It’s important for small business owners to identify their short and long-term financial goals.
However, the lines between these objectives can get blurred, and individuals may compromise planning for their children’s education or retirement in favor of expanding their business.
And before you say you'll never leave the business, consider unforeseen events like ill health, divorce, economic changes or even death.
An unexpected event can change the entire direction of your business and put jobs, services and income streams at risk.
We examine the best financial planning tips you can adopt and what tools you will need in order for successful financial and business planning, growth and increased profits.- Your business goals might be at odds with your personal ones; growth and expansion means borrowing more, a polar opposite to your personal goals of saving.
Calibrating a balance between the two isn't always possible, but realising and understanding the need for business finance can counter that opposing force of personal wealth to work best for you, your family and your business.To learn more about financial planning for small business owners, please call Blisk Financial Group today to schedule a consultation.Financial planning needs to be closely aligned to your business plan's goals.Having a robust plan for your exit, whether planned or unplanned, can ensure the future security of the business and those within in.- Business owners often have a sizeable percentage of their personal assets tied to the business.If your business is scalable, allow for self-funding but if you need to look at external sources of finance, ensure you know what they are, where you can get them and how much they will cost you.- If you are aware of your costs, sales and product demand, you can ensure that you are well-positioned to make a profit.This can have a pretty big impact on them if anything adversely affect their business.Removing personal assets, or transferring them can help alleviate this potential financial conflict.- At some time you are going to need capital and/or investment.Seek out your options; secured/unsecured business loans, start-up finance, invoice finance, private equity funding, personal savings etc., as these will allow you to strategise your financial planning accordingly.