Being a business owner can be stressful at the best of times. Amid mandatory lockdowns, unpredictable stock markets and a widespread economic slowdown, the past few months have dialed up the pressure and uncertainty even more than usual.

Every business owner has their own unique challenges and requirements, yet some concerns are relatively universal: managing cash flow, growing asset values and maximizing tax efficiency while balancing business and personal financial needs.

Amid today’s complex market conditions, going back to basics can offer a profitable path forward.

Meet Mike

At 48, Mike is in the prime years of his career. He runs a profitable consulting firm, which had seen revenues growing steadily up until the start of the pandemic. While business has slowed downed sharply during the past few months, Mike is optimistic that he’ll be able to bounce back as the economy picks up again.

However, Mike is less confident about his personal finances. With no employer pension to fall back on, he knows it falls on his shoulders to save for retirement and meet his family’s long-term financial needs. Although he regularly puts aside money for savings and investments, he’s not sure whether it’s enough and whether it’s optimized.

Ultimately, Mike is focused on efficiency and results. With a business of his own to run, what he really wants is someone with the expertise to guide him toward a financially secure future so that he can be free to focus on growing his business.

Smart yet effortless financial planning

Mike’s time is valuable, so he needs financial planning solutions that can drive results without taking up too much of his time or mental energy. He has no use for needlessly complex financial structures; instead, he’s looking for a simple, clear path to a secure financial future.

If you see similarities between Mike’s situation and your own, here are three things that may help you balance running your business with managing your personal finances:

  1. Understand your situation. It’s hard to save for retirement without a clear understanding of how much you’ll need to maintain your desired lifestyle. A clear business plan is a crucial starting point for any successful venture, and a clear financial plan is similarly critical for charting your path to retirement. A bit of effort up front will pay huge dividends in terms of clarity and peace of mind.

 

  1. Optimize for tax efficiency. You don’t leave money on the table when running your business, and it also doesn’t make sense to do so in your financial plan. As a business owner, you have opportunities to make smart use of various tax structures to minimize your tax bill. The key is knowing what they are and how they work so you can do more with every pre-tax dollar.

 

  1. Create an effortless plan. You already have one business to run, so you don’t need a financial plan that also demands ongoing time and effort to keep it progressing smoothly. Once you lay a foundation of sound strategies, repeatable processes and thoughtful diversification, your financial plan should be able to work hard in the background while you get on with growing your business.

Financially efficient strategies for business owners

The unprecedented economic disruption of the pandemic has provided business owners with a stark reminder of the need for contingency plans. And when your personal finances are tied closely to your business performance, optimizing both is important for ensuring long-term financial security.

At Rubach Wealth, we help business owners optimize their financial position both personally and professionally. If you’d like to discuss your financial situation, contact us today at www.rubachwealth.com.

Together, we got this.

This blog post is part of Rubach Wealth’s Back to Basics series highlighting how focusing on financial planning fundamentals can help you stay on course toward your long-term goals during these uncertain times.