Small Business Financial Planning
The Future of Your Business
Many people, if asked, would probably rank financial freedom high on the list of life-goals. Financial planning and having a broad understanding of your financial picture is key to helping you accomplish all of your goals for your life and family. For small business owners, financial planning is paramount to your long term success and peace of mind.
Aspects of life such as spending habits, taxes, investment plans, and insurance needs, as well as milestones including retirement, higher education, and buying a first home, all cost money! It’s never too early to start, as financial planning can be an integral part of planning for your future and for the success of your business.
Three Essential Components of Successful Financial Planning:
- Budgeting
- Comprehensive review of current profit/loss statements and balance sheet
- Determine optimal expense plan for good returns
- Know how much you can put back into your business
- Investing
- Understand current investment portfolio situation
- Analyze what changes should be made to investments
- Look for new options that provide higher returns
- Tax Planning
- Review past years’ financial statements
- Know how your business is set up
- Take proactive steps to offset next year’s tax changes