leave the major decisions up to their survivors when they pass away or retire. Business owners need an all-encompassing approach to investing so they can retire without slapping a discount sticker on their success.
Business owners without a plan going into 2013, should sit down with a financial planner and discuss the future. As each year passes, the need for proper investment planning become more critical. Business owners are neglecting their retirement because they simply didn’t take the time to plan, but time will soon slip away from them and their success will be controlled by someone else. A business owner should include their business in their overall investment strategy, to guarantee comfort in the years to come.
What Does an Effective Investment Strategy Include?
An effective investment strategy for business owners will include 3 major components:
- Proper Asset Allocation
- Succession planning
- Tax Planning
A business owner shouldn’t tie up their wealth in their business alone but include outside investments that allow them to make money elsewhere. Since the Small Business is a higher risk endeavor, owners often balance that investment with more conservative assets. One easy way this is done is with real estate, and specifically the building the business occupies. Business owners need their investments to support their lifestyle after retirement. A financial planner will help a business owner identify their investment gaps and offer solutions to preserve the business owner’s investment. Business owners should be careful not to focus on large and immediate growth, as it makes them more likely to get hit hard when something goes wrong. The potential return on riskier investments is attractive, but the temptation can end up costing business owners everything they have worked hard for.
What is Succession Planning?
Succession planning is a methodical and well-crafted plan for a business that is designed to fill key leadership roles when e-business owner has passed away or plans to retire. Succession planning is essential to the future success of any and all business when the business owner can no longer be the driving force behind all decisions.
Why Would You Want to Lose Control?
Business owners pride themselves in achieving success and making their business an effective and vital part of the economy, but some fail to look at the bigger picture. Investing and planning are simple steps that a business owner can take now to control their future. Business owners make decisions every day that revolves around daily operations, but they must not lose sight of what’s to come.
We Are Here To Help
Without a plan in place, a business owner is setting themselves up for loss. Their business will go on the market to the first buyer looking for a bargain, or the business owner will die behind the desk, without ever having reaped the rewards of owning their own business. Let our experts help you with any of you bookkeeping, payroll or tax needs. Contact our offices in Oklahoma City: 405-720-1244 or Tulsa: 918-477-7650 to get the help you need.